I have been spending my free time watching the real estate market quite closely in the last month or two. This interest stems from the decision that we want to move due to BRAC. We will still be staying in Maryland but a little bit farther away from where we currently are now. While the BRAC is a good thing for Maryland because it means 22,000 jobs coming this way. It also means our immediate area will be more congested than we prefer living in the suburbs. I guess it’s just that we are country folks we want some breathing space.

Location, Location, Location
Our current location is very strategic. Very close to Fort Meade, 20 minutes away to Baltimore, Annapolis, Columbia and Washington DC. Only a stones throw away from grocery stores and major retailers like Target(with a Starbucks bistro), Walmart and Kohls. Having a Panera Bread and Chick Fillet seals the deal. Our subdivision offers amenities: swimming pools(3), tennis courts, wooded walk paths with mature trees and added bonus is the county library.

To Sell
With the rest of the country’s real estate market on a slump, our immediate area in Anne Arundel County has been slightly affected. Homes no longer sell in a few days but in 2-3 months with a 6-7% decrease in value(normal sales and not short sales) which is much better than national average. Since the comparable homes selling in our area have 3 bedrooms/2.5+ baths with finished basements, we have decided to finish the basement. Although we can always drop the price and not finish the basement, we cannot afford to be low balled because we need the equity to put down on the next house. We are looking at adding a full bath instead of a half to be more competitive, but it all boils down to the cost. According to real estate experts, right now buyers are really more interested in the price than in the upgrades. So spending on luxury features is not really recommended because of the risk of not getting the return for the investment.

Basement Project
Basically, we need to enclose the basement with dry wall and add a bathroom. I was reading the Cost vs Value Report 2007 and I am still reeling to see the numbers that a basement midrange remodel would cost around a staggering $53,519 with a 75.1% return of ROI(that’s a loss!) ! Our budget is nowhere that figure nor are we prepared to sink in that kind of investment because it pretty much eats up 50% of the equity we need for a down payment for the next home. Next week we will be interviewing general contractors and requesting proposals, any future decision will be based on those numbers. I just hope that the estimates will be realistic or else we will have to become our own general contractor/project manager and be the one to call in the electrician, plumber, carpenters, dry wall specialists and whoever else.

Selling Points
We have already made investments on the house that makes it attractive to any buyer. We have a 3 year old 30 years warranty roof, I have yet to see our neighbors replace their aging contractor-grade roofs. Most of what I’ve seen are just patch work to remedy leaks which are dangerous because they can lead to mold problem which can cost thousands of dollars just to clean up. We also offer a spanking brand new sump pump, exotic eco-friendly hard wood floors on the main level, new water heater and we will be installing new carpets on the bedroom level.