Deciding to hire a contractor is a long process, and it’s only the beginning.
There’s a lot to consider for both residential and commercial construction, from whom to hire to what kind of flooring or paint is perfect for you. Skybox Construction would love to help guide you. Below are a few short articles about all the aspects to consider.
Ready to hire? Contact us for a free estimate.
We’ll make it, you’ll love it.
Your Home Pays For Home Remodels
By Abigail Steele
If you live in the Vegas Valley, prices in the homes around you increase nearly every month. Last year alone, home value increased 7.6%, according to the Las Vegas Review Journal. That’s the fastest rate of increase in the US. As the value of new homes increase, equity in purchased homes builds. The longer you’ve had your home, the more equity it will have, because equity also increases through loan repayment.
But perhaps you’ve had your home so long now that it’s time for a few upgrades. You may think your plans for home remodels are a long ways off–they are, after all, very expensive.
If you consider taking out a Home Equity Loan, Equity Line of Credit, or Cash-Out Refinance Loan, however, there’s a strong chance you won’t have to save up a penny. In some cases, there’s even money left over to save or further pay down your house with. If you choose to do this, home remodels will add even more equity in to your home. And, as another bonus–interest you pay on a Home Equity Loan or Home Equity Line of Credit (HELOCs) is tax-deductible–but only if you use it for home remodels or repairs.
Because of these benefits, about 50% of Home Equity Loans Are used to make home improvements, according to the US Census Bureau.
What is equity?
Home equity is the current market value of your home, with what you still owe deducted. Let’s say you bought a home just last year. Home value was less then, and you paid $275,000. It’s now worth nearly $300,000. You’ve paid down $70,000, so far. That means you have about $95,000 in equity–in one year alone!
Should you take out a Home Equity Loan, HELOC, or Cash-Out Refinance Loan?
These types of loans carry low interest rates because they were designed for homeowners to maintain and improve their property values. Since the home itself is collateral on the loan, higher home values benefit homeowners and lenders.
The question then becomes, what are your needs as a homeowner? With multiple options even within these 3 types of loans, there’s a lot of flexibility on how much money is withdrawn from your home value and how you choose to pay for it.
A local loan officer can go over the benefits of a Home Equity Loan, HELOC, or Cash-Out Refinance Loan with you, and look into the specific equity amount in your home.
What’s the difference between a Home Equity Loan, a HELOC, and a Cash-Out Refinance Loan?
A Home Equity Loan is a lump-sum loan. You receive all of your equity value at once, and repay with a monthly bill over the life of your loan. Generally, homeowners opt for a 5 to 15 year loan. Its interest rates are low, and tend to be fixed, which is good news to homeowners.
A Home Equity Line Of Credit (HELOC) gives you the equity value as you ask for it. You pay interest only on what you pull out. Think of it as a credit card. You draw out a certain amount of money, and make small payments back on this debt during a “draw period.” After an amount of years agreed to in the terms (up to 30 years), the draw period ends, and you’ll pay a higher amount if the sum hasn’t yet been paid off. HELOCs generally have a variable interest rate, unlike Home Equity Loans, which is something to keep in mind.
A Cash-Out Refinance Loan means you borrow a fixed amount against your equity by refinancing your current mortgage. A new home loan is drawn up, for more than you currently owe, but you take the difference in cash. With this type of loan, the amount borrowed is combined with the balance of your existing mortgage.
How much do home improvements cost?
There are, of course, a lot of variables to home remodeling prices. Do you want marble or tile countertops? Natural wood or synthetic flooring? Do any walls need to be demolished? Will you update kitchen appliances? Lighting?
HomeAdvisor.com ran a study on renovation costs, and put the average of a multi-room project between $17,000 to $68,000–a wide enough range to leave a lot of questions.
Luckily, Skybox Construction offers free estimates.
Reach us right here through our website if you’d like to schedule an appointment.
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Remodeling For Investment And Personal Value
By Abigail Steele
The Vegas Valley housing market is skyrocketing–and all signs suggest it’ll continue shooting upward. In Las Vegas proper, the median home value is $274,700. That’s gone up 7.6% since last year, and it’s projected to go up another 2.2% this year, according to Zillow. Similarly, the median home value in the Henderson-Paradise Metro area is $279,300. That’s an uptick of 7.5% since last year, and Zillow projects an increase of 2.3% this year.
This means that many homeowners are considering remodeling. But what may prevent them from carrying their ideas into action is a daunting question–how can they best spend their money for a positive return?
Sometimes, homeowners have to decide if they’re remodeling for investment or their personal appreciation. In a healthy housing market, both can be accomplished. Here’s a few things to consider for this win-win situation:
1. Add livable space…
This is the greatest return on investment, and also adds a lot of personal value. Here’s a descending list of best spaces to remodel based on value, according to U.S. News:
Luckily, if you still want to update your bedrooms, living room, or dinning room, these are generally the least expensive to change. A new coat of paint, updated molding, and perhaps lighting transform these spaces.
2. Hire licensed contractors…
There’s unlicensed contractors everywhere. A quick search on Craigslist turns up dozens, and their generally lower prices might at first seem attractive. However, this can be incredibly risky, especially for expensive home projects. An unlicensed contractor hasn’t bothered to be verified by the city, and if they disappear with your money or do shoddy work, it will be very difficult to go after them for damages. The Nevada Contractors Board gives homeowners protection by placing a money guarantee on any licensed contractor.
For more information about the Nevada Contractors Board, visit their website at http://www.nvcontractorsboard.com/
3. Get the proper permits…
If the city decides that something was built without proper permits, they will order the demolishment of the structure. To prevent this staggering loss of money, and a possible re-do, do it right the first time. But what needs permits? How do you get permits? This is another reason to hire a licensed contractor, because they would handle this and any other legal aspect of your remodel.
4. Consider maintenance and improved efficiency…
By investing in energy efficiency, you’ll reduce household bills month to month, and add an enticing selling point when you’re ready to put your house back on the market. According to Houzz, this is something home buyers are considering more and more. Another consideration that’s becoming more important to buyers? Proper maintenance of the home’s utilities. According to Houzz, here’s a descending list of the most popular maintenance-related projects:
Heating and cooling
Structural or foundation upgrades
While these types of improvements won’t be visible day to day, and so might feel less exciting, they will absolutely improve living quality day to day, and add home value.
5. Spend time enjoying your remodel…
The resale value of remodeling fades over a 20 to 30 year period. With how quickly things in our lives seem to change, this might surprise you. There’s plenty of time to upgrade your home, enjoy its perks, then sell your investment. So, after the what may feel like a literal and figurative mess of remodeling, kick back, and relax.
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What To Expect With A Kitchen Remodel
By Johanin Stewart
The kitchen is an important room in a home. The feel, look, and energy of this space should be personal and inviting. Taking on a kitchen remodel can be exciting but also daunting. Let’s talk about some things to keep in mind when upgrading your kitchen.
Kitchen remodeling is a popular method of upgrading one’s home, and one can almost guarantee will help boost its value. Choosing what direction to take your remodel can be an overwhelming process, especially if you are not familiar with what is already out there. Working with a pro can help the process go as smoothly as possible.
The right contractor can help you determine the direction for your space, take into consideration your needs, family size, and the amount of available space that you have. Renovations should open up your space and make it more functional for you. The better the use of the space the more you will enjoy it for a long time to come.
Allocating Project Costs
Whether your budget is $5,000 or $50,000, here’s how it tends to be allocated. Cabinets and installation usually take up 20 to 40 percent of the budget.
Countertop materials and installation will run 10 to 30 percent. A good place to splurge would be the backsplash. This is a highly visible accent that can set the tone of the room and become the design focal point, whether you do a bold statement or a more low-key one.
Another 10 to 20 percent will be spent on flooring/framing/drywall/paint. Your kitchen appliances generally take up 10 to 20 percent. Taking time to design an effective layout with appliances is worth the time. The dishwasher defines the cleanup area, and if placed within the work triangle, traffic jams and hazards will ensue.
Electrical work is approximately 10 percent. Plumbing & appliance installation; 5 to 10 percent. The HVAC and ducting work is usually less than 5 percent.
While plumbing fixtures normally take up less than 5 percent, it is worth noting that the kitchen sink is the most-used appliance. It may be worthwhile to you to allocate a decent amount of your budget and resources into this piece. A reliable filtration system is another item you may find worthy of spending money because of its direct benefits on your health and on the performance and longevity of your appliances.
We’ll make it, you’ll love it.
We offer free estimates for residential projects. There’s many ways to reach out to us, so use whichever option is best for you. Email, call, or request an estimate through our booking calendar.
Call (725) 251-2923
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