Avoiding Costly Remodeling Expenses That May Hinder, Not Help To Sell Your Home



Watch on your mobile device >>

For many homeowners, selling their home is an event that usually only takes place once or maybe twice in their lifetime.  For this reason, the experience is completely foreign to them and they may be carrying old ways of thinking in terms of how to prepare the home for sale.  Where once some things may not have been a turn off to sellers, in the current marketplace there may very well be different standards.  It is highly recommended to consult with a professional prior to having any significant work done on a home – especially if the prospect selling the property is in the near or short-term future.  Here are a few reasons why homeowners should proceed with caution before embarking on any major repairs, renovation or remodeling their homes.

New Owners May Not Have The Same Tastes

Though there are a few “clean slate” type design looks that are fairly universal, one can never tell how potential buyers might react to particular design elements in a home.  Aside from keeping a fairly neutral color palette and updating kitchens and bathrooms to a modern state, generally less is more.  In some cases, sellers deliberately leave areas in their home that require a lot of work for their future buyers to contend with.  When rolled into negotiations, it can end up saving the sellers a lot of money while sparing buyers a lot of headache at the same time.

Housing Values May Already Be Topped Off

Depending on the market, your home may already be at the maximum limit in terms of value in the neighborhood.  If your home is already among the ones valued higher than other nearby homes, then putting in any more money toward the property could end up being a waste of money.  It is a good idea to leave some room for a home to increase in value over the years.  If there is a significant amount of investment made to improve the home but it falls outside of the value range for the neighborhood, it could be a huge turnoff to buyers resulting in fewer offers.

Hidden Costs Could Surface During The Remodel

If you expect to sell your home soon, the last thing you want to do is to get involved in a lengthy renovation project only to discover that there are hidden issues lurking behind the walls.  Many times unsuspecting homeowners encounter hidden problems that end up costing a lot more money than they ever expected.  Had they spoken to a Realtor in advance, they might have learned that a better strategy would be to allow potential buyers to decide whether they preferred the change.
~
When you make the decision to incorporate some changes to your home, be sure to sit down and consider all the current and potential factors at hand.  Many homeowners do not realize how beneficial meeting with their real estate agent can prove to be if done prior to beginning any major work.  Before overdoing any of the “redoing” in your home, set up an appointment with a professional!

Is a Real Estate Investment a Smart Move Right Now?



Watch on your mobile device >>

Here’s a quiz…


TRUE OR FALSE:

1. Home prices have come down over 50%.
2. Over 6% of households are in foreclosure.
3. The suspension of foreclosures by major financial institutions will delay recovery of the real estate market.

The answer for each is – IT DEPENDS.

Prices of homes have come down considerably in the last few years. Foreclosures are also increasing by an alarming rate. This does not mean, however, that there a large amounts of foreclosures today. The numbers are still relatively low overall.

What does this mean? Because foreclosures make up such a small percentage of households in our market, if some were suspended the impact would be insignificant.

It is important to recognize that real estate markets are local, that prices all over the country haven’t taken a complete nose dive, and that the market isn’t flooded with foreclosures.  

We, as consumers, have been inundated with a continuous stream of negative news from the press because extremes, whether booms or busts, get attention. Five years ago, good news about the real estate market was exaggerated. 

Now the statistics from the worst market in the country are generalized as if they were occurring everywhere. That’s why it’s so important for understand the complete real estate picture to separate fact from fiction.

Here’s another quiz:

TRUE OR FALSE:

Now is the best home buying opportunity of a lifetime.

The answer for the real estate marketplace is TRUE!


Here’s why:

1. The Market
We have clearly seen the bottom of the market. Unit sales have dropped after the April 30, 2010 expiration of the home buyer tax credit, but annual sales have been stable for three years.

2. Interest Rates

Interest rates are at generational lows. It is hard to believe they will go much lower, and they will definitely rise as the economy begins to improve. We would normally think of 5.5% as a terrific interest rate but at the current rate of 4.25% is outstanding. A buyer borrowing $250,000 over 30 years will save $2,700 each year over the life of the loan. That’s a total savings of $68,000!

3. Quality of Life


It’s not unusual to hear conversations about the rent versus buy scenario. There are some advantages to renting but in reality, but buying is usually the best choice. The best communities are made up of owners who care about their properties. Owning a home is one of the best ways to take control of our future.

Houses are more affordable than they have been in years
. Stable prices and incredibly low interest rates allow buyers to purchase more for their money so they can enjoy living in a house that better meets their lifestyle needs.

4. Long-term Investment

Right now, many people are carefully considering whether or not to buy a home. Lack of confidence in the economy and the job market are holding them back. But there is only so long to wait before this opportunity ends. If life circumstances dictate a move, it’s best to act now. I can’t imagine that conditions will improve for potential home buyers in this area!

In five or seven years, you will probably be glad you bought a home, or be sorry you didn’t. It’s best to make sure you to provide them with the expertise and knowledge to make the right choice now, or else they will look back and say,“I should have.” After all, the true value of what you do goes beyond showing houses or writing contracts. It is in helping people make their dreams come true.