Outdoor Living Space

Adding a deck to the outside of your home will increase the livability of your outdoor space. You get approximately 80% return for a moderately sized deck. You have to consider more than just your return on investment when you’re completing renovation projects. How you plan on using the space is just as important. You may not be able to recoup all of your money, but it can increase how quickly your home can sell. Outdoor living areas have an intrinsic value that can’t be measured by monetary means.

Outdoor Kitchen Addition

Kitchens, in general, will give you a 70-80% return on your investment. Adding an outdoor kitchen can get you an even higher return. This is because it goes directly back to the sale ability of your home. People love to have the option of being able to entertain outside. Of course, you’ll get a greater return if you live in a more moderate to warm climate.

While using the space yourself, you could have it decked out with an OFYR cooking grill or some other luxurious-looking grill. If you have it out during an open house while trying to sell it, this type of feature in an outdoor kitchen space will help potential buyers envision the glamorous possibilities of having a high end lifestyle.

Bathroom Upgrade

Minor bathroom upgrades give you a greater return than a fully renovated bathroom. This will depend on the usability of your current bathroom situation. If things are laid out in a logical and usable manner, completing a few upgrades will improve the appearance of your bathroom. You can paint the vanity or refinish the cabinet. Change out the countertop and replace the faucet. Add a fresh coat of paint, and consider the state of the floor. You don’t have to do a lot to get your money back.

Exterior Siding Replacement

On average, replacing your siding will give you a return around 70%. It can be more if the state of your home’s siding is in poor repair. This is something that you should do even if you aren’t planning on staying in your home for very long. It speaks to how well you maintain your home. There is also the concern with rotten siding causing damage to the inside. Your curb appeal will be greatly enhanced by replacing that worn out siding.

Renovation projects offer you an opportunity to get more out of your home. You can also increase the value of your home by being selective about your projects.

Spruce up the Kitchen

The kitchen is one of the main places that people look at when they visit a home. In fact, 52 percent of real estate agents stated that the kitchen is the most important place to fix up before you sell a home. However, you do not have to spend thousands of dollars to increase the value of your kitchen. You can make small changes that will only cost you a few hundred dollars.

For example, you can add new cabinets to your kitchen. You can also paint the walls and add new colors. If you do not mind spending more money, then you can get new floors and countertops. Additionally, you can replace appliances in your kitchen.

Re-do Your Roof

Many people dread re-doing their roof. However, it is definitely a worthwhile change to make. Not only will it increase the value of your home, but it can also make your home more energy-efficient. The roof will reflect sunlight instead of absorbing it, which will help keep your home cool during the summer time. Work with a contractor like Surface Shield Protective Coatings or someone similar to ensure that your roof will be built to last.

Add a Patio or Deck

You may want to expand your living space by adding a deck or patio. This will not only raise the value of your home, but it will also make your outdoor space look better. Furthermore, you definitely want to add a deck or patio to your home if you want to have outdoor gatherings.

Freshen up Your Bathroom

The bathroom is another part of the home that people look at when they are buying a home. Forty-two percent of real estate agents stated that the bathroom was the most important area to fix up prior to selling a home. You can freshen up your bathroom by adding new fixtures to it. You can also install a new countertop. Additionally, you may want to replace the toilet.New toilets are more water efficient. You can make these changes for $1,000.

Increasing the value of your home can benefit you regardless of whether you want to sell it or stay in it for a long time. You can re-do your roof as well as spruce up your kitchen and bathroom. You can also add a deck or patio to your home.

Purchase Price

The purchase price of your home is whatever you agree to pay for it. So if you pay $200,000 for the home, that’s the purchase price. The price will be affected by a number of factors, including the market value of the home as determined by an appraisal and what your mortgage company is willing to lend you. The purchase price often will be something less than what the person selling the home was asking for, although it can be higher in some cases when there is a lot of competition among buyers for the house.

Equity

Home equity is the difference between what you spent on the home and what it is actually worth. If the purchase price of the home is $200,000 and you put down 20 percent, then you borrowed $160,000. That means you have $40,000 worth of equity in the home. If after five years, your home’s value has grown to $240,000 and you have paid down your loan to $140,000, you would then have $100,000 worth of equity in your home.

Difference

The main difference between the purchase price of your home and equity is that the price you pay is a onetime value of your home. Over time, your value is likely to rise, but it may fall, which can affect your equity. What also affects your equity is how fast you pay down your loan balance. The more you pay toward the principal amount of your mortgage, the more it increases your home equity because you owe less on your loan.

Importance of Equity

How much equity you have in your home can be important for a number of reasons. If you have enough equity, you can borrow against it using either a home equity loan, a home equity line of credit or a cash-out refinance. Some agents, like those at Century 21 Town & Country, know all the different financing options that are part of buying a home. How much equity you have also will determine how much you receive when you sell your home, minus any commission you pay to a realty agency you work with.

Your purchase price is what you pay for your home. Your equity is how much of the home you actually own free and clean of any liens. That’s an important distinction for homeowners to know and understand.

One Room

It’s best to change one room at a time instead of trying to make over the entire house. You’ll find that this method adds the least disruption to the life of your family and also allows you to focus more on painting, the flooring, and the decor of one room instead of worrying about the entire house, causing you to become flustered in getting everything done at one time.

The Smallest Details

Instead of focusing on the larger details that the new home owner can tackle, consider working on the smaller items. Think about the upgrades that need to be done, such as a leaky faucet or a cabinet door that needs to be replaced, compared to simply wanting a different color of paint. Most buyers will pay attention to the finer details more than they will the overall home. Good realtors can do a walk-through to give you an idea of what should be looked at first.

Cleaning the Home

While this might not be a remodeling project, cleaning your home can add a lot of value especially if done thoroughly. If the buyer sees a sparkling home that is free of clutter, there might not be as much hesitation to lower an offer as there would if the buyer sees a mess. Shampoo the carpets, clean the walls, and consider waxing hardwood floors to really give the home a deep clean.

Curb Appeal

Take a step outside and get an idea of what the home looks like from the street. You can get ideas on how to tidy up the porch, how to make the lawn look better, and what you can add to the outside of the home to make it appeal to the buyer. Another idea is to get a friend to look at the outside of the home to see what details should be removed and what could be added. Outside eyes can often spot things you’ve become blind to.

Kitchen Upgrades

The kitchen is one of the places a buyer will look at first. Make sure the room is as clean as possible. Consider upgrading the appliances. Add a backsplash behind the stove or the sink to give a modern look. Add a splash of color to the room as well with new curtains or even a rolling island that blends with the other colors in the room.

Bathroom Makeover

Another area of the home where you’ll benefit from upgrades is the bathroom. Replace the faucet, change the shower curtain, and consider changing the tile in the room. Wall mounts add a warm glow to the room compared to overhead lighting. One upgrade that will likely entice buyers is a heated floor.

Selling your home might seem like it’s taking a long time, but if you look at the proper upgrades that will increase the value, then you’ll be on your way to a sale in no time. Start with the smaller issues before heading to the larger projects that tend to cost a bit more money. Talk to a realtor about some of the larger projects that you could start on before the home sells.

When planning to list your home for sale, it is in your best interest to find ways to up the value of your house and grounds so that you can get a higher asking price. It may mean a bit of renovation or some construction to make the needed improvements, but when complete, your home will be worth more so that you can fetch more when time to sell. Here are the top five improvements that can add value to your home.

1. Add Living Space

There are several ways to add living space to your home amongst which are loft conversions, added rooms, garage conversions and even the addition of a garden room. Not only can these be used as an extension of the family living area but can also be suitable as a rental unit whereby the new owner can earn a bit of income to offset the cost of purchasing a home. Garden rooms are some of the trendiest additions to homes and some include plumbing so that they dub as a small studio. According to industry experts at gardenspaces.co.uk, garden buildings can be made to almost any specs and can be self-contained if needed. One thing is sure, no matter the ultimate size, the added space can significantly increase the value of your home.

2. Focus on Curb Appeal

The first thing any prospective buyer will see is the outside of your home. Realtors advise that you put money into your grounds if you want to add to the asking price of your home. Hire lawn care specialists to prune back unsightly shrubs and spend a little money filling in barren patches on your lawn. Plant some flowers and annual plants around the house and see to any falling limbs on trees that need to be cut back. In other words, if your grounds are not well manicured you may never get the first person to step foot inside to have a look around.

3. Make Use of Natural Light

One of the biggest concerns that many homebuyers have is the cost of lighting, heating and cooling your home. Some homes are just too dark for comfort and that’s why the addition of an extra window or two in main family areas can more than compensate for the ultimate asking price. You can generally mark up the amount you ask several times the cost of installing a few extra windows or skylights because the new owner will expect to save tidy sums on their electricity bill by taking advantage of free light from the sun. Also, lighter rooms appear much larger so you will want to bring in as much light from outside as possible.

4. Make Necessary Repairs

Do you have cracked paint or tiles on flooring that need to be replaced or repaired? Not only are these considered ‘blemishes’ in an otherwise attractive room but they can be hazards as well. Any repairs that need to be made should be done prior to listing your home for sale. Gutters and fascias outdoors should be seen to as well as any windows that aren’t sealed and fitted properly. Are your doors air tight? These are all things to consider so see to them as soon as possible.

5. Update Kitchen and Bathroom Plumbing & Fixtures

Two of the main focal points for homebuyers are the kitchen and bathroom/s. Make sure all plumbing is in good repair and that appliances to be sold with the home are in good working order. Sinks, tubs and toilets should be updated and if you really want to add to the value of your home, consider installing high efficiency toilets. If your home is situated on well water, it may not be such a huge issue, but for city utilities, water saved is money earned.

These are the top five home improvements that can add value to your home so if you are serious about wanting a quick sale, start with these even before listing your home. With just a bit of extra care, you can increase your asking price by as much as 25% (or even more!) and spend a fraction of that making the alterations. It’s well worth the time and investment.

Understand Mortgages and Local Property Laws

Real estate remains one of the most popular types of investments for people of all ages and financial situations. Many corporations and big insurance companies routinely invest in property portfolios without needing a home loan of any kind to make this significant purchase. Sellers need to know whether a home carries a current mortgage or not to calculate their returns or losses from a sale. Typically, during a closing in the USA, liens are paid, so a seller often does not obtain the full sales price.

Acknowledge the Market

Investors recognize that certain markets do not always return a profit. Unfortunately, dated homes sometimes do not sell as well as more modern structures, especially in poor real estate markets. Why? Every building maintains a useful lifespan. For example, while exceptions exist, homes often do not survive past 100 to 120 years.

Properties that sustain damage through natural disasters or other harsh environmental conditions may wear out even faster. In order to maintain an older home in a marketable condition, a seller may need to make substantial structural improvements to the premises. Yet whether an owner should make a particular repair in any given case often depends on complex factors such as the local economy, the nature and cost of the required structural repairs, the availability of loans, and alternative uses for the land.

Use Appraisals

It may make sense to obtain a property appraisal from a qualified, licensed appraiser in order to determine whether or not an older home will benefit from renovations. Sometimes even in poor markets, upgrading a home offers a return on investment. Yet in some cases, upgrades result in financial losses for sellers. Talk to a Mortgage broker in Houston who can manage the home loans you might be thinking about taking out, and see if the market you are in will return a profit.

Marketing Success

No one can guarantee than any home or plot of land will provide the desired financial return on investment. Real estate markets sometimes experience downturns. No one knows with 100% assurance whether or not a property will sell when it is placed on the market. Some sales produce profits while others create losses. Make sure you’ve done your research and talked to all the professionals with experience you can and hopefully you can get the return you need even with an older property.

When you decide to redecorate your house and change a couple of things – insulation, paint job, garden renovation, kitchen redecoration, bathroom remodeling, etc. – you should think what your first project is going to be. A lot of people chose to install a new patio first because it turns out that having a patio and decorating it according to current standards not only makes the property much more valuable, but also provides you extra storage room for your beams, timber, polystyrene foam and other materials. That’s why it’s not such a bad idea to start with this project – or, on the other hand, to build a covered patio no matter whether you are redecorating your house or not. It’s always useful and necessary, but what are the benefits and advantages of a quality patio, what does it mean to your home and how can it raise its value?

Patio 101

If you have a big house and a garden, you surely must know what it feels like to want to sit outside, but it’s either too hot or too cold, too sunny or there’s not enough light. But having a patio can solve all of these problems, and add some more advantages.

First of all, patio extends your effective living space and adds more room to your house, making it visually bigger. You can host dinner parties here, organize tea servings or, ultimately, just sit there and relax with your family and friends, but doing that outside instead in your living room makes it that much more enjoyable. Fresh air will add a new perspective to your morning or afternoon gatherings and make people want to spend more time at your outdoor sitting area. Furthermore, a covered patio can always be upgraded and you can close it and and turn it into a sunroom – an innovative outdoor room that has glass walls and can even be repurposed and used as a solarium.

Patio Decoration

Talking to Wintons Teak, an outdoor furniture manufacturer from Sydney, we found out that there is a huge number of options regarding you patio furniture and decoration, from simple chairs and tables to teak outdoor furniture which is quite attractive in today’s market. If you want to stay hip and up-to-date with home decorations, you should find patio furniture that follows current fashion trends and is popular with the world’s biggest architecture and decoration companies.

Another great benefit of having a patio is the option of growing a small garden there. For all those flower, vegetable and herbs enthusiasts who don’t have enough space in the garden for their hobbies or adequate soil, an improvised patio garden is a good solution. Moreover, if you put some glass walls, you will be able to create a more sustainable environment that can easily be turned into a greenhouse and even, why not, a source of some extra income!

Investing and Making Money

If you plan to sell your house, you already know that everything must be spotless and perfect in order to attract buyers. However, if you have a garden, garage or a patio, the price of your estate rises and its value is certainly higher. Yes, installing a patio does mean that you will have to invest some money to make more money upon selling, but it will be worth the investment – studies show that people value privacy more and more, so a closed and/or covered patio adjoined to the back of their house will provide just that: privacy, peace, comfort and a great space for having breakfast and morning coffee in nature.

These unnatural spikes have some worried about another artificial housing bubble, while others are using the market conditions to their advantage. Your individual situation will dictate what action, if any, you should take during the current economic climate.

Should You Sell?

The most important factor in deciding whether or not you should sell now is your home’s location. Cities like Phoenix have less inventory (available homes) because investors and hedge fund managers pounced when prices (apparently) bottomed out from 2010 to mid-2012. The less inventory there is, the higher the prices are because supply will not meet demand. New York, Minneapolis, Seattle, and Salt Lake City are other metropolitan areas with similar market conditions. Despite home values rising, you’ll only capitalize on the gains if you live in an area that attracts people. Thus, the short answer to whether or not to sell now is to test the market and determine interest levels. Keep in mind home values are expected to continue rising throughout 2013.

Should You Buy?

Buying a home requires a similar analysis as buying precious metals. The price of gold at the beginning of the housing bubble (circa 2002) was around $300 per ounce. Those who brought bullion from dealers like US Money Reserve cashed in by the time the housing bubble burst in 2008, to the tune of $900 per ounce, or a 200 percent net gain. The decision to buy a home depends on whether you are looking to buy and live in the home for the next 30 years, or invest in the property to rent or sell it for a profit in the short-term. Zillow recommends buying over renting right now because of high rent prices that are expected to continue on an upward trend. Though banks are extending credit more than they did two years ago, underwriters are still following strict guidelines. Your decision to buy may ultimately come down to whether or not you can obtain a mortgage.

Should You Stand Pat?

Some homeowners are simply looking to get their nose above the waterline, while others are in markets primed for profitability. There is a strong possibility, again, that home values will continue to rise, especially as long as the Federal Reserve continues its policy of quantitative easing. But just like life in general, there are no guarantees in the housing market. There is room for homeowners to wait a while and see if they can break even or even profit after losing 60 percent of their equity during the recession. Keep abreast on the Fed’s policies and the value of your home to make a decision from there.

1. Look at Building Costs

One of the best ways to better understand your home is to find out what the building costs were like for a construction company. Such figures are easy to get and will teach you much about how your home was constructed and what its underlying value is. This way you’ll know if you’re paying too much for a policy.

2. Quality of Materials

If the price per square foot of your home was relatively high for your area, chances are the construction company hired to do the job was using high-quality materials. Taking out a policy that suits the quality of your home is a great way to create a relationship between a house’s value and your financial investment in its care.

3. When Your House Will be Resold

In agreeing to a policy related to your home, it’s important to know how long you plan to live in your house. If this is a short-term purchase designed to act as a bridge to your dream home, for example, you may not want to invest as much in your policy.

4. The Benefits of DIY

Another important perspective to have when investing in a policy from a company like Drayden Insurance Ltd. is to know whether you’ll be working on your home. If you have a talent for rebuilding houses, you may find that in five years’ time your home is worth much more than its price at present. And that means that you may want more coverage on your investment to reflect future value.

5. Age of Home

Depending on how old your house is, you may want to adjust the terms of your policy. Age of a home can be a double-edged sword in sales: On one hand, older homes tend to be standing because their original builders used quality materials. On the other, older houses are more likely to need repairs. Keeping this balance in mind is a great way to make sure you’re getting the right deal on your policy.

For these reasons, ensuring a great value on your home can be as easy as performing a few regular check-ups from time to time. As with anything we value, the right critical thinking and decisions can make the future bright. With a home, that means we’re investing in our happiness.