Little Ways to Save Big on a Remodel

By: Alexandra Bandon, This Old House magazine

Repair Rather Than Replace

Nothing on This Old House‘s East Boston project house seemed in worse shape than the stucco siding. Years of harsh winters had left giant cracks and gaping holes in the masonry surface. Making it worse was the ivy working its way into the cracks, opening a path for water to get behind the stucco. A complete replacement would have come in at $50,000.

Instead, after the ivy came down, a masonry crew patched the worst sections with new stucco over wire lath, then filled remaining cracks with caulk. Tom’s crew cleaned the entire surface using grinders fitted with wire wheels. Then painters applied a primer and two tinted layers of an elastomeric coating—basically a thick acrylic paint—which helps tie everything together and give it a smooth finish. The repairs cost $10,000.

What They Saved: $40,000

Roll Up Your Sleeves

The original front doors to the house (which had been in the basement for decades) were a bit the worse for wear. But that didn’t mean they couldn’t be spruced up. Chris and Liz stripped the original finish themselves, then Tom and TOH master carpenter Norm Abram reglued some joints and patched the worst spots with epoxy. Some new tempered and insulating glass, and the elegant 1916 doors with egg-and-dart detail were ready for action again, for only $480 in materials. Similar new doors could have cost $2,000.

What They Saved: $1,520

 

Limit Demolition

Because the entire house needed new wiring and insulation, on the first floor it was cost-effective to remove the cracked plaster ceilings to gain access. But Tom opted to leave the original wood lath in place, then wallboard over it. This saved on labor for sorting the debris, cleaning it up, and pulling all the nails left in the joists, and it reduced dumping fees.

What They Saved: $600

Rob Peter to Pay Paul

When Tom took down walls to enlarge the kitchens in both apartments, he had to contend with floorboards from adjoining rooms running in different directions, as well as missing flooring where the walls had stood. Seamlessly weaving in patches would have been very labor intensive, and the new wood wouldn’t have matched anyway; replacing with equivalent reclaimed heart pine throughout both kitchens would have cost about $26 a square foot for materials and labor. So Tom got creative.

In Liz’s kitchen, he cut the flooring at an angle in the middle of the room to echo the corner cabinet. Then he carefully pulled up all the boards on one side of the cut and relaid them on a diagonal. To salvage some extra flooring, he took boards from where the washer/dryer and the cabinets would go. In Chris’s kitchen, he pulled up all the boards that were turned the wrong way and relaid them so the floor would be uniform.

Replacing the floors would have required the same demolition, installation, and refinishing, plus the cost of new materials. So the only added labor here was the extra 2 1/2 hours it took to pull up the boards without destroying them.

 

Use Luxuries Selectively

A glass-tile backsplash is a beautiful detail in any kitchen, but installing one throughout could have set Liz back $1,500. The place where a backsplash was most necessary, however, was over the stove, to make cleaning up cooking splatters easier. Tiling only this 2-by-3-foot space cost her a doable $250.

What They Saved: $1,250

 

Adjust To Your Circumstances

Tom isn’t a fan of windows in a shower because, as he puts it, “you have exterior conditions—rain and heat—on the interior.” But in the case of the first- and second-floor bathrooms he had no choice; there was no room to move the openings and no budget for new windows set higher up on the wall. Removing them and closing up the walls would have cost $800 per window. So he created all-weather protection for the existing wood sash by painting them with exterior latex paint and using waterproof PVC, which costs the same as wood but won’t rot, for the window trim.

What They Saved: $1,600

 

Add Detail With Paint

Chris’s formal dining room came with nice top rails and battens on the walls. However, before the remodel, the trim was finished in a dark stain and just looked like applied molding on the white walls. By painting the moldings white and the spaces in between them a coordinating warm beige—different from the pale-blue field above the rail—the bottom half of the wall looks more like it’s actually paneled. Real wood or even MDF paneling for the room would have run as much as $4,000. The paint job was a mere $700.

What They Saved: $3,300

 

Stick With Stock

A kitchen can be outfitted for a lot of money—with custom cabinetry and paneled appliances—or for a whole lot less if you order up off-the-shelf items. Chris’s seaside-cottage look was easy to achieve with stock white cabinets and beadboard doors; white appliances blended right in. But even some nice finishing details were created with stock items. The panels on the side of the refrigerator and the island are actually pieced together from affordable stock cabinet doors, rather than custom pieces.

What They Saved: $1,025

 

Be Open To Open Shelves And Doors

Chris’s old kitchen had a small, doorless room that held the fridge; Tom turned the space into a food pantry, lining it with open shelving and forgoing the lower cabinets often found in pantries (saving $1,000). He also left off the pantry’s entry door (a $350 item). To make the highly visible alcove blend with the rest of the kitchen, he lined the walls with beadboard.

What They Saved: $1,350

 

Reuse Existing Materials

Liz’s kitchen expansion meant that a built-in china cabinet lost its surroundings. Meanwhile, Chris’s third-floor laundry area needed a linen closet. Rather than toss aside an attractive feature of the original house, Tom repurposed the leaded-glass cabinet front (the sides and back had been the walls) in Chris’s laundry room. New cabinet doors and drawers with that kind of detail would have run upward of $3,700. The labor to move the old cabinet and give it sides and a back cost about $200.

What They Saved: $3,500

Total Savings: $70,145

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2012 Housing Market Outlook & Forecast Report

By RE/MAX of New England Last updated: Wednesday, January 18, 2012

Employment, Consumer Confidence Needed to Grow Housing Market in 2012
“New Normal” Has Arrived for Buyers, Sellers

Historically low interest rates, renewed interest by investors, and job growth helped provide modest stability to the real estate market in 2011, according to RE/MAX of New England. Although the first six months of 2011 failed to keep pace with the first six months of 2010, fueled largely by the pending expiration of the federal tax credit, the second half of 2011 witnessed much stronger sales.

Federal Reserve Chairman Ben Bernanke, in a report to Congress, recently declared the weakness in the real estate market a “significant barrier” to a meaningful economic recovery. The Federal Reserve, as part of an effort to bring stability to the real estate market and the overall economy, has pledged to keep key interest rates at historically low levels until mid-2013. There is hope in the real estate community that this will help solidify consumer confidence, which remains low, and, with interest rates now in the 3% range, entice more people to purchase homes.

“There is no indication that leads me to believe we will have any significant uptick in the market,” said Jay Hummer, Executive Vice President and Regional Director of RE/MAX of New England. “However, barring a financial catastrophe in the marketplace, it appears that we’ve hit the bottom, and we can expect to see a very slow and very gradual increase over the next couple of years.”

Home values continued to slip in 2011. Just one out of six New England states, Vermont, experienced an increase in sales price. However, home prices in New England declined at a slower rate than other parts of the country. According to the Clear Capital Home Data Index, U.S. home sales prices declined by -2.1%, marking the fifth consecutive year that home values have decreased. Four New England states outpaced this national trend by experiencing smaller declines. “The housing market was fairly similar to the market in 2009. There was a decrease in units, volume, and pricing in most segments,” Hummer said.

To read the entire report, click here.

Rate on 30-year mortgage down to record 3.88 pct.

WASHINGTON (AP) — The average rate on the 30-year fixed mortgage fell again this week to a record low. The eighth record low in a year is attracting few takers because most who can afford to buy or refinance have already done so.

Mortgage buyer Freddie Mac said Thursday that the average rate on the 30-year fixed mortgage dipped to 3.88 percent this week, down from the old record of 3.89 percent one week ago.

The average on the 15-year fixed mortgage ticked up to 3.17 percent from 3.16 percent, which was also a record low. Records for mortgage rates date back to the 1950s.

Mortgage rates tend to track the yield on the 10-year Treasury note, which fell below 1.9 percent this week.

For the past three months, the 30-year fixed mortgage rate has hovered near 4 percent. Yet cheap rates on the most popular mortgage option have done little to boost home sales.

High unemployment and scant wage gains have made it harder for many people to qualify for loans. Many don’t want to sink money into a home that they fear could lose value over the next few years.

Previously occupied homes are selling just slightly ahead of 2010′s dismal pace. New-home sales in 2011 will almost certainly be the worst on records going back half a century.

Builders are hopeful that the low rates could boost sales next year. Low mortgage rates were cited as a key reason the National Association of Home Builders survey of builder sentiment rose strongly in December and January.

So far, the low rates have had minimal impact. Mortgage applications have risen about 6 percent on a seasonally adjusted basis over the past four weeks, according to the Mortgage Bankers Association. But they are coming off extremely low levels.

To calculate the average rates, Freddie Mac surveys lenders across the country Monday through Wednesday of each week.

The average rates don’t include extra fees, known as points, which most borrowers must pay to get the lowest rates. One point equals 1 percent of the loan amount.

The average fee for the 30-year loan rose to 0.8 from 0.7; the average on the 15-year fixed mortgage was unchanged at 0.8.

For the five-year adjustable loan, the average rate was unchanged at 2.82 percent. The average on the one-year adjustable loan fell to 2.74 percent from 2.76 percent.

The average fee on the five-year adjustable loan rose was unchanged at 0.7; the average on the one-year adjustable-rate loan was unchanged at 0.6.

For more information this article, click here

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