Posts Tagged ‘Custom home builder’

Increase Your Homes Value

Tuesday, September 15th, 2009

Lots of homes in San Diego have increased in value over the last year or so. It’s great when the value of your home increases for any reason, but there is a difference between an increase because of market conditions and an increase due to improvements to the home.

Homes that go up in value simply because of a strong housing market can just as easily lose that value if the market weakens. A home that’s been improved is less likely to lose the added value if things go south, since their increased value stems from tangible things like additional rooms, or an updated interior.

Here in Clairemont where I live, many homes look virtually the same as they did when first built in the 50’s. While “original condition” might be good when you are talking about classic cars, or collectibles, when it comes to a home, it’s not always so good.

This is especially true if you are planning to sell your home in the next 5-10 years. You’ll be competing for a buyer with newer homes and updated homes, so your “50’s original” is going to look poor in comparison, and you are likely to have to settle for less in the sales price. ClairemontFamilyRoom

Even if you aren’t planning on selling, building materials and techniques used to build the 1950’s home can’t compare with today’s energy efficient and convenient home features. Take windows for example: in the 50’s, it was significantly cheaper to heat and cool a home, so the thermal loss through windows wasn’t a big issue. I don’t have to tell anyone in San Diego that that isn’t true any more. Today, the investment made in new dual pane windows can be recovered in savings on the old power bill.

And there’s another consideration-lifestyle. Think about how many entertainment options your family enjoys at home–renting movies and DVDs, video games, the Internet, dinner parties– so why not make your home as comfortable as it can be? An extended family room, an eat-in kitchen, a luxurious master bedroom and bath suite could convert your “plain old” home into the home of your dreams.

With the political situation in the world being what it is, you may be thinking that this might not be the right time to spend the money on your home. You might be concerned about our economy in this time of war overseas and terrorism here at home.

The way I see it is this: if we stop spending money–fixing up our homes, buying big screen TVs, taking vacations– then we become part of the problem. The best thing we can do to keep our economy strong is to continue to invest in it. Buy stock, improve your home, take that trip to visit your relatives back east, and know that you are supporting the world’s greatest economy.

 

And don’t forget to support your neighbors, the locally owned merchants– like K-Co!

Tags: , , , ,
Posted in Design Matters | No Comments »

K-Co Commercial #2

Tuesday, August 25th, 2009

Here is our second commercial. We changed it a little. Hope you enjoy. Give us some feed back let us know what you think.

Tags: , , ,
Posted in K-Co In The News | 1 Comment »

How To Pay For Your Remodeling Project

Tuesday, June 16th, 2009

If you are getting serious about remodeling your home, then it’s time we had the talk about money. No, not the talk about how much it will cost. I want to get you thinking about where you will get the money.

I should say right up front that I am not a financial or tax advisor. I can’t tell you which of the ways to get money for a remodeling project is best for you. I just want to give you the basics to help you start the process of deciding for yourself.

Let’s start with one financing option you are bound to be familiar with-cash. Whether you got the remodeling cash the old-fashioned way (saved up for it) or won the lottery or had a big tax refund (what’s that like?), using your own money is cheaper than paying someone else for the use of theirs. Of course, if the cash you are thinking of using is your family’s emergency stash, then it’s not the best idea to sink it into a new kitchen.

Another option you’re no doubt familiar with is a credit card. Using your credit card(s) means less hassle, and no waiting for approvals to have the money. If your home improvement project is urgent (leaky roof in rainy season) a credit card might be the best bet. You will pay for that convenience, as credit card interest rates are way above the rates of other financing options. You may also find that your contractor doesn’t take credit cards, or prefers not to because of the 3%-5% service charge they pay on each transaction.

So if you don’t want to wait to save the money to pay cash, and you don’t want to use a credit card, how can you get the money for home improvements? If you own a home in most parts of San Diego, chances are you have the money you need in the form of equity in your house. There are several ways to tap this resource: a home equity line of credit, a second mortgage, or a cash-out refinance are some of the most common.

All of these options are similar because they all borrow against the equity in your home. Since your home is the security for each of these loans, if you aren’t able to make the payments, you could lose your home. You may also be able to write off some or all of the interest expense in loans of this type (please check with your tax expert on this one). However, there are differences between them.

A home equity line of credit is a revolving credit plan, like a credit card, with a specific credit limit based on the equity in your home. The funds are obtained by writing checks as you need them and payments are made only on the money you use. For example, if your line of credit is for $100,000 but you only use $60,000, the payments are based on the $60,000 and not the full $100,000.

A second mortgage is disbursed as a lump sum and is repaid over a fixed period of time under pre-set terms, just like your first mortgage. Since you receive the money all at once, your payments are based on the total amount, even if you don’t end up using all of it for your remodeling project.

A cash-out refinance is another way to use your home’s equity. If your home is worth significantly more than you owe on it you may be able to refinance your first mortgage for the appreciated value of the home. After paying off the original loan, the leftover money can be used to pay for remodeling.

Another idea is to look for a lender that offers construction or remodeling loans. This type of loan is based on the projected value of your home after the improvements are made. In some cases you can borrow up to 130% of the value of the existing home.

Before actually applying for a loan, talk to several lenders about all your options. Keep in mind, the lender will tend to focus on the options they carry. This is why many people like to start with an established mortgage broker as they usually carry many more types of loans. Besides helping you understand your options and the various trade-offs involved, the broker or lender can help you pre-qualify you for one or more loans.

Knowing how much you will have to spend will be a big help when you are meeting with a contractor (and I hope it’s K-CO!). Don’t be afraid to be up-front about your budget. That will help you separate the “need-to-have” features from the “nice-to-have” on your wish list. Together you can plan a project that gets you the home of your dreams that is within your financial means.

Tags: , , , ,
Posted in Construction Questions | No Comments »

Design Matters

Thursday, May 21st, 2009

Living in Clairemont, you are no doubt familiar with the second story room addition that looks like someone dropped a box on top of the garage. While the rooms may be comfortable inside, from the outside the addition looks less attractive than it could

It makes me nuts to see one of these, because I know that just a little creativity at the design stage-some varied roof lines, bay windows, or some interesting stucco treatments-would have made a big difference in the end result.

If you decide it’s time to add on to your home, and youCustom Home Bay Park want the end result to look great, whom should you call? Must you hire an architect or can a designer handle what you need? I’ve talked to many customers who were confused about the difference between an architect, a designer and a draftsman. Here’s a very brief overview of the role each would play in planning your room addition.

  • An architect is an individual, licensed by the state, who is experienced in architectural design, drafting and construction techniques. An architect can not only design an addition, he or she can draw the plans to be submitted for the permit as well. The architect may also oversee the process of procuring the best contractor for the client’s project, and provide a “scope of work” document for contractors bidding on it. This level of knowledge and ability is often more than is necessary for a typical room addition.
  • A designer is primarily trained in the arrangement of living space-where a window should go for good light inside, as an example.
  • A draftsman is trained in drawing both the plan view (looking down from above with the roof gone–the layout of rooms, etc.) and elevation view (what you see standing outside looking at the building) of a structure.

There is definitely some cross over between these three roles-for example, the designer who can also draw, and the draftsman with training in design. Occasionally, you may have two people working on the same project-the designer sketching out a rough drawing of the design concept and the draftsman completing a more detailed scale drawing of it. Whoever draws the plans for submittal to the City must be familiar with the applicable building codes.

When you see the phrase “design-build” in a construction company ad, it could mean the company has a design person on staff, or it might mean they have the ability to find and contract with one for you. Any construction company can do the second, since an architect or designer is a subcontractor just like a painter or drywall guy. Not every contractor wants to work through the design process with the customer; some construction companies prefer not to get involved until the design is complete and the permit is issued.

One advantage to the homeowner in having the construction and design people working together from the start is that the construction side can be a “reality check” for the design side. The construction person can keep the designer apprised of the cost to build what is being designed, to help keep the project within your budget.

Tags: , , , , ,
Posted in Design Matters | No Comments »