Costs More…Takes Longer?

Certainly one of the tougher functions in a Real Estate transaction is negotiating the inspection items. Some believe the seller should do everything and yet in a highly focused seller’s market that is not likely the case. The replacement of a roof covering can often become a real issue especially when using the contractor that just knocked on your door. Why? Their workmen may or may not show up and the roof may not get installed on time! When you hire an experienced Realtor those items should be non issues….but it does happen to all of us. The contractors I work with know that and are committed to get the job done on time, and often will wait for their payment until closing. Now a remodeling project…read on…

The one experience that homeowners can agree upon after completing a remodeling project is that it costs more and takes longer than expected. It doesn’t really matter that you researched, planned, and received multiple bids, it will, invariably, cost more and take longer than you originally anticipated.

Replacing floorcovering or painting is a project that a homeowner can easily get bids and contract with the workmen directly. A new level of complexity occurs when the project involves more specialized contractors, like plumbers, electricians, carpenters, counters, and others.

Now, a homeowner is faced with dealing with one general contractor who will run roughshod over the sub-contractors or make the decision to do it themselves. Typically, you’ll pay more for a general contractor, but the trade-off is that they have the contacts and experience to make things go smoothly.

Subs are notorious for wanting to finish their “part” of the project and move onto to the next job. Sometimes, they’re not interested in the “big picture” enough to consider doing things in a way that are best for the overall outcome.

When you start tearing out some things, you find out that there may be unexpected expenses involved. Another common occurrence is that during the project, you get a new thought about changing something else “since it is already torn up anyway.” This will add time and money to the job.

There can be the situation that the homeowner doesn’t even know the right questions to ask or what to consider when trying to coordinate the different workers. The most detailed timetable can be thrown off track if one set of workers don’t show up or finish on time. At best, it delays the project for a few days. At worst, it can delay it for a few weeks because the individual workers may have committed to other jobs that don’t allow them to reschedule.

Once the work is done in a professional manner, you’re probably going to live with it for years. If it is something you’ve wanted to do and it will allow you to enjoy your home more, it is worth doing. Just be patient and enter this adventure with the understanding that it will cost more and take longer than you expect.

We have all experienced good and bad contractors.  If you are considering a home improvement project let me know and I can refer you to a reliable contractor for the project you are considering. 

Call 480-355-8645 Or Email Us Info@LocateArizonaHomes.com

Welcome to 22167 E Via Del Palo

Adorable move in ready home backing to the golf course with fabulous panoramic views! Home features great room style floor plan and a light and bright eat in kitchen with island for plenty of counter space. Low maintenance desert landscaping allows you time to enjoy the beautiful view of the golf course with the serene San Tan Mountains backdrop. The exterior was painted in 2015 and Low E windows for energy efficiency. Great subdivision in the heart of Queen Creek with community pool and planned activities. Festive events are just minutes away at QC Olive Mill and Schnepf Farms. Close to shopping and great schools, too.

 

For more information visit our website

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Housing Decision During Retirement

Recently I took a  certification class for the designation of Senior Real Estate Specialist. I found there was  a wealth of information to assist my clients that are reaching retirement age or have parents with limited and/or fixed income.  All of that to say is there is a lot to think through when planning for retirement.  Certainly the below is a unique view of how some approach retirement. The Phoenix metropolitan area is wonderful place to retire with the mild climate and plentiful golf courses, so read on for more enlightening information…

A couple is planning to tour the United States in a travel trailer during their first few years of retirement. They are going to sell their current home now and purchase another home when they finish their travels.

An interesting exercise is to determine the optimum time of selling the home: now or when they’re ready to buy their replacement home.

If they intend on traveling for more than three years, then, it may be a good decision to sell prior to the sojourn to avoid paying taxes on the gain in their home. IRS allows for a temporary rental of a principal residence while still keeping the $250,000/$500,000 capital gains exclusion intact. A homeowner must own and use a home for two out of the previous five years which means that it could be rented for up to three years, but it would need to be sold and closed before that three-year window expires.

If the travel will be less than three years, there is an option of selling now or later. Using the example below, the homeowner sold the home, paid their expenses and invested the proceeds in a three-year certificate of deposit until the replacement home was purchased.

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As an alternative, if the homeowner rented the home, not only would they have income, the home would continue to appreciate and the unpaid balance would go down resulting in larger net proceeds. Based on a 5% appreciation and continued amortization of the mortgage, the net proceeds could easily be $40,000 more.

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Obviously, there are a lot of considerations that affect the decision to sell now or later but in an appreciating real estate environment, being without a home for several years could affect the financial position of the owner in the replacement property.

It is certainly reasonable to look at various alternatives before making a decision. Call me at 480.355.8645 or Email me Info@LocateArizonaHomes.com to help you look at the different possibilities and talk to your tax professional.


Welcome to 1581 E Shannon St., Chandler – Ashley Park

This home has been highly upgraded and remodeled lovingly by the owners. Upon entry you’ll notice the natural stone Travertine floors in the ample great room and the elegant French doors leading to the yard. The gourmet kitchen has been set up for the most discriminating cook with high end Kitchenaid stainless appliances, gas range, granite counters and stained cabinets. New dual pane vinyl frame windows throughout for energy efficiency. Split Master features a large Bay window overlooking the rear yard, luxurious master ensuite with granite and tiled shower plus a private water closet. The low maintenance yard features a sparkling play pool with oversized decking for relaxing by the pool or enjoy the shade under the covered patio outdoor living space. The home is a move in ready gem!

Contact Us at:  Info@LocateArizonaHomes.com   480-355-8645