A Few Simple Renovations Can Yield Big Returns

Many times when I am showing real estate, I am surprised at how closely buyers scrutinize the condition of the homes; how little they are willing to overlook regardless of how realistically priced the home is, and with little regard to the value a home that just needs a little TLC.  More and more it appears that the discerning homebuyer just doesn't want to be bothered even if the home is a "bargain".
For this reason, it has become increasingly important that sellers consider making some renovations prior to putting their home on the market.  I realize the idea of putting money into a home you want to sell may not sit so well and that sellers may cringe at the idea of doing home renovations, but you need to weigh the size of the investment you will make with the return you will get when you sell. 

There are a few affordable do-it-yourself projects that can be done with minimal disruption to your home, and which can result in substantial returns.

1. Hard Wood Floors - According to HomeGain's Annual Home Improvement and Staging Survey, approximately 86% of homebuyers in 2011 chose a home with hardwood floors.  If you have wood floors that seem worn, you may want to consider refinishing them.  This would require the expertise of a skilled professional, but is well worth it.  If you don't have wood floors, seek the advice of a craftsman and explore your options regarding different installation methods available.
2. Kitchen & Bathroom Hardware - Installing new towel racks, cabinet handles, toilet paper dispensers, etc, is a simple upgrade that you can do yourself if you are somewhat handy and which can make these rooms appear to have been upgraded. 
3. Cabinet Upgrades - If your cabinets are not dated or in poor condition, refinishing the doors and draw panels and replacing old hardware with updated ones is less expensive and less disruptive to your home. 
4. Exterior Door Replacement - The first thing visitors see as they approach your home, the front door should be replaced if it is old, damaged, warped or energy inefficient. 
5. Fresh Coat of Interior Paint - A fresh coat of paint goes a long way and not only brightens your home, but also protects it. It helps to show your home in the best light and while it does take patience, you can do this project yourself. ( I say this easily, but I am the first one to step into paint or spill it!)

Some other simple projects which give sellers the biggest return for their time and money are:

• Cleaning and decluttering countertops, closets and shelves
• Brighten up the home by cleaning windows inside and out; maybe replacing old curtains and lighting fixtures
• Rearrange furniture and add some new accessories, artwork and soft music
• Spruce up the curb appeal by making sure lawn, bushes and flowers are cared for and manicured 
• Shampoo carpets; repair floor creaks, cracked moldings
• Fix leaks in and under the sinks, remove any mildew stains; ensure plumbing is in good condition

I know this seems like a lot, but these days sellers must make the effort if they want to attract homebuyers and statistics show these projects will be worth your while.

Less-Than-Perfect Home Inspections

In looking out for my buyer clients, I wholeheartedly believe in and always advise them to have a home inspection - even if it is not required.  As a buyer, it is your right to know that the home you are buying is safe, has no health issues, is structurally sound and without major defects, or at least,  know what they are.  But as I'm guiding my clients through the sales process closer to the home inspection, I say a little prayer that the home inspection won't derail the transaction for the wrong reasons. 

What do I mean by that?  Home inspections are pretty comprehensive and to limit liability, a home inspector will cite deficiencies in the home, no matter how small.  Of course, when the buyers read the report and look at the summary, unless they were actually present at the inspection, the technical terminology and number of items noted can scare them into changing their minds.

Inspections can and often do look worse than they really are.  If you want more insight, I always suggest my buyers be present toward the end of the inspection, or that they call or meet with the inspector and go over the items.  In my experience, when buyers have contacted the inspector, they have been reassured that many of the items were minor and can better judge which repairs they want to ask the seller to address.  Unless a home is new, you cannot expect it to be perfect.  Therefore, you need to pick your battles rather than argue over petty items, but you need to know which is which, and talking with the inspector always helps.

Call or email me for contact information for Home Inspectors in our area.
(910) 279.9509 or vicki@sunsetrealty.com

Buyers Facing a Changing Market

House hunters looking to cash in on the "perfect storm" of low mortgage rates and reduced home prices may have to change their strategies. Market competition due to diminishing supplies of homes in certain price ranges and locations is causing a condition we haven't seen in awhile - multiple offer situations. For that reason, and what I try to tell my buyer clients, is that if they want to get that "deal", they will need to make a realistic offer and be prepared to move quickly.

How To Prepare

• Research the area and available properties ahead of time. Make sure you know what you are looking for in a home and understand home values.
• Before I take a buyer client out to see homes, I make sure they have already talked to a lender(s). I want to know that they are serious, but more importantly I want to know that if we find a house that they like, they are actually in a position to purchase.
• When shopping for a mortgage, look for a local and accessible lender. Ask questions - How long will the approval process take? Are underwriters on site or in some other location? Can the lender provide a preapproval letter quickly? What are their current rates and fees?
• While it is not required, to save time and show buyer intent I like to include a lender preapproval letter with any offer I present. A preapproval letter will inevitably be requested by the seller so that he has some indication that the buyer can, in fact, get a mortgage. To take it a step further, actually going through the mortgage-approval process will save transaction time and determine the maximum amount you can borrow. A seller will consider that a big plus, should you be in a multiple offer situation.
• Any credit issues should be resolved in advance and make sure you have the cash for closing costs and the down payment.

Making An Offer

Despite the decline in the housing market, buyers should realize that homes are selling and that most likely, if you are interested in a home that looks good and is priced right, someone else is too! So when you find a home that you like, you need to be ready to be decisive and move quickly. You want to write a strong offer. Your agent should try to find out what is motivating the seller; if timing is important to them, or money, or both. Then you can try to tailor your offer to include those things if possible.
An earnest money deposit will also accompany an offer. Minimum is usually 1% of offer price, however, a higher earnest money deposit may make a statement about how serious you are. The type of loan you are going to obtain may also play a part in whether a seller chooses your offer over another's. FHA, USDA and other government loans may have more stringent requirements and appraisals, whereas conventional loans or a cash buyer may be more appealing to the seller. Conventional loans usually require a larger down payment.

In conclusion, buyer competition and multiple offer situations may be something you will face in the future. If you follow some of these tips, are decisive and prepared, it could help you get an accepted offer and the home of your dreams.