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First, here
are two quick ome improvment tips: Home repairs often cost thousands of
dollars and are the subject of frequent complaints. Select from among
several well established, licensed contractors who have submitted
written, fixed-price bids for the work.
Do not sign any contract that requires full payment before satisfactory
completion of the work.
See
home improvement
for more information.
Here are some home Improvements that may increase resale value: Some
improvements may not add as much to the property value as you paid for
them. Example: A $15,000 pool or tennis court added to a modest house in
a middle-class neighborhood may boost market value only $3,000 to
$4,000. Better bets: Improvements that add top dollar value. Examples:
Outside. Paint-job, lawn, driveway, gutters, things people notice first
when shopping for a house. General impression is that entire house has
been well cared for.
Inside. The kitchen is the most important room for enhancing resale
value. Everything spent to improve a kitchen will be close to 100%
recoverable on resale. What buyers look for: Complete and proper
arrangement of appliances, adequate storage and counter space, good
lighting, and bright, cheerful yellow or white colors.
Next most important room: The bathroom.
Installation of a second bathroom will repay in increased resale value
100 % of its cost or better; a third bathroom will repay about 80% of
cost.
A garage can be a strong selling point if it is structurally sound,
clean, and uncluttered. Basement: Dampness indicates foundation and
drainage defects. Naturally, this turns potential buyers off and lowers
value considerably.
Asking price. Call in a professional appraiser to determine fair market
value. Then tack on 10% to establish asking price.
Tax Benefit
From House Repairs. Repairs after a fire or flood can be tacked on to
the original purchase price of the house when the house is sold. That
reduces the capital gains tax. Also added to the purchase price: General
home improvements, including the cost of materials for do-it-yourself
jobs. Caution: Keep invoices to document claims for the IRS.
Buying A
Home Pool without Getting Soaked. Backyard pools are growing in
popularity as high gasoline and motel prices keep more people at home.
While buyers must still proceed cautiously, there are now plenty of
reputable pool dealers around. The industry itself has set standards and
flushed out many fly-by-nighters.
Caution: Do not expect to recoup or better your pool investment when
selling the house. Real estate brokers consider pools neither a plus nor
a minus. Pools frequently reduce the resale value, but can be very
attractive to some buyers.
Costs: Traditional 16 by 32-foot pools that are in the ground now start
at $25,000. Basic aboveground pools begin at about $5,000.
Do-it-yourself pools are cheaper, but are often shoddy. Also budget for:
Annual chemical costs (about $400). Higher electricity charges.
Winterizing.
Drawbacks: Pools require considerable maintenance. Neighbors often
expect pool privileges. Some neighbors may complain about noise,
drainage, and safety. Fencing the pool can be expensive.
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Defensive
strategy: While the pool is being built, order additional liability
insurance coverage. About $100 a year buys extra liability protection of
$1 million.
To find a builder: Ask neighbors with trouble-free pools. Other sources
of referrals:
Home contractors, swimming pool managers, a national trade group.* Have
builders take you to other pools they have built, and ask owners about
any problems.
From initial inquiry through completion, the job can take from two weeks
to two months. Much depends on what the builder finds when excavating.
Underlying rock, for instance, will slow process. But, on average,
construction itself takes three to four weeks. "Watch out for
contractors who will not sign an agreement for a firm completion date.
Reason: pool contractors tend to take on too many summer jobs and push
leftovers into the next season.
Best materials: A Gunite concrete liner, using pneumatically applied
concrete, is best. Vinyl liners often tear. They do not fit right.
Stainless steel, aluminum, and partly wooden liners are all adequate.
Fiberglass is suitable for smaller pools only.
Equipment: A premium-priced filter, plumbing, and pool heating equipment
are worth the cost in the long run. Do not buy both an electrical heater
and a cover that heats with solar energy.
Body
comforts: Plan for a sauna or hot tub in the original design. It
probably will add less than $3,500.
Financing: Bank loans run about 19%. They are easily available.
Paying the builder: Do not hand over more than 10% up front. Leave a big
payment, at least 25%, until the day of your final inspection and
acceptance. Do not forget to ask for the winter pool cover.
The latest fad: Shallow pools. Advantages: A pool 3 V2 to 5 feet deep
saves $1,000 and up in building costs. And children do not have to be
watched so carefully, provided that they know the pool is too shallow
for safe diving.
If the pool turns out to be more trouble than it is worth, fill it in
and plant grass.
Source: Consumer Information Center
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