Know your mortgage options

During the banking crisis in the Great Recession, certain types of mortgages were unavailable that are once again being offered. Fortunately, the 80-10-10 mortgage is one of those making a reappearance and it can save borrowers a considerable amount of money. 

The objective of an 80-10-10 mortgage is to avoid the expense of mortgage insurance for buyers wanting a 90% loan. A buyer can obtain an 80% first mortgage and a 10% second mortgage with a 10% down payment and not be required to have private mortgage insurance.

For example, a buyer could put $30,000 down on a home priced at $300,000 and get an 80% first mortgage without mortgage insurance.

The borrower could get a second mortgage, either through the same lender or a third party.
In the example, the 80-10-10 would save a buyer $193.71 per month which can be a considerable amount of money over a ten-year period. The interest rate on the second loan will be higher than the first because there is more risk.

Helping buyers make better choices is a valuable service real estate professionals can provide. Having the right tools and information can make the decisions easier to understand. Using an 80-10-10 calculator, you can see what the savings might be for your situation.

101 to get to Closing on Your Home.

Mortgage approval isn’t final until it’s funded.  Things can change prior to the loan being closed that can affect a pre-approval such as changes in the borrowers’ financial situation or possibly, factors beyond their control like interest rate changes.


Good advice to buyers is to do nothing that can affect your credit report until the loan closes. Opening new credit cards, taking on new debt for a car or furniture or changing jobs could affect the lender’s decision if they believe you may no longer be able to repay the loan.

The benefits of buyer’s pre-approval are definitive: it saves time, money and removes the uncertainty of knowing whether the buyer is qualified. The direct benefits include:

• Amount the buyer can borrow - decreases as interest rates rise
• Looking at “Right” homes - price, size, amenities, location
• Find the best loan - rate, term, type
• Uncover credit issues early - time to cure possible problems 
• Bargaining power - price, terms, & timing 
• Close quicker - verifications have been made

It is a very common practice for mortgage lenders to require income and bank verifications and to re-run the borrowers’ credit one final time just prior to closing. Mortgage approval isn’t final until it’s funded.

Real Estate Photos Are Extremely Important

Listing photos may be one of the most important marketing efforts that lead to a potential buyer.
Nearly, all buyers use the Internet during the home search process. They usually start looking at homes online before they contact an agent. It’s far more efficient to screen properties by looking at the pictures that have been posted than to make appointments with each homeowner, drive all over town and waste a lot of time looking at homes that would never meet a buyer’s criteria.

• There needs to be enough pictures of a property to adequately represent the home; most websites allow for at least 24 and more may be needed if it is a large home.
• Take horizontal shots to accommodate the format of most listing websites.
• The pictures should be well-lit so that it is easy to see all of the features of the room. Natural light is preferred over the limitations of flash.
• They should be taken with a wide-angle lens so that you can see the majority of the room in one picture.
• Large rooms can be taken from different angles to give the buyers a different perspective.
• Rooms should be set if not staged prior to taking the pictures so they will give the buyer an idea of what the room might look like with their own things in it.
• Arrange pictures in website to help buyers visualize the floorplan as if walking through it.
• Think about using a tripod; professionals do to absolutely hold the camera still.
• They should definitely not be “photoshopped” to modify factual elements like removing power lines.

Everyone occasionally takes a great picture but it doesn’t make them a photographer. Since the photography can be one of the most important marketing efforts, consider using a professional photographer to show the home to its best advantage.

The Right Questions are Key

Asking the right questions will lead to the answers that help you determine which agent to use for one of the largest investments that most people make…the purchase or sale of their home. 
Rudyard Kipling wrote the verse “I keep six serving men, they taught me all I knew; their names were what and why and when and how and where and who.” Prefacing your questions with one of these words can help you get the information you need to make a good decision about the REALTOR® you use.

• How long have you been selling homes and is this your full-time job?
• What designations or other credentials do you have?
• How many homes did you and your company sell last year?
• What is your average market time compared to MLS and your top competitors?
• What is your sales price to list price ratio?
• When will you report to me on the progress of my transaction?
• Who can you recommend for service providers like mortgage, inspections, repairs and maintenance?
• Why do you want to work with me?
• Where are the biggest opportunities to expose my home to the largest market?

Finding the right person to represent you is a little like the person who ordered a lobster dinner at a restaurant. When the waiter brought out the meal, the lobster only had one claw. The customer asked why it only had one claw and the waiter said: “I don’t know; I guess it was in a fight.” The customer looked at him and said: “then, bring me the lobster who won.”

Educate Yourself on Taxes for Your Investment Property

In the last few years, some people who were unable to sell their homes, rented them instead. The market has improved in most places and the home may easily sell now and possibly, for a higher price.


Even though the opportunity to sell in the near future might not change, there could be another opportunity that could quickly disappear for some homeowners.

Most homeowners are aware that there is a capital gain exclusion on the profits of a principal residence of up to $250,000 for single taxpayers and $500,000 for married taxpayers filing jointly. The rule requires that you must own and use the home as your principal residence for two out of the last five years.

A homeowner can rent their home for up to three years and still be eligible for the exclusion. As an example, if they had owned and lived in it for two years and then rented it for two and a half years, they would need to sell and close the transaction before the remaining six months expired.

If there was a $200,000 profit in the home that didn’t qualify for the exclusion, a 15% long-term capital gain tax of $30,000 could become due depending on the tax bracket of the owner. With some careful planning, the tax could be avoided. Awareness of the time frames and the right team of tax and real estate professionals could save a considerable amount of the homeowner’s equity.

Down Payment Options for Buyers.

For the person who has good credit and income but not enough money for the down payment on a home, their qualified retirement program could offer them some help. The rules are different depending on whether it is a 401(k), a Roth IRA or a traditional IRA.
Up to half of the balance of a 401(k) or $50,000, whichever is less, can be borrowed by the owner at any age for any reason without tax or penalty assuming the employer permits it. There can be specific rules for loans from 401ks that would determine the repayment; interest is usually charged but goes back into the owner’s account. You can consult with your HR department to find out the specifics.
A risk in borrowing against a 401(k) comes if your employment ends before the loan has been repaid. The loan may have to be repaid with as soon as 60 days to keep the loan from being considered a withdrawal and subject to tax and penalty. Even if you continue with the same employer, failure to repay the loan could be considered a withdrawal also.
Roth IRA owners can withdraw their contributions tax-free and penalty-free at any age for any reason because the contributions were made with post-tax income. After age 59 ½, earnings may be withdrawn as long as the Roth IRA have been in existence for at least five years.
Traditional IRAs have a provision for first-time buyers which include anyone who hasn’t owned a home in the previous two years. A person and their spouse, if married, can each withdrawn up to $10,000 from their traditional IRA for a first-time home purchase without incurring the 10% early-withdrawal penalty. However, they will have to recognize the withdrawal as income in that tax year. For more information, go to IRS.gov.
Another interesting fact about this provision is that the taxpayer making the withdrawal can help a relative includes children, grandchildren, parents and grandparents.
If you want more information to clearly understand the issues involved relative to your specific situation, talk to your tax professional or consult www.IRS.gov.

Investment in rental homes.

Rental homes can be a natural alternative investment choice for homeowners because they are already familiar with houses. Maintenance on a rental is not that much different than on your personal home. The same plumbers, painters and other workmen can be used to make repairs. 
Single family homes offer an investor high loan-to-value mortgages at fixed interest rates for long terms on appreciating assets with defined tax advantages and more control than other investments.

1. High loan-to-value mortgages – most investments require that you pay cash but rental properties can be purchased with 20% down payment.
2. Fixed interest rates – most commercial loans are based on a floating rate such as prime interest plus one or two percent compared to real estate loans as fixed rates for the term.
3. Long terms – commercial loans are generally short-term such as six months or a year with the possibility of being renewed for another six months or a year unlike real estate where a 30-year mortgage is commonplace.
4. Appreciating assets – real estate has a long-term history of going up in value.
5. Defined tax advantages – many investments are taxed as ordinary income but rental real estate enjoys a non-cash deduction called cost recovery, the profits from sale are taxed at lower long-term capital gains rates or may be eligible for a tax-deferred exchange.
6. Control – rental homes don’t require partners and afford the investor more options than investing in mutual funds and other traditional investments.

The demand for good rentals is strong and the rents continue to go up in most markets.  There are people who choose not to buy or cannot buy a home who would prefer to live in a single family home rather than an apartment.

Property Taxes! Why do they go up!

You may never stop paying for some improvements

You've saved the money and are ready to pay cash to build a new pool for your home.  However, that's just the beginning of your soon to be increased expenses which will include maintenance, higher utilities and higher taxes.

Homeowners obviously benefit by a larger equity when their home increases in value due to appreciation.   A not-so-obvious effect that will also more than likely take place is that their property taxes will increase.  In most cases, a property's assessed value is generally tied to market value to calculate the property taxes based on the tax rate for that year. 

Similarly, a homeowner can affect the value of their home by making capital improvements.  Some small items may never be recognized by the taxing authority but items that require a permit, certainly are brought to their attention.  Items such as a fence, roof, remodeling, windows, new rooms or swimming pools can easily increase the assessed value of a property.

Most states have an established time frame in which to challenge the current tax assessment for that year.  The process is relatively simple and doesn't require professional representation.  It generally involves showing that there is an error which has overstated the value or that current comparable sales indicate a lower value.

If you'd like more information or need the comparable sales data, please let us know.  We would be happy to help you investigate the possibility of lowering your property taxes.

Real Estate Values

Real estate lost a lot of value during the recession but most areas have rebounded considerably.  In some cases, the homes are worth more than they were before the housing bubble burst. 
The dynamics are classic for this type of market: inventories are low, mortgage rates are low and demand is high.  All price ranges are on the rise with some at an even higher rate because the short supply is causing competition among buyers.
Another reason many homeowners' may have more equity is simply not staying current with what is going on in the market.  In a recent FNMA study, it indicates that 23% of owners believe they have negative equity in their home when actually, it is 9%.  37% believe they have greater than 20% equity in their home when actually 69% of homeowners do.
Even if you're not planning to sell your home, knowing the value helps you understand your financial position better.  Home equity debt up to a $100,000 limit is tax deductible and can be used for any purpose.  Owner's commonly refinance to eliminate mortgage insurance, consolidate mortgages, pay off higher interest rate debt like credit cards or student loans or to buy out an ex-spouse's equity.
Be aware that an automated value model like Zillow Zestimates uses algorithms to determine a price and while it might be in the ballpark, AVM results may only be accurate about 20% of the time.  A comparable marketing analysis or broker's price opinion will be more accurate due the subjective approach that will be used by an agent with personal experience in the area.  An agent will consider factors like condition, floorplan, marketability and demand.

Buy Down?

There is an infrequently-used mortgage program available that could be the solution to a buyer's or seller's problem.
A temporary buydown is fixed rate mortgage that the seller has prepaid interest at closing to lower the payments for a number of years.  The borrower must qualify at the note rate but gets the benefit of lower payments for the early years.
A 2/1 is a common buydown that the first year's payment is calculated at 2% lower than the note rate and the second year's payment is calculated at 1% lower than the note rate.  The third through thirtieth years' payments are the note rate.
Let's set the scene.  A buyer is using their available cash for down payment and closing costs to get into the home.  They'd like to put their own touches on the home when they move in but may not be able to for a year or two since most of their cash was used.
In this example, a $250,000 home is purchased with a 3.5% down payment and a 4% mortgage for 30-years.  Normally, the principal and interest payment would be $1,151.76 for the full 30-year term.  If the seller will pay the lender $4,736 at closing, it can be applied to pre-pay part of the interest for the first two years.

The first year, the buyer's P&I payment will be $891.71 for 12 months based on a 2% interest rate or 2% lower than the 4% note rate.  It is $260.06 lower per month in the first year.  The second year, the buyer's P&I payment will be $1,017.12 for the next 12 months based on a 3% interest rate or 1% lower than the 4% note rate.  It is $134.64 lower per month in the second year.
A bonus for the buyer will be that the cost of the buydown paid at closing by the seller becomes prepaid interest that is deductible by the buyer in the year of purchase.  The buyer gets lower than normal payments for the first two years and a sizable tax deduction.
This type of program can be very beneficial to a seller who wants to offer terms to improve the marketability of their home rather than lower the price.  The challenge will be explaining it to not only potential buyers but even agents who are not familiar with this program.

Investments are a good move

Buying rental property can be an excellent decision and the better informed you are, the more likely you'll have favorable results.  The following suggestions can help you with your decisions.
Real estate is a long term investment affected by supply, demand and the economy.  It isn't an investment that is easily converted to cash.  The costs to acquire and dispose of real estate are sizable and need to be spread over years to minimize their effects on the rate of return.
Invest in average price homes or slightly below average price to appeal to the broadest market not only when you are renting but later on when you sell it.  The average price is relative to the market you are in and those specific prices.
Lower-priced homes will rent for more relative to higher-priced homes.  There is an inverse relationship between rent as a percentage of the price.  As the price increases, the rent as a percentage of the price decreases.  For example, a $200,000 home might rent for $1,750 a month or 0.88% where a $400,000 home might only rent for $2,250 a month or 0.68%.
Choose predominantly owner-occupied neighborhoods because when you sell the home, it will appeal to a homeowner who will most likely pay a higher price for the home.  Homes in predominantly tenant-occupied neighborhoods tend to sell to investors who pay lower prices and will not be emotionally involved with the purchase.
Purchase a property with the idea of selling it in mind.  You may be able to get a property for a bargain price today but if it is due to a functional obsolescence like a bad floorplan or not enough bathrooms, that problem will still be there when you're ready to sell the property.  Identify what the problem is and what solutions are available.  The property may rent fine in that condition but before you sell, it will need to be corrected.
Get the home inspected before you purchase it.  Having the property checked out can save thousands in unanticipated expenses. 
Consider getting a home warranty on your rental.  The annual premium can limit the out of pocket expenses for repairs and maintenance.
Risk can be minimized by understanding the investment and what is involved in the acquisition, operation and disposition.  For the typical homeowner, rental property is something that they can relate to because of the similar attributes of the home they live in.

Millennials Are Taking Over!

Survey Finds Younger Buyers Taking Over

DAILY REAL ESTATE NEWS | WEDNESDAY, MARCH 11, 2015 

A new survey released today suggests concerns about younger buyers waiting in the wings are overblown. The 2015 National Association of REALTORS® Home Buyer and Seller Generational Trends study, which evaluates age-based differences of recent home buyers and sellers, found that the Millennial generation represented the largest share of recent buyers.

This was the second consecutive year that NAR’s study found that the largest group of recent buyers came from those who were 34 and younger, comprising 32 percent of all buyers in 2014 and 31 percent in 2013. Buyers aged 35 to 49, often considered part of Generation X, followed closely behind with a 27 percent share of 2014 sales. Millennial buyers represented more than double the amount of Baby Boomer buyers.

“Over 80 percent of Millennial and Gen X buyers consider their home purchase a good financial investment, and the desire to own a home of their own was the top reason given by Millennials for their purchase,” says Lawrence Yun, NAR chief economist. “Fixed monthly payments and the long-term financial stability homeownership can provide are attractive to young adults despite them witnessing the housing downturn and subsequent slow recovery in the early years of their adulthood.” 

The survey also found that fears over younger consumers using the Internet to bypass real estate professionals aren't necessarily credible either. While an overwhelming majority of all buyers (88 percent) search for homes online, most then purchase their home through a real estate agent, with Millennials using agents the most, at 90 percent.

“Nothing can replace the real insights and guidance REALTORS® deliver to help consumers navigate the complex buying and selling process,” says NAR President Chris Polychron, executive broker with 1st Choice Realty in Hot Springs, Ark.

Methodology: NAR mailed a 127-question survey in July 2014 using a random sample weighted to be representative of sales on a geographic basis. A total of 6,572 responses were received from primary residence buyers. After accounting for undeliverable questionnaires, the survey had an adjusted response rate of 9.4 percent. The recent homebuyers had to have purchased a home between July of 2013 and June of 2014. 

Still, challenges remain for these younger buyers. Yun says their share of purchases would be higher if not for the numerous obstacles they face: “Many Millennials have endured underemployment and subpar wage growth, and rising rents and repaying student debt have made it very difficult to save for a downpayment. For some, even forming households of their own has been a challenge.” 

The survey also found these common characteristics of younger buyers in 2014:

• The median age of Millennial homebuyers was 29, their median income was $76,900 (up from $73,600 in 2013) and they typically bought a 1,720-square foot home costing $189,900 ($180,000 a year ago).
• The typical Gen X buyer was 41 years old, had a median income of $104,600 (up from $98,200 a year ago) and purchased a 1,890-square foot home costing $250,000 (same as last year).
• Generation X buyers were the most likely to be married (68 percent), and Millennial buyers were more likely (compared to other generations) to be part of an unmarried couple (14 percent).
• On their primary reason for purchasing a home, a desire to own a home of their own was highest among Millennials at 39 percent. A change in a family situation – likely the birth of a child – was the highest (13 percent) among Gen X buyers. 
• The share of Millennials buying in an urban or central city area increased to 21 percent in the past year (19 percent a year ago), compared with only 12 percent of older boomers.
• In terms of neighborhood choice, Millennials were most influenced by the quality of the neighborhood (75 percent) and convenience to jobs (74 percent). Convenience to schools was most desired by Gen X buyers.

Source: "NAR Generational Survey: Millennials Lead All Buyers, Most Likely to Use Real Estate Agent," NAR (March 11, 2015).

Inaccurate Zillow 'Zestimates' a source of conflict over home prices

Zillow CEO Spencer Rascoff, shown in his downtown Seattle office, says Zestimates are "a good starting point" but that nationwide Zestimates have a "median error rate" of about 8%. (Ellen M. Banner / TNS)

By KENNETH R. HARNEY

• Real Estate
 
• Business

Home shoppers, sellers and buyers routinely quote Zestimates to realty agents as gauges of market value

Zillow CEO Spencer Rascoff says that nationwide Zestimates have a “median error rate” of about 8%

When "CBS This Morning" co-host Norah O'Donnell asked the chief executive of Zillow recently about the accuracy of the website's automated property value estimates — known as Zestimates — she touched on one of the most sensitive perception gaps in American real estate.

Millennials are finally entering home-buying market

Zillow is the most popular online real estate information site, with 73 million unique visitors in December. Along with active listings of properties for sale, it also provides information on houses that are not on the market. You can enter the address or general location in a database of millions of homes and probably pull up key information — square footage, lot size, number of bedrooms and baths, photos, taxes — plus a Zestimate.

Shoppers, sellers and buyers routinely quote Zestimates to realty agents — and to one another — as gauges of market value. If a house for sale has a Zestimate of $350,000, a buyer might challenge the sellers' list price of $425,000. Or a seller might demand to know from potential listing brokers why they say a property should sell for just $595,000 when Zillow has it at $685,000.

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Disparities like these are daily occurrences and, in the words of one realty agent who posted on the industry blog ActiveRain, they are "the bane of my existence." Consumers often take Zestimates "as gospel," said Tim Freund, an agent with Dilbeck Real Estate in Westlake Village. If either the buyer or the seller won't budge off Zillow's estimated value, he told me, "that will kill a deal."

Back to the question posed by O'Donnell: Are Zestimates accurate? And if they're off the mark, how far off? Zillow CEO Spencer Rascoff answered that they're "a good starting point" but that nationwide Zestimates have a "median error rate" of about 8%.

Homeowners underestimate their property values 1.6%, research says

Whoa. That sounds high. On a $500,000 house, that would be a $40,000 disparity — a lot of money on the table — and could create problems. But here's something Rascoff was not asked about: Localized median error rates on Zestimates sometimes far exceed the national median, which raises the odds that sellers and buyers will have conflicts over pricing. Though it's not prominently featured on the website, at the bottom of Zillow's home page in small type is the word "Zestimates." This section provides helpful background information along with valuation error rates by state and county — some of which are stunners.

cComments

• @the_PB But to be fair how can a computer algorithm take these variables into account...unless someone (person) is feeding it the relevant data.
  NUTBUCKET
  AT 12:25 PM FEBRUARY 09, 2015

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For example, in New York County — Manhattan — the median valuation error rate is 19.9%. In Brooklyn, it's 12.9%. In Somerset County, Md., the rate is an astounding 42%. In some rural counties in California, error rates range as high as 26%. In San Francisco it's 11.6%. With a median home value of $1,000,800 in San Francisco, according to Zillow estimates as of December, a median error rate at this level translates into a price disparity of $116,093.

Some real estate agents have done their own studies of accuracy levels of Zillow in their local markets.

Last July, Robert Earl, an agent with Choice Homes Team in the Charlottesville, Va., area, examined selling prices and Zestimates of all 21 homes sold that month in the nearby community of Lake Monticello. On 17 sales Zillow overestimated values, including two houses that sold for 61% below the Zestimate.

In Carlsbad, Calif., Jeff Dowler, an agent with Solutions Real Estate, did a similar analysis on sales in two ZIP Codes. He found that Zestimates came in below the selling price 70% of the time, with disparities ranging as high as $70,000. In 25% of the sales, Zestimates were higher than the contract price. In 95% of the cases, he said, "Zestimates were wrong. That does not inspire a lot of confidence, at least not for me." In a second ZIP Code, Dowler found that 100% of Zestimates were inaccurate and that disparities were as large as $190,000.

So what do you do now that you've got the scoop on Zestimate accuracy? Most important, take Rascoff's advice: Look at them as no more than starting points in pricing discussions with the real authorities on local real estate values — experienced agents and appraisers. Zestimates are hardly gospel — often far from it.

kenharney@earthlink.net

Distributed by Washington Post Writers Group.

Mud Room Benches, Cabinets, Lockers and more!

How to Make Your Mudroom Shine

Architects and designers tell us how to set up one of the toughest rooms in the house

Mary Jo Bowling

Houzz Editorial Staff; writer, reader, serial remodeler.

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A recent Houzz Call for your mudroom photos drew a lot of praise for this drop-it-all zone off the entryway — and some strong opinions. Perhaps the highest praise came from reader lake1114, who said, “The mudroom is one of the best house creations since indoor plumbing.” When we talked with Houzzers who have created great mudrooms, we found out more about the layout, setup and cost of this hardworking space. All of them emphasized one thing: A mudroom is as individual as the people who use it.

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Architects Byron Haynes and Andrew Garthwaite of Haynes & Garthwaite Architects say that mudrooms are essential in New England and other areas that have wet and/or cold weather. In fact, the home feature is so key, when the men launched their practice 18 years ago, “No mudroom is too small” was their private (and only half-joking) motto. “I believe one of our first projects was a mudroom off a garage,” says Garthwaite.

Nearly two decades and many mudrooms later, they still believe in the importance of the space. According to these New Hampshire architects, the front door on most New England homes is ceremonial. “Most people enter through the garage,” says Haynes. “But the key thing is that it has to be in a location that’s convenient.” And by “people,” he means guests too; that’s why the architects generally make the mudrooms fit the style of the house.

The configuration of the room depends on what their clients want. “We have clients who don’t like to see any clutter, and they want everything put away. For those people we give them closets and cabinets,” says Garthwaite.

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“But for some others, such as people with kids, it’s more important that everything be accessible and easy to find. Those are the people who do well with cubbies or hooks,” Garthwaite says.

When it comes to cubbies, the architects have found that a stack of niches — one for shoes on the floor, one for coats in the middle and one for less frequently used items on the top — works nicely.

A lot of mudrooms on Houzz are more than mudrooms — some incorporate laundries, message centers and even craft tables. When clients ask Garthwaite and Haynes for additional functions in the mudroom, it’s generally a powder room, a dog shower or a small countertop that can hold keys and mail.

Browse thousands of mudrooms and filter by style, size and budget

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In terms of surfaces, the architects think the key surface is the floor. They say that most of their projects have some variety of a slip-resistant natural stone, such as Vermont slate, but they have also used porcelain tiles and Marmoleum. “We think the best mudroom floor materials don’t absorb water, aren’t slippery and are easy to clean,” says Haynes.

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Travis and Arielle Weedman, of Weedman Design Partners in Oregon, do all kinds of mudrooms, but in general their philosophyis “less is more.” The two remodel a lot of older homes, and they find that there’s not always room for a large mudroom lined with hooks and cabinets. “In my opinion, mudrooms that work well have just what you need on a daily basis,” says Travis. “There are other places in the house to store the rest.”

Case in point: The small but mighty drop zone seen here, which the Weedmans created in the entry of an older home. It holds the bare essentials: a bench for removing shoes, a mesh-front cabinet for hanging jackets and stowing backpacks (note: Each family member has one jacket space here, and the bottom of the unit is divided into two backpack cubbies), drawers under the bench for stowing shoes and a small drawer for keys.

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“I personally don’t think every pair of shoes belongs in the mudroom,” says Travis. “That’s what the bedroom closet is for.” Following that line of thinking, the two adults and two kids in this household each stow just one pair of shoes here.

The key drawer is seen at right; the small cupboard below is for the dog’s leash and waste bags.

The Weedmans have designed mudrooms with painted cabinets and with natural wood finishes. “Natural wood wears well and does not chip, but wood painted with a semigloss paint should be easy to wipe down,” says Arielle. “A lot of it is simply personal preference.”

Individual styles also come into play for colors of walls and floors. “We have clients who don’t like to see dirt, so they choose darker colors,” she says. “However, we have others who want to see the dirt so they can clean it.”

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Shelly Lindstrom, of Fluidesign Studio, has designed a number of mudrooms that were built by Barak Steenlage, of Anchor Builders, including this one. In her design mind, the room should be laid out carefully with an eye to operations, just like a kitchen. “There’s a high level of traffic in these rooms, so you want to make sure there’s good flow,” she says. “It should be easy to enter and exit, and you should be able to do so without causing everyone to shuffle around. You don’t want people to have to move so others can walk in or out.”

Other layout considerations include sight lines and seating. “In general you want to make sure you can’t see directly into the mudroom from other parts of the house. Not everyone wants to see a row of drying boots,” Lindstrom says. “And you will always need a place to sit to remove boots and shoes.”

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Lindstrom echoes the other designers when she says that flooring needs to be durable and not slippery. For other finishes she favors beadboard paneling painted in a semigloss finish. “I like the lighter, brighter feeling of painted wood, and I’ve found it much easier to clean and maintain than drywall,” she says. The designer says she usually reserves darker wood for the top of bench seating, because that area takes the brunt of the wear.

Many of her clients with kids choose open hooks for coat and backpack storage. Lindstrom favors hooks with two prongs — one for coats, one for backpacks.

Costs: You can create a mudroom inexpensively with freestanding lockers and cubbies, or you can invest in custom built-ins. The consensus among the architects and designers interviewed is that setting up a built-in mudroom can range from a few thousand dollars to $10,000, depending on the amount of cabinetry and built-ins.

Haynes and Garthwaite estimate that a budget between $5,000 and $10,000 would be needed.

Arielle Weedman says there’s quite a range in costs of mudrooms, and notes that many of them are folded into kitchen renovations. She would budget roughly $3,000 to $10,000 for a mudroom project, and says a mudroom similar to the one shown previously from her company would cost roughly $7,500.

“In Minnesota you could spend between $1,000 and $8,000 to do a mudroom in a renovation,” Lindstrom says. “For a mudroom addition, you would expect to spend $15,000 and up.”

A comment from fern6951 sums it up nicely: “Each person/family has different lifestyles, so each mudroom needs to be designed differently. Some people need and want a simple, bare-bones, workhorse of a room; others prefer something more refined. There are no right or wrong ways to set up a mudroom as long as it works for the family living there.”

More:
See how to create a makeshift mudroom
These real-life mudrooms really clean up
Browse thousands of mudroom photos on Houzz