Ways to Boost Your Home's Sales Price by Spring
Luke Mullins
As the temperature drops and the snow piles up, it's easy to forget that spring is quickly approaching. And after more than three years of a painful housing swoon, real estate experts predict that lower prices, attractive mortgage rates, and a tax perk from Uncle Sam will create the most vibrant spring home selling season in some time. "This is going to be probably the most pleasant experience for a home seller in the last four or five years," says
1. Retouch the front shell:
If your property's exterior isn't appealing, no one will want to see your newly remodeled kitchen. So property sellers must first ensure that their home projects a cozy, inviting feeling. "The shell--the outside front--is probably the most important area for improvement, the area where you can make the biggest improvement with the smallest amount of cash," says
2. Trim the greenery:
Ensuring that the lawn, hedges, and flowers are well maintained helps make your home more alluring to prospective buyers as well. Property owners can hire professional landscapers or break out the lawn mower and get busy themselves. "Many people have landscaping that is overgrown and too heavy, and it is concealing a lot of the house," says
3. Paint the interior:
Putting a fresh coat of paint on the home's interior is a cost-effective way for sellers to make their home more appealing to buyers, says
4. Don't forget the floors:
Improving the condition of a home's flooring is also a smart move for sellers--and you don't need to refinish wood floors or install new carpets to make them more attractive. "If it's a hardwood [floor], has the floor been buffed?" says
5. Make all major repairs:
Because tighter lending standards demand higher down payments, today's home buyers won't have much cash left over for improvements once they've made their purchase. So it's imperative for sellers to make all major home repairs--fixing the leaky roof, rebuilding the front stoop--before they put the property on the market. "Repairs can't be ignored, because nobody has any extra money," Phipps says. To determine what needs to be done, property owners can scrutinize their homes themselves or bring in a home inspector to examine the property professionally. "The home inspection piece I think is something that is a huge value, particularly if there is something that is a question," Phipps says.
6. Put appliances under warranty:
To give buyers more confidence in a home's appliances, Phipps recommends that sellers put them under warranty. Sellers can buy home warranties--which cover repair and replacement costs for many home appliances--from several different firms. "If I have got a 40- or 50-year-old house, it is going to be harder for me to persuade a first-time home buyer with a limited amount of cash to buy it because they will say, 'Well, what happens if something breaks down?' " Phipps says. "If I have a home warranty ... that solves that problem."
7. Make energy-efficient home improvements:
Increasing your home's energy efficiency is another good way to make your property more attractive to buyers. Many such improvements--such as new windows or better insulation--come with federal tax benefits. In addition, a growing awareness of human impact on the environment means homes that have these upgrades will stand out from other listings. "If you have some cruddy old windows that are leaky and just not energy efficient, you can put in new replacement windows and take advantage of the tax credit," Zuch says. "It's not green washing. Those are really practical things that make your house more sellable." Many contractors will conduct a so-called energy audit free of charge to determine where efficiencies can be created, Zuch says. "If your house is more energy efficient--you use less energy, it's better insulated--it is going to be more desirable for a potential buyer," he says.
8. New light fixtures:
Replacing old or broken light fixtures with new ones can also be a low-cost way to add value, Lupberger says. Installing a nice new light fixture in the foyer near the home's entrance can be a particular benefit, he said, because it can make a strong first impression on would-be buyers. Creating an inviting feeling in the interior entryway, in turn, helps get home shoppers more interested in checking out the rest of the property. "I am not going to redo the house," Lupberger says. "But I can update those features so that somebody can walk in and say, 'You know what? [the homeowners] took care of this.'"
9. New stove in the kitchen:
While some homeowners might think the only way to jazz up a dated kitchen is a full-on remodeling job, Lashinsky recommends a much less costly alternative: buying a new stove. "If there is an updated stove in the kitchen, it is amazing how that draws people in, and people say, 'Wow, this kitchen is going to be great,' " Lashinsky says. While upscale homeowners may have to shell out for top-of-the-line appliances to maintain their kitchen's décor, others can budget well under
Property owners in neighborhoods where most homes have granite countertops can consider making this upgrade as well. But Lupberger says the project makes sense only for homeowners with extremely dated kitchens that are going to serve as a serious impediment to finding a buyer. A real estate agent with experience in the local market can help you determine whether or not the upgrade is essential, he says.
10. Freshen up the bathrooms:
Getting rid of mildew stains on the bathroom caulking can boost a home's appeal as well. Such stains "scream, 'These people haven't taken care of this house. It's going to be a money pit,' " Zuch says. Use a razor blade to remove the old caulk, and replace it with new, mildew-resistant caulk, Zuch says. And rather than remodeling the entire space, homeowners can reinvigorate a worn-down bathroom by replacing cracked sinks, Lupberger says.
How Much Money Will You Really Need for Retirement
Mark Miller
How much money will you need to live comfortably in retirement? One way to calculate the answer is the old income-replacement rule of thumb -- to retire comfortably, you must replace 80 percent of your annual pre-retirement income. But at best, this is a rough estimate. Here's a checklist of major issues to consider for your retirement plan
Can the Real Estate Market Revive if so Many People Remain Unemployed
Ilyce Glink
In a recent press conference, the Mortgage Bankers Association released its annual real estate market facts and figures. For those who believe that the real estate industry is on the verge of a revival, you might not want to bet the house just yet.
10 Things to Know About Real Estate in 2010
Luke Mullins
Is 2010 the year to buy a house? After a steep run-up during the first half of the decade, home values plummeted back to 2003 levels. Fixed mortgage rates are sitting near record lows. And foreclosures have created opportunities for bargain hunters. But while 2010 appears inviting, there's one key catch. That said, here are 10 things to know about real estate in 2010 ...
Getting a Mortgage in 2010: 10 Things to Know
Luke Mullins
To help consumers better understand the requirements and costs they will face as they shop for a home loan next year, we spoke with a handful of housing market experts and compiled a list of 10 things to know about getting a mortgage in 2010.
New Year's Resolutions for Home Sellers
Ilyce R. Glink
If you tried to sell your home in 2009, you probably didn't have a lot of luck. Home sellers are seeing their properties languish on the market, in some cases for years. It is beginning to seem normal to see properties that have been listed for more than 360 days. As we look forward to the new year, the news isn't going to look a lot better for home sellers.
New Year's Resolutions for Home Buyers
Ilyce R. Glink
At the end of 2008, I said I wouldn't be surprised if that year went down as one of the worst ever for housing since the Great Depression. But as we get ready to say goodbye to 2009, it's clear that this year hasn't been much better. We've had another record year of foreclosures. So what's in store for 2010 ...
FHA Loan Requirements About to Get Stricter
Ilyce R. Glink
The Federal Housing Administration (FHA) isn't broke, but its reserves aren't quite where they're supposed to be either. FHA's capital reserves are supposed to be 2 percent of outstanding loans. In 2009, the reserves are a mere 0.5 percent. By the time you read this, FHA's capital reserves might have disappeared entirely, due to increasing FHA foreclosures.
Ways to Boost Your Home's Sales Price by Spring
(c) 2010 Real Estate Matters, Luke Mullins