Q: We’re redoing our floors and have been going back and forth in a heated debate about solid hardwood vs. engineered floors. Help our home find a peaceful resolution, please!

A: Were your raised like I was? Red shag carpet, olive appliances, and being told there was nothing better than REAL, solid, hardwood flooring? Anything less was, well… just less (said with an upturn of a nose and a chuckle). Now, you might be wondering, is that still the case?

Many would argue that it is, and equally as many would say otherwise. From the looks of our showroom, I will tell you that you have a wide variety of options to choose from in solid and engineered floors and every other alternative you can imagine—laminate, vinyl plank, tile, and more.

A Solid Choice

Solid hardwood is still amazing! So many colors and styles, with all the flexibility to refinish for years to come. It is beautiful—luxe finishes that offer the opportunity to renew your floor over and over again and will last you a lifetime!

Engineered Hardwoods for Superior Style and Strength

Equally amazing are engineered hardwoods, or solid hardwood veneer on top of an engineered core. With engineered wood, you have more finishes to choose from and an even bigger variety of sizes and widths. To create these engineered hardwoods, you aren’t held to the size of a tree, so planks can be wide—an on-trend look. Engineered hardwood also boasts structural stability.

What Factor Is Most Important?

Color and finish are probably first and foremost, along with of the strength of the wood. Many consumers pick the color and finish they like first. Oil and brushed finishes are the most popular these days. As for color, we are watching the trends bend back towards more neutral warm tones.

After color and finish, consumers should then make sure the strength of the wood fits their lifestyle. Harder, stronger woods will withstand more wear and tear than softer woods.

The Floor of the Future?

Hard surfaces like hardwood and tile continue to be on the rise. As home values increase, many people are ditching the carpet in the main areas of their home and installing the wood floor they always dreamed of. Another sign of the times—or maybe just a sign of a strong housing market—is that more and more people are going back to installing hardwood on their stairs. This can be an expensive investment, but it’s one that many swear by.

Is solid hardwood the best? The debate between solid and engineered continues. The only thing for certain, with the wide variety of styles, types, and manufacturers, is that when it comes to hardwood, there truly is something for everyone.

Jenny Steiner is a salesperson for Builders Interiors, a member of the Master Builders Association of King and Snohomish Counties (MBAKS). If you have a home improvement, remodeling, or residential homebuilding question you’d like answered by one of MBAKS’s nearly 3,000 members, write to homework@mbaks.com.

Spoiler: It's the top 10 green neighborhoods list. Georgetown is number eight.

Apologies for the clickbaity title. You should know that we would never make you click through twenty pages only to find a mediocre surprise at the end of the journey.

Back on topic, this is actually pretty cool for Georgetown, the area formerly known for satisfactorily dingy bars, burgers, and a weird smell probably produced by a mixture of said beer and burgers with a hint of airline fuel.

Redfin found that 56 percent of Georgetown homes were considered green, meaning they had one or more green features.

The study, conducted by Redfin data scientists, analyzed real estate listings for homes sold between January 2017 and April 2018 in more than 80 metro areas. The study also found that homes with the aforementioned one or more green features sold at significantly higher rates than those boring old techless homes—green had a median price of $569,000, compared to $522,000 for all other homes. That's…like a $47,000 difference. Right? Yes.

Numbers one and two on the list were, surprisingly, in Cleveland—the Malvern and Fenway neighborhoods in the upscale Shaker Heights neighborhood known for its sustainability efforts, among other things.

Neighborhoods in Philly, Orange County (CA), and the hipster haven Red Hook area of Brooklyn rounded out the list.

What does this mean for Georgetown? Nothing much more than a brag piece. It does, however, bring to light the fact that our builders and residents are trying. And that means something. Built Green, which certifies green homes in King and Snohomish counties and advocates for sustainability, can likely take some credit for Georgetown's number eight spot; last year, the partner program of MBAKS certified more than 800 new homes, which isn't easy to accomplish. Homes must adhere to vigorous checklists to be considered Built Green.

Says Built Green Program Manager Leah Missik, "Building green is about more than the gadgets that go into a home. (Programs like) Built Green work hard to promote healthy, sustainable communities in a variety of ways." Missik and Built Green are proud to lead by example both locally and at a national level. In fact, Missik says, "Each individual (Built Green) home is more water and energy efficient, healthier, and more comfortable, but our checklist also promotes walkability, access to transit, and community resources."

Missik drives home the importance of all-encompassing, sustainable communities like Georgetown and those others on the list, saying, "Homes are, after all, part of a community through the people who live in them!"

It's no secret that in progressive cities like Seattle and its surrounding areas that green is quickly becoming the new gold. People pay more for healthier, more sustainable homes and builders know this. Money has always talked, but when you attend a Built Green event, you quickly realize the people involved in green building also walk the walk. It's about more than higher home prices, which are already doing just fine in our area. It's about building a healthier future for our kids, and their kids, and so on.

Congratulations on being green, Georgetown. We'd buy you a beer, but you probably already have that covered.

FOR IMMEDIATE RELEASE
Media Contact:
Sharon Couts
Master Builders Association of King and Snohomish Counties
425.499.1723

$30,000 in Scholarship Funds Available to Students Enrolled in Residential Construction Programs

Deadline to Apply is April 30, 2018

BELLEVUE, Wash—April 23, 2018—Nearly 82 percent of construction businesses struggle to find qualified skilled labor, according to a 2017 survey conducted by the Master Builders Association of King and Snohomish Counties (MBAKS) and Redfin. This labor shortage, area companies say, is a factor in too few homes being constructed and contributes to higher home prices.

In an effort to develop skilled labor for the industry, bring more homes to market, and help ease the costs of housing, MBAKS is working to attract more high school and college students to exciting careers in the construction and trades industries through education programs and scholarships.

Each year, MBAKS offers $30,000 in scholarships to students who are seeking education related to the homebuilding industry and are enrolled at qualifying technical, community college, and university-level programs within Washington state. Students can apply at mbaks.com/scholarships.

About the Master Builders Association of King and Snohomish Counties

Founded in 1909, the Master Builders Association of King and Snohomish Counties has grown to become the largest residential homebuilders association in the United States. With nearly 3,000 member companies, the association is dedicated to membership value, housing advocacy, community service, and financial stewardship throughout the Puget Sound region.

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Larry Thibeault of Lake Stevens Design Build shares how MBAKS helped him go from a cabinet salesman to a big builder in Snohomish County.

Learn more about membership

Ready to sign up? Join online or call our Membership Department at 425.451.7920.

By MBAKS Senior Policy Analyst Allison Butcher

Data on jobs released by the Puget Sound Regional Council recently show the four-county region added 362,800 jobs between 2010 and 2017. At this pace, the region continues to add more than three jobs for every housing unit, placing continued strong demand on housing.

As this month’s Builder’s Bulletin shows, we’re seeing more of the same with a very low inventory of homes for sale and rising home prices in King and Snohomish counties. Meanwhile, King, Snohomish, and Pierce counties experienced a 32 percent decrease in multifamily permits the first two months of this year, compared to the same period last year. Single family permits are up 10 percent in King and Pierce counties and down 22 percent in Snohomish County.

The Builders' Bulletin is intended to provide a convenient way to track housing in our market and includes information from the Northwest Multiple Listing Service, State of the Cities Data Systems, Office of Financial Management and the Washington State Employment Security Department.

Download this month's report:

Amy King of Square Peg Construction shares the story of how she founded Weld Seattle and how fellow developers can help their mission while also benefiting themselves. Weld is a nonprofit that provides transitional housing and pathways to employment for those in recovery and re-entry into society.  

See how you can help

By Denny Conner, CRD Design Build

Q: How do most people finance a remodel?

A: Owners finance home-remodeling projects in many ways, from using savings to borrowing from a 401(k) to bank loans. Here are some of the most common avenues to pay for your dream remodel.

1. Cash-out refinance

   Most banks will be willing to lend you up to 80 percent of your home's value, minus whatever you still owe on your mortgage.

   Pros: You get a lump sum and don't have to deal with complicated draws. It's a chance to lower your interest rate. The interest you pay may be tax deductible.

   Cons: You will usually have to pay closing costs—typically a few thousand dollars.

2. Home equity line of credit (HELOC)

   A HELOC allows you to keep your original mortgage. During the draw period, you will make interest-only payments. This is followed by the repayment period (typically 10 to 15 years).

   Pros: A HELOC allows you to borrow only what you need. Unlike a cash-out refi, you only owe interest on the amount you've borrowed to date. You may not have to pay closing costs.

   Cons: When your repayment period begins, the higher monthly payments may take you by surprise. Interest rates may be variable.

3. Home equity loan

   This is another type of loan that is secured against your home. Instead of a line of credit, you will be borrowing a fixed amount as a lump sum.

   Pros: You can keep your original mortgage, which may be beneficial if it has a very low interest rate. Interest payments may be tax deductible. You don't have to deal with a complicated draw schedule.

   Cons: You will begin owing interest on the entire amount from day one.

4. Remodeling construction loan

   If you are making major renovations and do not have enough equity in your home to pay for them, you may want to explore a construction loan.

   Pros: It extends your borrowing potential. The bank will appraise the house based on its future value after the remodel is complete. You can often qualify for a low fixed interest rate and most or all the interest will be tax deductible.

   Cons: Refinancing may not be desirable if you currently have a low fixed rate. Your building plans must be finalized before you can be approved. You may have to refinance into a permanent loan when construction is complete.

5. FHA 203k loan

   These loans are backed by the Federal Housing Administration. They could be a good option if you have found a home you want to purchase that needs major repairs.

   Pros: Down payments as low as 3.5 percent and relatively low interest rates are the main benefits. You can borrow up to 110 percent of the home's projected value after repairs.

   Cons: A lot of paperwork. You are required to address any health and safety issues with your home.

6. Borrow from your 401(k)

   Tapping your retirement account gets a lot of bad press, but it may be a decent option in certain circumstances.

   Pros: Your interest rate can be lower than that of a personal loan (typically around 5 percent). The approval process is quick and won't show up on your credit report.

   Cons: You are limited to $50,000 and the repayment schedule is quicker than for some other types of loans.

7. Reverse mortgage

   If you are age 62 or older and have equity in your home, you may qualify. This loan is similar to a HELOC, but you don't make payments during your lifetime.

   Pros: It is a way to access the equity in your home. No payments will be due during your lifetime.

   Cons: It will diminish the value of your estate, leaving fewer assets for your heirs. Fees may be higher than with a traditional mortgage.

There are many options available to you as a homeowner seeking to fund a remodel. It may be worth exploring several options to determine what's best for you. Start a conversation with your banker or broker at the same time you start exploring remodeling options. Knowing from the start what funds you have available to you will help make the design process smoother and allow you to avoid surprises down the road.

Denny Conner is the president of CRD Design Build and a member of the Master Builders Association of King and Snohomish Counties. HomeWork is the MBA's weekly column. If you have a home improvement, remodeling, or residential homebuilding question you'd like answered by one of the MBAKS's nearly 3,000 members, write to homework@mbaks.com.

By Denny Conner, CRD Design Build

Q: Can I deduct remodeling expenses on my taxes?

A: Tax Day is April 17. If you've recently remodeled your home or are thinking about renovating in the future, you may be wondering if there is a way to deduct a remodel. After all, you're looking at a big investment, and it sure would be nice to lower your tax liability to soften the blow.

While you can't simply deduct the whole thing, there are deductions you should explore.

It should go without saying, but the following info is generalized. Please consult your CPA or another tax expert about your unique situation before taking any action based on what you read here.

Sales taxes

One option would be to deduct the sales tax that you paid on your remodel. This is an easy one and can be a big win for homeowners who remodel, especially on major high-dollar renovations, such as kitchens, additions and whole houses.

Seattle's sales tax rate of around 10 percent is one of the highest in the nation and it pays to deduct the state and local taxes you paid on your home renovation on your federal tax return. Ask your remodeler for a summary of sales taxes they collected on your behalf throughout the year. One thing to note is that you do not have to pay sales tax in Washington state on services, such as design.

Medical-related improvements

If you are a person with a handicap or disability, or if you have a handicapped family member living in your home, you may be able to claim a significant deduction on your federal taxes for medically necessary home improvements. Here are a few examples, courtesy of the IRS, of items you might be able to deduct:

• Building wheelchair ramps
• Widening hallways and doorways
• Lowering kitchen cabinets
• Installing lifts
• Modifying smoke detectors
• Modifying stairs
• Adding handrails or grab bars
• Modifying hardware on doors

HELOCs

Another option is to deduct the interest paid on a home-renovation loan or line of credit. The mortgage interest deduction is one of the most popular itemized deductions Americans utilize. It allows homeowners not only to deduct the interest they pay on the mortgage of their primary and second homes, but it also allows the deduction of interest on loans secured by your residences, including home-renovation loans and home-equity lines of credit (HELOCs).

With the passage of the Tax Cuts and Jobs Act of 2017 in December, the fate of HELOC tax deductions became uncertain. While the interest deduction is indeed suspended until 2026, there is one substantial loophole: you can still deduct if you use borrowed HELOC funds to "buy, build, or substantially improve" the home.

Energy efficiency credits

While many of the deductions for energy-efficiency home improvements (such as new insulation) expired in 2013, the solar tax credit was recently renewed. It gives you a whopping 30 percent federal tax credit for the installation of a new photovoltaic or solar hot water system, including the cost of installation. A tax credit is better than a deduction because it allows you to directly write off that amount from the federal taxes you owe. The 30 percent gradually steps down to 22 percent over the course of the next few years.

Capital-gains taxes

Some of the biggest tax advantages to be had from a home renovation may come years after you complete your remodel. When you sell your home, the IRS will look at the amount you originally paid (your home's cost basis) and subtract that from the selling price, which is the profit on which you may have to pay capital gains tax. Any qualifying improvements will be subtracted from that amount.

To qualify, a capital improvement must add to the value of your home, prolong its life, or adapt it to new uses. A major remodel or addition counts, especially if you are adding new space, a new HVAC system (but not just an upgrade of an existing system), or a new roof. Things like replacing your existing cabinets with new cabinets or replacing a water heater probably won't count.

Denny Conner is the president of CRD Design Build and a member of the Master Builders Association of King and Snohomish Counties. HomeWork is the MBA's weekly column. If you have a home improvement, remodeling, or residential homebuilding question you'd like answered by one of the MBAKS's nearly 3,000 members, write to homework@mbaks.com.

This week, Melissa Morrisette, showroom manager for member company Best Plumbing, shares how Best Plumbing can help make your next project a success. Plus: you're invited to Wine Wednesdays in their Seattle showroom!

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