Wanting to snag a great deal? Be ready for it.

renovated house, late evening sun
Image by cafemama via Flickr

I dare say everyone wants a great deal.  That is not selfish, it’s smart!

Some people show their smartness by doing the necessary actions and planning into the future.  Good deals can turn up at the least expected moments.  Continue reading

Spruce up or lose it!

An example of a flooring job.
Image via Wikipedia

 

A client and I headed to the local home improvement store.  The local Home Depot had great laminate flooring in a Brazilian Cherry color and padding for sale at an incredible price.  Total cost per square foot with tax was less than $1.50!

For the upstairs bathroom they had a floating linoleum flooring that looked like tile.  It was very rich and at $2.30/sf the bathroom would really look great.  The current floor prep would be minimal.  Pull up the damaged linoleum and remove all the damaged wood.  Then float the self-leveling floor patch, let dry and apply the new product.  Voila, a new look in a short time.   Continue reading

Home Equity Extraction Reducing

The explanation of why the real estate market meltdown affected our overall economy so much is very telling when you look at the following graph.

 Equity Extraction Methods

This graph shows how much money was pulled out of our homes since the early 90s.   And you can see the drop off in 2007 when we were in the lending debacle.

What was that money used for?  Cars? Boats? Big screen TVs? Improvements/construction to the home?    I have heard that 40% was consumer spending and 35% home improvement.  Our equity, often referred as the Home ATM, has dried up as a source of money for most of us.  And as that source of money dried up so did consumer spending in all the above areas.  One of the hardest hit in California has been the construction industry. 

Sales of real estate have gone up in the Santa Clara County about 40% over last year.  But equity has not changed for the better in any significant amount.  It may be a time for us to see construction jump back up with the Home Equity segment shrunken.

We can be very thankful for the turnaround in Real Estate in our area.  When I speak to clients most home improvement projects are going to be lower priced – painting, fixture changes, etc.  The policy of how do we pay for our wanted items have had to change.  I know my spending pattern has definitely changed.

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