It's Great To Be Home

Renovation Tip of the Week: It’s an Investment

November 30, 2010 By Liz - It's Great To Be Home 4 Comments

You guys have been with me through the thick and thin of 3 top-to-bottom home renovations. Through this series I hope to share with you some of the tips and tricks that have helped me save everything from money to my sanity (for the most part).

I thought I’d start this series at the very beginning of the renovation process. Before you buy the house, dream of the renovation, or pick up a hammer you have to plan. Yes, it’s a four letter word and all that entails, but it’s an absolute must.

To me the most crucial part of planning a big ol’ remodel is constantly keeping in mind that above all it’s an investment. Whether you’re flipping a house or buying your forever home, your renovation is doomed from the start if you sink money into the house that you can never get back out.

So here’s my tip of the week – make a good investment up front, when you buy the house.

How do you do that? Here are a few pointers:

1. Don’t overpay for the house.

It’s easy to fall in love with a house and get swept away with that “I have to have it” feeling. Before you begin negotiations with a seller, set a limit on the amount of money you’re willing to spend on the house. To come up with that “top number,” either do research on your own or talk to a realtor about what comparable homes in that neighborhood are selling for. And if you’re a flipper, it’s especially important to avoid spending too much because you won’t have the benefit of time to naturally increase the value of the home. When we buy flips, we know the absolute maximum amount per square foot that we can afford to pay and we use that as our benchmark – anything below that is a good deal.

2. Be educated about what your renovations will cost.

I will talk more about this in later posts, but if you know from the outset that you will be renovating all or part of the home it is in your best interest to speak with a contractor about costs associated with the construction or, if you’re planning on doing the work yourself, then you should do some intensive research on what you can expect to pay for materials, fixtures, permits and any labor that you might need to hire out. Do all of this research before you put in an offer.

3. Have a solid idea of what the home can ultimately sell for.

What are renovated homes in the area selling for? If you don’t know the answer to this question then put on the brakes and do some research. It’s imperative that you know the value of the product you will eventually be selling.

4. Keep in mind hidden expenses.

When you’re calculating the net profit you will make once you sell the house, keep in mind the hidden expenses such as realtor fees, carrying costs (mortgage, interest, PMI), closing costs, homeowners insurance, taxes and utilities. It’s especially important if you’re flipping a house to keep track of these costs since they eat into profit very quickly.

Next week’s tip of the week . . . How to Pick the Right House.

Fab Art On The Cheap

July 7, 2009 By Liz - It's Great To Be Home 6 Comments

There’s probably nothing more daunting than buying a piece of art. I mean, what if you don’t like it in a few years? What if you want to change your decor and all of a sudden that awesome piece of art clashes with everything? What if you don’t want to make a huge investment? What if you want a piece that’s original and totally unique, maybe even one-of-a-kind? That kind of swag is out of the budget.

Or is it?

Check out these gorgeous, unique pieces of art:

Are you swooning as much as I am? (I know, my love of everything bold, colorful and abstract runs deep). Well, hold on to your socks, ladies and gents, cause they’re about to be knocked off – most of this artwork is $20 or less. I know, I kinda think they’re lying, too.

ImageKind and 20 x 200 are sites which operate under many of the same principles as Etsy – namely, these sites allow artists to sell their art directly to you. This way, you get some pretty awesome art from up-and-coming artists for an absolute steal. Now you can switch up your artwork with the season or your mood, or take a risk on a piece of art that you wouldn’t normally buy, without worrying about breaking the bank!!

Know of any other great sites where you can find affordable artwork from new artists? Spill the beans!

Images courtesy of ImageKind and 20 x 200. These sites were originally found here.

We’re Flipping Out

June 3, 2009 By Liz - It's Great To Be Home 22 Comments

Yesterday was a big day. Not only was it our two-year wedding anniversary, but yesterday we officially picked up a little (ahem, huge) hobby.

Have you figured it out yet from the title, or do you need a few more hints? Let’s see . . .

. . . it’s a big investment . . .

. . . a little risky . . .

. . . a lot of fun . . .

. . . a huge amount of work . . .

. . . and it involves flipping houses.

This house, to be exact.

A beauty it is not – yet. But it will be. And it’s positively overflowing with potential – 2,450 square feet, 4 bedrooms, 2.5 baths (which we’ll convert into 3 full baths), a pool, a great street . . . I could keep gushing, but I’ll spare you for now. And we negotiated our butts off for a phenomenal deal – almost $100,000 less than the original listing price, and $70,000 under its appraised value.

And as of 2:30 p.m. yesterday, it’s ours. But hopefully not for long. Our goal is to have this sucker back on the market in about 2 months – it’s doable but tight, and we’ll have to be on top of the renovation at all times. Luckily we learned the ropes during our own remodel last year.

So what do you think? Have we officially flipped out? Or are we destined for huge success? Chime in!

Be sure to stay tuned for all the trials and tribulations of our very first flip.