SayEducate

Many homes are built with unfinished basements as this is the one area of the home least used by homeowners throughout the course of the day. Even the lowly garage, if not used to house vehicles, is often the place where stuff is stored. Basements are rarely considered to be an area where homeowners plan to spend much of their time.

Basements do have a purpose that some people fail to consider — if finished off, this room can add value to a home perhaps far more value than it would have had it remained unfinished. A finished basement can be used as a recreation room, as a play room for children, even used as a den. What a finished basement does do is add equity to a home.

Most home improvement projects can be get quite complicated, even expensive, but with a basement finishing project, the amount of work that needs to be done isn’t always that involved. Certainly, if you desire walls or partitioned areas then that will add to the cost of the project. Some basements aren’t tall enough to put in dropped ceilings, but for those which have the room, this isn’t an expensive job.

If your basement has some problems with water, you’ll want to coat the walls with water resistant paint. While you’re at it, head to the outside to make sure that the soil slopes away from the house and that the drainage is good. You may have to add in drain pipe extenders to help move water away from the house.

Heading back inside, consider using tiling for the flooring. Most kitchen style tiles will do, but if you elect to go with a raised floor, you’ll pay quite a bit more money. Add in wall to wall carpeting and your small project has mushroomed into a full-fledged home improvement job.

Likely, all of your electrical and plumbing hook ups are already in place, but be prepared to run some lines or piping in the event you need to heat, cool, or light a certain area. You want the room to remain as dry as possible so consider having a dehumidifier on stand by, ready to kick in as needed.

Once you have your plans established, you can tackle this job over several weekends or take a week off from work to get everything done. When completed you’ll have a room that everyone will love and that finished basement will add to the value of your home.

Resources

Home Equity Lending

Managing Bank Equity

In some areas of the country, the condominium market has crashed as a huge surplus of defaulted or unsold homes has wreaked havoc on the market. One market that comes to mind is Miami.

On the other hand, some cities are experiencing a building boom as empty nesters, retirees, and investors look for good values in real estate. In my area — Raleigh, NC — several all-new construction projects are in progress, providing state-of-the-art housing adjacent to everything: government offices, museums, businesses, shopping, and more.

If you are desiring all-new construction or conversion housing, the time to start, build, and complete the project can span several years. This means that you must do your homework before deciding whether a particular condominium is right for you. Let’s take a look at some things you should consider when buying pre-construction.

Why would someone buy something before it is built. For several reasons:

• Oftentimes, early buyers receive a discount as builders want confidence that their project is in demand. By offering a price slightly lower than the market rate, you could find a nice deal.

• Buying now and paying for it later could mean that your property has appreciated during the time it took to be completed. For example, if that two bedroom garden high-rise was contracted for $440,000, it could have gone up in price since. You’ll pay financing on its original value or if you are looking for a way to make some money, you could sell your unit and pocket the money.

When buying pre-construction keep in mind the following:

• What will your financial situation be when the project is complete and you’re ready to move in? Will you need a mortgage and, if so, will you qualify for one?

• Will interest rates be stable or are they trending higher or lower?

• If you are investing in the property will you live in it or rent it out? What are the rental rates for comparable units?

• When the project is completed, what will the neighborhood be like? Will there be other projects under development and what sort of local amenities will be found nearby?

Of course, when you buy pre-construction, your chances of getting what you want are greater if you act sooner rather than wait. Specifically, you’ll be able to choose the floor, floor plan, and unit location (will it face an office building or will you have an unobstructed view of the river?) if you act quickly.

Consider also your down payment monies, possible taxes (property taxes will come later), fees, and the like when buying pre-construction. Theoretically, your cash outlay should be small at first.

The end result of new or repurposed housing is that your home is brand new. You bought it at yesterday’s prices and, if you did all your research, you now possess a home that has appreciated significantly in value.

Resources

Arrange Home Financing

Home Buying Checklist

Repairing Your Credit

Understanding Escrow

This article represents the final article in our home construction specification plan series.

Assembling a Home Construction Specification Plan — Spec Plan T: Interior Decor

Who is the best judge of how a new home should look? Is it the builder? An interior decorator? Or would that be some other type of professional?

Although there isn’t anything wrong with employing the services of a professional, the people who live in a home are often the best judges as to how it will look. After all, a house isn’t a home until you have personally decorated it.

We’ve Come To An End In Our Series

In our ongoing home construction specification plan series, which comes to an end with this article, we’ve taken you through all of the steps needed to acquire property, lay a foundation, build your house, and turn that house into a home. The final step, your home’s interior, isn’t a requirement of your home specification sheet, but it does play an important role as to where a wall will be built, how a room is laid out, and more.

Fortunately For You, My Advice Is Limited

Although I have been comfortable detailing the entire home spec plan up to this point, I must tell you that I am not someone who is particularly adept at interior decorating. For that, I leave this task in the capable hands of my wife.

If I were tasked with decorating a home, it would probably have a distinct bohemian bachelor look — a mix and clash of furniture, colors, and assorted knick knacks. It would be tidy, but not something that would appear in Architectural Digest or House Beautiful.

Get Informed!

Fortunately, there are some great resources out there for the person who wants to decorate their home. I mentioned two of the more popular interior decorating magazines, but there are some other places you can go for help:

Interior Decorating Stores: If you have a good store in your area, paying them a visit could be worth your while. Many of the larger stores offer seminars and classes to help you design your home’s interior. Sure, they want your business, but the ideas offered can be used anywhere.

Take A Class: Many adult schools and some community colleges offer classes on decorating your home. You don’t have to get a degree, but if that Window Treatment class costs you $50, you’ll likely get that money back when you go out to shop for what you want.

Turn On The TV: If you have access to cable channels, then a channel like HGTV can help you lay out your kitchen, choose the right colors for your den, find the best bedding for your child’s room, and much more.

Of course, a knowledge friend can also offer tips and advice, just the information you need to personalize your home.

On a final note, thank you for following our series which began in October 2007. If you are interested in a recap, most of our articles were posted on Tuesdays, so please go back to our Home Style For Every Homeowner article and start from there.

Enjoy your new home!