Home renovations on sale

Materials costs are plunging, and contractors are begging for work. Suddenly that long-postponed remodel is looking like a smart idea.

(Money Magazine) -- If you're struggling to see a silver lining in the beaten-down real estate market, consider this one: It may be a rotten moment to sell your house, but if you've postponed a much needed renovation project on your home - replacing a rotting deck, repairing a leaky roof or updating an antiquated bathroom - now just might be the best time in years to tackle that task.

The reason: Costs are starting to drop - in some cases, sharply - on everything from building materials to contractors' fees as the economy weakens and housing prices tumble.

In fact, consumer spending on home improvements is off by 12% since peaking last year, according to Harvard's Joint Center for Housing Studies - and that works to the advantage of anyone willing and able to remodel now.

"It's hard for homeowners to think about spending on their houses when real estate values are falling," says Kermit Baker, a senior research fellow at Harvard who tracks remodeling trends. "But with contractors hungrier for business, you'll be able to negotiate better prices, win other concessions and hire better-quality contractors than you could a year or two ago."

Overall, experts say, you can expect to save at least 10% on the cost of a renovation and possibly a lot more, depending on where you live and the project you choose. And if prices on many remodeling materials continue to decline as projected over the next few months, the cost of home improvements should fall even further.

Yet another benefit: Putting money into needed repairs and updates now should help your home maintain its value even as other house prices keep falling.

Of course, not all renovations are created equal. Adding a home office or a swimming pool might be on your wish list, but these days neither is likely to give you much of a return on your investment.

With home prices still in a free fall, it's more critical than ever to understand which projects will return the most on your investment and how to negotiate the best deal with the pros you hire to do the job. The following strategies should help.

Cherry-pick your project

Understand this from the outset: No matter what kind of repair or renovation you undertake, you can't count on the payback you'd have gotten a few years ago when home prices were rising steadily.

According to a new study by Remodeling magazine, these days you can expect to recoup about two-thirds of your costs on a typical home improvement if you sell your home within a year after completing the job, compared with 87% in 2005, when home values were at their peak.

That means you have to be especially careful in choosing which jobs to do, considering the urgency of the need (if that roof is leaking, you really have to fix it now) as well as what you'll pay in material costs, how much of the total bill you may recover and any extra benefits you may get.

To the extent you have a choice, focus on projects with better-than-average returns that may yield additional savings in other ways. For example, installing new windows will cost $10,000 to $20,000 on average but return 75% to 80% of your investment (see "Payback time" above and to the right for the six projects with the best return).

And those improvements have the added benefit of making your home more energy-efficient, so you'll also save on your electricity and heating bills. Plus, you may qualify for tax credits that will further offset the cost of making the changes. A host of home improvement tax credits for windows, doors, insulation and roofing were added or extended in the recent bailout bill; for the complete list, go to energystar.gov.

Some exterior improvements also make a lot of sense right now thanks to sharply lower oil prices. That's because many petroleum-based products, such as asphalt and vinyl, are the core material in these renovations.

The costs of these products had soared recently along with the price of oil but have started to drop, making this the best time in a while to replace your aging roof, repave your driveway or redo your vinyl siding. (See "Building blocks at a discount" above and to the right for a look at recent price changes in key remodeling materials.)

Also think about limiting the scope of the project, since minor upgrades rather than major additions give you more bang for your buck today. For instance, if you modernize your bathroom, you can expect to recover about 75% of what you spent, but adding an entirely new bathroom will pay back only 64% of the cost of the job.

Press for a price break...

These days you'll find a glut of construction professionals vying for your business - a far cry from the situation a few years ago when it was impossible to get a reputable contractor to return your call and a six-month wait to start a kitchen remodel was the norm.

How low can you ask remodeling pros to go? According to a new survey by the contractor referral site Angie's List, 70% of home builders and remodelers are willing to drop prices at least 10%, and 30% say they'll give even steeper discounts.

"There's a larger pool of professionals fighting for these jobs, so a little negotiation may go a long way to get the best possible price for your project," says Angie Hicks, founder of Angie's List, which charges a monthly fee of $6 for access to customer reviews and references.

You'll have the most leverage in the areas that have been hit hardest by the housing slump. But no matter where you live, you should be able to strike a bargain (for tips, see "Hiring a Contractor" above and to the right).

Get bids from at least three remodelers, and insist that their quotes spell out all costs, including labor as well as materials (brand-name products where possible).

Let each pro know up front that you are comparison shopping and that price, in addition to quality craftsmanship, will play a key role in deciding whom you will work with. With the bids in hand, you can then compare prices and start negotiating.

Shopping around really paid off for Nancy Boris, who saved $2,800 on the cost of replacing the back patio of her 2,400-square-foot, three-bedroom home in Roseville, Calif.

Boris, a nurse case manager, got bids ranging from $2,400 (from a contractor who didn't have insurance or references) to $5,800. The highest bidder eventually came down $2,000 in price to $3,800, but Boris ended up going with a pro who had better references for $3,000.

Read more: http://money.cnn.com/2008/11/18/real_estate/renovations_sale.moneymag/index.htm

Building a Great Home Theater

It could be very easy to spend tens of thousands of dollars building the ultimate home theater experience for you and your family and if you use your home theater on a regular basis and have the money to spare you might find well worth the investment. However, you can also build a fantastic home theater for significantly less money if you are willing to put a great deal of effort into finding the right parts for the right price for your system. Everything comes down to matters of preference and available funds when building any sort of home theater.

The truth of the matter is that most of us cannot afford to spend more than ten thousand dollars creating the home theater of our dreams. Many of us must seriously budget well in order to spend a couple thousand dollars on our home theaters. The good news is that for a few thousand dollars you can create a truly phenomenal home theater if you do your homework and invest your money wisely in components for your home theater system.

My first recommendation when building a good quality home theater is to buy one piece at a time rather than building it all at once. This allows you to constantly upgrade your system without breaking the budget all at once. It also allows you the time to save up for better quality pieces within your system rather than attempting to make an all or nothing purchase. One thing to remember when purchasing pieces individually is to make sure that they are all compatible (this is especially important with speakers, which I recommend purchasing together as a set whenever possible).

The television is the first thing you should purchase when building your home theater as almost everything in your home theater will center around your television. High definition televisions are becoming more and more common and provide superior quality to many other televisions you will find on the market. If you have the means with which to purchase this sort of television I highly recommend that you do so. Once you have your television you can begin purchasing other components in order to complete your system.

The next component I recommend is a receiver or amplifier. This is the piece that brings all other components together. Without a decent receiver it is virtually impossible to have a decent home theater. The receiver acts as a sort of conductor for the sound and picture of your home theater. This is a piece of equipment that should not be skimped on when it comes to quality, as you will completely miss an important part of the 'theater' experience without it.

Next are the speakers. Speakers are also very important to the 'theater' experience of your home theater. The speakers are what provide that 'movie quality' sound that is so important to most enthusiasts and what will make your system the envy of the neighborhood. I highly recommend purchasing speakers as a set in order to insure compatibility.

Finally, the DVD player or recorder rounds out the system. It is up to you and your preferences whether or not you wish to invest in a high dollar (at the moment) high definition DVD player. If you have HD television and plan to purchase HD disks for your movies then this is the way to go. Otherwise it is a complete waste of money in my opinion until the rest of your system rises to meet the technology. The good thing about purchasing one component at a time is that you can constantly work towards upgrading your system to meet rising technology.

House renovating : A Cabin Theme for Your Home Decorating Needs

A Cabin Theme for Your Home Decorating Needs
When it comes to home decorating there is one thing that must be said-people seem to long for the simple life and cabin living. Of all the styles of decorating and d้cor this is one that seems to be repeated most often but in different ways. Seriously there are all kinds of 'cabin' d้cor websites, magazines, brochures, books, and how to videos all over the place than probably any other style of decorating.
One reason for the phenomenal popularity of this particular type of home decorating style probably has a little bit to do with the simplicity of it. There are no hard and fast rules, there aren't fancy faux finishes and textured painting that needs to be done in order to complete the look and there aren't overly complicated rules for what is and isn't acceptable. From the bear budget to the champagne and caviar crowd there is some sort of d้cor available that will suit not only the home decorating needs but also the need for quality as well.
Another thing that many find appealing about a cabin themed home decorating plan is that it simply exudes warmth year round. From the dark colors to the flannel materials and the soft homespun simplicity of the design many find it simply irresistible. One thing that is obvious in this style of decorating is that it appeals to those who love home and hearth and warmth and good will far more than modern touches and design elements. This is not a hard plastic sort of design style and it shouldn't endeavor to become one as the two styles are almost systematically opposed to one another.
If you want the warmth of a Montana cabin in your home every day of the year this is one great way to do it. Bring the bears, the moose, and all the furry forest friends to frolic in your living room, on your light fixtures, and in your dreams as you fall into restful sleep each night. From the bedroom to the bathroom and the kitchen in between the cabin style of home decorating is one that is making great waves in the market place.
You will find many stores online and locally that cater to the cabin loving audience for hardware, knick-knacks, and what knots galore. The thing to remember is that the design essence isn't the little touches you add along the way, it's the warmth of wood, fire, leather, and wrought iron. These are the materials that will establish the cabin appeal more quickly than any of the little touches you can add along the way. Drywall and plaster simply cannot carry the look. Knotty pine or some other rich style of wood is the best option for walls when pulling off a cabin home appeal.
More importantly than anything though is the need to include a little bit of yourself in the design. Do not hesitate to carve your initials with a heart into the wood of your walls. It is one more thing that will be not only endearing but also appropriate to the home and the atmosphere. There is a type of innocence about a cabin style home and the little touches such as that will leave a lasting impression.