What's Hot & What's Not in Bathroom Redesign

While real estate markets are cyclical, features a potential home buyer looks for in a home almost always seems to start in the bathroom, according to the National Association of REALTORS (NAR) annual "Cost vs. Value Report," published each year in conjunction with Remodeling magazine. In fact, in NAR's 2007 report, it showed an upscale bathroom remodel recouped 93.2 percent of the costs and a bathroom addition, midrange stood at 86.4 percent and an upscale remodel 85.8 percent.

"Knowing what's in and what's out in bathroom design is important for homeowners deciding just where to spend their makeover dollars," explained Celebrity Interior Designer Will Smith. "I suggest they look at four key areas: the mirror, paint, hardware and lighting. Each can be easily and inexpensively updated to provide a new, modern look for the bathroom."

Smith, who is known for creating high-end looks for less, shares his tips for making over a bathroom on a budget -- without sacrificing style:

Bathroom Mirror

What's Out: Unframed mirrors are a thing of the past.

What's In: A frame completes the mirror and gives a bathroom a finished, updated look. A good tip for selecting a frame is to think about what you'd frame a piece of artwork in for the room. The mirror is the focal point in the bathroom and can make a real statement with the right frame.

Paint

What's Out: Paint is never out. It is a tried and true way to make a big impact with little cost. Colors do change though and you'll want to stay away from mauves and pinks.

What's In: Create a spa-like setting with paints in beige and pale tones. Some popular colors are chocolate, aqua, olive, and golds. When choosing color, remember the more contrast, the more "POP."

Hardware

What's Out: Mismatched hardware gives the room an uncoordinated feel. Brass finishes also add to a dated look.

What's In: Choose brushed nickel, pewter, antique or oil-rubbed bronze finishes that coordinate with the lighting and fixtures, bath bars, knobs, pulls, switches and receptacle covers. These quick fixes pull the room together with one modern, cohesive look.

Lighting

What's Out: Take down that bright Hollywood lighting that casts a harsh light.

What's In: Go with a fixture that adds beauty and soft lighting with shades or sconces. They can run above your mirror or flank it on each side. And remember, these accent your room's greatest focal point so be sure to select a style that is right for you and makes a statement in the room.

"You don't need to do a full scale renovation to get the look of an updated bath," added Smith. "Some strategic and cost-effective changes can go a long way to giving you the look you desire."


Written by Peter L. Mosca

Washington Report: Tax Provisions

 The mortgage bailout sections of Congress's massive federal housing bill have gotten all the attention in the press, but there are two tax provisions tucked away that could prove far more significant for some home buyers.

First-time buyers would get a tax credit of 10 percent of the purchase price of the home - up to a maximum of $8,000 - to encourage them to get off the sidelines and help reduce the unsold inventories of properties currently weighing down many local markets.

The tax credit would reduce buyers' federal tax bills, dollar for dollar, for the year of the purchase.

A second form of new tax benefit would be available to millions of home owners who do not itemize on their federal tax filings. They are in line to receive a $500 to $1,000 "standard" annual deduction for the real property taxes they pay but currently can't write off.

The $1,000 deduction would be for married homeowners filing jointly; the $500 maximum would be for single filers.

Now as with all seeming gift packages from Capitol Hill, you need to read the fine print of the legislation because there are some key limitations.

For example, on the new tax credit, the $8,000 maximum is limited to married home buyers who file their taxes together. Singles get maxed out at $4,000.

By the way, the credit isn't free. It's more like a loan. You've got to repay it to the IRS over a fifteen year period that starts one year after you close on the purchase. Each year of the fifteen, you're required to repay six and two-thirds percent of the original tax credit amount.

If you sell the house within the first year, you don't qualify for any credit whatsoever. If you sell later, you're liable for taxes on any remaining amounts of the credit you haven't already repaid, but not beyond your capital gain - if any - on the sale.

Finally in the fine print -- and this is good news -- the definition of "first time buyer" isn't necessarily what you think. You can still qualify for the credit even if you've bought and owned homes before.

You just can't have owned a house any time in the three years preceding your latest purchase.


Written by Kenneth R. Harney