What's My Home Improvement R.O.I.??

5 Home Improvements Which Actually Impact Sales

Are you looking to update your home before a potential sale?
Not all renovations pay for themselves at the closing table.

If you’re in the process of selling your home, or just thinking about it; one of the first considerations is usually – should you do any home improvements before listing. 

Is that kitchen countertop outdated? Should you buy new carpet? What improvements should you make to ensure you get the best possible sales price when you list?

Guessing about the improvements, renovations or upgrades that make the biggest impact in sales price is really just a gamble. Design trends change so quickly that what is popular today could be dated tomorrow. Fortunately there are some timeless changes you can make to help present your home in the best possible light.

5 Improvements which provide the best return-on-investment

1. Green Energy - The "Green" movement is here to stay. Consider upgrading to energy efficient appliances and systems. Gardens which are water-friendly and low maintenance are also great investments.
2. Painting - Fresh paint, inside and/or out, is also a great way to spruce up the home. Designer magazines are filled with new palates and while a soft green might not appeal to every buyer, if it compliments your décor, it will show off the home in a modern light.
3. Spa Bathrooms - 2018 was considered the "Year of the Spa" in designer circles. Soft lighting, fresh colors, and a clean and welcoming bathroom are definitely a plus for today's home buyer.
4. Outdoor Living - While building an outdoor kitchen might not be in your budget, section an area of the yard where family and friends can gather for a meal or relax by the pool. Showcase Florida's warm indoor/outdoor lifestyle!
5. Bonus Rooms - If you have a spare bedroom or loft, consider converting the space into a media room. From home theaters to simple gaming/family spaces, bonus rooms are more popular than ever.

Selling your home is a big decision! Before you spend extra time, money, and energy on home improvements, make sure the home is clean, maintained, and decluttered. Then if you want to take it to the next level, consider a few updating projects to take it there!

Have you thought about any of these renovations? From
small and simple, to large-scale, you'll see some of your
best R.O.I. if you make any of these updates!

A Beginners Guide to Equity

Building Equity in Your Home

Your home is one of the best investments you'll ever make. Not only does it provide you and your family the security of an inflation-proof dwelling, but as your equity grows, it becomes a solid financial tool in building wealth. Understanding the basics of what equity is, how it grows and what you can do with it is the first step in using your home as an asset that grows in value.

What is Equity?

Simply put, equity is the difference between what your home is worth and how much you owe against that value. For example, if you own a home worth $500,000 and you currently owe $400,000 on your mortgage, your equity is $100,000. This is actually the amount of the home you own, and if you sold the home (minus costs related to its sale) would be the amount you receive from the sale.

Building Equity

Equity grows in one of several ways: the property value increases, you pay down the debt, or you add value to the home in some way.

The most common driver of property value increase comes from market demand. When interest rates are low and the economy is strong, more buyers enter the market and the demand for homes outpaces the amount of inventory, or homes for sale. This, in turn, causes a "seller's market." When this happens, the value of homes increases and equity rises along with it.

Paying down the debt owed on a home also adds to your equity. Some homeowners choose to make extra payments against the principal of their mortgage loan along with their monthly payment. Even an extra $500/month can add up over time, shorten the repayment length, decrease the total interest paid, and grow equity.

Renovations and home improvements can also add to the value of the home, thus increasing equity. Updated kitchens and bathrooms, adding extra square footage, remodeling the back yard or adding a pool can create more than a dollar-for-dollar increase in value. A well maintained, upgraded home will always command a higher sale price than its run-down counterpart.

Using Your Equity

Having equity in your home provides financial security. Not only does it provide peace of mind, it can be used, even without selling the property.

• Borrow Against Your Equity - A second home loan, usually referred to as a HELOC or home equity line of credit, allows the homeowner to take some (or all) of the equity out of the home to use for investment, home improvement, or any number of other cases.
• Receive Cash at Selling - Of course, the most obvious use of equity is to have money left over when you sell your home. This can be used to help with a down payment on a new home, for retirement spending, or to add to your savings.

Buying a property and building equity is one of the biggest advantages of homeownership. As rental rates continue to rise, a 30-year mortgage payment stays the same, protecting against inflation. With each payment, the borrower pays more principal and less interest. As the market appreciates and equity increases, the property provides an asset which not only provides the owners a home to enjoy, but a financial investment that continues to grow in value.

A Keyes Realtor is always available to answer your real estate questions. Call or come in to your local office today, or visit us at www.Keyes.com

Realtor Recommendations: Flipping homes? Condition Matters

By Lucy Ballesteros and Debbie Riano

The home flipping process can take any house and turn it into a dream sanctuary, but be careful! While a listing might look perfect on the outside, not every home condition is in tip-top shape. Before you sign on the dotted line, there are some things you should be on the lookout for. With these few tips, you’ll be a pro at your next walk through.

1. Underneath it all

When purchasing a flipped property you must be wary of any mold issues. Many flipped properties were at one point distressed properties and may have had water issues. The investor who picked up the property may or may not have tested for mold or might have just painted over it. Pay for a mold test for peace of mind.

2. Cover yourself

Check the roof, its age, any potential leaks, or paint overs. Replacing a roof is a huge investment and many investors will not want to put that much money into a replacement if it isn't absolutely necessary.  You can check with the city where the property is located for permits on how new a roof really is.

3. It’s electric

On older properties, the electrical and plumbing may not be up to code. Investors will not replace electrical panels or update plumbing connections unless there is a problem. Hiring a good company to perform an inspection is key to finding out all the details regarding your plumbing and electrical work on your property. You can use a well-researched inspection report to negotiate on the price of your soon to be property.

Remember, not all flipped homes have issues! Don’t be afraid to keep these options open when you’re shopping the market for a new home. For more flipped home advice, check out the article below, or give us a call at 561-713-8872.

Four Questions to Ask When Buying a Flipped Home - Homes.com