2012 Household Budget 101

Happy New Years!!! Another year is about to begin. 

It's highly recommended to track the expenditures for the upcoming year to help achieve our goals, both business and personal.  One of the best ways to track expenditures is to create a budget and plan of attack.

Tracking your spending isn't quite as hard as you think.  A pencil and notebook will do the job, however, if you want more details, you can use software such as Money or Quicken.  Or you can list your expenses using http://www.budgetworksheets.org/worksheet/family.  This way you can see where the bulk of your money is going.  Learn how to create and maintain a personal or family budget and use spending guidelines to help you find the right plan for you and for your family.

    1.  Getting Started:

    Start by listing your fixed costs:
    - Mortgage payment or rent
    - Utilities
    - Insurance
    - Car payment and operating costs, including gas, oil changes and scheduled maintenance.
    - Food, including what you spend to eat out.
    - Clothing for you, you partner, and the kids.

    Take a little off the top each month for savings - think about setting up an automatic transfer from your paycheck.

    2.  How to Save

    - The biggest area we can cut back on in our home budget is usually spending too much on food, especially restaurant meals.  Make restaurant trips an occasional treat - not a substitute for preparing a meal at home.
    - Install a programmable thermostat that flips the heat on each morning, backs off during the day when you're at work, drops it to 55 degrees or so overnight.
    - In the summer, turn off the air conditioning when you're away.
    - Grab store coupons at the mall for mundane things you plan to buy.  Many Internet sites now offer printable coupons.
    - Renting DVDs is cheaper than trekking to the cinemas.  It is possible to buy your favorite movie on DVD for less than the price of two theater tickets.

    3. Remember to include emergency and long term savings as an expense item in your budget.  Putting money aside for an emergency fund for potential major expenses that may come such as losing a job, replacing as hot water heater or needing a new roof on your house.
 

Drafting a family budget is the easy part, sticking to it takes work.  But if you track all your expenses within the framework of a realistic budget, you'll be able to manage your money and won't be living paycheck to paycheck. If you manage to save a significant amount of money, who knows you'll be able to go to that dream vacation you've been thinking of for a long time.  All we need is a little discipline and we can make it work!  Please see http://money.cnn.com/magazines/moneymag/money101/lesson2/index.htm for a more in-depth discussion on how to make an effective financial budget.  Once you read these articles and follow the tips, it's a guarantee that you'll be a smart spender with some savings to spare.

Remodeling Ideas

Before Kitchen 

After Remodeling 

As home values drop and loans become harder to get, homeowners are going after remodeling projects that cost less and hold their value when it comes to sell. Here are some home improvements based on cost vs resale value.  Basically, it shows the resale value of your house when you've finished your remodeling projects.  

Bathroom Remodel 

Cost: $19,936

Resale Value: $10,850

Cost Recouped: 57.3%

How to do it:

Add a full 6-by-8-foot bathroom over a crawlspace with poured concrete walls.  Include cultured-marble vanity top with molded sink; standard chrome faucets; 30-by-60-inch white fiberglass tub/shower with ceramic tile surround; single-lever temperature and pressure-balanced faucet; white low-profile toilet; general and spot lighting; electrical wiring to code; mirrored medicine cabinet; linen storage closet or cabinet; vinyl wallpaper; painted trim; and ceramic tile floor.

Minor Kitchen Remodel 

Cost: $20,377

Resale Value: $14,611

Cost Recouped: 71.7%

How to do it:

In a functional but dated 200-square-foot kitchen with 30 linear feet of cabinetry and countertops, leave cabinet boxes in place but replace fronts with new raised-panel wood doors and drawers, including new hardware. Replace wall oven and cooktop with new energy-efficient models. Replace laminate countertops; install midpriced sink and faucet. Repaint trim, add wall covering, and remove and replace resilient flooring.

Window Replacement (Vinyl)

Cost: $12,633

Resale Value: $7,313

Cost Recouped: 57.9%

How to do it:

Replace 10 existing 3-by-5-foot double-hung windows with insulated vinyl replacement windows. Wrap existing exterior trim as required to match. Do not disturb existing interior trim.

For a complete list of all the remodeling projects, you may refer to Remodeling Cost vs Value Report 2011-12.  so, why invest in these major improvements? In our current buyer's market, says the National Association of Realtors, houses with well-done improvements tend to sell quicker than their shabbier neighbors.  As a result, remodeling your home is a great investment.

If you need a list of professionals who can help you remodeling your home, please don't hesitate to contact me.

How to Sell Your Home During Winter

Many people say that it's harder to sell a home in winter than in summer.  But there are real advantages to selling during the cooler months. In winter time, there are fewer homes on the market, thus less competition from other sellers.  Furthermore, you'll have more serious buyers during the winter months than any other season.  A buyer(s) who is willing to brave the winter elements and subzero temperatures to view homes is often times very serious about purchasing their next home or investment property.

And don't worry, the things that lead people to make new home purchases - a new job, a growing family, up or downsizing happen all year round and there are still plenty of buyers out there.

However, be prepared to put a little effort into making your home more appealing at this time of the year.  If you do it right, you can really make your house stand out.

1.  Keep snow and ice at bay

Usually, when the buyer can't get in easily, the house won't sell.  That means keeping sidewalk, walkways, driveways and front steps free of snow and ice.  You want to show the buyer that your house is being well maintained.  If you do not live in the house, hire a service to salt and shovel the driveway and walkways.

2. Keep it warm 

Part of making a home inviting to an interested buyer involves making it feel warm and cozy.   Buyers who come in and aren't comfortable won't stay long. Set the thermostat higher if you know people are coming to look at the home.  Turning on a fireplace can give a very nice ambiance aside from making your home warm and cozy.

3. Get the Windows Washed

Unkempt and dirty windows can turn off buyers before they even enter a house.  Make the windows squeaky clean - this will get a good impression from a buyer.

4. Play music softly in the background

Another way to make your house feel like a home is to play some soothing music during a showing. Choose something soft and inviting on the radio, and turn it down just enough so that you can hear it in the background.

5. Emphasize winter positives

Make sure to point out the advantages of living in your home during the inconvenient weather.  Some homes can use winter as selling point. Is your house near a ski area? Do you have winter views? Is there a great sledding hill down the street? People want to hear about the winter perks they enjoy living in your 

home.

6. Set up timers

If you're not at home often, put your indoor and outdoor lights on timers.

7. Give the home a nice aroma  

The No. 1 favorite scent is 'chocolate chip cookies'. Other popular scents are cinnamon rolls, freshly baked bread, apple pie, apple cider or anything with vanilla, cinnamon or yeast.

Watch out for the bad smells too... pet smells, smoke and musty odors can cling to curtains and carpets. Make sure that you got rid of these smell before showing your home to your potential buyer.

8. Protect the floors

To protect your floors, put down rubber mats by the door for snowy boots; buy a few pairs of comfy one-size-fits all slippers from a department or discount store for visitors to wear while they view your home.

In January 2011, James Real Estate Team sold (9) houses in (11) consecutive days - not too bad for the slowest part of the year... Contact us today to take advantage of the Winter Season and to get your home SOLD in the least amount of time for the most amount of $$$ back in your pocket.  If you or someone you know is interested in BUYING, please contact us to get the BEST DEALS currently on the market.  

Please remember to tell a friend, co-worker, or family member about the James Real Estate Team. Best Wishes and Happy Holidays!!

My FUN Sunday Afternoon!

I would like to thank everyone for coming to the James Team Holiday party held last Sunday, 4th of December at the Kincaid Chalet. Although the bad weather gave us a challenge, nothing can stop us from having fun! And we, (kids and adults alike) absolutely had a fun and enjoyable Sunday afternoon!

Marky Mark was a huge hit with all the kids. He made wonderful balloon art swords, wands, bows and arrows and even hats, helmets, and head gear!! Miss Yuliya, the face painter made some very beautiful art painting for both kids and adults.  (See pictures)

Shawn Williams from Five Star Entertainment hosted the event.  What is a holiday party without some games for the kids? We played limbo rock game, freeze frame dance game and of course, how can we forget the Marshmallow tower game?  

And as a token of remembrance, we distributed goodie bags to the kids to take it home with them.

All in all, the event was a success. All participants had an enjoyable fun afternoon despite the weather.  Again, thanks to everyone who came. I really enjoyed the relaxing Sunday afternoon with my friends and family. And for those who were not able to make it, stay tuned for the next event!

Referrals are important part of our business and we appreciate you spreading the word to all of your co-workers, friends, and family. If you know anyone interested in buying, selling, or investing in real estate please contact me.