Ellen McLaughlin - Coldwell Banker Residential Brokerage



Posted by Ellen McLaughlin on 3/28/2021

Fireplaces are often seen as a necessity for homebuyers. It adds charm and decorative as well as physical warmth to a home. More than half of new homes have a fireplace. If your home doesnít have a fireplace, you may wonder if installing and maintaining a fireplace is worth it. Will it add value to your home? There are a few things you need to consider before you decide to take on this project.


Value


Keep in mind that fireplaces are not directly accounted for during a home appraisal. Yet, they add value to a home. Home buyers will pay more for homes that have fireplaces. Depending on the location of your home, a fireplace can increase the value of the property by a significant amount- up to thousands of dollars.


Location


The location of a home really has a direct effect on how much value it adds it a home. When added to other amenities in your home, a fireplace can compound to make the home appear more luxurious. A fireplace is a must in a higher end home.  


On the flip side, more modest homes may not need fireplaces. If a home needs many other improvements, a fireplace may not add much to the property. The amount of value a fireplace adds is very much dependent on the type of property itís being added to.       



Cost


Itís possible to add a fireplace to just about any home. The cost will vary by a large amount ranging anywhere from a few hundred dollars to tens of thousands of dollars. Specific requirements may exist within your city dictating how fireplaces must be installed. Keep in mind that everything from the type of fireplace thatís being installed to the height of the chimney must be considered. Look into things like:


  • Emission limits
  • Chimney height
  • Construction requirements
  • Permits
  • Type of installation

Each requirement will add a bit more cost to the project, so itís best to do some research beforehand. 


Getting The Maximum Value


If you decide that adding a fireplace is the right decision for your property, there are a few ways to get the maximum return on your investment. First, you should build the fireplace in the room of your home thatís most used. This space would most likely be the living room or family room in most cases. Keep in mind that adding a fireplace can drastically change the look of a room.


Whether youíre adding a fireplace or putting in an initial one, you can be sure that it will add value to your home in the form of attraction and home price.  





Tags: fireplace  
Categories: home value   remodeling values  


Posted by Ellen McLaughlin on 4/21/2019

Home values continue to rise. Many people use their home equity in order to get a bit more financial security. The home equity line of credit can have many different benefits for you. From home improvement projects to a much-needed vacation, you can get the funds that you need for whatever you wish. Turn to your home equity with some careful thought, however. You could end up owing more than your home is worth, which defeats the purpose of tapping into your home equity to begin with. 


Make Your Decision Smart


Your home equity can be a good thing to tap in to if youíre not planning on spending like crazy. Maybe you just want a little extra cash on hand for emergencies. Youíll be prepared for anything unexpected. This could be a smarter decision than just blowing a bunch of money on a vacation, for example. 


Some smart things that you can use your home equity for include:


  • Home renovations
  • Emergency funds
  • College education funds
  • Cash advance


These ideas are investments that can help you to achieve other goals. You should be sure that youíre able to pay the money back. These projects or financial endeavors are much more suited to smart spending than just randomly spending money, buying a car, or other things that will put you in serious debt.


Home Equity Fluctuates


As the market changes, the amount of home equity that youíll have to tap into does as well. The state of the housing market can actually dictate to you how much money youíll be able to get. If the market isnít good, you could end up in the negative financially, so do your research. 


How To Get Your Home Equity


There are a few ways that you can draw from your homeís equity. The first rule that you should understand is that you cannot borrow more than 80% of what your home is worth. Take a full remortgage your home, giving you the full 80% amount that your home is worth in order to take a lump sum. Alternatively, you can take a cash-out refinance where you set the amount of money youíd like to take out of your homeís equity as you refinance the home. You can also take out whatís called a ďhome equity line of credit,Ē which allows you to use the amount of your homeís worth as a credit card of sorts. You borrow money as you need it.     


The biggest issue with refinancing is that of planning. Itís important to know why youíre refinancing and what youíre planning on doing with the money. Used wisely, home equity can really be a great financial tool.