How Can You Add Value to Your Home Without Breaking the Bank?

If you want to add value to your home without spending a lot of money, I have some great tips to share with you.

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I have some great tips to share with you that will help you add value to your home without spending a boatload of money.

If you’re lucky enough to have an unfinished basement in your home, finishing it is a great way to add square footage to the home. You could add a den, a workout area, an office, or perhaps another bedroom and/or bathroom. If you have an attic, you can use the same idea.

If your home has just one bathroom but there’s an area you can squeeze another one in, try adding a bathroom there. There’s a big difference in value between a 3-bedroom/1-bathroom house and a 3-bedroom/2-bathroom house. While it is expensive to add a bathroom, it’s much less so if you already have the space for it.

There’s a big difference in value between a 3-bedroom/1-bathroom house and a 3-bedroom/2-bathroom house.

Next, try opening up your floor plan. If you have a traditional living room that’s somewhere near your formal kitchen, open those spaces up and connect them to one another. That’s the kind of spacing buyers are looking for these days.

If you can afford to put more money into your home, there are some other tips you can try as well.

One of these is replacing your old-fashioned windows with double-paned windows. You might spend a lot to do this, but you’d get almost a 100% return on your investment. You can also add a centralized heating and air conditioning system to your home if it doesn’t already have one.

These are just a few options that can add value to your home, but there are plenty more you can consider, and we have a whole list of them that we’d be glad to send to you. All you have to do is give us a call or send me an email.

As always, if you have any other real estate questions, don’t hesitate to reach out to me as well. I’d be happy to speak with you.

Repair Your Dream Home with the FHA 203K Loan

If you plan on purchasing a fixer-upper but don’t have the funds to make repairs upfront, the FHA 203K loan may be a great option for you.

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There are many great, creative financing options buyers may use to purchase a home. One of these options is the FHA 203K loan.

The FHA 203K loan is a little different from other financing programs. Specifically, this loan program is designed to help buyers purchase and renovate fixer-upper homes. With the FHA 203K loan, you can apply financing toward some repairs and upgrades, even if you don’t have the cash up front. Typically, we see up to $35,000 financed to cover repairs and expenses.

Let’s say you’re buying a home that needs to be repainted and have a few repairs done. At this point, a contractor who meets FHA standards will visit the property to assess the cost of fixing these issues. So long as the repairs fall within certain parameters, they can be included in the financing for the home loan so that you can begin the projects after closing.

While you cannot use these funds to put in a pool or outdoor entertainment space, the good news is that you can use them on things such as the roof, HVAC, finishing a basement, or a remodel on the kitchen or bathroom.

So long as the repairs fall within certain parameters, they can be included in the financing for the home loan.

The bad news is that this is an expensive way to finance repairs. If you are going to stay in the home for 15 to 20 years, you will be paying for these repairs for just as long. However, if you are only planning on staying in the home for five to 10 years, it is not a bad idea.

If you want more information about how this program works, feel free to call or email me so that I can connect you with one of our preferred lenders. And if you are interested in buying or selling, please do not hesitate to contact me. I look forward to speaking with you soon.

How to Pull Off a Successful House Flip

Flipping a house isn’t exactly easy, but if you watch your expenses and consider the home’s location, you can turn a good profit.

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If you’re thinking about flipping a house, how hard or easy can it be? 

While house flipping looks simple on TV, there are a couple things you need to keep in mind to do it successfully. 

First, remember that a successful house flip is one that makes money. You might not make a ton of money, but you do want to make sure you make some money. To accomplish this, remember that it’s not what you sell the property for—it’s what you buy it for on the front end. 

Here’s a great formula to make sure you don’t spend your way out of a profit. First, think about what you’ll sell the property for and multiply that sale price by 70%. If you plan on selling it for $100,000, for example, you’d multiply that by 0.7 and get $70,000. From that $70,000, subtract any expenses it will take to sell the property (the cost of rehabbing the property, commissions, etc.). If it will cost you $30,000 to fix the property up and sell it, you’d subtract that number from $70,000 and get $40,000. 

So, you shouldn’t pay more than $40,000 for a house that will ultimately be worth $100,000.

In today’s seller’s market, it’s difficult to buy a house like that. A lot of investors and house flippers are paying a little more for flip properties, which means they’re making a little less on the back end. 

A successful house flip is one that makes money.

You can also obtain financing to flip a house, but interest rates for home-occupant loans typically aren’t as favorable to investors, so it will cost you more. This is why it’s important that you’re in a position to pay cash. 

The No. 1 factor you need to consider when flipping a home (besides the price) is its location. You can always add a new door or repair a roof, but you can’t pick a home up and move it somewhere else. 

Lastly, remember that you’re an investor. You won’t own the home and live there, so be careful with how you spend money on that home. It might be fun to install a gold-plated kitchen, but you’ll probably be able to get away with a normal kitchen too. 

If you’d like to know more about home flipping or you have any other real estate questions I can answer for you, don’t hesitate to give me a call or send me an email. I’d love to help you.