Random Thoughts on Home Value

Location, location, location - alright already, we get it! Location has everything to do with the value of your home. A beach-front shack is worth more than a mansion in the desert, that's just common sense. But, not everyone wants beach-front property. To those monsoon-fearing individuals, beach-front property is worthless. When it comes down to it, location, location, location is subjective. In fact, all aspects of real estate value are subjective.

OK, let's take a look at the home appraisal basics. After taking mortgage rates and supply and demand into account, the value of a home is based on the city and the area within the city the home is located, the square footage, the number of rooms and facilities in the home, added home features (i.e. swimming pool, remodeled kitchen, etc.) , and the going rate of similar homes in the neighborhood. But what's important to remember is that not everyone wants their home to be the same square footage or in the same city. If we all wanted the exact same home with the exact same square footage and a picket fence in the front and a pool in the back, home value would solely be based on mortgage rates, supply & demand, and location, location, location.

But, we are all different. Some would rather live in a shack on a hill while others would prefer a mansion in the desert. Personal value will always reign supreme and help keep location, location, location on a leash.

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Add Value to Your Home Through Remodeling

Remodeling your home is a great way to update your living space. As time goes by, styles and personal tastes change. Remodeling is a great way to reinvent your living quarters, keep up with modern interior design, and add value to your home. However, over-remodeling your home or remodeling your home in a truly "unique" fashion can be more harmful than good.

Below are a few tips on how NOT to remodel your home. Follow them carefully and you'll be able to update your home and increase its overall value.

Tip 1 - Remodel Within Your Means
When remodeling, try to stay within a strict budget. Going overboard will put a strain on your finances and could lead to unfinished remodeling work. You don't want to end up with that one room that fell victim to unavailable funds during its remodeling. Chances are you'll never get around to finishing it and if you ever sell, that unfinished room will be a mark against your home.

Tip 2. - Keep Extremes To A Minimum
We all have our own personal taste and eye for design, but some perspectives are more "unique" than others. If you have a penchant for cats, don't decorate your entire home in a cat motif. Reserve it for a guest room or bathroom. Decorating your entire home in a very personal style will lessen the resale value of your home (especially if you start reshaping windows into cat-shaped openings). A prospective buyer interested in buying a home in your area might pass on your property because he/she doesn't have the same affinity for cats as you do and doesn't want to have to completely re-wall paper his/her new home.

Tip 3 - Keep It All Up To Code
When you make changes to your home, be sure the changes you make are up to code. Making changes or additions to your home that are not up to code, as well constructed as they may be, will greatly hinder the value of your home. When you go to sell your home, you must disclose that your additions were not checked or built up to code. Hiding this information and having the new owner find out later will cause you personal and financial troubles.

Remodeling your home is exciting; however, if you go overboard or build out of code, your remodeling will end up costing you more in the long run.

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Will The Laguna Beach Landslides Ruin The Hill-Top Home Real Estate Market?

In early June of 2005, a landslide destroyed 18 million-dollar homes, sending them cascading down the hill they were built on. Will this recent tragedy to the Laguna Beach community curb hill-top home construction and sales? Based on similar occurrences throughout the history of home building, the answer is NO! Homes will continue to be built on unsafe hills and those who can afford the views and multi-room estates will continue to purchase them. An amazing view can very easily blind a home buyer from the poor foundation the home is built on. Heavy rains and earthquakes can very easily cause hills to erode and earth to slide away and it doesn't take a rocket science to identify properties that may one day fall victim to common geology. With a little bit of research, a home buyer could even determine which side of the hill is the safer side to have a home. But the desire to have the biggest home and the best view will always reign supreme, regardless of what side of the hill it's built on. Scenic over science is what drives the million-dollar home market and it doesn't look like it's about to change any time soon. So in the end, homes will continue to be built on unsafe hills, people will continue to buy them, and the only question that remains is "When will then next landslide of multi-million dollar homes happen?".

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The Real Estate Market is Still Hot!

Home prices continue to soar across the nation while mortgage rates surprisingly have remained below 6%. The real estate market is definitely flying high. However, many real estate and economics experts claim this real estate bubble is bound to pop soon. Investors and real estate professionals alike are looking back to the early 1980s when a run-up in home prices during the late 70s eventually led to a decline in real estate value. There are those that scream 'But this time is differet!" and believe the market will remain strong, but there are no signs that point either way to a definite end.

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