Home Improvement – Don’t Exceed Comps In Your Area

For most homeowners, the pride of ownership includes a consistent home improvement effort. While this makes sense, be careful you don’t improve the property so much that you can’t recover the costs when it is sold.

Home Improvement

You’ve picked up a heck of a deal on a home in a nice neighborhood. The purchase price was $200,000 and you put twenty five percent down [$50,000]. The comparable homes, “comps”, in the neighborhood appraised for $300,000. Yes, your home is a bit run down, but that’s why they have Home Depot and weekends! You’ll just fix the ugly ducking up and pocket a quick $100,000 in equity when all your projects are done. What a country!

This situation definitely has potential. The value of the home is so low when compared to the comps that a relatively quick equity grab certainly looks possible if the home can be fixed up. Off to Home Depot we go…

Let’s do an evaluation of our ugly ducking. Put another way, what needs to be done to get it on par with the other ducks in the neighborhood? Okay, we need new doors, new windows and landscaping in a very big way. The drive way looks like a toxic dump sat on it and we aren’t even going to get into the peeling, ugly paint on the home. Pricing everything, deciding to use homeowner labor as much as possible and so on, we find it is going to run roughly $50,000 to makeover our ugly duckling. It’s going to be a lot of work, but that’s what weekends are for. We should still come out with a $50,000 gain and $100,000 in total equity considering our $50,000 down payment.

Budgets and Temptation

The problem with the above scenario is it is very hard to stick to a budget. If you’ve owned a home, you’re already familiar with this problem. If you are buying a home for the first time, watch out!

With homeownership, the structure you own quickly evolves into “my home.” Once this occurs, you tend to view the quality of your home as a statement to the world and you want to show the world your best. Instead of buying moderately priced cabinets for the kitchen, you buy custom pieces that would make Bill Gates envious. Counter tops soon become marble counter tops. Refinishing the driveway evolves into putting in an entirely new one with brick inlays. And so it goes.

You are no longer trying to bring your home up to the standard of the neighborhood homes. You are trying to turn the home into a swan and swans are expensive. After making all your improvements, you are distressed to find the total cost being $90,000 instead of $50,000. For all your hard work and effort, you’ve realized only a $10,000 gain in equity.

In Closing

Make sure you objectively budget improvements and stick to those budgets. While there is something to be said for making a home glow, make sure it makes financial sense.

Criminal History Background Check – Use the Web to Run a Background Search on People

Thanks to modern technology and common use of the internet and personal computers, you can now have access to any sort of criminal history background check nation wide without ever leaving your desk, either at home or your office.

There was a time when it was very tedious and frustrating trying to check someone’s personal background and check for any criminal activity, especially if you were hiring someone or trying to find out whether they were trustworthy to be leased a property.

Nowadays, and with a very little bit of information, you can get access to hundreds of public records. Some of the things that you can search online almost instantly are:

• criminal records
• arrest records
• mug shots
• background check
• birth records
• marriage records
• death certificates
• divorce filings
• court documents
• bankruptcy filings
• employment history
• tenant history, among other things.

Using this service is extremely simple. All you need is the name and date of birth of the person that you are trying to do a check on. After a few seconds, you will get a list of all the available information. This is a very good thing for consumers, because that way, they know whether the information they are looking for is included or not and this before they have to pay anything.

The fees for using this service are minimal and the quality and depth of the information is well worth it. You could go to the local government office or repository where public records are stored and dig for it yourself, but this will take you all day and in most cases, the information that you want is stored in a different state. You can get the criminal history background check of any person using a computer in less than 5 minutes.