6 Ways To Improve the Resale Value of Your Home

By doing simple upgrades to your home, you can look to re-sell it at a much higher rate. Here are some simple ways to improve the quality of your home so that its resale value can be through the roof.

  1. Nice Kitchens Add Value

Buyers of all kinds have long focused on the kitchen, but it holds particularly true to the newest wave of first-time homeowners – the millennials. A modern or updated kitchen topped the list of ideal home features in many surveys on millennials, who registered this part of the house as the most important. With more and more people going back to the basics of preparing their own meals, the kitchen deserves to be one of the prime features of any home.

With this in mind, if you plan to sell, don’t rip your kitchen down to the studs. A smaller investment can have serious impact. For as little as $5,000, you should be able to add a new suite of appliances, as well as a new countertop and flooring, giving you a much fresher, more coordinated look. Applying a new coat of paint to the walls or cabinets and updating the hardware can also breathe new life into the space.

For example, you can improve both the quality and aesthetics of your kitchen if you upgrade your appliances and try out stainless steel finishes. Though it has been around for decades, this appliance finish conveys a clean, contemporary design which tells your buyer subconsciously that all your appliances are modernized. For the latest spin on stainless products, look for new versions of black stainless steel from KitchenAid, LG and Samsung, each with a softer, less reflective finish, but the same cachet as the original.

  1. Pay Attention to the Landscape

Tangled trees and unkempt bushes can obscure views, darken interiors, promote mold and block a good look at the house. This, in turn, can be a major turn off for many potential homebuyers.

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People forget about their trees more than almost anything, yet landscaping is one of the top three investments that bring the biggest return. According to a 2007 survey of 2,000 brokers conducted by HomeGain, an online real estate marketing site, an investment of around $400 or $500 dollars in landscaping can bring a return of four times that amount. It could really make a significant difference in the price. It might cost you more in upgrading your home, but landscaping might just be that one thing you need to close that deal on the house.

  1. Make Your Home Energy Efficient

There’s a lot of consideration for potential buyers if the house that they look to buy is already energy-efficient. Lowering your home’s energy costs can save you money for as long as you live there, and it is expected to be a major selling point down the line. People, according to most surveys conducted by home brokers, look for energy-efficiency more than they look for safety.

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Older homeowners who have felt the sting of escalating energy costs tend to be driving the interest. However, there are some early adopters among younger buyers, too, especially in regions of the country with more extreme weather. If they can see that your appliances are tilted on energy saving, it’s a good sign for them. Also, oftentimes, smart buyers ask for previous electricity bills and judge how much they can potentially spend when buying the home. That being said, it’s best if you can start being an energy saver as soon as possible.

Of course, never forget about water heating, which accounts for 16 percent of energy costs in the typical home. Spending $1,800 to $2,400 on a new unit is another way to impress efficiency-minded buyers.

  1. Functionality Over Aesthetic

Stain-prone stone countertops, grime-collecting ornate cabinets, and dust-catching wall-to-wall carpet used to be symbols of luxury, but today’s homebuyers are more likely to equate them with extra work. The younger generation in particular would much rather spend their time entertaining at home than fussing over it.

This means that beyond a home’s cosmetic finishes, it’s important to keep the major mechanical systems in working order. Many first-time buyers may have used up much of their savings on the down payment, so they want to know that the heating system, plumbing and electricity have been recently updated. Central air conditioning is also in demand because it eliminates the need to switch window units in and out.

In addition to including the age of the system, it helps if you can also point to its reliability. For example, Consumer Reports surveys have found American Standard and Trane to be among the least repair-prone manufacturers of gas furnaces.

A new roof can also help prevent fears of water damage, ice dams, pest infestation and other home disasters that can result from an old, shoddy roof. For a typical 2,300-square-foot house, you might be able to put on a new shingle roof for as little as $6,000. You’d also need to make sure that your floor is built well (including the backyard or the parking space) so looking for good asphalt paving services should be on top of your list.

Furthermore, more carpets are being replaced with long-wearing hardwood flooring with a durable factory finish. Engineered wood flooring, which uses a thin veneer of real wood or bamboo over structural plywood, tends not to wear as well as the more solid alternative. It does have the same look but costs less, making it a good choice if you plan to sell soon.

  1. Investing in Smart Technology

High-tech features offer notoriously bad returns on investment because technologies tend to evolve quickly. For example, one of the biggest flops in recent years is the fully wired audiovisual system. That being said, you should be investing on smart technology – those kinds that don’t fall off easily – rather than simply the trending ones.

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Certain smart devices add to home value and interest, including programmable thermostats. It has practically the same benefit with a range of products, such as lights, door locks, and security systems. Those smart features have broad appeal with millennials who grew up on smartphones, so they’re used to being able to control things at their fingertips. Surely, their age group would pay three to five percent more if they can control everything with their mobile phone.

A whole house generator might also be a good investment. Power failures are a reality for a lot of homeowners. As such, stationary generators can usually power the entire property. A professionally installed unit can range from $7,000 to $15,000, according to Porch, a website connecting consumers with home service pros. The Generac 6241, priced at $3,500, excluding installation, is a top pick.

  1. Invest in Good Advertising and Photos

Lastly, to increase the value of your house, your overall advertisement should be crisp. The first step is to look for a real estate agent who can really sell houses. Then, make sure your real estate agent offers great photos that show your home in its best light when it comes time to list. With this, home buyers seeking for a new place can appreciate your home from the pictures online before even making a decision to visit.

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Look for a frugal way to get a good advertisement by hiring a photographer, or researching online on how to take good photos of your house. Time and time again, customers would always be attracted by the first impression, especially when your advertisement photos are really good.

8 Factors a New Real Estate Buyer Should Know

If you’re new to the playing field of real estate, buying a property might be an experience that could turn out to be a bit too confusing for you. As it is, it’s nothing like buying your favorite snack at a convenience store; it’s not just you giving cash in exchange for a house. There are many terms and conditions that you still need to understand fully before anything else. If you’re a new buyer – or a relatively new one – and wanting to lessen the cost on a property you desire, here’s what you ought to know:

Price

Of course, the seller wants the highest price they can get while the buyer wants the smallest price they can get. Buyers and sellers try to negotiate the best price possible for them. The thing is that that “magic price” is obviously going to be different for both parties.

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There’s nothing else to do than for both of parties to meet halfway.

Buyers don’t want to overpay or price themselves out of a resale in the future; while sellers want to make sure the deal makes sense and fits well in their financial plan. If you want to get the best initial price, you should have an idea of the pricing, then take into account the market situation, and other factors that might affect the price.

Closing costs

One thing that many new prospects in the real estate market take for granted is the closing costs. Closing costs are fees associated at the closing of a real estate transaction. The closing point is when the title of the property is transferred from the seller to the buyer. Closing costs are incurred by either the buyer or seller.

Buyers have to pay prepaid closing costs for their mortgage. This payment is for the money that the mortgage lender holds in escrow, for items like taxes and insurance. Usually, a buyer may ask a seller to pay a flat amount toward their closing costs, or up to a percentage for what’s an allowable contribution for the lender. Sometimes this can be up to 3% of what’s included in the mortgage.

What you can expect is that if a buyer asks the seller to make a concession on their behalf, they’re likely going to have to pay a higher asking price.

Closing date

Due dates and closing dates affect the monthly cash flow from the buyer to the seller. Also, sellers almost always negotiate for the best case scenario for themselves, like upping up the speed of when the money will be remitted to them. This might be a small factor, but something that you should still be mindful of.

The money involved in real estate is not that liquid in terms of free use or being able to be used in other engagements. Initially, the cash involved is further used in any remaining project development activities (i.e. documentation, final aesthetic touches and labor costs). In this regard, the closing date serves as a benchmark for both parties’ next steps.

Financing Contingencies

Financing Contingencies are clauses in a real estate contract that stipulate various conditions that must be met by the buyer and the seller for a sale to go through. For example, many buyers write into the contract that being able to close on the sale of their own home is a condition of the offer to purchase the new home. That way, if the sale of their own residence falls through, they are not obligated to go through with the purchase of the new property.

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If you’re a buyer competing with all cash offers, you need to figure out if they can drop the financing contingency. This can help shorten the closing time line. Buyers can do this by having their mortgage fully approved prior to making an offer. As such, the pre-approval shows that their finances are in order and they can afford the property.

Sale Leaseback

A leaseback is an arrangement where the seller of an asset leases back the same asset from the purchaser. In a leaseback arrangement, the specifics of the arrangement are made immediately after the sale of the asset, with the amount of the payments and the time period specified. Essentially, the seller of the asset becomes the lessee and the purchaser becomes the lessor in this arrangement.

Fortunately, a leaseback is neither debt nor equity. In fact, a sale leaseback is more like a hybrid debt product. The buyer does not increase its debt load but gains access to capital through the sale of assets. This is much like the corporate real estate version of a pawn shop transaction. The company goes to the pawn shop and in exchange for a valuable asset, receives a certain amount of cash. The only difference is that there is no expectation for the company to buy back the asset.

Additional Repairs

It is also often very helpful if you pay attention to the physical details of a property when buying a home, especially when there are things that need to be repaired. When a home is out-of-date with appliances that don’t work – cracked ceilings or pool foundations, for example – a buyer can ask for a lower price because of the cost to bring the home back to current standards. These factors can net you essential discounts.

This is why there are advertisements like “Need help selling my houses and I’m embarrassed. Get a cash offer.” In this case, professional realtors help those who want to sell subpar assets and are not confident enough because of some issues with their properties. Whether you are seller or a buyer, keep in mind that this type of unit tends to go for a lower price.

Furniture and Appliances

The previous homeowner’s personal property, such as chandeliers, window treatments and cabinets, should be part of the deal. Whatever is excluded needs to be stated when the contract is finalized. Sometimes, having furniture also grants you functionality that you didn’t know you needed, and can make you make the most out of your money.

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Meanwhile, the appliances should also be taken into account. The stove, dishwasher, microwave and any built-in appliances may come with the property. Again, these things should be included in the contract.

Home Inspections

There are many benefits to having a home inspection before you purchase a house. According to home inspectors, homes are sometimes not particularly well cared for by homeowners, who are slow to fix leaky faucets, replace heating or A/C filters, or clunky furnaces.

If properties with homeowners living in it can be uncared for, imagine what condition a foreclosed home can hide. For example, mold can grow if the water hasn’t been turned off, which renders the environment moist. If the home is boarded up and there is no ventilation for weeks or months, black mold can grow fairly quickly.

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Because of the importance of a proper home inspection, you should make the purchase of the home contingent on your approval of a home inspector’s report. When making a written offer for the home, simply make the home inspection a condition of the purchase. If your home inspection comes back clean, you can proceed with the sale with confidence. However, if the report is negative, you can reduce your offer, make the seller pay for any repairs, or even back out of the contract altogether.