Exterior Updates to Boost Resale Value

Exterior Updates to Boost Resale Value

One of the best tools in a seller's arsenal is curb appeal. The outside of a home or property is one of the first things a buyer sees, and while many times it's not on the outside that counts, when it comes to real estate, the outside of a home plays a huge part in whether a buyer is going to want to take a look inside.
If a property can catch a buyer's eye from the get go, the probability that the buyer will want to look inside exponentially grows. If you've put your property on the market and are not attracting the number of potential buyers you'd like, or you're considering putting your property on the market and would like to give it a step above the other options on the market, consider these exterior home updates to help attract more buyers and help the resale value of your home or property.

Landscape

Unless your home or property is in an urban environment, say the middle of the city, it's highly likely you have some kind of yard or landscape. While not all homeowners enjoy working in the yard, a front yard or outdoor area makes a huge first impression on house hunters. Not to mention that 92 percent of home buyers now begin their search online, looking at pictures of homes, so showcasing the front of your home by landscaping or adding natural elements will undoubtedly help attract buyers and overall add to the total value of the home.

Update Paint

 Paint colors can make or break a house sale. If your property is on the market, or you're thinking of selling, consider adding a new coat of paint to help add value to your property. Depending on the size of your home, painting the exterior of a home can go for one thousand dollars and up, but the average return on the investment is about ninety percent. If your budget is tight and can't accommodate new paint, consider renting or buying a pressure washer and washing down the sides of your home. Pressure washing is not only more affordable, but it can also bring new life to a tired exterior paint job.

Replace Front Door

The front door of a home says a lot about a property and even about the seller. A high quality front door will not only stand out in pictures but also appeal to any buyers who might drive by the property. If your front door could use a facelift, consider investing in a wood or fiberglass door. Both types have a high-end look and feel and can help to boost the resale value; but if your budget doesn't have the room for a brand new door, replacing the door hardware and adding a new coat of paint can help invigorate a tired door and still catch the attention of potential buyers.

Install New Windows

Windows can tell a buyer a lot about a property. If your home's windows are older (single-pane), leaking or seals are broken (there is noticeable moisture between the panes), broken or otherwise not in the best condition, and it's in your budget, consider installing new windows before you put your home on the market. Many windows are now created to be energy efficient, saving homeowners money every year through energy savings, and the average return on investment is ninety percent. Not only do buyers like the idea of having new windows in a home, but replacing any windows will no doubt boost the resale value of a property.

Update Siding

Not every home or property suffers from old or bad siding, but siding is another item that immediately pops out to buyers. Many older homes have vertical siding, and while there is nothing wrong with vertical siding, some buyers will be turned off by it. A great way of increasing a home's resale value is to consider replacing siding - the national average for return on investment for updating to fiber-cement siding is almost eighty-five percent. If your budget can't take new siding for the entire home, but you want to change your vertical siding, consider adding new siding to the front of the home. While it's not a total redo, the majority of buyers will be attracted to the new siding, and it will add to the overall resale value of the home.

 

Updates, Renovations and Remodels

Updates, Renovations and Remodels

When selling a home or property, one of the main foals of the seller is to get the highest offer possible. If the market is hot, the chance of getting a high offer is relatively high. If the market is on the cooler side, many sellers looks to alternative options to make their properties more marketable, usually by way of a remodel, a renovation or by updating the property. But what is the difference between a remodel and a renovation? Is an update something that is easy or difficult?

While there are no doubt projects that see better return on investment than others, homeowners have a number of options when it comes to boosting their property's value. If you're not particularly ready to put your property on the real estate market, but are looking for ways to help boost your home's overall value, an update, a renovation or a remodel might be just what you're looking for at the current time.  

Updates

Want to help boost your home's value but have a limited budget for projects? Updates are a great option for the homeowner that has limited resources, funds or even time. But what's an update? An update essentially brings new life to your property, and perhaps brings things up-to-date, but it does so without significant alterations to the existing structure or property. Updates that are common in many households are updating light fixtures, installing new appliances, updating the home to be more energy efficient, updating exterior paint or changing interior colors, etc.

Depending on your budget, updates shouldn't break the bank, but they can help to boost a property's value or overall marketability. Buyers like seeing updates, especially when they boost the overall appearance of the home. Updates are a great and relatively convenient way of sprucing up a home without dedicating a high amount of time and money to projects, and even minor updates can help boost a property's overall value. Even just repainting the exterior trim can make a big difference.

Renovations

Renovation means to restore to a good condition or make new again. Renovating a property or a part of a property refreshes and revives it. Renovation can cover a number of different things: renovating plumbing or electrical throughout a home or property, refinishing hardwood floors, re-facing kitchen cabinets, adding modern finishes and fixtures to an older home. Renovating a property generally means that you're making the property meet current market expectations. Renovations, especially of certain rooms, can make spaces much more attractive to buyers but also add considerable value. Kitchens are one of the best options for a renovation when it comes to overall return on investment.

If you're looking to help boost the overall value of your property, adding stainless steel appliances to a kitchen (or even updating to newer appliances), putting in granite or other stone counter tops, changing outdated cabinet doors and hardware can all help boost a property's value and catch a potential buyer's eye. Depending on the number of projects you'd like to tackle, renovations can be relatively quick or take time and cost a few dollars. Again, your budget and time frame will determine the scope of your project, but renovations can add considerable value to your property and provide a large return to investment when it comes time to sell.

 Remodels

Remodels require a little more time, labor and funding, and more often than not remodels involve removing or moving walls, building additions or anything that includes significant structural changes to increase utility or appeal via replacement or expansion. A remodel changes the use of a space by altering the structure and style of a home. Popular remodels include kitchens, bathrooms and even going so far as to add additional square feet to the entire house. Because of how extensive a remodel can be, it's always suggested that permits are obtained for the work and that an architect and/or contractor is used to make sure any work is done according to current local building codes. 

Remodels that help improve a space can increase a property's value immensely, and in some hot real estate markets could even see a 100 percent return on investment. Some of the most popular remodels home buyers seek: kitchens, bathroom, and additional square footage (adding rooms) as they show the homeowners invested in the property and took the time to improve it for the future. 

Updating a home or property, or choosing to renovate or remodel, is a big decision and ultimately depends on how much time, effort, money and sweat a seller wants to put into the task. But if you're on the fence of whether or not your property could fetch the highest selling price in today's market, considering an update, a renovation or remodel might be the best solution at the current time to get your property to the top of every buyer's list. 

For more information on how to update your home or if your interested in scheduling a no-obligation meeting with Will Steinmetz, please do not hesitate to call (810) 844-2201.

Appraisals and Home Inspections

Appraisals and Home Inspections

When buying or selling a home, many have heard of an appraisal and a home inspection. While both are very important to the entire transaction, an appraisal and home inspection are two very different things. If you're looking at buying a new home or property, or you're interested in selling your current property, it is beneficial for both parties to know the difference between the two and why they are important. 

What is a Home Appraisal?

A home appraisal is an educated guess as to the worth of a property. An appraisal is required by a financial institution; if you're looking to get a mortgage loan, the property will have to have an appraisal. If a mortgage loan is not needed ( the buyer is purchasing with cash), then an appraisal is not required for the purchase. Who pays for the appraisal? Generally it's the seller, and for the most part it's paid for at closing when the other closing costs are paid.

But why is an appraisal needed?

An appraisal lets the bank or lender know what the loan collateral will be set at for a worst-case scenario situation. What does this mean? The banks wants the home to appraise for a similar amount they are going to loan to the buyer. Should anything happen, and the bank has to sell the home, the bank doesn't want to be stuck with a home that had a million-dollar loan on it but can only be sold for $100,000.

Appraisals are important, but they can be a tad stressful. The appraisal is done after the sale price is negotiated and the contract has been signed, which is why many people hope the appraisal is close to the sale price negotiated by the buyer and seller. To protect the transaction for both sides, the buyer and seller should have a sales-and-purchase agreement that addresses the possibility of the appraisal being below the purchase price. This would allow the buyer to terminate the contract or renegotiate the sale price. If not, the buyer could be obligated to cover the difference between the purchase price and the appraisal.

What does an appraiser do?

The appraiser will walk around the property and look at the value of the home, but she or he will also make note of any problems or issues. It has happened that an appraiser has pointed out things to be fixed in order for an appraisal to come back higher. Appraisers mainly look to check the main characteristics of the house: square footage, bedrooms and bathrooms, the overall condition of the property, recently sold comparable properties in the area and any noticeable health or safety issues. Appraisals are not an in and out thing - they can take up to a couple days to complete, and the loan underwriters can request more information than in previous years. As a seller, the number one thing you can do to help the appraisal process is to make sure the house or property is in good order.

While an appraisal determines the value of the property based on an inspection done for the loan company, an appraisal is not a home inspection. The appraisal is for the mortgage lender; the home inspection is primarily for the buyer.

What is a Home Inspection?

A home inspection  is the inspection of the physical condition of a home or property. A home inspector is going to look for defects or malfunctions in the property's structure, systems and physical components (which can be anything from the roof and plumbing to the HVAC system, floors, windows and foundation). A home inspection generally takes place after the seller and buyer have signed a contract. The home inspection can help guide any repairs that might need to be done to the property, or it can alter the final selling price if major repairs need to be done to the property. But it's important to remember that a home inspection is not a mandatory part of buying a property. Selelrs can sell their properties "As is", and any home inspection done will simply be a way for the buyer to know what to expect once they receive the keys.

Who is Responsible for the Home Inspection?

The buyer generally arranges and schedules the inspection; your agent or Realtor will most likely be able to suggest a home inspector she or he has worked with in the past, but it's important to make sure the inspector has experience and is a member of the American Society of Home Inspectors. But the most crucial part of the home inspection is to provide a through and tough inspection of the property to the buyer.

When buying or selling a home, it's important to know and be aware of all that is available to buyers and sellers. While the appraisal is done for the benefit of the lender, the appraisal also benefits both the buyer and seller by determining a value on the property. The home inspection is done for the benefit of the buyer, but it's also a good indication for the seller about the property and any issues that might need to be addressed should the buyer drop out of the transaction. Both an appraisal and home inspection are valuable and important parts of a property transaction.

 

Finances and Buying a Home

 Home ownership has always been a top dream for millions of Americans, and with the many television shows, magazines and other media geared toward owning a home in the U.S., buying a home is very much a reality in our country. 

While we can get caught up in the very fun aspect of looking at homes, browsing the many websites dedicated to real estate, looking for a home or property is just one aspect in the entire home buying process. One part, of which is fairly important and might be casually looked over at the beginning, is that of getting one's finances in order to begin a home search. Finances area huge part of buying, especially if you'll be applying for a mortgage loan. To put yourself in a great position before your begin your home or property search, use the tops below regarding credit, a home budget and having cash for a down payment and closing costs to help you ensure you have your bases covered before you begin your property search. 

Credit

One of the most important aspects of your finances when it comes to buying a home, or even in general, if your credit. Your credit is your ability to obtain goods or services before payment. Credit, when it comes to home ownership, generally means a mortgage loan. The majority of buyers in the United States will have to obtain a mortgage loan in order to purchase a home or property, and that's ok. Mortgage loans have been around for decades, helping buyers who might not have a cash payment be able to afford a home. If you are one of the thousands of home buyers that will need to look into a mortgage loan, getting your credit in order before looking at homes in an excellent step to take in getting your finances in order. 

Your credit is made up of your credit score and your credit report. A credit score is a three digit number that is generated based on what is in your credit report, and it basically tells banks and other lenders what your creditworthiness. Your credit report is a detailed report of your credit history, and the information is used to generate your credit score. 

When most people consider buying a property, one of the first things that's suggested is to get one's credit in order. This can mean a number of things, but it includes running a credit report, checking a credit score, and paying off or paying down any debts that might be outstanding in order to have a better credit score and higher creditworthiness. If you're looking at buying, run your credit report to make sure it's current, up-to-date and that there's nothing 'off' on the report. You want to make sure all the information that's listed is true and only pertains to you. 

Budget

We all can get wrapped up in the fun and excitement of property searches, and many times our wants and likes go beyond what our budget can afford. Once you have your credit in check, the next thing to do is determine your budget. The best advise to heed when thinking about your budget: you want to be financially comfortable. You already know your monthly expenses as a non-homeowner, but if  you don't, dedicate some time to sitting down and writing out all your monthly expenses to get an idea of how much you or your household spends each month. Compare this number to the amount of money you bring in each month. If you're already renting, you know how much of your income goes toward you rent, renters insurance, and any other expenses that come along with your rental unit. 

If you don't rent, once you have all of your spending written out, you'll have a good understanding of how much you have left each month that can go toward a mortgage payment or toward a down payment. An excellent tool that can be found on the internet is a Home Affordability Calculator - this helps to determine a comfortable monthly payment based on all of the other recurring expenses a household might have. 

Cash for a Down Payment and Closing Costs

Another part of finances when it comes to buying a home or property is a down payments and closing costs. You've made sure your credit is in order; you've figured out a comfortable budget for a monthly home payment; now is the time to set some cash aside. A down payment is generally required when taking out a mortgage loan. Most lenders require a down payment and it goes toward the total amount of the mortgage loan. Your down payment is going to be based off of the type of mortgage loan you get - which, percentage wise, can range all the way up to 20% of the total purchase price. There is no limit to the down payment, as you can pay as much as possible toward it, but for the majority of home buyers the down payment will be anywhere up to 20% of the final price.

Another cash expense of home buying is the closing costs. Closing costs are fees that are associated with the closing of a real estate transaction, and they are paid either by the buyer, seller, or both parties together. The costs are based on the type of property that is purchased, the location of the property, and a number of other things, but for the most part closings costs can range anywhere from 2 to 5 percent of the purchase price. Closing costs, just like a down payment, are made with cash, and sometimes buyers can negotiate for a seller to cover closing costs. To be on the safe side, have enough cash set aside to cover both a down payment and closing costs when buying a home or property. 

Buying a home is an exciting life event, but it's also a large financial event. Before you begin your home search, have all your bases covered when it comes to finances and the home search will be much more rewarding and less stressful in the long run.

 

Real Estate Tips for Buyers and Sellers

Thinking about starting a home search or selling your home soon? The 2016 real estate season is upon us, and if you are anticipating a home search, or selling a property, here are some top tips to help you navigate the real estate market in  your area this spring and summer. 

For Buyers

Don't Go Overboard With An Offer

 While you might be inclined to get into a bidding war over your dream home (the market is pretty competitive), don't overspend to the point where if the market stabilizes your home will have an overly inflated price and make it difficult to resell in the future. If you plan on living in the property for along time, paying a high price isn't a bad thing, but it's a good idea to set a limit on how high you're willing to bid for a home. 

Start Your Search Ready

If you're already looking into purchasing a home or property, and you know you'll need a mortgage, you should already be shopping for a loan. Buyers with a mortgage pre-approval are a step above those that haven't even looked into loans. You can also help your purchase game by having fewer contingencies or conditions that affect the purchase. If you can start your home search with some of your bases covered, and the ability to be flexible, you'll already be far ahead of those just entering the real estate race. 

New Doesn't Mean Pristine

While we all dream of buying a brand new home, complete with absolutely no projects, it's quite common for brand new construction to have issues. The reality is that builders can and do cut corners, and the last thing that you want is to invest your money into a brand new home only to find out that certain things were not completed 100%. If you're looking to buy new construction, it's not a bad idea to hire an independent inspector to make sure your new home is up to all current building codes and standards. 

Beware of Hidden Costs

While you might find a home that is the perfect price for your budget, beware of the hidden costs that come along with buying a property. You may or may not have a mortgage, but you will have yearly property taxes that will either be monthly payments or a large payment once a year. If you do need a mortgage, you can expect an origination fee, and depending on the amount of your down payment or your credit rating, you can also expect to pay private mortgage insurance. You can also expect fees by way of the home inspection, appraisal, and in some communities there will be monthly HOA fees. 

Don't Be Afraid To Go Outside Your Comfort Zone

Many buyers have a specific neighborhood, town or city picked out before they begin their property search. With the U.S. real estate market being as competitive as it is for buyers, don't be afraid to look into areas that are developing when you look for a new home or property. Homes and property prices might likely be lower in developing areas, and if you can find an area where new businesses are being introduced and other amenities will be available, home values may significantly increase over the coming years. 

For Sellers

Play To Your Advantages

The U.S. real estate market is being called a Seller's Market, meaning there are more people trying to buy houses and properties than there are actual properties to buy. Because of this, as a seller, you can play to your advantages: you can likely get away with not paying closing costs; you can dictate the terms of the sale and any contingencies a buyer might have; you can entertain multiple offers and choose the best one for you. But in all of this, don't try to price your property outside of your area - you want to sell your home not keep it on the market forever. 

Know The Best Area Of Your Property

If you're considering selling your property, there are two room updates almost every buyer appreciates: kitchens and bathrooms. If you have the time and money to invest in updating these two areas of your home, try basic face lift (you don't need to go overboard!). Add some fresh paint, clean up the cabinets, and install new lighting or hardware. Make the kitchen and bathrooms pop: buyers always react best to a fresh, clean and clutter free kitchen and bathroom. 

Do You Have A Replacement Property Picked?

You might be considering selling your home or property - have you started your property search yet? With the market being as competitive as it is, it's a good idea to start your property search when you put your own property on the market, and sometimes even before. You don't want your home to sell before your have a place picked out. If you do find yourself in a bind, you can always work with your agent to make the closing period longer. Whatever you decide to do, make sure you start your property search as soon as possible.

Flipping Homes

 What's the Deal with Flipped Homes?

Americans love their home improvement and design shows. With entire channels dedicated to DIY, home decor and design, and everything related to U.S. real estate, we love the possibilities that lie within the real estate market in America. One popular aspect of many shows and publications is home or house flipping. We hear a lot about flipping homes, but what does that really mean? Is it feasible for everyone? Are there risks? Should you buy a flipped home, and what questions should you ask if your property search lands on a potentially flipped property?

 What is Flipping?

Flipping is a predominately U.S. term used to describe purchasing a property with the intent of quickly reselling it for a profit. Most of the time, properties that are purchased with the intent to flip are those that are distressed, abandoned, or otherwise in need or repairs that make the property less desirable to other potential buyers. Flipping has become increasingly popular throughout the U.S. in the last decade, and many people have become successful real estate flippers with the vast and varied real estate markets throughout the United States. 

Can Anyone Flip a Property?

Many programs on television make house flipping look easily attainable to anyone and everyone. The fact remains that flipping a property is risky business that requires a large amount of work experience, funding (preferably cash), excellent credit and a good understanding and almost intuitive knowledge of the real estate market. If you're interested in flipping properties, the best way to get started is by talking to someone who has experience and has had success in flipping real estate. There are many things to know about flipping real estate that should be addressed before the idea is even entertained. 

What are the Risks of Flipping a Home?

There are risks with any kind of real estate investment, but inexperienced flippers can make a number of mistakes. There are a number of costs that comes with flipping a property, and new flippers can make the mistake of not having enough money to cover the entire project - from the acquisition of the property, to the renovations, taxes, utilities and more. Another risk of flipping properties is time, or lack of time. Finding the right property can take months, and once you own the property there is a time commitment to renovations, commuting, inspections, and ultimately the marketing and selling of the property. Other risks that new flippers run in to are not having enough knowledge about the real estate market and failing to purchase the right property for a flip; a lack of skills when it comes to working on the property and putting in the sweat equity (hard work) required to get it up to market standards; and ultimately lacking patience when it comes to the entire project as a whole. 

Should I Buy a Flipped Home?

Often, flipped homes have mostly cosmic changes done in order to attract buyers and ultimately get the property sold. You might fall in love with fresh paint and brand new appliances, and generally speaking, most flipped homes attract many buyers because they have a smaller initial to-do list than other properties on the market. If you're looking at a property that could be a flip, be sure to ask these questions: What is the home's sale history? If the homes recently sold for much less than its current asking price, it's possible it is a flip. Does the outside of the home match what's inside? If the exterior of the home is older, and the interior looks brand new, it's very possible someone is trying to flip the property. Information is your best friend when it comes to a flipped home, so getting the most information up front will help guide you toward pursing the property or not.

If you believe you're looking for a flipping home, consider asking the seller what changes have been made to the property, and check to see if any permits were issued for the work. Also, some buyers might be blinded by all the new interior cosmetic updates that they forgot about the bones and foundation of the home. Regardless of whether a home is old or new, always hire an experienced and licensed inspector to check over the home to make sure you're getting the most for your money when it comes to buying a property.

Common Household Hazardous Waste and How to Dispose

Common Household Hazardous Waste and What to do With Them

We want to believe our homes are as safe as they can be, and for the most part they are. But there are items we use every day that are in fact hazardous. Knowing what products are hazardous, and the proper ways of disposing household hazardous waste, is not only good for the environment, but it will help you feel even safer in your home. 

Batteries

We all use batteries in our homes, and most of those will be the regular alkaline batteries purchased at the grocery or hardware store. These batteries can be thrown away in the garbage once used, but it is suggested that if you have the ability to recycle them, please do so. Should you have other batteries in your home such as rechargeable batteries, automotive batteries, or lithium, lithium ion or zinc air, these should definitely be recycled through proper facility as the contents inside the batteries are toxic and harmful to humans, animals and the environment.

Compact Fluorescent Light Bulbs

Touted as a great way to save energy, compact fluorescent bulbs (CFLs) became popular in the mid-2000s and they continue to be a top choice for American households. But while these bulbs provide energy and money saving opportunities for homeowners, they do contain mercury, which is known to be a potent developmental neurotoxin. Because of the mercury in the bulbs, it's best to not put them in the garbage, as they can end up in landfills (or end up outside landfills) and contaminate the environment. Recycle CFLs at your local hardware stone (the larger retailers have places to put used bulbs) or contact your local jurisdiction to find out the best way of recycling your used CFLs. Should a CFL break in your home, wear gloves to pick it up, and contact your local hazardous waste disposal company to ask for information on disposing of the broken bulb.   

Corrosives

 Many household cleaners are considered corrosives, which means they can cause skin damage or corrode metal. Because of this, there should be caution when using them and when they are discarded. Yes, some corrosives are used in drains, but that doesn't mean you should pour corrosives down the drain to get rid of them! If you need to dispose of corrosives, it's best to bring them to a place that will dispose of household hazardous waste for you, and be sure to wear gloves and protective eye wear whenever handling corrosives. 

Pesticides and Herbicides

 If you have a yard, it is likely you've used a pesticide or herbicide before. While these chemicals can come in handy when battling weeds or common yard pests (bugs and other insects), they are generally very toxic to humans and animals (especially pets!). When handling pesticides and herbicides, make sure you protect your eyes, face, arms and hands with gloves and a mask or goggles, and should you need to dispose of these chemicals, it is best to bring them to a hazardous waste drop-off site. Whatever you do, don't put these items in the garbage or dump them into a drain or onto the street. 

Electronic Waste

We don't often think of old electronics as waste, but that old computer or outdated television that's been sitting in your garage for a few years is definitely waste. Electronic waste (also known as e-waste) can come in many forms: cell phones, computers, televisions, VHS and DVD players, and anything else that is an electronic. While we may be inclined to just throw these items into the garbage can, many of these items contain hazardous materials within them, like lead or mercury, and they require special recycling. Should the materials in them get into the ground of find their way into a water system, it would be detrimental to the local environment. You can do a general internet search to find companies that are more than willing to take any old electronics you might have in your home. 

Aerosols

Aerosol cans come in many shapes and sizes, and weather they contain oil for greasing baking pans or WD-40, cans that are full or partially full have the ability to explode if punctured or exposed to heat. Empty aerosol cans can be put in the garbage, as long as they are indeed empty of contents, but if they are not, it's best to take the cans to a household hazardous waste drop-off point, especially if they contain chemicals or anything flammable in them. 

Automotive Products

If you have a garage and a car, it's likely you might have some automotive products; you might even have some if you have yard equipment like a lawn mower or a blower. Automotive products (fuel, oil and other fluids) can be highly flammable, and all of them are not safe to dispose of in a garbage can or in an outdoor drain. Because of their designations as hazardous materials, these fluids should be taken to a hazardous waste facility when being disposed of to ensure that they are being properly taken care of.