Home Staging and Preparing Your Home For a Successful Sale

Curb Appeal

Today’s buyers are “instant gratification oriented.” The majority are shopping for square footage, convenience, and a home that is “move-in ready.”  Before you begin the process of marketing your home for sale, take the time to do an outdoor assessment and compare your curb appeal to other active listings on the market in your price range.

It will be worth your time and return on investment to trim the shrubs, remove any dead trees, bring in plenty of fresh mulch, potted flowers, a wreath on the door and a welcome mat! Does the paint need touched up outside? Is there any rotted wood that should be replaced? Are the windows and screens cleaned? Does your lawn show a buyer a “pride of ownership?”

The Front Door

My professional Home Stager calls the point of entry, “The Three Second Sale.” Believe it or not, a buyer often knows the minute they walk in a home if it is the right home for them.

So ask yourself, when entering the home, is it airy? Is there a pleasant odor? Is the entry crowded with furniture and coats, or busy with dated wall paper? These are some of the details I will guide you through during this process.

Home Staging

It is my professional opinion that even the finest of homes can benefit from some level of staging and de-personalizing. “The way we live in our home and the way we sell our home are two very different things.” As a seller, one of your best selling features is your square footage, so show it off and pre-pack the unnecessary items. (Pre-packing now will make your move a lot smoother in the long run as well as promote a faster sale).

A neutral color pallet on walls and floors is very important to todays consumer. Furniture placement, art and accessory placement are equally important believe it or not. We’re not just selling a house, we are selling a lifestyle.

 

Does the physical condition of your home communicate a calm and welcoming environment or does it communicate a tired feel and a need for cleaning and updating?

Less is always more

If you are in the beginning stages thinking about selling your home, I will be happy to meet with you in person at your home to go through a room by room assessment. "Preparing today will ensure for a successful sale later." www.castettergroup.com 

The Secret to A Successful Home Sale

This post is a guest blog from a recent client who sold her Avon home with The Castetter Group.


We recently put our house on the market and I was terrified. Terrified because I have two young children (ages 4 and less than a year) and keeping the house "show ready" with the littles running around wasn't going to be fun. Also, we had the smallest house in the neighborhood, so it was going to be a challenge finding the right buyer.

I knew logically I had no reason to be so scared. It's a sellers market right now. Inventory is low, so our chances for a home sale were high!

We sold our home after just 7 showings spaced over two weekends.

Several months before we put our house on the market, we invited Chris Castetter over to discuss ways to make our home ready for sale. We wrote down his suggestions and got to work.

Believe me, we didn't love spending money on a home we were trying to get rid of, if you will. We got new carpet and updated all of our kitchen appliances. New refrigerator, new stove, new washing machine and new vent hood. We took down all of our family photos nailed to the walls, fixed the holes and repainted several spaces. We also had some light fixtures to change out.

It wasn't cheap, but we sold our home quickly and we got a good return on our investment! We were very pleased with the offer we received.

The secret to a successful home sale is listen to your realtor. Most people want a "move in ready home" that isn't going to require any additional maintenance once they take possession. Sure, it was work, but now we aren't going to have to worry about being saddled with two mortgages.

We are so pleased with the work The Castetter Team did to help us sell our home quickly! We highly recommend them if you are looking to buy or sell!

Qualifying For A Mortgage When You're Self-Employed

Since the economy has started improving, a large segment of the population are earning income through self-employment, freelance or contract work. Business owners, self-employed taxpayers qualify for a whole host of tax breaks that reduce their bottom line and consequently, their provable income. 

Since the mortgage industry bases credit-worthiness on provable income, using W-2 forms and tax returns, qualifying for a conventional loan may prove difficult for many self-employed would-be homeowners.

Conventional lenders

Since conventional lenders follow prescribed formulas in proving income and credit-worthiness, most mortgage underwriters only look at the after-tax and post-deduction income, resulting in a far lower provable income than most entrepreneurs or self-employed workers believe expresses the reality of their situation. In a few cases, certain lenders allow specific deductions to be added back into your income including some one-time investment expenses, depletion or deductions for business use of your home. But for the most part, qualifying for a conventional loan is much more difficult for the self-employed buyer with an irregular income.

Alternative lenders

While a conventional loan (salable to government-controlled agencies such as FannieMae and FreddieMac) may not be an option for you, some investors see an opportunity and are funding smaller lenders that offer loans outside these restrictions. For these loans, the risk is higher, so to hedge their investment, these loans typically have a higher interest rate and require a down-payment of at least 20 percent and sometimes more, or a large portfolio, or really great credit.

The bottom line

If you’re newer at the self-employed lifestyle but know you want to buy a home in the near future, you’ll need to start now to position yourself to qualify. Here are the best practices to incorporate into your business and personal life to set yourself up to be approved:

• Be organized: Keeping organized and accurate business and financial records supports your income claims. Most lenders will request a couple years (or more) of tax returns to prove your average monthly income. If your first year was low (this is true for most), give yourself three years or more to back up your income claims. Lenders take the net income from two years and divide it by 24 to get an average, so if in your first year you had only two or three sporadic clients and now you have 10 or 12 regular clients, that additional year will allow you to increase the verifiable income your lender uses.
• Keep track of your earnings: Use an accounting system that can give you earnings or revenue statements, expense reports, profit and loss statements and a balance sheet. If you’re looking for simple workable accounting systems, a couple to check out include QuickBooks online and Freshbooks. Either of these systems is created for the non-accountant give you access to a variety reports, support and useful information.
• Work to improve your credit score: Your credit score may seem out of your control—after all, some companies only report your bad habits and not your good ones—but there are some areas you can take charge of. Your payment history makes up more than a third of your score. Position yourself to make payments early and on time. Another thirty percent of your score is based on the amount you owe compared to the amount of credit you already have, and other loans such as school and vehicle loans. That means if you have a credit card with $5,000 available and only owe $250 on it, you’re at just 5% of your available credit and you’ll receive more points in this area, but if you have a credit card with $500 on it and you owe $250, you’re at 50% of your available credit, so expect that scenario to negatively impact your score. In other words, pay off what you already owe. The rest of your score is a mixture of the length of your credit history, new credit accounts and the mixture of types of accounts you have. Contrary to some popular practices, closing your oldest accounts when you open new ones is a bad idea. The older accounts that are in good standing offer you more points than a newer account.
• Report your payments: If you don’t currently use credit (i.e. have no loans or credit cards), but you consistently pay your bills like rent, electricity, insurance or subscriptions, consider utilizing one of the alternative reporting services to prove you make your payments on time and consistently.

Don’t wait until you want to buy a house to start getting your financial house in order. If may take several months to up to two years to create a provable paper trail for yourself.

Home Prices Continue To Climb: Up 4.9% On Average in 2015

Chris Castetter, (F.C. Tucker) reported September 2015 home sales were down 6.8 percent for the nine-county central Indiana region compared to September 2014, but up 7.9 percent year to date. Fewer homes were on the market last month compared to September 2014, showing a continuing trend toward a more balanced market. Average year-to-date home sale prices, meanwhile, climbed 4.9 percent to $185,536.

All nine central Indiana counties experienced varying declines in inventory. Morgan County experienced the biggest drop at 18.4 percent, or 101 fewer active listings when compared to September 2014. Shelby County reported the smallest change, with 1.6 percent fewer listings in September 2015 compared to the same time last year. On average, inventory in the nine-county area declined 9.2 percent compared to September 2014.

Tucker’s data indicates eight counties experienced slightly higher home sale prices than in September 2014. Year to date, Madison County led the way with an 11.7 percent uptick in prices. Hancock County’s average sale price increased 8.8 percent to $168,788, while Hendricks and Marion counties also saw gains above 7 percent. Boone County had the second highest average sale price of all nine counties at $271,190, and was the only county to experience a decrease of 3.6 percent in September 2015.

“Residential real estate sales and listings are still very active,” said Jim Litten, president of F.C. Tucker Company. “The region is 7.9 percent ahead of last year’s pended sales at this time, and that’s a sure sign we’ve ended the third quarter on a strong note. And, as average sale prices continue to rise, the incentive to list a home is still high.”

In September 2015, 2,276 homes pended, down from 2,442 in September 2014. Boone and Hamilton counties experienced the largest drop in pended home sales at 31.7 percent and 24.7 percent, respectively. Morgan County experienced the largest gain in pended home sales at 36.2 percent.

Of the pended home sales in the region last month, two were priced at $2,000,000 or higher; six were priced $1,000,000 to $1,999,999; 50 were priced $500,000 to $999,999; 224 were priced $300,000 to $499,999; 343 were priced $200,000 to $299,999; 1,020 were priced $100,000 to $199,999 and 631 were priced at $99,999 or less.

Pended Single-family and Condominium Home Sales

With approximately $3.4 billion in annual sales, F.C. Tucker Company is Indiana’s largest independently owned comprehensive real estate firm with more than 40 offices and more than 1,500 sales associates throughout Indiana and select markets in Kentucky. Less than one percent of all real estate firms have the longevity of F.C. Tucker. Founded in 1918, the company’s family of businesses includes a full range of real estate services—mortgages, title insurance, relocation services, a full line of insurance products, auctioning and homeowner warranty products. F.C. Tucker has earned a reputation for its exceptional service, experienced sales associates and “Golden Rule” commitment to its clients and employees.

5 things that appear to be small, but are in fact significant

Not all lenders have the same rules and systems and programs. I want to point out 5 things Caliber Home Loans that might be different than many other lenders. These 5 things might appear to be small, but they really can be significant.

1.       APPRAISERS-  It seems like every week this year I am hearing about a low appraisal coming from another lender.  I have hand selected my branches appraisers which I have all know for over 15 years.  They are very experienced appraisers that I trust.  Many companies have appraisal management companies which means you have no idea what appraiser will get the order and many times the appraiser will be out of time and not really care what value they bring in the appraisal.  I have had several deals this year where we have been successful getting a client to switch to me after another lender brought in the deal low and every time so far my appraisers have come up at purchase price or higher.  I have heard about several other deals that we could not talk the client to switching lenders and most of those did not have good ending results and many cases the transaction diedL

2.       USDA- It has been announced recently USDA ran out of money.  This happens most years.  Many lenders will choose to stop doing these transactions when this happens and wait until they have available money again.  Caliber will still proceed and fund these loans and we will get reimbursed later once funds are available again through USDA.  

3.       No Monthly Mortgage Insurance- Caliber will allow high credit score borrower have no monthly mortgage insurance for a very minimal fee and in some cases will cover the entire costs.  Borrowers putting 5-15% down on a conventional loan can save several thousands of dollars by taking advantage of this program. 

4.       Direct seller to all the agencies-  Caliber services it’s loans and we are a direct seller to Fannie Mae and Freddie Mac (conventional loans), and Ginnie Mae (FHA and VA loans).  Basically what this means we don’t have all the overlays most other lenders have.  This can cause us also to do many loans other companies can’t and cause less paper work for clients.  For example, many lenders ask for two year tax returns on all borrowers and at least all self-employed borrowers.  Caliber will only ask for most current year of tax returns from a self-employed borrower.  If 2013 returns show a lower income and 2014 returns are higher we can just use 2014 instead of doing a 2 year average.  There are countless examples I could give, but another significant example is we do not require asset reserves.  Many lenders will require reserves especially if the client is not selling their current residents before buying their new home. 

5.        1% assessed value on real estate taxes even if property lost exemptions- if property lost exemptions real estate taxes are usually double.  This could cause buyers to stray away from a property and maybe not even qualify.  Caliber will only collect 1% of the assessed value and start escrowing this amount right away.  This will allow the borrowers payment to be significantly lower payment #1 and many times allow the client to qualify.

(Special Thanks goes to Mark Davis, Caliber Home Loans). 

Mark Davis

Branch Manager – Mortgage Consultant

Caliber Home Loans

10080 E. US HWY 36

Avon, IN 46123

NMLS ID 525365

(317) 550-2105  (Office)

(317) 590-8665 (Cell)

(855) 880-7227 (EFax)

Mark.davis@caliberhomeloans.com

Station Hill in Avon, Indiana - Home For Sale

Who do you know looking for a custom built brick home in Avon with a Main Level master suite?(Completely updated)!

This nearly one acre, private, wooded lot located in Station Hill is sure to impress! Currently priced in the $260's. Four bedrooms, main level home office/ den PLUS A bonus room. 

This Avon charmer is move in ready & shows like a model. Contact Top Real Estate Agent, Chris Castetter for a private tour today! (317) 414-1117 (Call or Text).  #castettergroup

Main level features newer, wood laminate flooring, fresh paint, great room with cathedral ceiling, stack stone fireplace. Master bathroom boasts elegant walk-in shower , ceramic tile floor, glass block window, dual sinks and more.  Click below to see this one online now.

http://www.talktotucker.com/idx/5608-station-hill-dr-avon-in-46123/10703547_spid/

Selling Your Home After Labor Day?

Spring is typically touted as the busiest home-selling season, you don’t have to give up plans to sell your home until nest year. September through December may actually be the right time to sell your home. 

Conventional wisdom is that once spring gives way to summer and school starts, you’ve missed the opportunity to sell your home. After all, families have settled into the new school year and so are less inclined to move. But, Boomers and Millennials don’t always follow conventional wisdom either when buying or selling.

So, if there are buyers out there after Labor Day, how do you attract them?

Take care of outdoor winter maintenance for curb appeal

If your home is on the market in autumn and winter months, the last thing you want is to let maintenance slide. Potential buyers are more likely to notice (and ask about) exterior issues, so beat them to the punch by making certain your home’s outdoor systems are in topnotch condition.

Here’s a list of places to pay attention to:

• As leaves begin to fall, mulch or rake them. If you mulch them as you mow, the minuscule pieces of leaves will drop between the grass-blades and decompose, nourishing your lawn. If you rake up your leaves, don’t leave them in a big pile in the yard or on the curb. Piles of decomposing leaves and debris reduce your home’s curb appeal. Instead, contact your municipality to learn the best way to dispose of your raked leaves.
• Avoid pruning shrubs and trees until late in the winter. The healthiest time to prune typically is late winter—just before the spring growth begins. If you aren’t sure about the best time to prune your trees, contact a local nursery or the horticulture department of a local university. One exception to this rule is that if you have any dead limbs or trees, hire an arborist to removes them so that winter winds to not cause them to fall on your home or power lines.
• Once the need for watering is past, turn off exterior faucets, remove and drain hoses. If your home is more than 15 years old, you likely do not have frost-proof faucets, so turn the shut-off valve to off inside your home. If your home has an irrigation system, hire a professional to drain your sprinkler system so that pipes don’t freeze and break underground during the colder weather.
• Check your roof. In particular, look for loose, missing or damaged shingles. If you have a steep roof, use binoculars, or hire a roofing inspector to check it for you. If you’ve had hail in your area, most roofing companies offer free hail damage inspection. If you have a flat roof, make certain you sweep up the detritus of the long summer and fall.
• While checking your roof, have your gutters and downspouts inspected and cleaned. If water backs up in your gutters because they are filled with dirt and leaves, the damage to your roof, soffits and even your home’s walls is expensive to repair. Simply cleaning your gutters protects you from costly fixes later. If your downspouts end at the bottom of the exterior wall, add extensions or splash blockers to divert water away from your foundation.
• Put away garden tools and cover or store barbecues, outdoor furniture and toys. Give your porch and patio curb appeal with pots of autumn plants such as Chrysanthemums, Alstromeria, Amaranthus, Carnations and other fall-growing potted plants. As winter nears, add other winter-blooming flowers like Pansies to your pots. If you’re not into flowers, use pumpkins, straw or other dried autumn foliage to brighten up your home.

If you plan to have your home on the market after Labor Day, make certain to follow the advice of your real estate professional to present your home in the best possible light to the buyers that search for homes during this time.

Fall Family Fun in Hendricks County

Summer is taking its final bow and we're slowing making our way into fall. Soon the days will be warm - not sweltering hot - and the nights will be brisk filled with campfires and fire pits.

Fall family fun in Hendricks County is soon to be in full swing in the next couple of months. You won't want to miss the Balloon Glow, hayrides, orchards and festivals!

Take note of these sure to be spectacular events in Hendricks County this fall!

Avon Balloon Glow

Saturday, Sept. 19 at 6 p.m.

Hendricks Regional Health YMCA

The Avon Parks and The Hendricks Regional Health YMCA are coming together to host The First Avon Balloon Glow, on the back fields of the YMCA in Avon. Balloons will be tethered to the ground, hot air balloons will inflate and the pilots light them from within.

Avon Heritage Festival

Saturday, Sept. 26 from 10 a.m. - 6 p.m.

Location: Various

This annual event is several days and spans two weekends. It begins Saturday, Sept. 19 with talent show preliminaries from 8 a.m. - 1 p.m. at Harmony Baptist Church.  The 26th is the Heritage Day Festival through downtown Avon, beginning at Kingsway.

Hogan Farms Pumpkin Patch and Corn Maze (Brownsburg)

Sept. 19 - Oct. 31

Monday - Friday 1 p.m. - 6 p.m.

Saturday - Sunday 10 a.m. - 6 p.m.

Come check out the corn maze - and the HAUNTED corn maze ! Also, stop by the farm animal experience. Learn how each animal has an important role in our lives and on the farm.  Also watch the sheep dogs herd the sheep and listen to commands. Miniature cows will be here this year!

Fair on the Square (Danville)

Saturday, Sept. 12, 10 a.m. - 6 p.m.

Sunday, Sept. 13, 10 a.m. - 4 p.m.

Danville Tri Kappa's Fair on the Square gather around the courthouse in downtown Danville for a free weekend event featuring live entertainment, local food and craft vendors with antiques, art, jewelry and more!

Beasley's Corn Maze (Danville)

Sept. 25 - Oct. 31

Beasley's Orchard

This year is the he 50th Anniversary of the Ford Mustang with our corn maze design: Mustang Muscle!

The Mustang Muscle Maze theme has been designed to offer visitors of all ages’ great fun and adventure while celebrating the 50th Anniversary of a well-known and popular vehicle – The Ford Mustang!

Beasley’s offers a variety of family-friendly agri-entertainment activities throughout their season. Along with the ever-popular Corn Maze, every weekend in October, Beasley’s offers hayrides to their 15-acre U-Pick pumpkin patch, a giant Hay Mountain for young guests to climb, and our new Barnyard Bonanza which features: a giant jumping pillow, a spider web rope climber, and ball zone for testing your accuracy in throwing footballs, basketballs and baseballs!

Quaker Day (Plainfield)

Saturday, Sept. 19

Plainfield Friends Meeting

Plainfield will host their annual Quaker Day Festival with carnvial rides, games, bounce houses, food, vendors and a car show, this weekend is all about Plainfield celebrating their Quaker heritage. Come check out the community parade, the craft and community vendors, and car show under the trees!

Plus, many more great events are planned across Hendricks County! Visit the county tourism website for more details and other events!

What To Do When When The Appraised Value Of Your Home Is Lower Than Expected

If the appraised value of the home you just made an offer comes in lower than expected, you may have some options.

Any home financed through a bank or mortgage lender requires an appraisal to protect them against originating a loan is upside-down (the loan is greater than the collateral).

There are many reasons that an appraisal comes back lower than the home price. The comparable houses used in the appraisal may not actually apply to the property you’re hoping to buy. For example, if the home you’ve put an offer on is semi-rural or rural, the comparable homes may not have as much land, or may have land but not as much house, or fewer outbuildings. In residential neighborhoods, the home you wish to buy may have upgrades that none of its neighbors currently have. 

Often, there are no other recent sales in the same neighborhood to compare to, so the comparables are from other neighborhoods that may not have the same quality of life or amenities as the neighborhood you’re hoping to buy into. Sometimes, the home is subject to a bidding war that drives the price higher than its actual market or appraised value.

Traditional banks and mortgage lenders offer mortgages for a percentage of the appraised value, not the sales price or the offer you’ve made. 

If the appraisal is less than the agreed upon offer you may need to come up with more cash, but sometimes there are other options:

Get a second appraisal. Yes, you can ask for a second appraisal from another qualified appraiser. Of course, you’ll have to pay for it, but it’s a small price to pay for getting the house of your dreams. Just know that the lender doesn’t have to accept the second appraisal … it’s value may be in appealing the first appraisal.

Appeal the appraisal. On the other hand, you can appeal the appraisal with the original appraiser. Review the appraisal carefully. Sometimes things get missed. Sometimes the comparables don’t really compare. Sometimes the appraiser doesn’t have all the information. Give as much information to the appraiser as you can. In recent markets, short sales and foreclosures of similar properties might skew the comparable data too.

Review the appraisal contingency clause. A contingency clause means that if the appraisal comes in lower than expected, you can renegotiate with the seller. Of course, they are not obligated to use the appraised value, but they may be willing to cover closing costs or other expenses so that you make the purchase. Sometimes the real estate agent(s) will take a lower commission to compensate for the difference.

You can agree to pay the difference, but you are betting on the price of real estate increasing, so you really wouldn’t want to do this unless this is your absolute dream home.

The best way to ensure you aren't the victim of a disappointing appraisal is to work with a real estate professional who knows the market well and can advise you of fair market values ahead of your making an offer.

Preparing To Buy A Home

Buying a new home is a life-changing experience. It can be long and tedious at times; however, it can also be a pleasant experience if you do some hard work in advance to get prepared. 

Here are four things you can do to get ready when buying a house.

Check Your Credit Report

Mortgage lenders use your credit score and history from your credit report in order to determine whether or not you qualify for a mortgage loan. Your credit score also determines the interest rate for your loan. You should check your credit report on a regular basis to make sure all of the information reported by the three credit bureaus is shown correctly. There are many online websites where you can monitor your credit report. If you don’t currently have any credit, it will be hard to get a loan. 

Many people will open a credit card through their banking institution. Once the card has been received, they buy gas or groceries with it and pay it off each month. The better your credit score, the lower your interest rate will be.

If you have any delinquent accounts on your credit report, you should work with the creditor to bring your account up-to-date, offer a settlement, or pay it off in full. For any errors or discrepancies you find, you should send a letter or a claim form to the reporting credit bureau to dispute it.

Downsize Your Living Expenses

In order to purchase a new home, you will need to have money saved for the down payment, closing costs, and other expenses, such as moving.  By downsizing your current living expenses, you can use the money that you save for your new home. You can cut your expenses by moving into a cheaper place, stop eating out frequently, and reducing your cable bill.

For example, if you are currently renting a house with a large rent payment, you should consider moving into an apartment with cheaper rent. If you are not sure where the best apartments are in your area, you should do an online search for “Dallas apartment reviews” or “Phoenix apartments.” Be religious about saving money as well. It may be hard at first, but once you are adjusted to cutting back, it will seem like a breeze and you will be in your new house in no time.

Take a Home Buyer Course

Enrolling in a home buyer course is helpful, especially for first-time home buyers. These courses provide information on steps that you need to take to purchase a home, look for a real estate agent, or apply for down payment assistance programs, and other helpful tips. The length of the course varies from one day to a few weeks based on who is offering the course.

If you are interested in attending a home buyer course, you should check with local banks, real estate companies, and nonprofit organizations in your community. You may find that some companies offer this course for free or for a minimal fee.

Get Pre-approved for Your Mortgage Loan

Getting pre-approved for your mortgage loan is recommended before you start shopping for a house. A pre-approval allows you to know in advance how much you have to spend on a house. It also gives you a buyer’s advantage over other buyers, who haven’t been approved for a loan yet, when you make an offer on a house.

As part of the application process, you may be required to provide documentation to show proof of income, employment, rental history, and other important factors. So you should start gathering these documents as soon as possible.

By using these four tips, you will have a jump-start on making your dreams to own a home become a reality.

New Mortgage Loan Changes Coming in August

Homeownership is a rewarding and life-changing experience. For those who have purchased a home and have gone through the loan process, you may recall the seemingly-endless forms.  Regulators are moving to make it easier for consumers to understand the complex, financial aspects of the loan.

Beginning August 1, 2015, changes are coming to the mortgage lending process. These changes (TILA and RESPA), which Academy Mortgage is referring to as “TRID”, include two integrated disclosures:  the Loan Estimate (LE) and the Closing Disclosure (CD).  These new disclosure forms have been extensively tested in focus groups to assure greater clarity to the consumer.  

• 1.  Loan Estimate form (LE): The mortgage industry has provided borrowers with a Good Faith Estimate (GFE) and an initial Truth-In-Lending disclosure (“early TILA”).  The GFE and “early TILA” forms will be combined into one new form, called the Loan Estimate (LE).  The purpose of combining the previous forms into the new Loan Estimate is to help borrowers better-understand key features, costs, and risks of the mortgage for which they are applying.

• 2.   Closing Disclosure form (CD):  This form will be created to combine the HUD-1 and the final Truth-In-Lending disclosure.  The new Closing Disclosure form must be provided at least 3 business days before the consummation of the loan.  Depending upon the method of delivery to the borrower, another 3 days may be required to ensure proper disclosure.  This change and others will have an impact on the industry and the timing of transaction closings.

 Have questions about the new mortgage loan changes? We can help! Click here to contact us.

Home Renovations That Can Help (Or Hurt) A Sale Price

Home renovation can be tricky. Most people make renovations to please themselves, but those renovations don’t necessarily make the home more valuable in terms of its sale price. The money that was sunk into the renovations might not be recouped when it’s time to sell. On the other hand, some people make renovations to please themselves, but also with a view to improving the home’s sale price if they decide to put the home on the market at a later date. But what renovations are the most valuable in terms of resale value?

1) The Kitchen

In virtually any home, the number one renovation that improves resale value is modernizing the kitchen. This is particularly true in an older home that hasn’t been updated, but most homes built last century will benefit from a kitchen remodel. Unless the kitchen needs a serious update, even a few hundred dollars spent can up the home’s resale value considerably. Fix leaky faucets and make other minor repairs, add a fresh coat of paint, new curtains and light fixtures, and updated cabinet hardware. Minor additions like these give the kitchen a fresh and clean look that makes it feel new even if it’s not.

2) The Bathroom

The same principles apply in the bathroom—kitchen and bathroom are typically the two rooms that buyers want to see are clean, modern, and well-maintained, so these are the rooms where a little money spent can have the greatest impact. Fresh paint, new faucets and fixtures, resealing the bathtub and sink, updating the mirror and vanity, can all make a big impression.

3) New Paint

A fresh coat of paint in key rooms ups buyer interest, and it’ll make a particularly big difference if your current home’s color scheme is bright, unfashionable, or otherwise undesirable. Neutral colors are best, because they’re not distracting, and they help potential buyers envision what their possessions will look like in the space.

4) Spruce up the Outdoors

A tidy garden adds curb appeal, and it can add value too, simply because it helps show the house off to good advantage. Prune trees and bushes and put things in order, and perform any minor maintenance tasks like cleaning gutters.

5) Add a Bedroom

Adding a bedroom isn’t exactly a minor renovation—unless you already have that room in the house. If the house has a den or an extra living room that’s suitable for conversion, on the other hand, adding a simple closet system instantly converts that den into a bedroom, and can add a healthy chunk to the sale price.

Renovations That Don’t Add Value

There are also a few renovations that many people believe add significant resale value to a home, but actually aren’t all that valuable. An article at Forbes.com pinpoints half a dozen examples that, while they’re expensive to install, tend not to pay for themselves when it comes time to sell up.

• Swimming pools: they’re fun when you’re at someone else’s house, but the effort they require to maintain means that many people just don’t want one at their own home.
  
  
• Overbuilding: when you overbuild in comparison to other homes in the neighborhood, the lower value of the surrounding homes drags down the value of yours.
  
  
• Landscaping: A well-kept yard is a winning bet, but an extensive garden isn’t, simply because many potential buyers are turned off by the heavy maintenance an elaborate garden requires.
  
  
• High-end upgrades: expensive touches like hand-made tiles or stainless steel appliances don’t necessarily add value if the rest of the home isn’t up to the same standard.
  
  
• Specific-use upgrades: A media room, or any other room with a highly specific use, may not add value, as most home buyers aren’t specifically looking for that particular feature. It’s also worth noting that upgrades like disability access features tend not to add value due to their highly specific nature, even if they cost a significant amount of money to install.
  
  
• Wall to Wall Carpet: Carpeting is one of those love-it-or-hate it things, and the difficulty of maintaining expensive carpeting means that many home buyers aren’t swayed by the idea of buying a home with new carpet. In fact, for a seller it’s usually more profitable to restore wood flooring than it is to install new carpet. Alternatively, instead of installing new carpet, treat your existing carpets to a deep cleaning.
  
  

Keeping Your House Show Ready

Having your house on the market while you’re living in it can be a stressful time. You still have to live. The dog still puts muddy prints on your freshly mopped floor. The kids still race down the hallway bumping into your freshly painted walls. Construction down the way still lays that fine layer of dust on your mini-blinds.

The best advice from people that instinctively know how to keep a house ready to show is:

• Clean as you go: As you’re cooking, give the counters a swipe with a damp sponge and don’t leave the dishes for later. While your home in on the market,later can become the next morning and then you receive a call while you’re at work that a very interested buyer only has today to look at your house, and now you're trying to figure out how to race home from work to wash those dishes. Put a squeegee in the shower and give the glass doors and walls a swipe every time you take one.
• Less is easier: Having less stuff means there is less to get out, so less to put away. When you’re house is showing, pack away all those knick-knacks that collect dust. Remove extra furniture so that cleaning the floor is easier.
• Use containers: Give your kids lidded containers for their stuff. At the end of the day, have them collect all of their things—toys, video games, iPods, etc.—and put them away in their container. They can keep it in their closet or you can stack them away in the laundry room…whatever works for your space.
• Use tricks: Okay, sometimes you just can’t keep everything clean all the time, so you have to resort to some quick ways to hide the mess. Cover furniture with blankets or throws to keep pet hair and kids messes off the upholstery. Then, you can just grab the blanket or throw, fold it up and hide it in the washer. Or, keep a Swiffer on hand to quickly gather up dust, pet hair or those muddy footprints.
• Have a plan: When you’re living with the constant need to have a clean home, you have to adjust how you think about cleaning. Many of us let the little messes pile up because we know we’ll get to it on the weekend. In fact, in many homes an entire Saturday morning can be set aside for cleaning. But when your house is on the market, you can’t let things wait for Saturday, so have a plan for just 20 minutes a day to pick up, put away, wipe down and surface clean.

Don’t sweat the small stuff

Your real estate agent knows that you’re living in the house. They can help you decide which are the big things that you need to concentrate on and which are the small things that won’t make a difference to a sale. We’re here to help, so ask us!