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11710 OLD GEORGETOWN RD #1205, ROCKVILLE, MD 20852 | The Gallery | Foreclosure

Fri, 15 Oct 2010 12:03:07 -0400

Anyone interested in a great deal in North Bethesda?

a 1 bedroom, 1 bath Foreclosed unit just became available in the Gallery, at White Flint, Rockville MD.
• HomePath financing approved
• As little as 3% down
• Up to 3.5% Closing Cost assistance

Call me for more information or to schedule a visit

More Real Estate in North Bethesda
Condominium Foreclosure List

Broker Name: Avery-Hess, REALTORS

Rooms for Rent, Walking Distance to College Park Campus

Tue, 12 Oct 2010 15:46:37 -0400

Do you know anyone looking for housing in College Park?

We have 1 basement bedroom available in a townhome, MINUTES away from College Park campus (behind McDonalds).
• 2 upstairs bedrooms
• 2 basement bedrooms
• Campus shuttle runs in front of home
• 12 months lease
• Long Term housing available
• Utilities divided equally between housemates

Call me for more information or to schedule a visit

511 Casey Lane, Rockville, MD 20850 | Fallsgrove | Foreclosure

Tue, 5 Oct 2010 13:52:47 -0400

Foreclosed home available in the Fallsgrove Subdivision. 511 Casey Lane, Rockville, MD, is a 4 levels, 3 bedrooms, 3.5 bathrooms, 2 car garage, available for under $505k (LOWEST PRICED 3 BEDROOM TOWNHOUSE IN FALLSGROVE). Contact me to schedule an appointment to visit.

1306 Wild Oak Terrace, Rockville MD 20852 | Foreclosure

Tue, 5 Oct 2010 13:42:20 -0400

This home was recently foreclosed, and is now available for the public to purchase. Located at 1306 Wild Oak Terrace, Rockville, MD 20852, in the Tower Oaks subdivision/neighborhood, this 3 bedroom, 3.5 baths home is on the market for under 550k, great deal, considering that other homes in the neighborhood have been selling for much more.

11800 OLD GEORGETOWN RD #1120, ROCKVILLE, MD 20852 - FORECLOSED

Tue, 28 Sep 2010 19:09:32 -0400

A RARE FIND, Foreclosure in White Flint Station, North Bethesda/Rockville. 1 bedroom, 1 bath, for under 250k

Was a short sale, Convenient Patio/courtyard level unit in this White Flint Station luxury condo development by Toll Bros. Granite, washer dryer,stainless steel appliances. soaking tub and walk-in closet across from Harris Teeter and White Flint Metro! Pet Friendly and it has a garage space and separate locked storage.

More Homes in White Flint Station
More Real Estate in North Bethesda
Condominium Foreclosure List

501 Hungerford Dr., #P94, Rockville, MD 20850 | Potential Short Sale

Tue, 28 Sep 2010 12:18:10 -0400

Amazing, 1 bedroom, 1 bath, potential short sale, in the Fitz condominium, in the desirable, Rockville Town Center area. Walking distance to Rockville Metro. Contact me for more information.

Broker: RE/MAX 2000 Realtors

Foreclosure SOLD: 5822 33rd Ave, Hyattsville 20782

Tue, 28 Sep 2010 11:56:39 -0400

This foreclosed, 7 bedrooms, 3.5 baths home just sold for $176,500.

Plenty of foreclosed homes similar to this is available today. For the latest list of foreclosures, click on the link below:

Condominium Foreclosure Report
Single Family and Townhouse Foreclosure Report

Tennis in your own backyard

Thu, 19 Aug 2010 21:36:25 -0400

How would it feel to have your own tennis court in your backyard? Well, in case you must have your own tennis court, and you’re in the market to buy a home, this home is for you!

5000 square feet, 6 bedrooms, 4.5 bathrooms, in the heart of Bethesda, just miles away from Washington DC.

8025 THORNLEY CT, BETHESDA, MD 20817
Broker: RE/MAX 2000, REALTORS

First Time Home Buyer Tax Credit still AVAILABLE for Military

Tue, 3 Aug 2010 14:06:43 -0400

Are you a member of the uniformed services of the Military who had been ordered on an official extended duty for at least 90 days, between December 31st 2008 and May 1st 2010? OR less than 90 days due to medical reasons?

If the above is true for you, then GREAT NEWS, you may take advantage of the Tax Credit for first time home buyers.

The extension is as follows:
1) Have a binding sales/purchase contract by April 30th 2011
2) Close/Settle on your purchase by June 30th 2011

There are plenty of homes to choose from if you are relocating to the DC area.
Click here if you are relocating to the Ft. Detrick, Frederick area

Buy This Home with NO Payments Till Jan 2011

Tue, 3 Aug 2010 13:22:56 -0400

A couple of days ago I received an ad with the statement:

“Buy This Home with NO Payments Till Jan 2011.”

I know as consumers, we are used to seeing similar “catchy” slogans being thrown around our local furniture stores. Well, now this marketing strategy has spread to your local real estate market.

No, this is not a scam, or a new government program for first time buyers, and no, this is definitely not scheme the mortgage industry is running to get more people to buy a home.

These are sellers, possibly, investors, who are trying to sell their property quickly. I know of a couple of nicely RENOVATED homes that are being sold this way. That’s right, move in to a renovated home, and you don’t have to pay a single mortgage payment until 2011.

If you want more information, please contact me at JonLahey@MyDCAreaHomes.com

4515 Arkansas Ave NW, Washington, DC 20011

Thu, 29 Jul 2010 23:53:09 -0400

JUST LISTED. Short Sale in the sought after 16th Street Heights neighborhood.

This lovely home has 3 bedrooms, plus den/office, 3 nicely renovated baths, fully finished walkout basement, and a garage. Hardwood floors throughout the home, and a beautiful kitchen that features stainless steel appliances, and granite counters.

By appointment only.

Broker: REMAX Town Center

RENTED: 11816 Eton Manor Dr # 201, Germantown MD 20876 - $1,350/month

Thu, 29 Jul 2010 00:45:52 -0400

Come see this freshly painted, spacious 2 bedroom, 2 bath condo. Located directly from the Milestone Shopping Center. Gourmet kitchen with breakfast bar, and separate dining room. Walk in closet in Master bedroom. Gas fireplace in large living room. Washer and Dryer in unit. Dining and Living room can be rented furnished with furniture.

Click here for more information
Broker Name: REMAX Town Center

REDUCED: 11710 OLD GEORGETOWN RD #127, ROCKVILLE, MD 20852 $329,900

Tue, 27 Jul 2010 19:14:29 -0400

"Purchase this property for as little as 3% down! This property is approved for HomePath Mortgage or HomePath Renovation Mortgage Financing. Please contact listing agent for more information.. 2 bedrooms,2 bathrooms in the Gallery, well maintained ground level condo.Move-in condition

Bank Owned, REO

More Homes in the Gallery
More Real Estate in North Bethesda

522 WINDING ROSE DR, ROCKVILLE, MD 20850

Tue, 27 Jul 2010 18:49:55 -0400

A new listing in my neighborhood, Rose Hill Falls. This home is a an interior townhome, with plenty of updates. This newly listed 3-level townhome has 3 bedrooms, 2 full bathrooms, and 2 half bathrooms, with a nicely updated kitchen, and a remodeled master bathroom.
Now, a little about this lovely neighborhood, people love Rose Hill Falls because where it is located. First off, it’s in the desirable Richard Montgomery / Julius West school district. It’s also only minutes from I-270, and about one mile from Rockville Town Center, and the Rockville Metro station.
Other homes in Rose Hill Falls that I’ve blogged about:

530 Winding Rose Dr., Rockville MD 20850
532 Winding Rose Dr., Rockville MD 20850

722 GARDEN VIEW WAY #H, ROCKVILLE, MD 20850

Fri, 16 Jul 2010 12:43:43 -0400

This is a foreclosed condominium in King Farm. This home consists of 2 bedrooms, and 2 bathrooms. Walking distance to pool. Recently painted.

Click here to request for more information.

Broker Name: Avery-Hess Realtors

503 KING FARM BLVD #302, ROCKVILLE, MD 20850 2

Fri, 16 Jul 2010 12:35:48 -0400

Rare find in King Farm. This is a foreclosed 3 bedrooms, 2 bathrooms condominium in King Farm. This spacious condo has approximately 1700 square feet in living area.

You may qualify for special financing, of only 3% down.

Click here to request for more information.

Broker Name: Keller Williams Realty

212 REDLAND BLVD, ROCKVILLE, MD 20850

Fri, 16 Jul 2010 12:12:50 -0400

Attention investors and potential home owners!. A foreclosed TOWNHOME in King Farm is on the market.

This is a 4-level, 3 bedrooms, 3.5 bathrooms, with deck and 2 car garage townhome.

Click here to request for more information.

Broker Name: Saab Realtors Corporation

King Farm Homes

Fri, 16 Jul 2010 12:00:04 -0400

King Farm is a beautiful community founded in 1997. Located in Rockville, Maryland, King Farm has plenty to offer. This planned community consists of single family homes, townhomes, condominiums, apartments, and a lovely shopping center in the heart of the neighborhood.

Featured Homes in King Farm
503 KING FARM BLVD #302, ROCKVILLE, MD 20850
722 GARDEN VIEW WAY #H, ROCKVILLE, MD 20850
212 REDLAND BLVD, ROCKVILLE, MD 20850

Grant Program for First Time Home Buyers

Tue, 6 Jul 2010 18:19:30 -0400

I hope everyone had a great 4th of July weekend, I sure did. Fireworks, BBQ, fun, rest, and HEAT. Now back to the REAL ESTATE market. I know many buyers have taken advantage of the tax credit for FIRST TIME HOME BUYERS that expired on April 30th, BUT I also know that many first time home buyers missed out.

Well, I have some GREAT news. If you missed the tax credit deadline, don’t give up just yet. You may be eligible for the first time home buyer grant. The grant program is good for most counties in the DC, MD, VA area, and provides assistance to first time buyers, up to$7,500.

The grant money can be applied towards your downpayment, or closing cost, but you MUST hurry. It’s available on a limited basis. First come first serve. Once all the money have been paid out, you must wait until next year.

How real is this? Well, it’s not a joke. Here is a success story. One of my clients just moved into their FIRST HOME for a few thousand dollars. That’s right! This could be YOUR STORY!!

Call me (Jon Lahey) at 301-651-4900 to see if you qualify for some FREE MONEY. You can also email me at jonlahey@MyDCAreaHomes.com for more information.

Until next time, I hope everyone have a safe summer!

5 Fire Princess Court, Rockville, MD 20850

Wed, 30 Jun 2010 16:24:19 -0400

A new listing in Rose Hill Falls. This home is a former MODEL Home, with over 2800 sq ft in living space. This home features a 3-level bumpout, which adds plenty of space when compared to the standard townhome. This home also has the following features:
- 3 bedrooms
- 3.5 bathrooms
- Granite counters in kitchen
- Deck
- 3 way fireplace
- Master bathroom with sit-in shower, and skylight
- 1 car garage

Rose Hill and Rose Hill Falls

Wed, 30 Jun 2010 13:12:08 -0400

Rose Hill Falls is a desirable community located in the heart of Rockville MD, just minutes away from the Rockville Town Center. Rose Hill Falls offers a combination of single-family homes, and one and two car-garage luxury townhomes. For pet lovers, this community has plenty of places to walk your dog, which includes 2 dog paths. For the casual athletes, a full basketball court, and a tennis court are available.

Featured Homes in Rose Hill Falls
530 Winding Rose Dr., Rockville MD 20850
522 Winding Rose Dr., Rockville MD 20850
532 Winding Rose Dr., Rockville MD 20850
5 Fire Princess Ct., Rockville MD 20850

Senate approves home tax credit extension

Thu, 17 Jun 2010 16:03:31 -0400

By ANDREW TAYLOR, Associated Press Writer Andrew Taylor, Associated Press Writer – Wed Jun 16, 3:36 pm ET

WASHINGTON – The Senate on Wednesday approved a plan to give homebuyers an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.
The move by Senate Majority Leader Harry Reid would give buyers until Sept. 30 to complete their purchases and qualify for tax credits of up to $8,000. Under the current terms, buyers had until April 30 to get a signed sales contract and until June 30 to complete the sale.
The proposal, approved by a 60-37 vote, would only allow people who already have signed contracts to finish at the later date. About 180,000 homebuyers who already signed purchase agreements would otherwise miss the deadline.
Reid, D-Nev., added the proposal to a bill extending jobless benefits through the end of November. Nevada has the nation's highest foreclosure rate, and Reid is facing a tough re-election campaign.
The Realtors group has been pushing hard in Congress for the extension. Mortgage lenders, the trade group says, have been swamped with borrowers trying to get approved by the end of the month. Many potential borrowers are unlikely to make the deadline.
"If Congress fails to act promptly, then prospective homebuyers might not get the benefit of the homebuyer tax credit, even though they have completed contracts," the Realtors said a a letter to lawmakers.
First-time buyers were eligible for a tax credit of up to $8,000. Current owners who bought and moved into another home could qualify for a credit of up to $6,500.
The $140 million cost of the measure would be financed by denying businesses the ability to deduct from their taxes punitive damages paid when losing lawsuits or judgments.
Source: http://news.yahoo.com/s/ap/20100616/ap_on_bi_ge/us_home_tax_credit

5750 BOU AVE #1502, ROCKVILLE, MD 20852

Sun, 13 Jun 2010 22:30:24 -0400

Short Sale, but worth the wait! Spectacular 1 bedroom condo with incredible views of city life in the Midtown Bethesda North Condominium. Walking distance to Twinbrook metro. Close to everything-leave the car parked for good. Wood floors, granite counters, stainless steel appliances, upgraded bath with jacuzzi tub, wired for theater system, garage parking. Condo has it all - roof-top pool, exercise room, party room & more. Only 1 lender - professionally negotiated

More Homes in Midtown Bethesda North
More Real Estate in North Bethesda

Midtown Bethesda North

Sun, 13 Jun 2010 22:01:09 -0400

Located in the heart of North Bethesda and Rockville, this luxury condo has plenty to offer to it’s residences. From rooftop resort style pool and spa, to it’s lavishly designed lobby, amenities are aplenty.

Featured Homes in Midtown Bethesda North
5750 BOU AVE #1502, ROCKVILLE, MD 20852 $284,050

Click here to see future developments for White Flint area

More Homes in the Midtown Bethesda North
More Real Estate in North Bethesda

The Gallery

Tue, 1 Jun 2010 18:58:47 -0400

The Gallery condominiums, is located in North Bethesda Maryland. The Gallery offers it’s residence the luxury of having public transportation, entertainment, and dining options nearby. Condo units include 1, 2 and 3 bedrooms, as well as a 1 bedroom plus loft option. Residence can enjoy plenty of amenities, including, outdoor pool, fitness room, community room, game room, and a business center.

Featured Homes in White Flint Station
11710 OLD GEORGETOWN RD #127, ROCKVILLE, MD 20852 $369,900

Click here to see future developments for White Flint area

More Homes in the Gallery
More Real Estate in North Bethesda

White Flint Station

Tue, 1 Jun 2010 18:28:22 -0400

The White Flint Station luxury condominiums, is located in North Bethesda Maryland. White Flint Station offers it’s residence the luxury of having public transportation, entertainment, and dining options nearby. Condo units include 1, 2 and 3 bedrooms, as well as a 1 bedroom plus loft option. Residence can enjoy plenty of amenities, including, outdoor pool, fitness room, community grill, community party room, and a game area.
Featured Homes in White Flint Station
11800 OLD GEORGETOWN RD #1120, ROCKVILLE, MD 20852 - FORECLOSURE

Click here to see future developments for White Flint area
More Homes in White Flint Station
More Real Estate in North Bethesda

2010 Real Estate Market Report

Tue, 1 Jun 2010 17:02:36 -0400

January 2010
DC and MD Market Report
Northern VA Market Report

February 2010
DC and MD Market Report
Northern VA Market Report

March 2010
DC and MD Market Report
Northern VA Market Report

April 2010
DC and MD Market Report
Northern VA Market Report

April 2010 Northern Virginia Market Report

Tue, 1 Jun 2010 16:59:32 -0400

Click here to see other Market Reports

April 2010 DC and MD Market Report

Tue, 1 Jun 2010 16:55:23 -0400

Click here to see other Market Reports

501 HUNGERFORD DR #319, ROCKVILLE, MD 20850 - $350,000

Fri, 21 May 2010 19:12:55 -0400

The Fitz features a lovely new building with many amenities, unit has a double loft with closets. High Ceilings, beautiful kitchen with many cabinets and an Island. Community pool. Walk to Rockville Town Center, walk to Rockville Metro Station. Pergo floors. Sentrilock on railing in staircase closest to the unit...

More Homes in the Fitz
More Condos in Rockville

The FITZ

Fri, 21 May 2010 18:57:09 -0400

The Fitz, luxury condominiums, located in Rockville Maryland. The Fitz offers it’s residence the convenience of being walking distance to the entertainment, dining, and shopping area known as Rockville Town Center, as well as the Rockville Metro, and MARC train stations. Condo units include 1, 2 and 3 bedrooms, as well as a 1 bedroom plus loft option. Residence can enjoy plenty of amenities, including, outdoor pool, media/movie room, fitness room, community grill, internet cafe, and a pool table.

Featured Homes in The Fitz
501 HUNGERFORD DR #319, ROCKVILLE, MD 20850 - $350,000
501 Hungerford Dr., #P94, Rockville, MD 20850 | Short Sale
More Homes in the Fitz
More Condos in Rockville

13569 Davinci Ln, Herndon VA 20171 - $284,900

Fri, 21 May 2010 02:09:25 -0400

Beautiful Central Park Model Townhome in Coppermine Crossing, Herndon. Spacious 2200 Sq Ft, 3 bedrooms, 2.5 baths, and a large garage. Short sale is professionally negotiated.

Click here to see additional photos

Listed by: REMAX Town Center

11611 Greenlane Dr, Potomac MD 20854 - SOLD

Fri, 21 May 2010 02:00:05 -0400

MUST SEE INSIDE! This lovely 5 bedrooms, 3 baths home in Regency Estates features a renovated kitchen with granite counters and stainless steel appliances, beautifully updated bathrooms,all new windows, gleaming hardwood floors throughout the bedrooms, kitchen, living and dining areas, walkout level - finished basement, and a spacious deck, perfect for entertaining.

Click here to see additional photos

532 Winding Rose Dr., Rockville MD 20850 - $549,000

Thu, 20 May 2010 19:55:22 -0400

Over 2400 square feet on 3 levels. Luxury townhome in Rose Hill Falls

MODEL HOME DECOR, 3 bedrooms, 2.5 baths, with hardwood floors in 2-story open foyer; custom painting & window treatments; 9-ft ceils; gourmet kitchen w/ island cooktop & 13-inch ceramic tile, breakfast/sunroom opens to deck overlooking common area & tot lot.

Family room off of kitchen; living room and dining room combo with NEW hardwood floors & 3-way gas fireplace. Master bedroom with cathedral ceilings & Super bath; walkout lower level recreation room with exercise room/den..

More Homes in Rose Hill Falls

530 Winding Rose Dr., Rockville MD 20850 - $525,000

Thu, 20 May 2010 19:50:12 -0400

Fashionable brick townhome located in Rose Hill Falls.

3 bedrooms, 3.5 baths, BACKING TO COMMON AREA & PLAYGROUND. Over 2500 square feet on 3 levels including ALL 3 BUMP-OUT ADDITIONS, 9-ft., cathedral & vaulted ceilings; hardwood foyer; formal living room & dining room with 3-way gas fireplace.

Gourmet Maple kitchen with island cooktop that opens to FR & glorious sunroom; Master bedroom suite with cathedral ceiling, separate sitting room with decorative columns, walk in closet & luxury Super bath; walk out lower level recreation room with den and full bath.

Cut Your Closing Cost

Wed, 12 May 2010 00:53:47 -0400

Cut Your Closing Costs

Closing is the point at which a contract between a buyer and a seller is executed, and the title to the property changes hands. This process has a variety of associated costs, most of which are paid at closing.
Normal Closing Costs Closing costs can be highly variable since they're dependant on the size of the mortgage and the value of the property. Typically, closing costs are between three and five percent of the property's value, and may include the following:
• Loan origination fees - also called points (one point equals one percent of the mortgage). The standard fee is one point. Paying more points can secure a lower interest rate.
• Title search and insurance - a title search examines a property's historical records to ensure that the seller is the legal owner of the property. Title insurance protects the buyer if tax liens or unpaid mortgages are overlooked in the examination.
• Inspection fees - includes pest and property inspection.
• Mortgage broker fee - applicable only if you use a broker.
• Tax service fee - if the lender chooses to hire an independent service to monitor property tax payments.
• Document preparation and administration fees.

Payable in Advance Most closing costs are paid when the sale of the property is finalized. However, some fees must be paid in advance, including:
• Application fee - the cost of processing the loan, usually payable at the time of application.
• Credit report fee - the buyer's credit history is reviewed as part of the application process.
• Appraisal fee for the property.
• Pre-paid interest - the interest on the loan from the day of closing until the first monthly mortgage payment.
• Escrow account funds - may include two months' worth of advance payments for mortgage insurance, hazard insurance, homeowner's insurance and property taxes.

Hidden Costs So-called hidden costs are those which lenders are not required to disclose in the Good Faith Estimate. These can include:
• Courier fees
• Notary fees
• Documentation fees
• Overnight delivery fees
• Processing fees
You can save money on these hidden costs by asking lenders to send documents by regular mail rather than by overnight delivery, or by asking if they can transfer documents electronically.
Who Pays?
In a typical situation, the buyer of a property will pay closing costs. However, you can sometimes persuade the seller to pay for some or all of the closing costs. If your immediate finances are tight, reducing the amount of cash you need to pay at closing can be very helpful.
If you ask the seller to pay some or all of your closing costs, it is essentially the same as negotiating a lower sale price for the property. To a seller who is asking $200,000 for their property, there is no difference in accepting an offer of $190,000 and accepting an offer of $195,000 which includes agreeing to pay $5,000 in closing costs. To you as the buyer, however, it means that you've reduced the amount of cash you need by $5,000. You may not save any money overall, but if the seller pays for closing, it means you pay less cash up front. If you want to ask the seller to pay for closing costs, it can be as simple as deciding what you want to offer for the property, adding your estimated closing costs to it - and then making that offer contingent on the seller paying for closing. Note that if the market is slow or the seller needs to sell quickly, you stand a better chance of negotiating successfully.

Source: http://www.homepages.com/JonLahey/article.aspx?ArticleID=2031b3c8-13d8-4b90-837a-ff36d94e5c36

4217 Bel Pre Rd., Rockville, MD 20853 - $345,000

Mon, 10 May 2010 02:40:14 -0400

Come see this lovely 4 bedrooms, 3 bathrooms home in Bel Pre Woods. Featuring a main level in-law suite, with a 2nd master on upper level. Beautiful hardwood floors throughout most of the home. The renovated kitchen boasts of granite countertop, and custom cabinets, charming breakfast room, and a separate dining area. Home currently rented to tenants, so please be courteous and schedule an appointment before visit.

Click here to see additional photos

Listed by: REMAX Town Center

U.S. Homebuyer Tax Credit

Mon, 3 May 2010 11:11:11 -0400

The tax credit for U.S. homebuyers has been extended, and a new group of buyers has been made eligible.  The credit of up to $8,000 for first-time buyers, originally due to expire Nov. 30, has been extended into 2010. This is money that never has to be repaid, provided you live in the home for three years.  Homebuyers who owned and lived in their principal residence for five consecutive years of the last eight are eligible for a credit of up to $6,500.

Facts about the Homebuyer Tax Credit:
• You must have a signed purchase agreement for your home no later than April 30, 2010, and the transaction must close before July 1.
• First-time buyers receive a credit of 10 percent of the purchase price, up to $8,000.
• You are considered a first-time buyer if neither you nor your spouse has owned a principal residence in the U.S. within the last three years.
• Buyers who owned and lived in their principal residence for at least five consecutive years of the last eight can receive credit of up to $6,500 when they contract to purchase a home before April 30, 2010, and close before July 1.
• The upper income limit to receive the full credit is raised to $125,000 for individuals and $225,000 for couples.
• If the purchase price is more than $800,000, the buyer is not eligible for the credit.
• There is no minimum income for claiming the credit. You qualify for the full credit even if you won’t owe any taxes for 2009 or 2010.
• You can claim the credit when you file your 2009 or 2010 tax return. And you can even apply the credit to your down payment for the purchase of an FHA-insured home.

Source: http://www.remax.com/LearningCenter/ArticleViewer.aspx?id=27
FAQ: http://www.remax.com/LearningCenter/ArticleViewer.aspx?id=27

Time to Sell

Sun, 2 May 2010 00:38:59 -0400

Is it Time to Sell?

You've lived in your home for several years, and suddenly you realize it's not meeting your needs any more. Maybe you've had children and you want a bigger yard and extra bedrooms, or you want a home office or a second bathroom. You need more space, but you're not sure what the best way of getting it will be - when is it better to remodel, and when is it more profitable to sell up and move?
When to Sell
• If you don't want the stress of remodeling, or if you can't due to lack of available lot space.
• If the neighborhood is about to change in a negative way. For example, you may find out that a low-income housing project or other type of construction is planned in your neighborhood. Bear in mind, however, that such projects may make it more difficult to sell your home if buyers are aware of them - be prepared to market your property aggressively.
• Most reasons to do with location mean selling is the better option. If you want to move to a better school district, remodeling is not the answer.
• If remodeling will increase your property's value too dramatically compared to other houses in the neighborhood. Your property should not be valued at more than 15% over the average of the neighborhood after remodeling, or you'll likely find that the value of your property is dragged down by the lower value of those surrounding you.
• If you're unlikely to recoup the expense of remodeling should you decide to sell in the future. Additions such as pools and home offices, for example, rarely recover their costs.

When to Remodel
• If you have the patience for a big renovation job.
• If you have the funds or access to a loan. If you're refinancing to cover the cost of remodeling, make sure you can keep your mortgage debt total below 80% of your home's value after remodeling is completed.
• If your remodeling projects have a high return rate. Projects such as bathroom additions or kitchen upgrades have the best return on your investment.
• If you have the room to improve your property, and your improvements will fit in with the neighborhood. Remodeling projects tend to be more profitable when your improvements bring your property in line with others in the neighborhood, but don't improve your home to the point where it's the most expensive one in the neighborhood.

Other Considerations
Some times of year are more profitable than others when it comes to selling a house.
• Home sales peak between April and August, because parents often try and use the summer vacation period to move while their children aren't in school.
• Selling between November and January can also be profitable - there are fewer buyers, but they tend to be more motivated for a number of reasons.
• If the market is weak - for example, interest rates are high or the economy is depressed - then it's not a good time to sell.

If you're thinking of selling in the off-peak months, it might be better to reconsider and wait a while before putting your home on the market. If you do decide to wait, use the time to prepare and plan for marketing your home and work on minor maintenance projects that will increase the appeal of your property.
Source: http://www.homepages.com/article.aspx?ArticleID=c5dfdcc0-5dc5-4b5b-8d99-5b636ef92778

March 2010 DC and MD Market Report

Sat, 1 May 2010 17:40:09 -0400

Click here to see other Market Reports

March 2010 Northern Virginia Market Report

Sat, 1 May 2010 17:36:38 -0400

Click here to see other Market Reports

How to Find the Best Loan for You

Sat, 1 May 2010 01:03:53 -0400

If you're not familiar with the various types of mortgages and loans, you stand the chance of paying out thousands of dollars more than you should during the life of your loan. There are several different types of mortgages and loans and each one has its own list of pros and cons. In order to find the ideal loan for you, it's wise to evaluate your current situation and become familiar with each type of loan and mortgage.
FHA The most common misconception about FHA loans is that the Federal Housing Administration lends the money. The fact is the FHA simply insures the loan in case of default and the loan must be given out by an FHA approved lending institution. First-time homebuyers often choose this type of loan and while the interest rates are competitive with other types of loans, they may have higher loan-to-value ratios. An FHA loan is best for someone who doesn't have perfect credit and individuals who need low down payments and low closing costs.
VA-Guaranteed Loans The Department of Veterans Affairs has a division that guarantees loans for veterans to purchase or build a home. In order to take advantage of the VA loan, an individual must meet certain requirements to receive a VA certificate. The VA loan allows a veteran or spouse to purchase or build a home with a small down payment or none at all. As with the FHA loan, the Department of Veterans Affairs doesn't lend the money. They simply insure the loan.
Conventional A conventional loan is considered to be a secured loan. The loan-to-value ratio is most often one of the lowest, with a ratio that is generally less than 80 percent of the value of the home. With this type of loan, the borrower is often required to make a down payment of at least 20 percent. The conventional loan is best for buyers who can put down at least a 20 percent down payment.
ARM The Adjustable Rate Mortgage is a loan that will have a fixed interest rate for a specified amount of time and then the interest rate will be adjusted according to an objective economic indicator. The loan will have a margin of how much the interest rate can be adjusted, as well as how often. This type of loan is best for someone who is not planning to be in their home long-term. An ARM allows for lower interest rates and a lower payment at the beginning of the loan term.
Sub-prime The Sub-prime lender is one who will approve financing for individuals who have been turned down by traditional lenders, most often due to a low credit score. Because of the higher risk, the borrower must pay a higher interest rate on the loan. The Sub-prime loan should only be used by buyers who have been turned down by mainstream lenders since the borrower will end up paying thousands of dollars more on this type of loan.
No Down Payment There are several types of loans that will allow for no down payment from the borrower. These often include FHA loans, VA loans, as well as Sub-prime and Conventional. However, when no down payment is given, the interest rates will often reflect this by being a little higher.
PMI Private Mortgage Insurance is an insurance the borrower purchases in order to secure the loan with the lender. It will usually only protect the top portion of the loan in case of default. This is best to be obtained when a borrower has a lower down payment. Once the top portion (for example, the top 30 percent of the loan) is paid, the PMI is cancelled.
Equity Line of Credit This type of loan is a re-usable line of credit that is secured by your original mortgage. The payments on this type of loan will vary as the credit line rates may be adjusted every month. This loan is best for those individuals who do not need all of the cash up front, as you can withdraw only the amount you need and pay only the interest on what money you have withdrawn.
Home Improvement Loans These loans are best for borrowers who need money to improve their home. They're often available at a fixed interest rate and are tax-deductible. These loans are great for major home improvements and will allow you to pay off your loan over a longer period of time.
No-Documentation Loans The No-Documentation loan is best for those individuals who may have a difficult time proving their income. Often, these are available with either a fixed or adjustable rate, as well as an interest-only loan.

Source: http://www.homepages.com/JonLahey/article.aspx?ArticleID=2d567f8d-b6ae-4d8f-998a-a2fb13f14e3b

Tips for First Time Home Buyers

Fri, 30 Apr 2010 00:53:47 -0400

Tips for First-time Buyers

If you're a first-time home buyer, you've probably discovered that you have a lot to learn - and unfortunately, it's all too easy to get burned. But don't be discouraged. By doing some research, you can avoid common first-time buyer mistakes.
Try to Refrain from Large Purchases
If possible, don't make any big purchases or take out loans that you can't pay off in full within six months. When you're calculating how much you can afford to spend on a home, your total monthly debt should not exceed 36% of your gross monthly income. If you owe any more than that, you could find it hard to get a loan. If you must have that new car, wait until closing is completed before you buy so that your purchase doesn't affect your mortgage eligibility.
Investigate "Hidden" Costs
Closing costs are normally 3-5% of the property's value. In addition, owning a home has associated costs - insurance, property taxes, and maintenance all add up. Plan to spend 1% of your property's value on annual repairs. Remember that moving into your first home probably means spending extra money on furnishings, too. Take all of these things into account when you're calculating how much you can afford to borrow, and how much you'll need to cover up-front costs.
Study the Market
When you've decided on the area you want to move to, do some research and get a Current Market Analysis (CMA). A CMA will calculate the market value for the type of home you're interested in on the basis of recent sale prices of similar properties and will help you determine if properties you're interested in are priced competitively.
In addition you need to decide if it's the right time for you to buy. If you have only a small amount of cash for a down-payment, if interest rates are high, or if property prices are predicted to drop in the near future, consider holding off for six months or a year, until the market is more favorable.
Shop Around for a Loan
In a hot market, sellers often only consider bids from buyers who have mortgage pre-approval. Don't use this as a reason to rush into getting a mortgage. Take the time to find a good deal, and carefully consider your options when it comes to interest rates and other terms. Take into account how long you intend to live in the property. If you plan to move out after a few years, an adjustable rate mortgage may work better for you.
Your lender is required to give you a Good Faith Estimate within three days of your loan application. This documents your closing costs and expenses related to inspections, taxes, title insurance and other essentials. Get a copy of the Good Faith Estimate before making a commitment so that you're aware of these costs up front.
Hire Independent Inspectors
When you find a property you like, the next step is hiring inspectors. This is usually optional, but it's still an important part of the process. Before you make this purchase, you need know all about the property - whether it's structurally sound, if the plumbing and wiring are in good condition, and if it has sustained any major pest damage. Your agent may provide you with a list of contacts or may offer to help handle it. However, it may be more prudent to hire independent inspectors. Using an agent's "buddies" sounds attractive because it's one less thing for you to do, but on the other hand the agent wants this deal to close so they can collect their commission, and they may not have your best interests in mind.
Don't Let Your Emotions Take Over
Buying a house can be stressful. Try to keep a cool head and be realistic. If small repairs are needed on a property that you really like, don't be discouraged if the seller refuses to take care of them. Instead, negotiate a lower sales price. Similarly, set a limit on what type of repairs you're willing to tackle yourself and then stick with that limit. If you don't want to cope with major structural repairs then avoid properties that need them, no matter how much you like it or how flexible the seller is willing to be on price.
Just as importantly, don't let anyone talk you into something you can't afford. Once you've made the decision on how much you want to borrow, don't change your mind, or you may end up in financial difficulty later on.

Source: http://www.homepages.com/article.aspx?ArticleID=4593e6de-f694-4d9f-8e89-4862c51474a3

How to Finance a Remodel

Wed, 7 Apr 2010 01:03:52 -0400

Before approaching lenders, draw up a detailed budget for your remodeling plans. To calculate an accurate estimate, first decide what projects you’ll need to hire a contractor for and which ones you’ll do yourself. On contracted work, start with a firm bid and add 10% for "surprises." On work you’ll do yourself, draw up a detailed list of materials and costs (including equipment rental) and add 15-20% for "surprises."
How much you can borrow depends on your credit rating, income, and the loan-to-value ratio of your remodeling plans. The LTV ratio is a percentage of the appraisal value of your home and is normally capped at 80%, minus the balance of your mortgage.
Now you’re ready to start thinking about the type of loan you want. You can refinance your existing mortgage, or take on an entirely new loan. Consider these various possibilities.
Home Equity Loan As with regular mortgages, the interest on these is deductible. Terms are normally 15-30 years, with a fixed interest rate. However, interest rates tend to be a little higher than with regular mortgages.
Home Equity Line of Credit This type of mortgage is similar to a credit card. Your lender will give you a set amount which you can borrow, and you can draw funds when you need them and pay interest only on the amount of money you have used. Some programs have a minimum withdrawal amount and most have variable interest rates. Most require repayment in full within ten years. If you decide on this type of loan shop carefully – some lenders will grab your attention with low initial interest rates and then increase it substantially later on.
FHA 203(k) Mortgage These are FHA-insured loans which let you refinance your first mortgage and combine it with your remodeling costs into a new mortgage. This type of mortgage bases the loan on the value of your home after improvements are made, which increases the amount you can borrow.
Energy-Efficient Mortgage (EEM) An EEM is a special type of mortgage which allows you to finance remodeling work that increases your home’s energy efficiency. If you decide to finance some of your remodeling with an EEM, your monthly energy savings are used to finance the energy upgrades. To qualify, your improvements must be cost-effective. This means the monthly savings on your utility bills as a result of the improvements must be greater than the monthly repayment of the energy mortgage, and also that your total savings must be greater than your total costs, including maintenance costs. If you decide to finance part of your remodeling with an EEM, you must apply for both loans at the same time, as you cannot add an EEM after the regular loan has been granted. Once your EEM has been approved, you have between 90 and 180 days to make the improvements.
Money-saving Tips
• Set your priorities and decide what you’re willing to compromise on. Plan ahead and research materials online and in stores.
• Instead of increasing the size of rooms, use your existing space more efficiently.
• Throwing out large fixtures costs money. Instead, donate your old items to Habitat for Humanity. Your donation is tax-deductible and you’ll pay nothing for the removal.
• Consider recycled fixtures or building materials. Habitat for Humanity offers salvaged goods for 50% of retail value.
• Auctions are another cheap supply of building materials and fixtures.
• Do the cleanup each day instead of letting the construction crew do it. They can spend more time on remodeling and you’ll get the work done sooner and save money too.
Selecting a Contractor
• Talk to friends and relatives who have had improvements made. Find out if they’re satisfied with the contractor’s service and ask to see the work that was done.
• Ask for recommendations from people who have done work for you in the past, such as your gardener or plumber.
• Check your local newspapers for advertisements
• Talk with prospective contractors on the phone. Ask them about their work experience, licenses and certifications and references.
• Check their references. Find out if previous clients were happy with the work done, if the project was completed on time and how well the contractor stayed within the budget.
• Before making a final decision, check with the appropriate government office to see if there are any unresolved complaints against the contractor.

Source: http://www.homepages.com/JonLahey/article.aspx?ArticleID=%20195b232e-9ec8-494b-a65c-8c75f53c010f

Is an Interest Only Loan for You?

Fri, 2 Apr 2010 00:53:45 -0400

Is an Interest-only Loan for You?
An interest-only loan is a fixed-term loan for which you pay only the interest, leaving the balance of the principal unchanged over the term of the loan. In America an interest-only period is typically between one and five years, sometimes extending as long as ten years. After this time, the borrower has the option to pay the principal, convert to an amortized (principal and interest payment) loan, or take out an interest-only mortgage.
Advantages of an Interest-only Loan
Lower Repayments The practical result of taking out an interest-only loan is that your repayments are substantially lower than they would be with a conventional loan. This leaves you with increased cash-flow for the period of the loan, and gives you the option of using the extra money to create investments in other areas. It also means that you can afford a larger mortgage than you could by more traditional means.
Tax Deductions Because loan interest is tax-deductible, your entire monthly payment qualifies for deductions during the period of the interest-only loan.
You have the Option to Pay Principal If you take out an interest-only loan, you're not confined to paying only interest for the length of the loan. You're not required to pay principal under the terms of the loan, but you can make principal payments at any time, which will build equity in your property and reduce your interest payments.
Disadvantages of an Interest-only Loan
No Principal Payment Equals No Equity One of the most significant risks of an interest-only loan is that when you're not paying off principal, you're usually not building equity. If you're forced to sell up and move much sooner than you expected, you may end up losing a significant amount of money in agent fees and closing costs - and you've got no equity in the house to help offset those unforeseen expenses.
With an Interest-only Loan, You're at the Mercy of the Market An interest-only loan can quickly turn into a financial trap if the property market stagnates, or if mortgage interest rates rise sharply (most interest-only loans have an adjustable interest rate). And if the worst happens and the value of your property decreases, you stand a good chance of owing much more than the home is actually worth.
The Interest-only Period Will End And when it does, your mortgage payments will rise sharply. You may think you have it covered, but what if your plans end up falling short? If you take out an interest-only loan because you can't afford a conventional one, and then you don't get that salary-increase you were counting on, you'll find yourself unable to meet the amortized payments that you couldn't afford in the beginning.
Take Out an Interest-only Loan for the Right Reasons
• Think twice before taking out an interest-only loan if it's the only way you can afford a mortgage.
• Consider an interest-only loan if you're planning to use the extra money for higher-yield investments (your investment return must be higher than the interest rate on your loan).
• If you know you're not disciplined enough to make principal payments when you can afford to, an interest-only loan may not be the right choice.
• An interest-only loan is a good option if your income fluctuates but is high enough, on average, to afford an amortized payment (and you know you'll make principal payments when you have money to spare).

Source: http://www.homepages.com/JonLahey/article.aspx?ArticleID=13f6303c-258b-41e7-93b9-731ac25cc3c4

February 2010 DC and MD Market Report

Thu, 1 Apr 2010 17:40:58 -0400

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February 2010 Northern Virginia Market Report

Thu, 1 Apr 2010 17:38:12 -0400

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With development plan approved, the future of White Flint begins to take shape

Wed, 24 Mar 2010 18:46:21 -0400

By Miranda S. Spivack
Washington Post Staff Writer
Wednesday, March 24, 2010

The Montgomery County Council on Tuesday unanimously approved an ambitious proposal to transform a large segment of Rockville Pike near White Flint into a vibrant, grand boulevard lined with villages where residents can live, shop, walk and play.
Montgomery's plans for the 430 acres, now a jumble of strip shopping centers and car dealerships, are part of a national movement to re-engineer older neighborhoods built around America's love affair with the car. The White Flint project, which could span 20 years or more, would be among the largest redevelopments of post-World War II suburbia in the Washington region. It is aimed at bringing smarter growth to a county with little undeveloped land seeking ways to accommodate a growing population already nearing 1 million, larger than the District.
The White Flint plan is built on novel thinking. Planners and developers think they can persuade at least half of the estimated 50,000 people who eventually would work in White Flint to stop relying on cars. The area, in a section of suburban Montgomery that developers call North Bethesda, is already served by Metrorail and is slated for a new MARC rail station. Eventually, it is to have its own civic green, circulator bus system, bike paths and walkways connecting communities and commercial centers.
The plan won support from environmental groups and advocates of smart growth and transit-oriented development, as well as from many in nearby communities, although some worry it still will bring too much traffic. If the developers ultimately build what they propose, White Flint would become the most densely populated town on the Pike and a major center for new office space.
The new downtown at White Flint is the first phase of a broader remake of Rockville Pike from White Flint to Shady Grove in an area 20 times larger than Tysons Corner in Northern Virginia. The White Flint plan also could bolster Montgomery County's treasury by $6 billion to $7 billion from revenue over the next 20 to 30 years. With its new commercial and retail space -- and taller buildings -- White Flint eventually could overshadow downtown Bethesda and Rockville Town Square and dwarf plans for Shady Grove and Twinbrook.
"The future is improving upon many of our existing centers to make them more urban, more walkable, more transit-oriented, less automobile dependent, and overall far better as far as the environment is concerned, while making a major contribution to the future economy of the county," said Montgomery Planning Board Chairman Royce Hanson, a key architect of the plan, just before the council voted.
'A different vision'
The approval of the White Flint master plan caps more than three years of often contentious debate about many issues, including the number of cars that should be allowed to back up at a traffic light to where a new public school should be built, whether bus lanes should be at curbside or down the middle of the Pike, and how many parking spaces should be allowed.
"This has been a tremendous effort," said County Council President Nancy Floreen (D-At Large).
There are about 2,400 homes in White Flint, many of them single-family. The new plans propose an additional 10,000 units of housing, including 2,600 affordable housing units, mostly high rise. Commercial, office and retail space could grow from about 14 million square feet to about 20 million square feet. Some buildings could be 30 stories high, or about 300 feet. The tallest in Bethesda is about 18 stories, or about 200 feet.
"It is a different vision for our county," said council member Michael Knapp (D-Upcounty), who chaired the committee that shepherded the master plan.
Some longtime residents, who have worked with county officials and developers to refine the plan, remain concerned about traffic, especially in the next five years when there will be substantial construction before promised amenities are in place. There also are concerns that the beleaguered Metrorail system may not be able to absorb demands for increased service.
"The basic concern we have is traffic," said Natalie Goldberg, a resident of Garrett Park Estates, who has been intensely involved with the county's redevelopment efforts. "Particularly in the short term, the infrastructure does not balance out the development," she said.
The plan imposes limits on the amount of parking, which will discourage auto use by making cars more expensive to store. Streets will be laid out, buildings constructed, a network of paths and parks built, all to encourage foot traffic, cycling and minimal car commuting.

Some developers in White Flint say they can submit their plans to the county later this year or early next year, and put shovels in the ground within two to three years which could move the project more quickly than efforts to transform Tysons into a new urban center for Fairfax County. White Flint already is a step ahead, since there are Metrorail Red Line stations along Rockville Pike. In Northern Virginia, construction of Metrorail's Silver Line to Dulles International Airport is expected to continue until at least 2016.
The smooth approval of White Flint redevelopment Tuesday stemmed from an intense, grass-roots organizing effort by a consortium of developers, who turned to social networking on the Internet in addition to traditional face-to-face lobbying and community meetings.
"A lot of work was done with the community," said council member Marc Elrich (D-At Large), a member of Knapp's committee. Elrich, a skeptic about county planners' traffic studies, pushed for tougher traffic standards at White Flint.
Defining the details
There is still much work ahead on White Flint. A plan by the county and developers to decide who will pay for the redesign of streets, parks and other amenities needs to be worked out, and the plan exempts more landowners than usual from paying county impact taxes. Details of how to discourage car travel still need to be hammered out.
The council took a step in that direction Tuesday, unanimously approving an amendment from member Roger Berliner (D-Potomac, Bethesda) to require more reporting by the planning agency about traffic, transportation, construction of needed infrastructure and whether the plans are working.
There are new developments on the Pike that foreshadow what is ahead. Just north of White Flint near Old Georgetown Road, developer LCOR has opened sections of North Bethesda Center, a high-rise office, retail, hotel and residential project, anchored by a Harris Teeter supermarket.
And south of White Flint Metro station, JBG has almost completed a $250 million retail, residential and commercial project known as North Bethesda Market. Other developers such as Lerner Enterprises, which owns the struggling White Flint mall nearby, and Federal Realty Investment Trust, which owns Mid-Pike Plaza and other holdings on the Pike, also are gearing up.
"We are all well-capitalized developers who will be around for a long time," said Rod Lawrence, a principal of JBG who has been heavily involved in planning for the redevelopment of White Flint.

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What do School Test Scores Mean for the Value of Your Home?

Sun, 21 Mar 2010 00:53:46 -0400

What do School Test Scores Mean for the Value of Your Home?

It used to be that proximity to cities was a key factor influencing home prices. Not any more. An increasingly large amount of evidence garnered from academic research indicates that test scores at public schools are very influential when it comes to determining the value of area homes. While "location, location, location" is still paramount, the factors that influence the desirability of a given location are clearly changing. Test scores are now influencing property prices more than ever before, because they make it easier to compare schools across the country as well as within a district.
Homes in Higher-Performing School Districts Command Higher Prices
In April 2006, the Silicon Valley/San Jose Business Journal published a study of homes in the Silicon Valley area that reviewed the sale of 334 homes in the year 2005 in several different school districts. In Cupertino, for example, there was a difference of over $250,000 in value between homes in poorly-performing school districts and the homes in the district with the best-performing school. The Silicon Valley high school district of Freemont Union contains five high schools - all high-quality but with slight variations in Academic Performance Index (API). Homes within the boundary of the highest-performing school commanded much higher prices than those within the boundary of the school with the lowest test scores. According to one agent, a house that would sell for $780,000 in the lowest-performing area would easily sell for over $1 million in the highest-performing area.
A study carried out in Ohio and published in the Journal of Regional Science in July 2006 found that an increase of 20 percentage points in the pass rate of school proficiency tests correlated to an increase in the district's house values of about 7%. The researchers who investigated this issue examined nearly 78,000 house-buying transactions carried out in 2000 in 310 different school districts in seven areas of urban Ohio.
Newspaper articles and news Web sites are full of stories about parents who have paid top dollar on the basis of school test scores, hoping to increase their children's chances of scholastic success. And real estate agents often use test scores as a means of generating interest in properties, too.
There's no doubt about it - more and more parents are putting a district with good schools at the top of their list when it comes to house-hunting, and the number one criteria they use to judge whether or not a school is good is the API. Some parents refuse to consider districts with schools scoring lower than a pre-determined amount, regardless of whether it's convenient for work and amenities. However, some researchers believe that API alone is not necessarily the best way of judging the quality of a school. They suggest that looking at a school's performance over time is a more accurate means of judging the quality of a school. Either way, it's clear that higher school test scores equate to increased property values.
This isn't just a consideration for families, either. Smart property buyers who know that school test scores are becoming more and more influential are just as eager to snap up bargains in the more popular school districts. They see high-quality schools as "insurance" - even if the real estate market slows, a property in a district with good schools will still fetch a premium price thanks to the influence of school test scores.
Source: http://www.homepages.com/JonLahey/article.aspx?ArticleID=55e236ba-e8ce-4234-9657-efb4214a939b

Top Renovation Mistakes

Tue, 2 Mar 2010 23:29:03 -0500

Top Renovation Mistakes

Renovating your home can be both fun and rewarding, but it can also be stressful. If you're not aware of the possible pitfalls and problems before you start, a home renovation can quickly turn into a nightmare. Luckily, as long as you know what to avoid you can make sure your renovation work is both attractive and valuable. With that in mind, here are some of the most common mistakes that people make when renovating.
Poor Financial Planning
Whether you're renovating your own home or working on a fixer for resale, it's important to be pessimistic when it comes to calculating how much your renovations are likely to cost. If you're contracting work out, plan to spend about 10% more than your bid for "surprises" that might come up during the work. For projects you're planning to do yourself, add 15-20% on top of your materials budget. You may not need to spend that much, but if unforeseen complications do arise, you'll be glad you put that money aside.
If you're financing your renovations through a loan, draw up a detailed budget before you begin approaching lenders. Stick to your budget whenever possible, and if you end up spending more than you planned in one area, try and compromise in others to reduce your costs.
Going Against the Norm
Particularly if you're renovating with the intent to sell the property afterwards (or even several years into the future), it's important to renovate with your potential buyers in mind. You might think you'd rather have a rec room than a garage in your home right now, but that decision could turn around and bite you in the future when you're trying to sell a home without a garage. Closing off open spaces is definitely something to be avoided. If you have an open-plan kitchen and dining room, walling those rooms off isn't a good idea, because open-plan areas are popular with buyers.
Avoid remodeling bedrooms and living rooms except in specific situations; these types of renovations add very little to the value of the property. Kitchen and bathroom renovations are the most lucrative in terms of adding resale value.
Upgrading over the Neighborhood's Value
It's important to make sure your improvements are in line with properties in your neighborhood. If you raise the value of your property too much, you may find it's difficult to find a buyer should you later decide to sell. To maximize your resale value, your renovations should not increase the property's value more than 15% over the average value of surrounding homes.
When you're planning your renovations, compare your property to others in your neighborhood. Find out where your home is lacking and make improvements in those areas. For example, if your home has three bedrooms and most surrounding properties have four or more, adding an extra bedroom will increase the desirability of your home when it comes time to sell. They don't add much in terms of value, however. A second bathroom is a great prospect for increasing the value of your home, and can be worth as much as twice what it costs to build.
Ignoring the Experts
If you're planning to make structural changes such as turning your kitchen and dining room into an open-plan area, or if you're going to be making changes to plumbing or electrical wiring, it's wise to enlist the help of an expert. Attempting to take on large projects by yourself can be disastrous. It's easy to mistakenly remove weight-bearing walls, or miss the signs that point to pest infestations or other problems that might cause trouble in the future. Hiring a contractor will increase the cost of your renovations, but a well-done renovation job might save you money in the future.

Source: http://www.homepages.com/article.aspx?ArticleID=3a11152e-e1c1-4ed5-98a6-a277f1a5fc5c