Should I Convert My Garage Into Living Space?

Dear Dave,

I own an older home, built in the 1980’s. I’m doing some upgrades this spring and am considering adding on to it. I recently saw a home that was a similar age and when they remodeled they turned the two car garage into a living room and opened up the adjoining wall into the house. Something like this might suit our needs perfectly. What are your thoughts on this? Is it good for potential resale or would I be better off leaving it as a small garage and not adding living space.  Thanks. I would appreciate the advice.

John - Grand Junction, CO

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John,

This one is a tough one. If you need extra living space, it does not get any more convenient or inexpensive than to convert the garage to a new living room or couple of bedrooms. Keep in mind that the conversion does come at the expense of valuable resale space, the garage. I am one of those who believe the garage is sacred space!  Where would one put his duck decoys, bikes (motor or pedal), ATV’s, kayaks, canoes, dog kennels, gun safes, hunting gear, tool boxes, work bench, etc.? I am sure you see my point. A garage, especially here in Western Colorado, is valuable space and hard to replace. Oh, and I nearly forgot, you might even have enough room to park your car!

For resale purposes I am of the belief that the conversion will generally cost you money and not increase your value. That being said, if you convert and add two bedrooms and go from a 3-bedroom home to a 5-bedroom home, you might find someone who has a large or blended family that has a specific need for the extra bedrooms. In this specific scenario I could see the possibilities of the conversion adding value. Outside of this specific situation I think the loss of the garage outweighs in cost and function the addition of added living space.

The last thing to consider is to go ahead and make the conversion, but do so in such a way that you will be able to easily convert it back when/if you sell in the future. By doing this you will have a cost effective addition and keep the flexibility to convert it back easily. This is a common practice and is easy to remedy when the time comes to sell.

As you can see, I am a fan of garages and believe that having a garage is an important and valuable feature. I will close with this, if a conversion will fit the needs of your family perfectly, then go ahead and do it and enjoy living there with the added living space. Converting and then converting back in the future will surely be less expensive than selling and buying. If the rest of the house fits your needs, just convert and do so in a way that leaves you the flexibility to easily convert back if needed. Hope this helps! 

Dave Kimbrough

The Kimbrough Team

Help, A Home We Want To Purchase Smells Awful!

Dear Dave,

After months of house hunting,  we have found one that is within our budget and which perfectly suits our needs.  The problem is house odors.  The sellers are an older couple who both smoke and who have a dog and two cats that stay indoors most of the time.  We have mentioned our concern to the sellers, but they don't share our concern.  We assume that by replacing all the carpets and completely repainting, we could eliminate the odors. Two questions.  First, do you have any experience resolving odor problems and second, how could we include expenses like these in our mortgage that will be incurred after the closing? 

Julie, location withheld

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Julie,

It is exciting that you finally found the perfect house, but with less than perfect odors I am sure you are feeling a bit disappointed!  I will admit that odors, especially smoke and pet, are powerful value killers and there is little that saps the value right out of a property more than if a cat or dog have been acting as though the carpet was indoor grass or the home smells like an ashtray.  The purchase of a new home very much involves the senses and if the odor is offensive, it is an immediate turn off, but often times the people who live there have no idea how bad it really is.

The seller does not share your concern because, One, they are no longer going to live there and it really won’t be their problem, once the new buyer moves in.  Two, they do not have the funds to correct the problem and thus they deny there is a problem because they financially can’t admit to it or afford to correct it. Three, they really do not care if they sell or not, thus only taking an offer from someone who is willing to either fix the problem on their dime or learn to live with the odor!  Most of these are not options that buyers want to hear, but at times they are the reality.  Fortunately there are a couple of options.

First, the option of replacing all the carpet and having the interior completely repainted will typically do the trick, depending on how bad the odors are.  You must also consider if the pet odors are significant, you may have to paint the floors with Kilz or some kind of seal coat to cover up or seal any pet stains that have soaked into the sub floor underneath the carpet and pad, Yikes!!  It sounds worse than it is, but remember this may need to be done.  If you are dealing with primarily smoke odors (as they do not work well on pet odors), an ozonator air purifier may work.   I have seen it do wonders with odors caused by smoking.  Generally speaking, Ozone Ionizers work at a molecular level and can remove smoke odors from homes, cars, boats etc...  I will admit that I am no molecular scientist and thus have no “real” working knowledge of how they work, but I know from experience they can do an amazing job at removing smoke smells from a home or car.  You MUST remove all living organisms, i.e. people, cats, dogs, fish, plant etc..(anything you want to remain alive), while the unit is in use and then you can all return home after the treatment and the home has been opened back up.   I would highly recommend a professional be hired to help with their use but you can also pick one up online for a few hundred dollars.

Lastly you can do what is called a 203K loan which would allow you to escrow the funds for the needed repairs after closing.  These loans can be more difficult to manage, so finding a lender who has experience with them will make things run much smoother during the purchase process and after close you will have the funds to make the needed repairs to the property.  Keep in mind that the repair costs can’t push the loan value needed over the appraised value.  Ask your lending professional if they have experience working with 203k loans and their success rate.  This can be a very viable option for repairs needed, even if the repairs or changes are just for taste and by this I mean, the carpet does not have to be stained to qualify for a 203K loan, you may just want a different color.

I hope these suggestions help and I am hopeful that you will find a solution. 

Dave Kimbrough

The Kimbrough Team

How Do We Create An Outdoor Space With Great Resale Value?

Dear Dave,

My wife and I have been in our new home for about a year now. We are considering putting in a hot tub.

We have a couple of different options to locate the hot tub and wanted your advice. One idea would be to put the hot tub on the small patio that is off our master bedroom. However, that would be the only access and we aren’t sure that is a good idea. The other option is to put it on our patio off the dining room - which would definitely be a more central location, but not as secluded.

Do you think it makes a difference for future resale potential? And if so, what do you think is best? Thanks for your feedback!

Joe and Sydney, Grand Junction

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Joe and Sydney,

Making improvements on your outdoor living space is always a smart move! For resale it is hard to beat the bang for your buck of outdoor home improvements.  Outdoor living spaces are very in vogue and there is little that lights the fire of a home buyer like a really well done outdoor living area. One thing to keep in mind is that hot tubs are a bit like pools, people either really like them or they really don’t and there generally is not much in between. If you simply add a hot tub to an existing deck or patio your financial return will likely be quite underwhelming, however creating a truly amazing outdoor space will add real money and end up being a real selling point when and if you ever decide to sell. All that being said, there are a couple of things you can do to maximize the space and the improvement.

First, concentrate on making the space not just a hot tub space. Make the effort and spend the time to create a space that provides not only a home for your hot tub, but a space that creates an atmosphere and ambiance of a true outdoor living area. Marry your hot tub with a multi-purpose area that serves as an entertaining or sitting area and see the impact soar. I am not sure it matters if you situate the hot tub off the master bedroom or off the dining area if you really create something wonderful. Both locations will have their appeal, if you go off the master you probably want something a bit more intimate and private and if you decide to locate off the dining area you want to shoot for making it conducive to entertaining. 

On another note, make sure to add the extra element of lighting to your area. Lighting is far too often overlooked as a very inexpensive item that provides high impact and is essential when trying to create a mood and ambiance. If you go the extra mile and enhance your landscaping to accentuate the new hot tub/entertaining area you will be well on your way to creating a space that many hot tub lovers and even those who are not will covet!

Dave Kimbrough

The Kimbrough Team

RE/MAX 4000, Inc. 

Is Xeriscaping A Good Idea For Re-sale?

Dave,

Our landscaping needs a complete overhaul! We were in the middle of drawing up plans to revamp our front and back yard when I ran across some ideas for xeriscaping online. I can’t believe I didn’t think of it in the first place! We would love the low maintenance aspect of it since my wife and I travel a lot. The only thing is we’re thinking of downsizing in a few years. Before we take the leap and jump all in on the idea, what’s your opinion on the style and furthermore if it will turn away buyers once we go to sell.

Love your column!

Cynthia & Bob, Grand Junction

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Cynthia and Bob,

I think it’s a great idea!  Xeriscaping is quite popular and can be very attractive, especially in our “high desert” climate that easily lends itself to that style.  The one hesitation I might have revolves around what type of home you have?  If your home/neighborhood lend itself to families with younger children then I might lean toward xeriscaping in the front yard and having some grass/yard in the back.   I totally get the low/no maintenance attraction, but people with younger kids tend to want a grass back yard for them to have a play area and gravel does not make the most inviting play area for younger kids!  If you take these things into account I do not believe you will have any issues when it comes time to sell, in fact it might be a selling point to many buyers who crave the low/no maintenance yard as peoples time only becomes more valuable as we all get stretched even more thin!   Again, great idea and enjoy your new landscaping! 

Dave Kimbrough

The Kimbrough Team

What Size Trees Should We Plant In Our Yard?

Dear Dave,

I have been out shopping at the local nurseries trying to get some ideas on landscaping materials. My home is about 7 years old and doesn’t have many established trees in the yard. There are different sizes of trees throughout the neighborhood. I want to know what you think is better to do - plant only a couple of large trees (due to the price) or plant about 3 times as many smaller trees (due to the price)?? My wife has one opinion and I have another - I won’t tell you which so you can give your honest opinion!

Thanks-

Lee and Jenni, Fruita

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Lee and Jenni,

Ok, this is an easy one for me and I will be honest!  Go with the larger trees.  Planting saplings in the yard and waiting 7 more years for them to become trees is for sure one of my pet peeves.  We are currently planting some trees at my own home and my wife and I banter this issue back and forth virtually every day the tree planting topic comes up. 

She says, in a few years they will mature out etc… and I say that I would prefer them to look somewhat mature now I don’t want to wait years to enjoy them.   I won’t tell you who will win at my house, but at your home I hope the bigger tree vote wins! In my opinion this is one instance where bigger really is better! J  Happy planting.

Dave Kimbrough

The Kimbrough Team

Is A Dog Door A Selling Feature Or Should We Remove Before We Sell?

Dear Dave,

We are getting ready to list our home this spring.  We have been getting it all cleaned up and show ready.  We have a dog door that leads from our laundry room out into the backyard.  Our question for you is this – do we leave it or remove it and repair the hole that is left?  Do people not buy a house because there is a dog door or is it a good selling point? 

Help!  Just not sure what to do about this. 

Thanks -

Barbara – Grand Junction, CO 

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Barbara,

Please call me when you decide to sell!  If you are perseverating about a dog door, your home is going to show wonderfully.  I am confident it will show like a dream.  All kidding aside, don’t even concern yourself with such a small item.  Many will find it a value add and if they don’t, offer to have it removed and covered for the new owner.   Trust me, you are ready for the market.  Sit back, take a deep breath and enjoy a few weeks of calm before you hit the market!  Happy selling.

Dave Kimbrough

The Kimbrough Team

If Brass Fixtures Are Out, What's The New Timeless Options??

Dave,

You have stated on multiple occasions that brass fixtures are outdated.  What is the current trend, what will it be next week, next year, or when I I decide to sell in a few years?  What would be a neutral selection for cupboard knobs and other fixtures? Every year it is something different so the industry can sell product.

Nancy -Grand Junction

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Nancy,

Ok… guilty as charged!  You are right, I have mentioned several times over the years that brass is out of style and I will continue to stand by those assertions, however I must admit that brass is making a comeback when people are going after a mid-century modern look.  Keep in mind that the vintage look they are after is not necessarily the look in my grandmother’s bathroom with shag carpet and those sexy chandeliers, but a trendier, updated style with a modern twist!  I also believe that your question pretty much sums up almost every industry that exists… cars, cell phones, televisions, furniture, home fixtures and the list goes on and on.

It is every industry’s job, in fact it is vital to their continued existence, to come up with new and innovative (or even recycle the old) products to keep the consumers consuming!  If we (the public, do not continue to consume and if we no longer change our likes and dislikes, the retail world would literally stop turning and our economy would go right down the drain with it!) Change is the one constant that keeps our economy moving and honestly keeps things interesting.  How boring would it be if we were still watching black and white televisions, driving Model T fords, listening to Big Band Music or wearing 70’s bell-bottoms?  Ok… maybe the bell-bottoms might still be kinda cool and I am sure my parents would love for Big Band music to still be mainstream but, for the most part, it is a good idea that all of these trends rest in peace!

That being said, you can run the gamut from oil rubbed bronze, polished nickel, chrome, brass, rose gold, matte black, or white for your fixture choices, but none guaranteed to be the “in” thing when it comes time to sell.  My recommendation would be to choose what suits your taste best (with the exception of brass) and be prepared to make changes if need be when the time comes to sell.  I think virtually any choice you make can maintain somewhat timeless qualities, depending on what other finishes accompany your fixture choice.   Of all the fixture finish choices, it is my opinion that chrome or brushed nickel have the best opportunity to maintain a timeless quality…..least likely in my opinion would be old school brass or rose gold.  I honestly think the newer black matte finish has a chance to last, especially in a more industrial or contemporary setting.  I would also suggest that once you choose your fixture finish, let that help guide you in choosing your knobs.  I have seen it done several times and if done right you can mix and match your knobs by using all kinds of different styles or stick with a knob that coordinates with your fixture finish.  Fortunately for you, mixing and matching is in these days so go for it!

Regardless of the route you take, I encourage you to take a road that will bring you joy and choose something that you will love and enjoy living with.  If you are going to sell in the next 2-5 years, my bet would be that nothing you choose will be completely “out” of style by then, so the stakes are probably not very high.  Choose what you like the most and when the time comes to sell you can make some minor adjustments if need be.  I hope this helps and I hope you have fun with choosing new fixtures.  It's always fun to spruce up a space with some new fixtures and textures.  Good luck!

Dave Kimbrough

The Kimbrough Team

What's The Deal With "No Money Down" Loans??

Dave,

I occasionally see houses that are advertised as “no money down.”  Isn’t this what got us in trouble, when the housing bubble occurred?   How are they doing $0 down loans again and why would we go back to the same loans that sank the economy back in 2010?  I must admit that I am surprised to see this, as I thought we had learned our lesson, but clearly we might have to learn it the hard way! 

John, Grand Junction 

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John,

Great question and one that I am sure many people have when they see these types of advertisements.  It HAS become more difficult for many buyers to get a loan (at least as compared to 2007), but in my opinion the “firming” up of lending practices was needed and only significantly impacts those who might be labeled as “marginal” buyers.  Lending from 2002-2008 was too lenient, which was a big part of what led to the housing bubble, and now we have returned to much stricter guideline practices, especially for those potential buyers who may be on the fence and not completely credit worthy.  You must have good credit, good payment history, good work history and believe it or not, at least 3 ½ % down for most loans that are not VA (loans through the Veterans Administration) or RD loans (Rural housing and development).  If you meet fulfill these criteria, there are many avenues to lending and purchasing a new home!! 

It is my bet you are seeing homes advertised that are classified as Rural Development eligible.  Rural Development is a loan program that is meant to encourage potential home buyers to consider more rural areas to promote growth in those areas. (i.e. Fruita and East of 32 Road)  Rural development has recently expanded the areas that qualify for these no money down loans and I bet you may have seen signs in one of the areas that is eligible.  Rural Development loans are very desirable to potential buyers because you can purchase in these areas with NO money down. You can get a rundown of the new map from any local lender, as these loans are very popular in our area. 

I would agree with you that, on the surface, loans of this type appeared to be at the root of the housing crisis, but the major difference is, these RD loans are designed to promote growth in designated areas and to promote the growth, buyers are enticed by the zero down option.  Remember, the down payment requirement is less, but the other criteria of good credit, good payment history and good work history are still part of the equation. These loans historically may have a higher default rate, but with the tightening of the overall lending standards I believe these types of loans will now fall in line with more conventional lending options.   

In summary, what led us down the housing crisis and impending disaster was not just the no down payment loans, but no documentation (referred to as no-doc or sub-prime) loans and the adjustable rate mortgages.  The Adjustable rate mortgages were very enticing as the low interest rates in the first 5 years was very attractive, but what many found was they quickly ballooned out of control.  There was a time, not very long ago, that verification of income was not always required to obtain a loan etc...  When you DO NOT have to verify your income to obtain a loan, trouble is, as we found out, just around the corner.  At today’s interest rates, you can bet that lenders are going to remain somewhat cautious, however if interest rates ever go up (above 6%) we might just see some riskier lending practices return.   With interest rates right around 4% virtually any significant risks outweigh the gains.  As interest rates go up, easier money availability will increase, but hopefully only trending towards barrowers who have good credit, good payment history, good work history and some skin ($) in the game.  I am confident we will continue to see that there are some solid checks and balances.  Hope this answers your question. 

Dave Kimbrough,

The Kimbrough Team