Easy Ways to Increase Home Value

Whether you are planning to put your house on the market or you just want to grow your investment in your home, there are a number of simple ways you can increase your home’s value without tackling a large remodeling project. 

Inspect Your Home
Typically buyers will request an inspection of your home. Beat them to it by regularly inspecting it yourself and taking care of any problems you find along the way.

Paint Kitchen Cabinets
You don’t have to replace all your cabinetry to give your kitchen a new look. Just give cupboards a fresh coat of paint and maybe some new hardware to spruce them up.

Replace Light Fixtures
Light fixtures tend to be put up and be forgotten, so replacing old lighting with new fixtures can give rooms a more modern feel.

Add Seating
Anyplace you have open space, think about putting in a table and some chairs. This showcases the potential of the space, which can translate into a perceived higher value.

Declutter
The simplest way to make a room appear bigger is to remove the photos, knick-knacks and other clutter that accumulate over time.

Highlight Storage
Creating or showing off the storage capabilities of your house lets potential buyers see that their stuff will fit there too. Even a wire rack closet system presents the appearance of organization.

Before investing a lot of time or money into a home-improvement project, give me a call. As your real estate professional, I can let you know what buyers in your area are looking for and save you money by preventing unnecessary upgrades!

 

Leading Markets Continue to Improve

Although it’s been slow, the economy does continue to improve, and along with it the housing market. The National Association of Home Builders (NAHB) and First American Title Insurance Co. produce a “Leading Markets Index” (LMI), which uses single-family housing permits, house prices and employment levels in various metro markets to measure how close to normal the markets are functioning.

 The LMI indicates that, nationally, we are running at 88 percent of normal economic and housing activity. Scores for metro areas varied, but 59 of the 351 measured are at or exceed 100 percent of normal activity, and 85 percent improved over the last year.

 “Things are getting slowly better overall,” said NAHB Chairman Kevin Kelly. “The nation’s economy is headed in the right direction.”

Cash Purchases on the Rise

The latest Confidence Index, published by the National Association of REALTORS® (NAR), found that more home buyers are paying cash – 33 percent in the first quarter of 2014. Usually when that number goes up, it’s because the number of distressed home sales has gone up. But in this case, the number of distressed home sales has actually gone down, a fact that has economists puzzled.

“Distressed home sales, most popular with investors who pay cash, have declined notably in the past two years, yet the share of all-cash purchases has risen,” said Lawrence Yun, NAR chief economist. “At the same time, investors have declined as a market share, indicating other changes have been under way.”

A number of factors could explain the increase in cash purchases:

• Mortgage lending regulations.


• The baby-boom generation, and its accumulated equity, is retiring and trading down.


• Individual investors and purchasers of second or vacation homes usually pay in cash.


• Foreign buyers typically pay cash.

Save Money through Window Treatments

Are you thinking about changing up your window treatments? Why not make them more energy-efficient and save a little money while you’re at it?

The U.S. Department of Energy (DOE) states that window shades can be one of the simplest and most effective window treatments for saving energy. Dual shades that are highly reflective (white) on one side and heat-absorbing (dark) on the other can be reversed with the seasons. Drapes can also be effective in any season, depending on fabric type and color.

In warm seasons, blinds and high-reflectivity film can reduce heat gain. The DOE estimates that, used correctly, blinds can reduce heat gain by as much as 45 percent. However, blinds aren’t that efficient at keeping out the cold, and film reflects sunlight regardless of the season, so these options are best for warmer climates.

For exterior changes, your best bets are awnings or overhangs. Overhangs can shade south-facing windows in the summer and, if oriented correctly, still allow sunlight in during the winter. Awnings can be quite effective in the summer, reducing solar heat gain by up to 77 percent. Plus, they add some personality and curb appeal to your home.

Tip: The key to any window treatment’s effectiveness in conserving energy is proper installation, so be sure to do your research.

Alternative Ways to Pay Your Mortgage

Are you looking for a different way to pay your mortgage? Maybe your payment is eating up all of one of your bimonthly paychecks and you’d like to spread it out. Or maybe you want to pay it off earlier. You have several options for making payments, either involving your lender or on your own.

Some lenders will set up bimonthly or biweekly payment plans for you. Paying bimonthly just splits your monthly payment in half, and you pay it twice a month. This can take the burden off your whole monthly payment coming out of one paycheck. Paying biweekly involves making half of your monthly payment every two weeks, which over the course of a year adds up to an additional monthly payment made (26 payments biweekly vs. 24 payments bimonthly). This speeds up the rate at which you pay off the loan, resulting in years being taken off the term. The drawback to paying biweekly is that most lenders charge extra fees.

If you like the idea of shortening your term but don’t want to pay extra, you can do it yourself by changing the amount you pay each month. Add an extra 1/12 of your monthly payment each month, and at the end of the year you will have made the equivalent of 13 monthly payments.

Note: Anytime you pay an amount that exceeds your monthly payment, be sure to indicate to your lender that you want the additional money to go toward the principal.

How are real estate agents paid?

Whether you're buying or selling a home, you'll probably work with a real estate professional during the transaction. If you're a seller, the REALTOR® that you work with will offer expert advice about the community and competition, provide marketing and advertising, and handle schedules for all the transactions that must occur. For buyers, the agent will help them identify properties that fit their needs, handle negotiations and also help with the paperwork and scheduling.

For all that they do, agents are paid by commission, rather than on an hourly rate. The commission they receive is based on the sale price and only after the completion of the sale. If they do not sell the home, or if they are unable to locate a home for a buyer, they aren't paid.

How much is the commission?

The typical commission is about 6 percent of the sale price, and it is usually split between the buyer's agent and the listing agent. The commission percentage that the seller agrees to pay is negotiable.

Who pays the commission?

The fee for the transaction is subtracted from the proceeds of the sale. It’s important to note that the fee comes out of the cost of the house and is not tacked on in addition to the sale price.

Don’t forget the garage when staging your home

It's well documented that staging your home for a sale helps you sell it quicker and for more money. It helps the buyer imagine what their stuff would look like in their new home.

Many homeowners forget that the garage is an extension of the home and use it as a storage space for all their clutter when getting ready for a sale. That's a big mistake.

The garage is an important amenity. Home buyers like the room for storing their stuff. So when staging the home, make sure to stage the garage so they can see the potential in it, whether they want to fill it with shelves for storage, put cars in it, use it as a shop area, or a man cave.

Here is the to-do list for staging your garage:

De-clutter

Get rid of all that extra stuff that you don’t use anymore, including the things from inside the home, and have a garage sale.

Use heavy-duty hooks to hang larger items that are taking up space.

If you have cabinets, shelves, or storage systems, organize everything in them. Get everything off the floor and into cabinets, shelves, or bins.

Put tools away in drawers or cabinets or hang them on a pegboard.

Make sure all flammable items, tools, and chemicals are stored correctly.

Clean everything

Dust the walls and corners, just like you would the rest of the house. If the walls don't come clean after scouring, they need a fresh coat of paint.

Clean the garage floor. Attack any stains and get rid of them. Like the walls, if the floor doesn't look great after a good scrubbing, consider painting and sealing it or adding a floor covering.

Don’t forget the garage door! Make sure it's clean and free of scuffs and marks. A fresh coat of paint will do wonders to increase the curb appeal of your home.

Maintenance and improvements

If it doesn’t already have one, install a smoke detector in your garage.

Check the lighting and replace all bulbs. If it's still dim, consider adding lights.

Make sure your garage door opener is working properly, along with all the extra functions, including the automatic light, automatic reverse, emergency release and wall control panel.

Tell your REALTOR® about any unique features, workbench, or extra storage space in the garage so they can be pointed out to potential buyers.

Making sure your garage is clean, organized and in good repair sets the stage for a good first impression. It may not be a deal breaker, but if a home buyer is on the fence about making an offer, it can be the small difference that tips the odds in your favor.