Friday, March 29, 2013

What Do Buyers Really Want in a Home?

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What sets one home apart from another as buyers are touring homes? What features do buyers truly need, and which amenities would they merely view as a bonus? The National Association of Realtors has tried to answer those questions (and more) with the recently released 2013 Profile of Buyers' Home Feature Preferences. The survey was completed by buyers who purchased a home between 2010 and 2012.

According to the study:
"The typical buyer bought a home with three bedrooms and two full bathrooms. About half of homes purchased were on a single level, while two-fifths were on two levels. Garages were more popular among buyers of new homes, homes in the Midwest, and homes in the suburbs. Fireplaces were most common in higher priced homes, homes in resort or recreation areas, and in detached single-family homes. Forty-one percent of homes had basements, which could be finished, partially finished or unfinished. Finished basements were more popular among single males, younger home buyers, and buyers in the Northeast and Midwest."

For sellers who are looking at remodeling, and want to make sure their renovation dollars are well spent, this could be a road map of what to update or add to their homes. Some other highlights:
  • 78% of buyers chose a home with a garage
  • 58% purchased a home with a fireplace
  • New kitchen appliances were more important to buyers than granite countertops
  • 69% of buyers who didn't buy a home with new appliances would have been willing to pay more for a home that had them
  • Among buyers 55 and older, 42% rated a single level home style very important, compared to only 11% of buyers under 35
  • Buyers were willing to pay a higher dollar value for an in-law suite and a basement than other extra room types.
  • The feature that had the highest dollar value buyers were willing to pay extra for? Waterfront location.
  • 53% of buyers started a home improvement project within 3 months of buying, typically in the kitchen.
  • The majority of buyers wanted more or larger closets and more storage.

Thursday, March 28, 2013

6 Energy-Saving Projects For Your Home

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Save on home energy bills
You've heard the usual energy-saving advice: Buy only Energy Star-rated appliances, replace incandescent light bulbs with those curly fluorescents, shop for cheaper electric providers (if you can in your town). But numerous low-cost, energy-saving strategies escape homeowners' attention.

Energy experts say about 35 percent of heating and cooling is lost through the roof, and more escapes through the walls, windows, doors and by air leaks. "Making your home energy-efficient means starting with the basics, and the most important of these are the proper sealing of air leaks and insulating sufficiently for your climate," says Ronnie Kweller, who was spokeswoman for the Alliance to Save Energy in Washington, D.C., at the time of the interview. "Those steps can cut heating and cooling bills by up to 20 percent."

Here are some of the best bang-for-the-buck ways to save on home energy bills.

Insulation redux?
Unless it's thoroughly water-damaged, fiberglass insulation rarely needs replacing, though that doesn't stop unsavory contractors from recommending changing it out. Go ahead and fluff out those areas that have been compressed from excessive attic tromping because fiberglass insulation needs trapped air to be effective.

You can benefit by adding extra insulation. If yours is less than 9 inches thick (R 30), adding another layer could deliver significant extra savings. However, any thickness beyond 16 inches (R 50), except for those living far north in America, is typically unnecessary.

With a little how-to research, installation is relatively easy, but be sure to wear a mask and gloves, and don't cover any vents -- and don't fall through the ceiling! Fiberglass insulation can range from 50 cents to $1 per square foot, but the blown-in variety can cost nearly double that.

Draft day
"Air infiltration" is fancy lingo for "drafts." One time-tested way to detect air infiltration is to hold a lighted candle a few inches from doors, baseboards, window frames, pipes and vents -- after turning off all fans, heating and air conditioning. If the candle flickers or is blown out, sealing is needed.

Use a caulk gun (sometimes old caulk must be removed first) to seal gaps in walls and windows, and add weatherstripping under gaps in doors. Drafts around vents indicate that the vents might be the wrong size. You can have them replaced or add foam insulation around them. These efforts are best left to pros unless you're exceptionally handy.

Another avoid-the-draft tip: Use heavier drapes over windows in winter.

Tech smarts
A programmable thermostat that adjusts temperatures automatically will set you back between $60 and $120, but save you about $180 a year, according to Energy Star. That's a quick return on investment.

Smart thermostats are pricier, varying from $275 to $400, but they let you change settings remotely anywhere you have an Internet connection. They're handy for folks with fluctuating schedules or who tend to entertain clients, family members and other guests at home on an impromptu basis.

Some smart thermostats have monitoring systems that track energy use in various circuits around the house, so you can make adjustments where needed. Before taking that plunge, consider smartphone apps that allow you to dim lights and control thermostats, power strips and other connected devices from your phone.

"Smartphone apps can put energy efficiency at your fingertips at a reasonable cost," Kweller says.

Slay the 'vampires'
Standby power, also called "vampire" or "phantom" power, is consumed when electrical devices idle in standby mode. These phantoms can suck the life out of your energy budget, accounting for as much as 10 percent of the average home's electricity use.

Most computers, video game consoles and other gizmos with standby connections have settings that you can adjust to power-saving mode. Do so. Older power strips and adapters (typically those warm to the touch) with standby current should be replaced.

Tactical landscaping
Strategically planted trees can literally overshadow home energy waste. The original layouts and tree positioning of most lots were governed by builders' profit models, not energy savings, so it's up to homeowners to position clusters of trees to shade windows and rooftops in summer. These natural insulators can reduce the air temperature surrounding homes by as much as 9 degrees.

Deciduous trees, which provide shade in summer, then shed their leaves to admit sunlight in winter, are the best choice in most climates. Evergreens are more effective in providing windbreaks that reduce chilly northerly winds, as long as they are positioned away from the house at a span that's from two to five times the trees' heights.

What's more, shading your outdoor air-conditioning unit can increase its efficiency by 10 percent. The U.S. Department of Energy says that such energy-efficient landscaping provides a return on investment in about eight years.

Get audited
Consider an energy audit, especially if the energy bills are still high after you have spent a bundle on windows or on a heating, ventilation and air-conditioning system. Some utility companies offer free audits that aren't as thorough as audits performed by competent private companies, which charge around $400.

A thorough audit will test the integrity of the building using thermographic imaging and air-leakage testers on windows, floors, doors, skylights and walls. The findings will indicate which areas waste the most energy and help determine how to reduce costs. But first, vet the auditor carefully with a Better Business Bureau search and online user reviews.

Certified building analyst Richard Burbank, CEO of Evergreen Home Performance LLC in Rockland, Maine, says energy audits are particularly useful during homebuying due diligence. Enthusiasm over a great price on a distressed home can be quickly dampened when the buyer realizes the house is an energy hog. "We've seen a lot of buyers who are picking from the bottom of the barrel on foreclosures who especially need to pay attention," Burbank says.

via bankrate

Thursday, March 21, 2013

5 Ways To Screw Up A Mortgage Refinance

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A mortgage refinance boom is in full swing, as homeowners take advantage of record low rates by refinancing their home loans.

But a home loan refi is more complicated than it was a few years ago. Home values are lower and paperwork requirements are higher. It's easy to make mistakes while refinancing a mortgage.

To help you avoid some of the most common errors, here is a list of five things you shouldn't do when you refi.

Be unrealistic about your home's value
Deluding yourself about the value of your home is an excellent way to ruin a refi. Too many homeowners ignore falling home values in their neighborhood, convincing themselves their houses are worth at least what they paid for them.

In mortgage refinances today, the most common reason for denial is a home appraisal that comes in too low. The lender won't lend for more than the appraised value. And a lot of homeowners go into denial about the decreased values of their homes.

"Don't overestimate what the value of your home is. Don't kid yourself and think your house is worth $500,000 when it's really only worth $400,000," says Dale Robyn Siegel, author of the book "The New Rules for Mortgages" and owner of Circle Mortgage Group in Harrison, N.Y.

Dither about your rate lock
Homeowners who delay locking a good mortgage rate risk making a refi uneconomical.

While floating, you take the risk that mortgage rates will go up. Rates could rise enough so that it's no longer worth the time and expense of refinancing, says Bob Walters, chief economist for Quicken Loans.

Also, rate locks have expiration dates. So, it's a good idea to build a cushion of a few days in case there's a delay in the loan closing, says Dan Green, mortgage planner for Waterstone Mortgage in Cincinnati.

If you have a 30-day rate lock, it's better to set the closing date on the 28th day than the 30th day -- just in case there's a snag that delays the closing by a day or two.

Start renovating your house before the appraiser visits
Taking a sledgehammer to the interior of your home before the appraiser arrives is a good way to get turned down for a refi.

The appraiser delivers an estimate of the home's value on the day of the inspection. The house will be worth less on that day if the upstairs is a shambles or the bathroom fixtures have been ripped out. That's the case even if the renovations, when completed, will enhance the home's value.

"Don't start a renovation before the appraiser gets there," Walters says. "You'll see this sometimes when people are taking cash out and want to do a bunch of stuff. Do not do that, because if you've ripped out half the second floor and it's not in final condition, we can't close your loan."

If you plan to renovate, start after closing the refi.

Disappear and ignore the lender's calls
Want to throw your home loan into limbo?

"Go on vacation and don't tell the lender," Walters says.

Lack of communication will throw a pending mortgage into turmoil. "Remain accessible," Walters says. "Don't disappear. Sometimes people do."

A lengthy disappearance might have been a nonissue a few years ago, but it's not a good idea now. Lenders' paperwork requirements are more stringent than they were three years ago.

Expect the lender to ask for documents sometime between application and closing. It might be a request for your latest pay stub or an explanation of a big deposit into your checking account.

Stay in contact with the lender, and respond sooner rather than later to requests for more documentation.

Start over with another 30-year term
If you want to do long-term damage to your personal finances, start all over again by refinancing for a full, 30-year term. That way, you spend thousands of dollars on interest that you otherwise could have saved.

"The first question I say is, 'How long have you had that mortgage?'" Siegel says. "If they've had it for at least four to six years, I say, 'Look, I know you want to refinance, but at least let's do a 25-year, so you're not back at square one.'"

Then, she explains the monthly payment on a 20-year term, because after hearing the details "(they) might want that.'"

Reducing the term by just five years can yield big savings. On a $200,000 mortgage at 5 percent, you save $35,758 in interest by paying off the loan in 25 years instead of 30.

Pay off that home loan in 20 years instead of 30, and you save $69,733 in interest.

via bankrate

Friday, March 8, 2013

Gilbert February 2013 Market Statistics Statistics

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Median Sold Price (Single Family Homes) in Gilbert (by zipcode) 
February 2012 - February 2013
Median Sold Price in Gilbert by zipcode February 2012 - February 2013
*Active Listing
**Price/SQFT
Gilbert
714
$111
85233
84
$114
85234
125
$115
85295
112
$108
85296
114
$105
85297
108
$105
85298
170
$123

* Active Listing as 3/1/13
** Price/SQFT as 3/8/13
source armls. Information is deemed to be reliable, but is not guaranteed

View All Homes for Sale in Gilbert
View All Traditional/Regular Homes for Sale in Gilbert
View All Homes for Sale in 85233
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Chandler February 2013 Market Statistics

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Median Sold Price (Single Family Homes) in Chandler (by zipcode)
February 2012 - February 2013
Median Sold Price in Chandler by zipcode January 2012 - January 2013
* Active Listing
** Price/SQFT
Chandler
657
$112
85224
86
$105
85225
122
$101
85226
80
$115
85248
260
$118
85249
185
$116
85286
101
$118

* Active Listing as 3/1/13
** Price/SQFT as 3/8/13
source armls. Information is deemed to be reliable, but is not guaranteed

View All Homes for Sale in Chandler
View All Traditional/Regular Homes for Sale in Chandler

Ahwatukee February 2013 Market Statistics

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Median Sold Price (Single Family Homes) in Ahwatukee (by zipcode) 
February 2012 - February 2013
Ahwatukee February 2013 Market Statistics by Swee Phoenix Homes Group
*Active Listing
Ahwatukee
264
85044
97
85045
43
85048
124

As 3/1/13. source armls. Information is deemed to be reliable, but is not guaranteed.

View All Homes for Sale in Ahwatukee
View All Traditional/Regular Homes for Sale in Ahwatukee
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View All Bank Owned Properties Listing in Ahwatukee

Thursday, March 7, 2013

February 2013 Market Update

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Ahwatukee, Chandler, Gilbert, Mesa and Scottsdale
Median Sold Price February 2012 - February 2013
February 2013 Market Statistics
February 2013 Market Statistics

Ahwatukee Chandler Gilbert Mesa Scottsdale
 New 122 404 386 579 600
 Pending 91 321 351 529 351
 Sold 85 290 315 497 390
 Current Active 264 657 714 1153 1856
 Median Sold Price compare to last month +1.6% +2.7% -1.7% +1.6% +8.6%

As 3/1/13. source armls. Information is deemed to be reliable, but is not guaranteed.

View Homes for Sale in Ahwatukee
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Wednesday, March 6, 2013

This Month in Real Estate March 2013

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Monday, March 4, 2013

Home in 5 - Down Payment Assistance Program

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Home in 5 - Down Payment Assistance Program

Lasted updated on

The Industrial Development Authority of the County of Maricopa and The Industrial Development Authority of the City of Phoenix, Arizona have joined together to help homebuyers obtain FHA, VA, or USDA-RD loan financing to purchase a home anywhere in Maricopa County, including the City of Phoenix. Through the Home in Five Advantage program, individuals or families who qualify would be able to obtain a 30-year fixed rate loan, with a non-repayable 5% down payment/closing cost assistance grant, with special incentives for qualified United States military personnel.

Financing for these loans is available on new or existing homes, condominiums, townhouses or manufactured homes on a first-come, first-served basis, only through the Participating Lenders.

Homebuyer Eligibility
  • Buyers must have a minimum FICO credit score of 640 and maximum 45 debt-to-income (DTI) ratio
  • Standard loan guidelines exist for qualification (i.e., adequate income, acceptable credit, and down payment requirement)
  • All buyers must attend a homebuyer education course and obtain a certificate of completion, and receive a home inspection
Program Eligibility
  • Homebuyers may purchase a home anywhere in Maricopa County, including in the City of Phoenix
  •  Buyers must occupy the home as their principal residence within 60 days of closing
  • The program may only be used to purchase a home (i.e., no refinancing)
Income Limits for Eligible Borrowers
  • Maximum credit qualifying income may not exceed $88,340 for ALL borrowers
Purchase Price Limit
  • Maximum purchase price limit of $300,000. 
Special Incentives for Qualified United States Military Personnel
  • Down payment/closing cost assistance of an additional 1% for a total of 6%
  • “Qualified  United  States  Military  Personnel” include Qualified Veterans, active duty United States military, active United States Reservists, and active members of the National Guard
  • A "Qualified Veteran" is a person who served in the active military, naval, or air service, and who was discharged or released therefrom under conditions other than dishonorable (as provided in 38 U.S.C. Section 101
Down Payment Assistance
  • All homebuyers qualifying for down payment assistance will receive 5% of the original loan amount to be used for down payment and closing cost assistance
  • Qualified United States Military Personnel will receive 6% of the original loan amount. 
This assistance is a grant and does not require repayment.  

Revised February 27, 2013 

Sunday, March 3, 2013

Now's The Time to Refinance Your Mortgage

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If you've been thinking of refinancing, mortgage experts say now is the time to take action.

Improving economic conditions, potential rate increases, and expected changes to government programs means you may soon find it more difficult and expensive to refinance your mortgage.

"People who are still waiting to refinance will realize that rates might never be this low again in our lifetime," says David Lazowski, branch manager at Fairway Independent Mortgage in Boston, MA.

Still not convinced? Read on to learn why mortgage experts say you should refinance before spring arrives.

Reason 1 - Changes to Mortgage Insurance Premiums (MIP)
Is your mortgage more than 80 percent of your home's value? If so, upcoming changes by the U.S. Department of Housing and Urban Development could increase your refinancing costs if you wait to refinance.

In fact, effective April 1, 2013, the Federal Housing Authority's (FHA) mortgage insurance premiums are set to increase.

Currently, lenders require mortgages greater than 80 percent of the home value to be covered by mortgage insurance, and the homeowner pays the premium cost.

Richard Booth, a certified mortgage banker, explains how the increased premiums affect homeowners:

Borrowers with less than 20 percent equity will pay more, he says, impacting their budgets and ability to borrow funds. "The result will be higher monthly costs and thus borrowers will have their borrowing capacity reduced," Booth adds.

But that's not all: "Included in the many changes is the removal of the provision which permitted borrowers to drop their MIP once they reached a 78 percent Loan-to-Value (LTV), and the five year threshold," says Booth. This means that "many will be required to carry MIP for the life of the loan."

Reason 2 - Home Affordable Refinance Program (HARP) May Be Ending
If you qualify for a HARP refinance but haven't taken advantage of it yet, you may soon be out of luck. Our experts believe the HARP programs may be discontinued.

"The Home Affordable Refinance Program, designed to help homeowners who have lost value in their homes refinance into lower rates, has been rumored to be coming to an end," advises Booth.

Wade Lovell, a California mortgage broker, agrees that if you feel you are a candidate for a HARP refinance, don't wait to give it a shot.

"HARP 2.0 and other programs make it possible to refinance even if you are underwater by as much as 25 percent and some lenders will go even higher," Lovell says. "Without these programs, homeowners whose houses are now worth less than they owe would be unable to refinance their primary residences. These programs may be short term. Take advantage of them now."

Reason 3 - Benefits to Refinancing During Tax Season
This may come as a bit of surprise, but yes, there are some perks to refinancing during the tax season.

"One benefit of refinancing during tax season is that you will need many of the same documents needed to file your taxes," says Lazowski. "So while in the mind set of doing taxes, it makes good sense to get into the mind set of refinancing."

If you wait until after tax season to refinance, however, you may be in some trouble. For example, if you have a rate lock or guaranteed mortgage rate for a specified period of time, you may have to wait longer for the verification of your paid income tax, which is often required in a mortgage refinance application.

"After April 15th it will take you longer to get an IRS verification of your taxes being filed through a third party because of everyone filing their taxes on the due date," explains Lazowski. As a result, "This backs up the process and can take four to six additional weeks, causing rate locks to be tested."

Reason 4 - Impending Rate Increase
How would you feel if you discovered your decision to delay refinancing cost your family thousands of dollars in interest?

If rates rise, you could face just that situation. And unfortunately, you could be facing this dilemma sooner rather than later. In fact, according to Freddie Mac's "Weekly Primary Mortgage Market Survey," the interest rate for a 30-year fixed rate mortgage is already on the rise from 3.34 percent on January 3 to 3.56 percent on February 21.

It is data like this that is leading experts to anticipate a continued rate increase.

"Rates have started to move off of all time lows," Lazowski says. "With the economy improving it will come as no surprise that rates will move a bit higher. With that being said, rates moving a bit higher will help to spur both purchase and continued refinance activity."

via yahoo homes

Saturday, March 2, 2013

Replace or Reface Kitchen Cabinets?

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Mary Saunder disliked the cabinets in her kitchen from the moment she moved into her Bowie, Maryland, home. "They were metal, the color of bronze," Saunder says, "but my husband's motto was 'If it ain't broke don't fix it.'" When her husband passed away last February, Mary decided it was time to act. "I couldn't stand it any more," she says. But rather than spend the $25,000 or $30,000 redoing the kitchen with new cabinets would have cost her, she settled on a simpler, cheaper and far less intrusive solution.

Motivated by a newspaper ad for Sears' kitchen-cabinet-refacing service, she scheduled an appointment and signed up. After two visits to take measurements and show her the new finish and hardware options she could choose from, Sears moved in. Two days and 29 cabinets later, Mary's kitchen was transformed. "I'm 100 percent satisfied," she says. Total cost: $9,100.

Mary Saunder is fairly typical of thousands of U.S. homeowners who make the decision each year to reface rather than replace their cabinets. "The truth is," says Gerald Baldner, founder and president of Kitchen Solvers, a refacing franchising firm in La Crosse, Wisconsin, "some of the cabinets built 20 and 30 years ago are more solidly constructed than most modular, prebuilt cabinets today. So when it's time to redo the kitchen, it often doesn't make sense to start from scratch."

The basic refacing project consists of installing new cabinet door and drawer fronts and covering the exposed face frames of the cabinets with a matching wood or plastic veneer. Most jobs take two to four days, depending on kitchen size and extras like replacing counters or adding an extra cabinet.

The work itself is a standardized progression of tasks, generally handled by one or two craftsmen. They begin by removing doors and drawer fronts from cabinets and roughing up the old finish on face frames and side panels to prepare them for the new covering. They then glue and sometimes nail the new finish over the old, the nail holes filled and the seams and edges trimmed to make them unobtrusive.

New panels or molding are used to trim out the exposed undersides of the upper cabinets to give them a finished look, and the base cabinet toekick is replaced. Finally, new cabinet doors and drawer fronts are attached, and new hardware is mounted on each of them.

There generally are three finish options: plastic laminates, rigid thermofoils (RTF) and wood veneer. Refacing laminates come in a wide variety of solid colors and wood-grain looks. Slightly more expensive than RTF, laminates nevertheless lack malleability, which means they're limited to plain cabinet door styles when compared with RTF. RTF can be shaped and molded in a range of styles, including arched and cathedral doors, raised panel and eyebrow raised panels.

When Refacing Doesn't Make Sense
Refacing isn't for every kitchen. Most important, it doesn't address the issue of a poor kitchen layout. "If you go to the expense of refacing and still end up with a nonfunctional kitchen, you've wasted your money," says Cyndi Cantley, of Cantley & Co., a certified kitchen designer in Birmingham, Alabama.

Other conditions that rule out refacing include existing cabinets that are beginning to fall apart or aren't well built to begin with; metal cabinets that are rusting; and larger structural issues, like floors that have settled and left cabinets out of kilter. If you have any of these problems, you shouldn't consider refacing.

What Refacing Costs
How much you pay for refacing depends on the size of your kitchen, the materials you choose and how many options you elect to include. "Our typical refacing job runs $4,000 to $5,000," says Gerald Baldner of Kitchen Solvers, which has 105 refacing franchises in 30 states. "And that includes countertop, trim, molding, valences, new toekick, shelf and drawer liner, as well as accessories and tax."

According to Carl Hyman, owner of Alure Kitchen Refacing in East Meadow, New York, which serves an upscale clientele and refaces about 150 kitchens a year, his company's average job runs about $8,500 (including countertops). The average refacing job by Sears, which operates its refacing business through its own employees in some states and through licensees in others, costs $4,000 to $6,000. As with any remodeling project, your best bet is to get a number of different quotes.

The bottom line is that it comes down to personal taste. "You can take the same kitchen and do the plain-Jane refacing for $3,000 or, for $8,000 or $9,000, do it with wood, Corian countertops, a new sink and some bells and whistles," says Brian Titus, of Cabinetpak Kitchens, which operates refacing companies in Washington, D.C., and Ohio. Whatever you pay, it's bound to be significantly less than the cost of a new kitchen.

Companies like Alure, Kitchen Tune-Up and Kitchen Solvers, which offer both refacing and full-remodeling services, maintain a complete remodel runs on average twice as much as a high-end refacing job. Kitchen Solvers' Baldner cautions customers who have been told at home centers and other retailers that they can have new cabinets installed for about the same price to calculate carefully. "There are a lot of costs added on that most people don't think about when considering kitchen remodeling," he says. "If you get a quote on new cabinets, make sure it includes handles, molding, installation, sales tax, delivery charges, refinishing your walls if the new cabinets don't line up with the old, any required plumbing or electrical work."

And then there's the prolonged disruption and mess that come with a full-scale remodeling job. "We're selling convenience as much as we are cost savings," says Murray Gross, president and chief executive officer of Dallas-based U.S. Remodelers Inc., the refacing licensee for Century 21.

via yahoo homes

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