The Columbia SC home improvement market continues to perform well as a result of rising prices and limited supply of homes for sale. Would-be purchasers who may not be able to find – or afford – their next dream house are thinking about adding a room to their existing homes. Sellers planning to sell their properties are also considering home improvements that may increase the asking price when the time comes to sell. If you fall into either of those categories or if you simply want to stay in your existing home and need more space, let’s look at room addition costs.
Columbia SC Home Improvement: What's the Cost?
The two components of adding a room to your home are materials and labor. Understanding their role and the impact each component has is crucial in keeping within a planned budget and timeframe.
Materials, of course, refers to all the construction materials and supplies necessary to complete the job. Lumber, plywood, sheetrock, paint, flooring, light fixtures and other materials need to be priced in order to have a projected cost, or at least a range.
Labor costs will entail the cost of paying for the work to be performed. There are several different options when it comes to labor costs. You can hire a general contractor to oversee the room addition or home improvement project. The contractor, in turn, will hire the subcontractors to perform the actual work. The subcontractors, or tradesmen, include frame carpenters, electricians, plumbers, sheetrock finishers, painters, flooring installers and others. You can also save a little money, perhaps, by assuming the role of the contractor yourself by hiring the various subcontractors and supervising the work performed. Lastly, if you have the time, talent, energy and desire you may undertake all or part of the room addition as a “do-it-yourself” (DIY) project. Whichever option you choose, it’s vital to establish a cost estimate, a budget and a completion date to make your Columbia SC home improvement project go smoothly.
Suggested Steps For Your Columbia SC Home Improvement Project
Decide how big the room addition will be. Calculate the square footage (by multiplying the dimensions of the rectangular walls.) For example, if you’re planning to add a room whose dimensions will be 12’ x 18’ the square footage is 216 square feet. If the room is going to be square, say, each wall is 15’ long, then the square footage will be 225 square feet (15’ multiplied by 15’). Experts say room additions involving additional wiring and plumbing can cost as much as 50% higher – ranging from $75-$150 per square foot more – than that same room would cost if it had been built with the rest of the house. In addition, don’t forget architectural costs if you choose to hire a professional architect. Architectural fees vary from hourly rates to as much as 15% of the cost of the room addition.
Plan on the fixtures you want for the room. If you’re planning the addition of a bathroom, you’ll need to calculate the cost of a sink, vanity, bathtub/shower, and light fixtures. The addition of a bedroom generally would not contain those items – other than perhaps a light fixture. So, for a bathroom, make sure you include the costs of the fixtures and hardware (faucets, shower heads, drawer and cabinet pulls and handles) as well as the additional plumbing and wiring needed.
Make decisions on the other pieces of the construction puzzle. As mentioned in the materials section above, decide what you want the finished product to look like and calculate the cost of those materials. Don’t forget things like insulation for additional energy efficiency or sound reduction. Decide as soon as you can whether you’ll carpet the floor or use hardwood flooring. The same goes for the walls – will they be painted or paneled? Also, if you like crown moulding or chair railings, especially if you’re trying to match the other rooms in the house, don’t forget to calculate that into your price estimate.
Interview a contractor if you require professional help for the room addition. Ask for references and to see homes or additions he has recently completed. Don’t be afraid to ask questions. Have a full understanding of the labor charges and ask for a written quote on materials. If the estimate on the materials if higher than you anticipated, look into the possibility of providing the building materials yourself. It may involve setting up a line of credit or purchasing them in advance, but you may save money. Remember this important point: Have a clear understanding of “change orders” and their resulting costs. Make sure you get a price estimate before you ask your contractor to move a window, door or closet that’s already been framed up. Change order surprises are among the major culprits in wrecking Columbia SC home improvement budgets.
Be sure to consider other costs involved that may be overlooked. Additional costs associated with a room addition may include demolition, removal and disposal, even landscaping changes such as the replacement of grass, shrubbery, trees, etc. In addition, a room added to your home will generally mean a slight increase in your utility bills, homeowner’s insurance and property taxes. Plus, don’t forget to allow money for furniture and furnishings for your new addition. If it’s a bedroom you’re adding, consider the cost of a bedroom suit, a new bed and mattresses, flat screen TV or other entertainment, window treatments and other items you may want.
See more articles pertaining to Columbia SC home improvement news in the Columbia SC Home Improvements section of our site below Columbia SC Real Estate Categories in the column to your right. As always, you can find information here on a variety of topics ranging from home buying and home selling tips to home improvements, home inspections, mortgage financing, homeowner's insurance and, of course, all the latest Columbia SC real estate news that affects all of these categories.
Also remember to Find us on Facebook and Follow us on Twitter!
Columbia SC home inspections have become an important commodity in today's real estate market. Home buying can be a fun adventure. However, it can also be worrisome, stressful and problematic. The last thing you want or need during the home buying process is to make your purchase, move in your newly-found home and discover there are problems that can only be repaired by lots of time, money and headaches. If only you were aware of the problems or repairs before you signed on the dotted line. Frankly, that's exactly why Columbia SC home inspections are not just a good idea – they're the best idea. Let's take a closer look at why home inspections are important, what they cover, how much they cost and why they're worth every penny.
Columbia SC Home Inspections: Learning More
What should a good home inspection include?
There's no "one size fits all" for Columbia SC home inspections. Every home is different, and home inspections, although they generally cover most all the main components of the house, may vary. The advice most real estate professionals give is to find out ahead of time what the inspection will cover and what it won't. That way, there shouldn't be surprises or disappointments. Upon completion of the inspection, the inspector will provide a written report with a list of problem areas discovered, including supporting photographs. These areas are covered in a normal home inspection:
• Plumbing
• Foundation
• Roof
• Attic
• Electrical system
• HVAC
• Fireplaces
• Interior and exterior (general overview)
In addition, there are other areas that may require specialized certification in order to have them inspected and evaluated. An additional inspector will likely be needed and that inspection may cost additional. Here are some additional areas for which you may wish to hire a specialist to handle:
• Asbestos
• Radon
Home inspections should be non-invasive and non-intrusive – the inspector shouldn't make holes in the drywall, damage fixtures or remove roofing shingles. If the inspector recommends more invasive procedures be made he should inform the homeowner. Those additional examinations should only be made with the written permission of the homeowner. Therefore, it's probably a good idea to be present when the Columbia SC home inspection takes place.
What costs can I expect?
Some buyers try to save money by electing not to have an inspection performed. And while hiring an inspector is an additional expense, it will more than pay for itself if it helps you avoid problems, expensive repairs and buying a proverbial "lemon."
Average home inspection costs are in the neighborhood of $300 to $400. Depending on the size of a smaller home (say, 1,000 square feet or less) or in the case of a condominium the cost could be closer to $200-$250. A larger home of 2,000 square feet or more would cost approximately $400-$500.
While price is important, a more important factor is the experience and qualifications of the home inspector or Columbia SC home inspections company. Consider this when contracting for a home inspection:
• Home inspection fees are calculated differently. Some inspectors charge a flat rate based on the square footage of the home, taking into consideration the living area, area under roof, or the amount of time it takes to perform the inspection. If you have a large house and the inspector is charging on the amount of time the inspection will take, expect to pay more.
• A home's age will also have a bearing on the amount charged. Newer homes can usually be inspected in 2-3 hours, but older homes may take 4-5 hours. Remember, an older house has a longer history, and longer histories often mean more repairs, potential problems and a closer look.
• One last tip: As with most things, you get what you pay for. The lowest price doesn't always equal the best results. Make sure your Columbia SC home inspections professional is certified and qualified.
What about extra costs?
A quote provided up front from a reputable home inspector will likely be pretty accurate. Nevertheless, it's a good idea to know about extra costs that you may incur. One example is a detached garage. Some home inspectors consider the garage as part of the house and include it in the price. Others consider it an additional building and may charge extra for its inspection. In addition, if your house has extras that most houses may not, such as a swimming pool, septic system or outbuildings you should probably expect to pay additional for them. Due to health and environmental concerns there are often items that may incur additional costs. These may include:
• Asbestos – While newer homes probably don't contain harmful asbestos, older homes may. Expect to pay a minimum of $400-$500 for inspection and testing. Plus, asbestos removal can be a very expensive proposition – depending on the amount of asbestos. Expect the cost to be as little as $500 or as much as $25,000 or more!
• Mold – Most homes cost around $750-$900 to have mold tests. If mold is discovered, professional removal could run as much as $2,500 or more.
• Lead – Homes built before 1978 should be inspected for the presence of lead in paint and the water pipes. The test for lead would probably cost around $300. If the results come back positive for lead in either the paint or the pipes, lead removal could cost from $1,000-$2,500 or more
• Sewer scope – Often overlooked, the inspection of your sewer could be worthwhile if your home is more than 20 years old. Sewer pipes could be blocked by expanding tree roots or other obstructions. The cost of having a sewer scope performed will be roughly $100-$300
And what about the unexpected costs?
While Columbia SC home inspections are not required, they are recommended. Trying to save a few hundred dollars today could result in having to pay a few thousand dollars down the proverbial road. Some unexpected items include the following, along with their approximate cost:
• Electrical issues – The cost of bringing an older home "up to code" could range from $10,000-$15,000
• Plumbing issues – Older plumbing can often contain unseen problems. The cost to perform repairs or maintenance by a licensed plumber would be in the $250 range
• HVAC – A new furnace can cost between $2,000-$12,000. Parts for repairs may run $500-$750. Water heaters will run $600-$1,000
• Windows – If you replace only the windows, you can expect to pay $300-$700 each, and $500-$1,000 each for both the window and frame
• Flooring – Floor joists often need to be replaced in older homes. They usually cost $100-$300 each. If an entire section of joists need replacing the cost can be $5,000-$10,000. If the house needs to be jacked up and have all joists replaced, expect to pay $10,000-$30,000 or more!
A last word on Columbia SC home inspections: The old adage, "An ounce of prevention is worth a pound of cure" has never been truer. If you find a home you want to buy, consider investing in the cost of a home inspection. It could save you a small fortune over the long haul and provide you valuable peace of mind.
Columbia SC mortgage holders often ask questions about the best way to prepay their home loans – and save money in the process. Follow these tips and you can save thousands of dollars in interest over the life of your mortgage. In addition, prepaying your loan will mean it will pay off earlier than the original term.
Columbia SC Mortgage Holders Can Save Thousands
Prepaying your mortgage by just one additional payment a year can reduce a 30-year loan down to roughly a 23-year term. When you pay bi-weekly (every other week) for example, you're really making 26 half-payments (52 weeks divided by 2 equals 26 weeks.) You could also make an additional payment at some point during the year to effectively make 13 monthly payments instead of 12. Still, some people like to add 1/12 of their mortgage payment to each monthly payment and accomplish the extra payment that way.
Some mortgage lenders charge a fee for prepayments. Hopefully, if you already have a mortgage, yours doesn't contain a prepayment clause. The majority of Columbia SC mortgage lenders allow prepayment without penalty. If you're shopping for a mortgage or are considering refinancing, avoid signing a mortgage with a prepayment penalty.
Prepaying your mortgage works best when you pay the same amount each month. Decide whether you're going to pay an extra $50, $100 or whatever amount you choose and stick with that amount for at least a year. When you change the prepayment amount, just make sure you keep a written record and check your statement closely to see that the extra amount has been subtracted.
Regardless of how you make any extra payment(s) – or if you decide to make a lump-sum payment – make sure your lender enters the payment properly. If you question how, or if, it was applied, contact your Columbia SC mortgage lender immediately so they can either explain it to you or correct it if it's in error.
You can find a lot more Columbia SC mortgage information in our Columbia SC Mortgage Info section of articles to your right just below the Columbia SC Real Estate Categories. We also update mortgage news constantly on Twitter and Facebook. We hope you'll check us out there as well.
Higher Columbia SC real estate prices have ushered in the return of the house flipper. Flippers are loosely defined as investors who buy homes, maybe perform some minor or major improvements and try to immediately sell the properties –– usually at a much higher price than they paid for it. In 2015, the number of active home flippers in the market reached the highest level in almost a decade. Let's take a closer look at the future of flipping.
Columbia SC Real Estate Flips Popular
According to RealtyTrac, there were nearly 180,000 single-family homes and condominiums flipped in 2015. Technically, a flip is defined as a home that is bought and resold within a 12 month period. Flip transactions comprised 5.5% of all sales in 2015 – the first increase in the flipping share in more than four years. RealtyTrac reports that flipping activity increased in 75% of the nation's housing markets. In addition, profits are setting records, too.
Columbia SC real estate experts attribute the growth in flipping to the renewed confidence in the housing market's ongoing recovery. RealtyTrac says not only is the share of home flips rising again, but even smaller investors are participating in the buy and sell activity.
In some markets across the U.S. there are still a number of distressed properties on the market for sale. And, investor demand fueled by the unstable stock market has reopened this avenue for investment growth and profit gain. Real estate agents report multiple offers on the best investable properties as soon as they hit the market. If there's money to be made in a particular house, the flippers are very interested and are acting fast.
One concern on the horizon is that home prices could be rising too fast – even for the flippers' tastes. the main reason for the increase in prices during 2015 and so far this year is the basic law of supply and demand. The supply of homes on the market is low – especially near the lower end of the housing market – and the demand is high. Everybody, not just the flippers, wants a good deal. The prices for homes sold in January were nearly 7% higher than January 2015 and represented a higher annual gain than the month of December, according to CoreLogic. The fear is that house flipping will cause prices to rise even higher – artificially higher – most notably in markets experiencing the lowest inventory.
Some economists warn that as home flipping increases, it's usually an indication of potential problems in the housing market. Such was the case in the housing boom of a decade ago. The difference then, however, was that the flippers were utilizing cheap and available credit to buy their properties, with little of their own money invested in the homes. Because that type of credit and lending is no longer available as it once was, flippers instead are using a larger amount of their own cash into their deals, even with investor financing.
One leading economist said, "More inexperienced home flippers with a smaller financial cushion could be a sign of an over-speculative market, but the data indicate that flippers in 2015 continued to operate within relatively conservative margins." He went on to say that, "Homes flipped in 2015 were on average purchased at a 26 % discount below estimated market value and resold by the flipper at a 5% premium above estimated market value."
Even more concerning is the ever-weakening home affordability for the first-time home buyer or owner occupant looking to trade up. With first-time buyers comprising a much smaller share of total home buyers today than ever before, the risk of a recurring housing price bubble could continue to dissuade them from buying.
In some markets – especially urban areas – investors have to put more of their money into the property to finance it and renovate homes that are often in critical disrepair. And while the properties can be bought for relatively low sales prices and investors stand to make handsome profits once the houses are renovated and sold, investors must be careful to buy the right property in the right market. The failure to do so will result in not having the buyers they need.
Immediately following the recent housing crash, large institutional investors swooped in and purchased thousands of properties in distress. They were able to transform the overwhelming majority of those properties into single-family rental homes. Institutional investors today are buying fewer properties. Smaller investors are taking their place. And those small investors have a penchant to buy and sell – flip the homes – rather than hold onto them in a Columbia SC real estate investment portfolio.
The total number of investors completing at least one flipped transaction in 2015 was at the highest level in more than eight years. The number of flips per investor was at the lowest level since 2008 according to RealtyTrac.
As home prices continue to rise, flippers in turn are seeing their returns increase. Of the homes that were flipped in 2015, the average gross profit was $55,000 nationwide. That amount represents the highest gross profit levels in a decade (since 2005,) RealtyTrac reports. The return on investment neared 46%, an increase of 2% over 2014 and an 11% increase compared to 2005, when flipping was widespread.
See additional articles pertaining to Columbia SC real estate in the Columbia SC Real Estate News section of our site below Columbia SC Real Estate Categories in the column to your right. You can find information here on a variety of topics ranging from home buying and home selling tips to home improvements, home inspections, mortgage financing, homeowner's insurance and of course, all the latest Columbia SC real estate news that affects all of these categories.
Remember, we also post tips daily on Twitter and Facebook. Check us out there too.
In the Columbia SC housing market and others throughout the country, as spring approaches so does a feeling of optimism for many looking to buy. Historically, for a variety of reasons, the coming of spring signals the start of the housing market's activity. However, with home inventory at considerably lower levels than most real estate professionals would like to see them, a home search promises to be a challenging and lengthy task.
Inventory Low in Columbia SC Housing Market
With the supply of homes on the market scarce, real estate experts expect demand to continue to rise. Home prices remain on the upswing – not as a result of rising incomes, but simply because of the age-old economic principles of supply and demand. Homes in short supply meet demand at its peak, resulting in a proverbial seller's market enjoying higher sales prices.
While prices continue to rise, some economists say the pace is slowing a bit. Still, the growth in home prices should encourage additional activity in new home construction. Aggregate housing starts have remained above the annual rate of 1 million starts per year for the past eleven months. In addition – and more importantly – single family housing starts have exceeded 700,000 units per year since June 2015. So, in spite of the lagging inventory of homes on the market, housing investment continues to be a positive factor in the growth of the gross domestic product of the U.S.
Homes in or near urban centers are expected to fare the best. The demand to be close to the city or metropolitan areas creates a veritable buying frenzy. Tight inventory will lead to multiple offers as prospective buyers look to purchase – often before the homes officially reach the marketplace.
The prognosis for some buyers isn't quite as rosy, however. Zillow Chief Economist Svenja Gudell says, "There are a lot of economic forces at work behind the scenes that will have a big impact on housing as we enter the busy home-shopping season. Low inventory is a factor in almost every market, so buyers should be prepared for a limited selection in the months to come.”
Some home buyers won't find exactly what they're looking for. Those home shoppers will be faced with an uneasy dilemma. Will they be forced to settle for something that doesn't meet their expectations or needs? Many buyers are hesitant to make a purchase for fear they may get stuck with a house they can't easily resell. In addition, they dread "buyer's remorse" that may set in once they realize they made a bad decision by buying something they really didn't fall in love with.
As a result, renting is always an option. Some prospective first-time buyers have put off buying for a variety of reasons. Chief among them are a lack of a sufficient down payment, fear of taking on additional debt on top of student loans, an ever-changing job market and rising home prices. Plus, statistics have shown that younger buyers are less apt to buy "fixer uppers" at today's prices, primarily due to the cost involved to improve the property to meet their needs.
For those in the Columbia SC housing market looking to buy but possibly deciding to rent until they find their dream home, they're faced with another dilemma: rising rents. The question many will have to ask themselves is, "Does it make better financial sense to buy or rent?" Most real estate analysts say that depends on the old adage of "location, location, location." In some markets throughout the U.S., homeowners can reach the break-even point in less than two years. What that means is home buyers can spend as much to own as to rent, taking into consideration mortgage rates, down payments and taxes. In pricier markets the break-even period may take longer – often between 4-5 years.
Some home buyers remain bullish on buying instead of renting – even though they may not find exactly what they want. They view home ownership as an investment, preferring to buy and hold the house as it appreciates in value. This segment of the Columbia SC housing market is less likely to rent. They consider renting tantamount to throwing money away without building equity in an investment. And, with mortgage interest rates near record lows, buying probably makes better sense for many.
Other factors will impact the Columbia SC housing market this spring. Global economic volatility continues to contribute to an ever-strengthening U.S. dollar. This will ultimately have an effect on demand from foreign purchasers, resulting in keeping interest rates low.
In addition, some U.S. economists warn that continued single-family residential investment as a major component of gross domestic product is worth watching and tracking. Historically, the investment component has been a high-ranking monetary indicator that tends to peak just before the beginning of economic recessions. This has been cited as a reason that some financial analysts point to a "mild to moderate" recession by the third quarter of 2016.
See more articles pertaining to the Columbia SC housing market in the Columbia SC Real Estate News section of our site below Columbia SC Real Estate Categories in the column to your right. You can find information there on a variety of topics ranging from home buying and home selling tips to home improvements, home inspections, mortgage financing, homeowner's insurance and much more.
Remember, we also post tips daily on Twitter and Facebook. Check us out there too.