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Trends in Home Construction You Should Consider

10/30/2019

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Building a home is an exciting process that ensures you get to make the major choices about your home design. That's why it's important to know the current trends and why people are choosing them when they start the building process. Here are a few popular trends to consider.

Sustainability
Sustainability is a big issue as we observe climate change and understand the impact waste has on the world we live in. As such, the sustainability trend that has taken over home construction, affecting everything from how houses are built to what materials are used. Tiny homes are a major component of the sustainability movement since they take up less space and use fewer resources. Many people are choosing the tiny home lifestyle. Cargotecture is another sustainability trend. It involves builders using recycled shipping containers to build homes. There are many varieties of cargotecture-type homes, and they’re cheap to build or buy. If you want to have a sustainable home but don't want anything too extreme, simply consider the appliances you choose for your house. Go for eco-friendly appliances, even if they cost a bit more upfront.

Home Automation
It's no surprise that technology has found its way into home construction in the 21st century. Home automation allows you to control with a cell phone things that are going on in your home. In fact, 33.2 percent of US households had home security or automation technology at the beginning of 2019. This includes cameras that allow you to see who is at your front door as well as systems that control the temperature, lighting, and electronics in the home. Home automation gives homeowners peace of mind since they can usually see what is going on at their home even if they are not there. It also offers convenience, which is something that every homeowner wants.

Outdoor Amenities
Many homeowners are bringing the inside outdoors when they build a new home. Outside amenities, such as cooking and dining areas, are extremely popular because they give homeowners multiple places to entertain. Outdoor amenities also make it easier to cook outside when it's already warm and you don't want to heat up the kitchen. Put a refrigerator and a stovetop outside with some comfortable furniture, and consider your backyard an easy extension of your home.
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Make sure you know what trends you are interested in before starting home construction. The designs that are trending often offer convenience and beauty that will add value to your home.

If you are looking for help with constructing your new home, contact us for a quote!
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Things You Need to Know About Using an Unsecured Loan to Finance a Remodel

10/29/2019

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If you’re looking to remodel your home but are short on cash, then one option that you can consider is getting an unsecured loan. An unsecured loan, also known as a personal loan, can be used for almost anything. As an unsecured loan, it doesn't add to your home debt for assessment purposes. However, before taking one out, there are a few things you should know. Continue reading to learn a few things you need to know about using an unsecured loan for a remodel.

How They Work
As mentioned before, unsecured loans can be used for just about anything. They function similar to other loans. You take out a certain amount of money, use it for its intended purpose and pay it off over time. When it comes to a remodeling job, unsecured loans don't require your house as collateral, differentiating them from other forms of financing such as a home equity line of credit (HELOC). However, the fixed rates of a personal loan depend on the lender and the current prime rate.

Qualifying
Just like with every other type of loan, you can’t just take one out. You must first qualify for one before you can obtain it. Luckily, qualifying for an unsecured loan isn’t very difficult. Before applying for this loan, make sure to check your credit score first. It’s worth mentioning that lenders won’t be very comfortable with giving a loan to someone with a low credit score. Don’t forget to acquire a copy of your credit report. Pay off any outstanding debt you may have and verify that you have a stable income. It’ll help to make the loan much easier.

How They Impact Your Credit Score
When taking out a personal loan, or any new loan for that matter, it’s crucial that you understand that it can have an impact on your credit score. This is because lenders will always pull your credit score when you apply. This is known as a hard inquiry. If your report is pulled, it will lower your score a little bit, but if your score is fine, then you have nothing to worry about.
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With this knowledge, you’re ready to have your house remodeled with an unsecured loan. Just remember to keep information in mind when applying. Lastly, don’t forget to double-check if you have any outstanding bills or debt.

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3 Guidelines for House Flipping Success

10/20/2019

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Flipping houses can be lucrative, but it's a risky business if you're not disciplined. One of the big challenges for first-time flippers face is that they spend too much on the property and put too much into it, then they can't make their money back in the sale of the property. Here are a few tips to help you during the house flipping process if you are doing it for the first time.

Choose a Fixer-Upper
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To get the right house at the right price, you will need to buy a fixer-upper. Make sure to hire an inspector so you don't accidentally buy a fixer-upper that is unsalvageable. Work with a contractor you trust and ask them to check out important factors such as the condition of the foundation. Review the back yard for electrical access and look for a sewer cleanout. This is critical in older neighborhoods as replacing the sewer line will be a challenge if the former owner built a garage that limits access to the back yard. If possible, buy a time capsule that needs updating but doesn't need a lot of structural repairs.

Match the Quality of the Other Homes
You'll set your offering price on comps pulled from the neighborhood or on the tax valuation of the neighborhood. Then you need to get it for a low enough price that your upgrades don't price you out of the neighborhood. Be very careful to keep the house similar in size and color scheme to the rest of the street. Your objective should be to match the quality of similar houses in the neighborhood. Don't buy the biggest house and make it bigger or add features that make the house stand out.

Go Simple and Stay Flexible
When flipping, remember that you want to turn a grubby, unloved house into a nice vanilla home. Don't put a $50,000 kitchen in a $75,000 house. You will never get your money back. Make sure to spend a good amount of time making a budget for flipping a house, but make sure to give yourself plenty of time and money to work with. When planning the flip investments, you’ll want to make sure that you round up both money and time. You may get great deals on materials but have to wait two weeks for the plumber, or you may have a carpet guy who can start tomorrow but need to pay more for flooring. 
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Flipping looks easy on TV. It's not. You're going to have to get your hands dirty. Few projects come in on time or on budget. But with focus and a willingness to put your back into it, you can build a rewarding flipping business.

If you’re renovating a bathroom while flipping a house, try one of these design ideas!
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How to Choose a Water Heater for Your Home

10/11/2019

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Hot water is a commodity that people need for many aspects of daily living. Having access to hot water is a necessity for cleaning, cooking, and plenty more. As a result, water heaters are a fixture in virtually every home these days. While this makes hot water an easy thing to get access to, it also leaves people with little experience shopping for a new water heater if one breaks down. To help fix that, let's go over how to choose a water heater for your home to find the best one for your needs.

Look at Different Types of Water Heaters
As one would expect, there are a variety of different water heaters you might want in your home. The main difference you'll have to decide on first will be whether to get a traditional tank model or a newer tankless heater. The most obvious difference between the two is the name. Tank heaters hold large amounts of water in a heated tank for use on-demand while tankless heat water as needed by passing it through super-hot coils. This means tank heaters have a finite amount of water you can use at a time before they run out while tankless heaters are technically unlimited, "technically" meaning that only so much water can pass through a tankless heater at a time and it is possible to use more water than can be heated at once. Additionally, according to Mother Earth News, you can also find solar tanks (those that heat water through the use of the sun), heat pumps (tanks that move heat from the ground or air into standing water), and more variations that may either use a tank or be tankless depending on a number of factors.

Compare Costs
For water heaters with a tank versus ones without, the cost can be a major factor in your decision on what to buy. In terms of a basic cost for purchase, traditional heaters with tanks tend to be substantially less expensive. This is due in part to tankless heaters being fairly new and, like all cutting edge technology, costing more for consumers. In terms of being energy efficient, that's where the tankless model really shines. If you end up with a defective model, you can report defective products to the Consumer Product Safety Commission (CPSC), according to Viles & Beckman. Tankless heaters tend to save a ton in heating given they aren't required to keep a large supply of water heated at all times, heating only when necessary.

Consider Energy Consumption
Energy consumption is also a factor in picking a water heater as not all heaters are created equal. As one would imagine, tankless heaters tend to be much cheaper given their on-demand heating process. However, the amount of energy necessary to use them can be a bit trickier as not all homes have the necessary electrical or natural gas lines to provide a sufficient amount of power at once, adding further costs associated with renovation. According to the Pembina Institute, accounting for whether you'll be using electricity or natural gas to heat your water is another factor you should think about. It's also worth mentioning that heat pump heaters tend to be fairly efficient in their own right by using natural heat.
Water heaters be tricky when it comes to purchasing, but are necessary for your home. Consider points like the ones above to help you decide which kind of water heater best fits your needs.

Here’s another article you might like: 7 Common Frustrations You May Run Into When Building a New Home

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What Are Some Ways to Afford a Down Payment on a House?

10/10/2019

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The bigger down payment you put down, the less interest you will have to pay over the life of the loan. You will also not have to deal with private mortgage insurance if you can make a 20% down payment. However, getting into a mortgage with a lower down payment can still be a good deal.

Gifts

If someone is willing to give you a portion of your down payment, congratulations! There are a few rules that will make this easy to track at closing time. First of all, the gift needs to come with a formal gift letter confirming it's not actually a loan in disguise. The gift can only be 6% of your down payment, so you will still need to come up with some savings.

Mortgages with Lower Down Payments
The larger your down payment, the more equity you have at purchase and you will be able to get lower interest rates. However, you can still get a great house with a smaller down payment. Some jumbo loans allow a 5% - 10% down payment instead of the commonly touted 20% requirement. Understand that this will mean making larger payments for a longer period of time and paying private mortgage insurance (PMI) until you can get the loan under 80% of the value of the house. However, if you can buy the least expensive house in the best neighborhood, it's likely your equity will increase quickly.

Plan to Refinance
Once you've found your house and qualified for your mortgage, it's a good idea to set some new financial goals. Oftentimes, buyers find that their expenses actually go down once they purchase and they are able to both save a bit more money and build up equity. Cautious optimism is a good financial habit to practice once you've purchased your home. Be diligent about saving for emergencies. If you find you are able to make a larger monthly mortgage payment, consider refinancing to a 15-year loan by simply refinancing the remaining debt without taking any cash out of the house. Making an additional payment on the principal every month is also a great way to reduce the term of your mortgage. 

Home ownership is often a way to get your foot in the doorway of financial security. Once inside, you can build wealth by building equity in your purchase. A fully paid for house is one of the best gifts you can give yourself in the future.

​Looking to make your dream home a reality? Contact us for a
free quote!
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Should You Build Your Home Earthquake-Proof?

10/4/2019

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Natural disasters are a part of life, and earthquakes are no exception. When building a new house, it is definitely worth seeing if earthquakes may be an issue in your area. By planning ahead, it is possible to build your home in a manner that can reduce the risk of structural failure, home loss, and injury.

Consider Where You Live
When it comes to earthquakes, there are two major considerations regarding your location. The first will be your general location. Some areas are simply far more prone to dangerous quakes than others. In the United States, the risk of seismic activity can generally be obtained through governmental websites. However, California and the Western United States coast is the area most known for earthquakes—both in frequency and severity. Further inland, states such as Arizona, Utah, and Colorado may have more moderate, but still very real, risk. The secondary consideration is the specific location of your home, and what it will be resting on in terms of ground density. Hard rocky ground and very dense soils transmit earthquake energy better than soft or loose soils. If you are in an earthquake-prone area and planning to build on hard ground, you are at high risk for earthquake damage.

Risks vs. Benefits
Property damage is a common casualty of earthquakes. If and when an earthquake does hit, you will want to make sure your property is prepared. Unlike in pop culture, the main risk of earthquakes is not gaping chasms, but building collapse or breakage from the seismic waves and ground liquefaction. Major secondary risk comes from fires caused by property damage. The main issue with earthquake-proofing is the higher cost involved. In some areas, code requirements may make various earthquake-proof building and construction techniques a requirement. In this case, ensure that your contractors and builders are in full code compliance. If going above and beyond what the code mandates, you may increase the cost of your construction anywhere from 2 percent up to potentially 8 percent more than standard construction cost. While the initial cost may seem daunting, it can save a lot of money—and potentially lives—later down the line.

Basic Earthquake Proofing
There really is no such thing as a fully earthquake-proof home, but there are certainly many steps that can be taken to make the home as resistant to earthquakes and damage as possible. Since earthquakes are a ground-based event, your foundation will be key. Building the foundation on a looser soil instead of hard and using advanced engineering techniques can significantly reduce your risk. Avoid materials that lack elasticity, such as brick, stone or concrete. Instead, use wood, steel or steel-reinforced concrete. Lightweight materials in your flooring and shearing walls will help prevent collapse or home implosion. Lastly, make sure your belongings are secured and anchored as well as possible.
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Earthquakes are extremely dangerous and must be taken seriously. Living in a zone with even moderate activity drastically increases the likelihood of your home experiencing a quake. By using earthquake-proof techniques and materials, under the eye of a knowledgeable builder, you can make your home much safer for you and your family.
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Here at Absolute Construction, Inc., we are committed to building quality, safe homes. Contact us for a free quote today!

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