Remodeling Done Right: How to Invest in Your Home

With the market swinging back around and the economy climbing back up, now is the perfect time to improve your home.  Whether you want a remodel that will increase the market value of your property or simply a more luxurious living space, it’s important that your home improvements don’t become nightmares.  These simple steps will help you choose the best remodels for your home.

Consider the Whole Lifetime

Though you may not be hitting your golden years, it’s becoming increasingly popular to create homes that are accessible to all ages.  Consider adding a bedroom on the ground floor so occupants have the option of ignoring the stairs.  You can also create a semi-autonomous         area of the home where parents or in-laws can stay.  A bedroom coupled with a bath and kitchenette will achieve this nicely.  Ask for a Certified Aging In Place Specialist to give you more ideas.  Even if you never end up using these aging-friendly amenities, when it comes time to sell, you’ll have a huge advantage over homes without these components.

Go Eco-Friendly

The public is increasingly environmentally friendly, and having amenities that work within that framework will help you stand out.  This can be as involved as installing state of the art appliances, or as simple as replacing your faucets with the low-flow variety.  If any of your large appliances are aging, they’re probably costing you money and wasting both water and electricity.  Consider replacing these with newer, more efficient devices.  It will save you on your monthly utility bills, and when you put the house on the market, you can advertise the new appliances and the energy-friendly home you’ve created.

Compete with Neighbors

It sounds petty, but in the real estate world, it’s good advice.  If a potential homebuyer has decided on your area, you’re competing with all the other homes on the market in your neighborhood.  It’s a good idea to evaluate what they have to offer.  For example, if all the other homes have two bathrooms, and you only have one and a half, you may want to add another one.  Though the homes won’t be identical, you want to make sure you’re in the same league as the best homes possible.

Upgrade Kitchens and Baths

Nothing receives a better return on investment than a remodeled kitchen or bath.  Because this is where appliances are used most often and it’s most important that nothing goes wrong, buyers want to know that these areas are not only functional, but well cared for.  Something as simple as retiling can change the feel of the rooms and make them significantly more appealing.

Whether you’re remodeling for profit or for your family’s comfort, Fidelity National Title Agency hopes you have a successful project and that you are able to enjoy the fruits of your labors for years to come.

The Advantages of Home Ownership

With the ups and downs of the housing market, sometimes comes a reluctance to start down the path leading to home ownership.  However, there are still amazing advantages to owning a home, and when deciding whether to continue renting or make the leap to becoming a property owner, it’s important not to overlook what can be gained by a home purchase.

Price Appreciation

The single greatest benefit to home ownership is that as time wears on, the value of the house will increase year by year.  This means that if you do decide to sell in a few years, you will often be able to make a profit.   When renting, the value that the property gains goes entirely to your landlord.  He’s the one who reaps the benefits of appreciation.  Often, your rent may increase in time, so you’re the one who’s paying the difference rather than earning it.

Taxes

When you purchase a home, there are many ways to decrease your tax burden each year, so you can end up paying less to the government each year.  One way is by writing off any interest that you pay on the home.  When you first buy the home, you can also write off loan discount points and origination fees, even the seller is the one who pays them. 

Additionally, once you own your home, there are huge tax benefits to selling.  Assuming you have lived there for two of the past five years, you can make a profit of up to $500,000 on the sale and pay no federal taxes on this money if you’re married.  If you’re single, you can make a federal tax-free profit of $250,000.  If you have made changes to your home that have added even more value than typical appreciation, not paying taxes on this income can save a huge amount of money.

Your Sanctuary

As a renter, there are significant limits to the changes you can make to your home.  Some landlords allow you to paint the walls, but you generally have to paint them back before you move.  That’s not a significant amount of freedom in your own home.  As a home owner, you can make whatever changes suit you.  If your kitchen is too small, you can make it bigger.  You can remodel rooms and update old appliances.  Not only do these improves give your home a personal flare, they also add value if you later decide to sell.

Despite the fluctuations in the market, property ownership remains one of the best long term investments available.  When deciding whether to enter the market, consult with mortgage professionals and a real estate agent who can help you determine what you can afford, find the best possible mortgage for you, and go into a purchase on your best footing, by being pre-approved for a home loan.   

Mistakes To Avoid When Selling Your Home

One of the most important financial transactions you’ll likely undertake is the process of selling your home.  Though nothing can replace the expertise of a qualified Realtor, there are some things you can do to avoid common pitfalls that many home sellers fall into. 

Getting Emotionally Involved

Your home is precious to you.  However, it’s important to step back and view it as a property that’s on the market.  Your buyers will see its flaws as well as its virtues, and objectively evaluating the house before it is listed can help you fix problems and determine the most effective way to list it.

Not Hiring An Agent

While listing a home and marketing it yourself may seem like a cost-saving choice, in actuality, homes that are sold by their owner tend to sell for significantly less than a comparable home sold by a Realtor.  Showing and preparing your home means taking time off work and giving up a lot of weekends.  It’s much better to have a professional deal with the day-to-day of home sales.

Setting an Unrealistic Price

The first month of a listing is the time where most people are drawn to a home.  By starting with an unreasonable price, many potential home buyers will dismiss the property.  The market corrects a price set too low more easily than a price set too high.

Too Few Photos

Images are everything in today’s digital world.  Describing a “beautiful, rustic fireplace” may sound good, but a picture would capture that beauty.  Buyers tend to respond more to pictures, likely because they trust the image more than written descriptions.

Not Staging Your Home

A normal home is set up to be functional, clean, and livable.  A house for sale should be breathtaking.  Rearranging furniture, putting out attractive vases and flowers, and even stowing family pictures can enhance the wow factor, and result in higher offers.

Limiting Market Exposure

Just because your home is in one area of the state doesn’t mean your buyer is.  People relocate all the time, and ensuring that your home is listed nationally will open you up to significantly more buyers than a purely local listing.

Ignoring Web Appeal

Almost all house searches today begin on the web.  You can use this to your advantage by creating websites, posting videos, and listing your home on sites that will reach many people while showing your house very positively.

Poor Home Showing

During an open house or while a buyer is touring a home, it’s natural to want to hover around them and point out all the wonderful features the house has.  However, doing this can make the buyer feel pressured and uncomfortable, which will push them out the door faster.  If someone is viewing your home, make plans to be elsewhere for at least a few hours.

Marketing a Home Before It’s Ready

Preparing a home to be sold takes time.  Landscaping, staging, and de-cluttering should all be done before the home hits the market.  Rushing it makes that first month of listing less powerful and hurts the chances of getting your best offer.

Trying to Cover Up Problems

Just because the house has flaws does not mean it won’t get a great price.  Have your home inspected before it’s listed and either fix any problems found or offer some sort of credit for the problem.  Talk to your Century 21 Commonwealth agent to determine which problems should be fixed and which can be left.

For more advice on how to avoid the pitfalls common to home selling, contact a local real estate agent.  They are experienced in getting the most value from your home, and can help you enter the market confident that both you and your home are ready.