Kitchen Remodel Idea

According to the 2005 Cost vs. Value Report published by the National Realtors Association, a minor mid-range kitchen remodel in the West may return 112% in resale value.  An undertaking well worth it in the long run.  So why not do it with style! 

Apparently, "white is the new stainless" says Domino, one of my favorite home design magazines.  "New finishes and modern styling make these snowy beauties the fresh alternative to stainless." All the best brands are doing it...check out a full list of new (very cool) appliances featuring this new white here.  One tip, be sure to match the whites with your cabinets for a sleek look and use the same brand for all the appliances to keep the look streamlined.

Need a no-parking sign idea?

I was outside Bi-Rite in the Mission and thought now THIS is the perfect San Francisco reaction to folks parking on the street in front of one's garage.

"Do Not Park Here. The wrath of the ancients will fall upon your head. Your shoelaces will not stay tied. Rabid squirreles will invade your home. Food in your refrigerator will mysteriously spoil. Your vehicle will start making that expensive knocking sound again and no-one will talk to you at parties. (and now my favorite fine print) You will also seriously piss off the bitch who paid good money for this garage and nobody wants that."

And on another note, we need a Bi-Rite in Lower Nob Hill--please someone tell the guys on 18th to buy now while the retail rents are low in the upper Tenderloin/Lower Nob Hill--we need you!

the importance of staging

...or at the very least, put up the closet doors!  I was showing a client an $850,000 condo in South Beach--not cheap--and found, as we opened the front door, the lights were out and the closet doors were hanging off their hinges.  Trying not to do the typical everything-is-going-to-be-great laugh that realtors can do, I said to my client "now you see the importance of staging." We talked about the potential of things and I pointed out room layout options, but he wasn't sold.  (This wasn't my listing nor Pac Union, but the company shall remain nameless.)

The property has been on the market for over 35 days without an offer.  Two things are typically wrong: either it's priced too high or it doesn't show well. 

So for gosh sakes, please hire a professional stager! 

This is the biggest item you will ever sell in your life and you don't even put packaging on it?  Do you know how much Coke spends on their product marketing?  I don't either but its a lot of money.  We live in a world of HGTV and MTVCribs and Readymade Magazine---America loves design in all shapes and forms, not blank, white rooms.  But remember, you are selling a product to the market, not your personal style. 

The average new home buyer is 32, according to NAR’s 2003 Profile of Home Buyers and Sellers. So, Potterybarn type staging or clean modern styling works best.  The house or condo needs to feel familiar yet stylish.  It should have just enough oomph to make buyers whisper to themselves in the bathroom, "I think we could really live here."  They're not thinking about the price (that's what I am for) they are thinking about their future lives together in the space: dinner parties with friends, family birthdays, watching TV.

Depending on what you need in terms of renting furniture the costs can range from $1,000 - $10,000+.  Larger homes cost more.  A typical two bedroom condo, fully staged can cost up to $5,000.  And I have found that inexpensive doesn't necessarily bring you the best value.  So try not to skimp too much.  It's worth it!  Good staging, along with sushi, tattoos and haircuts are not the best things to buy on the cheap.

Save When You Sell

I just read this on Turbo Tax.com and thought is was great to post for sellers...

If you make a profit when you sell your house, you will owe taxes on any capital gain above a certain amount. But how do you figure out if you have what the IRS considers a capital gain?

You take everything you paid for the house, the original purchase prices, sales taxes, fees, and so on, and add the cost of all the improvements you have made over the years to get a grand total, which is known as the "cost basis". Compare the cost basis with the money you get for the house and if you've made a profit, that gain may be taxable (if it is more than $250,000 for an individual or $500,000 for a married couple filing jointly). Alas, capital losses on personal residences are not deductible.

You can see it makes sense to keep track of whatever you spend to fix up, expand, or repair your house, so you can reduce or avoid taxes when you sell.

Tips

• Make a special folder to save all your receipts and records for any improvements you make to your home.
• If you've lived in your house for many years, and if area housing prices have been gradually going up over all those years, you may be facing a fairly large gain that would be minimized by including the improvements in the cost basis of the house.
• If you operate a business from your home or rent a portion of your home to someone, you may be able to deduct part of your home improvements as business expenses through depreciation.