2010 Remodeling Cost as Compared to Resale Value

Remodeling Magazine annually researches the cost of remodeling with the help of Home Tech Information Systems. They also research the value remodeling adds with the help of the National Association of Realtors. They put this information together by regions. For a complete report please go to http://www.remodeling.hw.net/2010/costvsvalue/national.aspx

Below are the results for the San Francisco region.
A small difference in the size or scope of a project, or in the quality of finishes and accessories you choose, can dramatically affect the cost.

The “value” of a project at resale is always subject to forces that are difficult to predict. Changing how a space is used may meet the immediate needs of the current homeowner, but may be at odds with what prospective buyers are looking for. How the value of a remodeling project is perceived also depends on a variety of factors that traditionally affect home values, including the condition of the rest of the house, the value of similar homes nearby, and the rate at which property values in the surrounding area are fluctuating. Comparable values are particularly difficult to judge in the current economic climate, in which the effect on the value of surrounding homes of foreclosed properties and short sales are part of the equation. The mere presence of a large number of unsold homes, whether new or existing, well-maintained or distressed, can have a constricting effect on surrounding home values.

The Cost vs. Value Report provides an accurate snapshot of the general housing market, but it cannot be applied accurately to an individual remodeling project for your particular home. Resale value is only one factor among many that a homeowner must take into account when making the decision to remodel. I think the best course of action is to obtain construction cost estimates from reputable local remodelers and then give me a call at 877-Lee-Sells to discuss the value it will add to your home.

Project Job Cost Resale value % recouped

Attic Bedroom $70.938 $74,206 1 04.6%

Bath Addition $54,927 $44,476 81.0% ­

Bath Remodel $22,014 $22,440 101.9% ­

Deck Addition $18,636 $18,987 101.9%
­(comp)

Deck Addition $15,091 $17,025 112.8% ­
(Wood)

Entry Door $ 4,197 $3,438 81.9%
­(fiberglass)

Entry Door $ 1,546 $2029 112.8%
(Steel)

Family Room $113,274 $109,553 96.7% ­

Garage Addition $79,104 $64,208 81.2%

Garage Dr. Repl.$1,579 $1,992 126.1%

Home Office $34,574 $21,641 62.6%

Major Kitchen Remodel $71.015 $67,583 95.2% ­

Minor Kitchen Remodel $25,039 $27,816 111.1% ­

Master Suite Addition $143,853 $123,003 85.5% ­

Roof Replacement $28,699 $21,821 76.%

Siding Replacement $14,931 $11,111 74,4

2010 Remodeling Cost as Compared to Resale Value

Holiday Shopping for a Home? The next 10 days are Black Fridays In Real Estate!

Are you serious about buying a home? Do you want to take advantage of record low interest rates and the lowest home prices in 5 years? If you answered YES to either question: Then do it now!!!

Why do I say that you might ask? You have much less competition. The people not so serious are fighting the crowds in the malls, (I hope at my son's store Designers Center at "The Shops at Tanforan") not at open houses. Sellers that have their homes on the market now are serious (desperate). Who wants people coming through their home during the holidays? Banks are even more motivated to get rid of these homes before the end of the year. The sooner they get them off their books the better. Now that the foreclosure moratorium is basically over they will have plenty more to sell. They want to get rid of these now. Make an offer. They will listen. They might even gift wrap it for you at no extra charge.

I suggest you hire a personal shopper to do your Christmas Shopping and contact your favorite Realtor to help you buy a home now! I congratulate you in advance. Merry Christmas and Happy House Hunting!

www.leesellsmore.com

Holiday Shopping for a Home? The next 10 days are Black Fridays In Real Estate!

Is the Giants Victory Similar to Buying a Home?

How can the baseball World Series be anywhere related to Home Buying you may ask. Let me explain…

The San Francisco Giants won as a team, and that is the only way to successfully buy a home. You need a team. A great mortgage broker; Tim Lincecum. An excellent Realtor, who is not just a real estate agent (follow this link: http://ow.ly/39GSe); Cody Ross. A hardworking assistant; Edgar Renteria, an experienced inspector; Aubrey Huff, a dependable escrow officer; Busty Posey, and of course a reliable management team; Bruce Bochy.

Now you see the importance of a team. Without one player you may not get the home. A good Realtor has a good team.

Another correlation to the Giants TEAM Victory is the Team of Low Interest Rates, Low Prices, and Motivated Sellers. That leads to the Victory of Closing on a Home; Brian Wilson.

www.leesellsmore.com

Is the Giants Victory Similar to Buying a Home?

Free Home Buyer Seminar

Home Buying Seminar

Wednesday Nov. 10 - 6:00 P.M.
Location: 180 El Camino Real, San Bruno
Hosted by Lee Ginsburg and Wells Fargo Bank

One Person’s Loss, Is Your Window Of Opportunity!!!

·Learn How To Take Advantage of Today’s Real Estate Market. Yea!
· REO’s, Bank Owned Property, Foreclosures, Short Sales
· Qualifying For a Loan in Today’s Market. It’s not that bad.
· Low Down Payment Programs. Try 3.5% Down!
· Understand the Home Buying Process.
· Closing Costs, Inspections, Contingencies, Title Insurance.
· First Time Home Buyer Credits.
·Real Estate Auctions

Complimentary: Parking·Dinner· Home Buying Guide

There is NO CHARGE for this seminar. Pre-registration would be helpful. Guests and Walk-ins are welcomed. 877-Lee-Sells 533-7355 Or email lee@leesellsmore.com

Free Home Buyer Seminar

Foreclosure Baloney

I don't get this foreclosure moratorium stuff.

I don't understand why the press and politicians are putting so much into it. I can assure you the banks are not foreclosing on anyone current on their homes. Many of these home they are foreclosing on are vacant and some inhabitable.

A sad fact I heard recently is many homeowners are losing their homes due to medical bills. That should not be.

Making the banks review additional papers, re-file, and delay the inevitable is only getting revenge and that is not healthy. No good come out of that.

We should be putting pressure on the banks to modify the loans of homeowners who are good, honest, hard working people. Many of these people for whatever reason can't make payments at the current payment but can and want to make modified payments. I don't understand the need for a bank to go to the expense and foreclose on a home with a $500,000 loan and a month later sell the home to someone else for $300,000. The original owners would have been capable and extremely happy to make payments probably on $350,000. The banks would have been $50,000 + expenses better, with less property on the market values would be up protecting their equity in all their portfolio.

I have another idea to deal with this foreclosure cancer. Equity Share. Let the banks lower the principal and they share in the increase in equity with the bank getting the first 25% of any increase. This allows the bank to regain their loss and possibly make a profit. More important it keeps more people in their homes, and creates a lower inventory of homes for sale stabilizing and increasing home prices. With stable and increasing home prices it will eradicate the foreclosure cancer and increase the value of the homes already in the banks hands.

It sounds so simple. Why don't the politicians fight for that rather than trying to get revenge on the bank.

http://www.asianjournal.com/dateline-usa/15-dateline-usa/7268-california-officials-demand-foreclosure-moratorium.html

http://thehill.com/homenews/campaign/124533-foreclosure-moratorium-takes-center-stage-in-senate-battleground-states

www.leesellsmore.com

Foreclosure Baloney

Investing: Bay Area Real Estate Vs. The S&P

I personally have been investing in Bay Area real estate since I moved out here from Brooklyn in 1977. I have 75% of my assets invested in Bay Area Real Estate. Most of my remaining assets are invested in the stock market. I was curious which investment has had the best return on my investment over the last 20 years. Bay Area Real Estate has proven to produce an 8% greater return than the S&P over the last 20 years. Quite honestly I was expecting that number to be greater, but I am grateful, that with all of the ups and downs, I have made the right decision.

Let me quickly explain my numbers. I took a $100,000 investment in the S & P in 1990 and compared that to a $500,000 home purchase using the same $100,000, or the standard 20% down payment also in 1990. I am not a statistician so my numbers are rounded off and are deemed reliable, but certainly not guaranteed. These numbers are based on not selling and leaving it invested in an S&P index fund. Let me say if you paid cash for that same $500,000 home you would be substantially better off with investing in the S&P.

Please review the facts and would love your comments.

Year	S&P % CAGR *	$100,000 investment will be worth	Bay Area % Median Price Change *	$500,000 purchase with 20% down payment
1990	-3.42	$96,580	-0.005	$497,500
1991	30.94	$126,462	0.024	$509,440
1992	7.6	$136,073	-0.012	$503,326
1993	10.17	$149,911	-0.004	$501,313
1994	1.19	$151,695	0.022	$512,342
1995	38.02	$209,370	-0.004	$510,292
1996	23.06	$257,650	0.05	$535,807
1997	33.67	$344,400	0.072	$574,385
1998	28.73	$443,347	0.121	$643,886
1999	21.11	$536,937	0.131	$728,235
2000	-9.11	$488,022	0.253	$912,479
2001	-11.98	$429,557	0.046	$954,453
2002	22.27	$525,219	0.086	$1,036,536
2003	18.72	$623,540	0.077	$1,116,349
2004	10.82	$691,007	0.151	$1,284,918
2005	4.79	$724,106	0.115	$1,477,655
2006	15.74	$838,081	0.051	$1,553,016
2007	5.46	$883,840	0.071	$1,663,280
2008	-37.22	$554,874	-0.227	$1,452,043
2009	27.11	$705,301	-0.207	$1,151,470
	TOTAL GAIN	$605,301	TOTAL GAIN	$651,470

Tax consequences and principal pay down really need to be considered to compare real gains.

CAGR is the Compounded Annual Growth Return -http://www.moneychimp.com/features/market_cagr.htm

Bay Area Median Price from CAR Annual Historical Data Summary http://www.car.org/tools/smart/archive/2010ahds/ I consider Real Estate a safer and more conservative investment. The temptation to buy and sell as the market fluctuates while invested in the stock market is much greater than in Real Estate. I believe Real Estate has many other benefits; certainly the tax benefits are great. As an investor you can have a non-cash write off of depreciation, and as a homeowner you can deduct all interest and property taxes, plus you are allowed a tax free gain of $250,000. Picking a stock is much harder than picking a home. Most homes in a regional area appreciate in similar proportions. I quickly looked at San Bruno and San Mateo for the last 10 years and they both appreciated 19%. Not sure if you can say the same for the S&P. You could lose everything if you invest in the wrong stock. Having the discipline not to sell a stock is very difficult. With Real Estate you can never lose everything. Even if it burns down and you have no insurance, the land has value. Real Estate investments are a bit more difficult to liquidate so it is forced savings. Most important Real Estate offers you a home to live in. The cost of borrowing for homeowners comes with the tax benefits above and in 30 years it will be paid in full. The cost of borrowing for Real Estate investors is paid by the tenants and so is the principal payoff. Many financial advisers believe in diversification; small cap, large cap, international, etc. I do not suggest that for Real Estate Investing. Managing single family homes is different than multi unit buildings and different again from commercial property. Managing properties in different areas even if they are the same type of property does not work either. Different areas have different rent control policies, different laws, and different expenses. I am a believer one should only invest in real estate you can drive to in an hour or two. I heard about a great investment on the east coast. If everything went as planned it would have been a great investment but being 3000 miles away I was not able to control the plan. I am happy to be out of that investment. I would love to hear your feedback. www.leesellsmore.com

Investing: Bay Area Real Estate Vs. The S&P

Bless San Bruno

You know we have seen other natural disasters similar to the San Bruno Explosion. 

When we watch it on TV  and it happens hundreds or thousands of miles away it  a tragedy,  it is terrible.

When it happens around the corner from you and it is heartbreaking. 

When it happens to you, I doubt there are words to explain those your thoughts. 

When you see the outpouring of volunteers, donations, and support it is heartwarming. 
It makes me proud to say that I have lived and worked in San Bruno for 35 years ever since I moved from the East Coast.

Next time someone asks me where I work, I am going to say Loud and Clear;
SAN BRUNO, "The City of Care and Compassion"!

Want to read more on the Care and Compassion of San Bruno  http://www.contracostatimes.com/bay-area-news/ci_16045332?nclick_check=1 

http://www.sfexaminer.com/local/Donations-rolling-in-to-San-Bruno-102643424.html

Lets give credit where credit is due.  The Police Department, The Fire Department, Mayor Jim Ruane,  City Manager  Connie Jackson, City Council People, neighboring  Cities, Millbrae, Burlingame, South San Francisco, Daly City and others worked so hard and professionally.  Within hours an evacuation center was  set  up and within 12 hours many state and federal agencies, Red Cross, along with insurance companies had tables set up to help with the recovery.

Want to know where to Donate -http://http://www.contracostatimes.com/bay-area-news/ci_16045332?nclick_check=1

http://abclocal.go.com/kgo/story?section=news/local/peninsula&id=7660232

Lee Ginsburg
www.leesellsmore.com

Bless San Bruno