Tag Archive for: Homeowner

Homeownership isn’t for everyone! I know that can sound downright strange coming from a real estate firm. Yes, we are in the business of selling homes. We’re in the business of connecting buyers and sellers. We’re a company that’s predicated upon building and nurturing relationships with our clients, our agents, lenders, appraisers, inspectors and other professionals. Yet, while owning a home is typically seen as a sound investment, there are situations when it may not be financially advantageous to buy one.

For example, you might not want to own a home if there’s uncertainty about your future or your job security, as committing to a mortgage could prove burdensome, if income becomes unstable. Another factor to consider is if you’re carrying high levels of debt. If you’re in a financial deficit, it may be more feasible to rent and focus on paying off obligations before taking on the additional financial responsibility of a home. Paying down/off higher-interest debts can raise your credit score as well, which will help you achieve a better mortgage rate for your next home purchase. Additionally, if you plan to relocate frequently due to work or personal reasons, the costs associated with buying, selling and moving can make renting a more favorable option as well. Ultimately, the decision to buy a home should be carefully weighed against all personal satisfaction with your current residence, financial position and job situation.

On the other hand, if you are a property owner, welcome to the wonderful world of ownership (and maybe lower taxable income too). With that being said, did you know, there are ways that you can increase or likewise decrease the value of your home? And this can happen even over short timeframes.

Increase Your Home’s Value

Increasing the value of your home in less than one year can be achieved through different ways. One effective method is to focus on curb appeal by enhancing the aesthetics of the exterior. This can be done by maintaining a well-manicured lawn, planting flowers and shrubs, and adding a fresh coat of paint to the front door (choose that color wisely!). Upgrades to your home’s exterior can be relatively affordable. This is the one area where sellers can give themselves a boost when debuting their home for sale. Another approach is to update key areas in the house such as the kitchen or bathroom, as these rooms often have a significant impact on the overall value of the home. Maybe it’s time that your kitchen finally got a face-lift. The condition of the kitchen and the bathrooms are often the hinge on what buyers tend to gravitate towards or away from when engaged in their search. The kitchen, like the main living area, is a frequently visited room, and as such, potential buyers are looking for modern beauty and convenience here, when possible. Additionally, improving energy efficiency by installing energy-saving appliances/lighting, improving insulation and opting for eco-friendly materials can boost the value of your home too. Smart home technology has been one of the safest investments in recent years. The ability to adjust the temperature, security or lighting in your home from a distance is a real game-changer. There’s a certain peace-of-mind in this sector of home improvement and unfortunately for some sellers, this is a must-have for a handful of buyers.

If you have other questions about valuation or selling, in general, click here.

Negatively Impacting Your Home’s Value

On the flip side, there are several actions that can quickly diminish the value of your home. For one, neglecting maintenance and repairs is one of the easiest ways to decrease value. This includes ignoring necessary fixes like leaking roofs, faulty plumbing or electrical issues. If homeowners avoid addressing a major issue, it could balloon into something intolerable. Water is a good example of this. A water dilemma, left to its own devices, could become a big financial headache for owners of a property. Another pitfall you might want to evade is engaging in excessive customization that may not appeal to the general public, such as unconventional color choices or highly specific themed rooms. Lime green or Pepto-Bismol pink, anyone? Or think solarium or home theater. While you might love those colors or while these might be intriguing rooms, a real hub for excitement in a home, they’re not for everyone. In fact, there’s a segment of homebuyers who would never have a use for either color or room. Lastly, failing to maintain an overall clean and tidy household, including proper hygiene and cleanliness, can also reduce the overall value of your home or at least its perceived value. Many of the buyers we work with are thankful for their ability to rely on their five senses during their home search. Sight and smell are as important as any and they can single-handedly make buyers do an about-face upon entering a residence.

There are also some pretty strange elements which can impact your home’s worth. Some of them might catch you off guard.

 

As you examine your property, probing the aspects you can – remember, you’re probably not a licensed home inspector. Take note of what requires your attention and make a plan based upon that, calling upon professionals when needed. Pinpoint areas where updating will raise the value of your home. Maintenance, repairs and upgrades will positively affect the valuation of your property as well as your confidence as a homeowner.

Don’t let your home sit, let it stand above the rest of the competition and be noticed. If there’s one thing we counsel our clientele on today, it’s making a distinction between their home and others “on the market, not selling.” What are the unique selling points of their home? What is the state of the market, even as granular as their neighborhood? What are comparable properties selling for now? Putting together a vivid picture of the subject property and how to elevate it above other similar homes could mean the difference between less time on the market and maybe even a multiple offer situation.

But before you get carried away, here are five ways to position your home for a quicker sale:

Pricing

This is the obvious. The elephant in the room. We’d be deceiving ourselves if we didn’t mention this one first, because it’s the most important and for good reason. Remember, the whole process for a buyer begins (or should begin) with an honest assessment of what they can afford and tailoring their search around that benchmark. The buyer consults a mortgage lender, discovers how much they’re pre-approved for, compares that to their financial situation, determines their must-haves when previewing homes and investigates the market. Homebuyers, especially if they’ve been searching for some time, have an eye for present circumstances and how compatible properties have fared.

Sellers, who better understand what buyers are witnessing in terms of pricing, will be better able to estimate and position their property for its initial release. This is why having a REALTOR® generate a competitive market analysis (CMA) specifically tailored to the seller’s home is ideal for understanding how they should be pricing it. Although we might be in a period of correction, the market still favors sellers. Because of this, real estate professionals are advising some homeowners to set their list price toward the higher end of its range of value.

Repairs

When an owner anticipates selling their home, they should review all aspects of their property to conclude what’s in need of repair and what could benefit from an upgrade. Ideally, this should be done months ahead of when they plan to sell. They should consult their REALTOR® in order to judge which repairs/updates would help sell their home and which ones should be evaded. Soon-to-be sellers want to avoid alterations that buyers, for the most part, could care less about – repairs or updates that won’t add value, and in some cases might even have a negative impact.

It’s worth mentioning, some homeowners pursue a “pre-listing” inspection, where a professional home inspector evaluates their home and pinpoint areas they might want to address, making the proper repairs, before listing their home for sale. Though this approach isn’t as common as one might think, it can be extremely beneficial to owners in certain instances.

Curb Appeal

It seems like we overemphasize this point time and time again (because we do!), but we believe it’s that important. Do you want increased engagement and more prospective buyers to see your home? Of course! One of the quickest ways to get more eyeballs on your home, both online in addition to in person showings, is to create an inviting atmosphere that draws buyers in. The exterior facade of your home will either captivate or deter onlookers. It’s that simple. A fresh coat of paint on the front door and front porch, fresh landscaping, cut grass, trimmed shrubbery, new garage door, replacing that weathered mailbox, etc. make a statement and appeal to buyers.

There’s certainly a lot to say about curb appeal as it’s a very effective tool for selling, but homeowners shouldn’t go overboard either. They should refrain from changes, which won’t appeal to a majority of buyers. Sellers might want to consider taking a more simplistic approach to the peripheral of their home in hopes that potential buyers won’t see a yard that requires too much upkeep. As with any upgrade, sellers need to be cautious not to dump money into aspects of the home that have little to no return on investment (ROI).

Buyer Incentives

One way to really make your home stand out is to offer buyers and their agents perks that will truly differentiate your home from the rest. An incentive some deploy is offering would-be buyers a home warranty. In fact, there’s relatively affordable coverage available that will protect the home for the seller while it’s listed in addition to a year from its closing date. Thus, this coverage benefits both the owner and the buyer.

Another incentive to entertain is concessions or a closing credit giving a boost to those looking to purchase the seller’s property. Seller concessions are a portion of the costs the seller has agreed to pay in order to lower the amount the buyer needs to close on the property. This assist or contribution is typically rolled into the buyer’s mortgage. A closing credit can be a great way to attract buyers as well. Usually a percentage of the purchase price or a flat credit is presented to consumers in hopes that it will attract more parties to put forth an offer.

A rare, though effective means of reducing those days on market can also be achieved by incentivizing agents to bring their clients into the seller’s abode through offering a buyer’s agent bonus. Agents make money beyond their portion of their agency’s commission, and thus will be much more eager to bring buyers into that seller’s home.

Marketing

Finally, investing in a real estate professional, who understands the current conditions and can effectively position a seller’s home for maximum exposure, will reduce market time. Experienced agents know the state of the market and know how to best approach it. How will current trends affect market time? Sellers need to rely on their agent to sift through the data to discover what’s selling, what’s not selling and why it isn’t selling.

Sellers would also be wise to team up with a REALTOR® and brand, who are well versed in exposing their home to the largest pool of buyers. Their agent should be aggressive, regardless of the conditions that exist, willing to go the extra mile for their clients. Their agent should have a drive to succeed, despite the challenges which may exist. Their agent should have a plan on how to elevate their client’s listing to get noticed and shown.

 

As a homeowner, there are things you can’t change like location or maybe even costly upgrades to a home, but the above five are within your control. Sitting down with your agent and creating a strategy corresponding to these tips, among others, may ultimately reduce the number of days your home is on the market. There’s a lot on the mind of today’s sellers, but having a meeting with your agent will help ease your mind too!

If you’re thinking about listing your home, even many months from now, it’s never too early to create a plan for when the time comes to sell. Contact one of our professionals today to get started right away.

Avoid These 7 Homebuyer Mistakes

So, you’ve decided it’s time to buy a home. Whether you’re a first-time homebuyer or not, your goal is likely to end up with a property you love at a price you can manage. Achieving this requires not only knowledge (it really is power!) but also a clear focus on your goals and local market insights. Avoiding common homebuyer mistakes can save you grief and prevent unwelcome surprises down the road.

Surprises in real estate are rarely welcome, and we’ve gathered seven common homebuyer mistakes to help make your experience smoother and more enjoyable.

1. Neglecting to Shop Around for Lenders & Mortgage Brokers

Many homebuyers make the mistake of settling on the first lender they find, but this can be costly. Speaking with multiple lenders and consulting a mortgage broker can help you compare loan terms, rates, and fees, ensuring you get the best deal. Additionally, getting pre-approved with a reputable lender is crucial; without it, you risk losing out on homes in competitive markets or falling in love with a property beyond your budget.

2. Misjudging Affordability

It’s easy to get carried away with excitement, but affordability is key. Home prices have risen in many markets, and it’s essential to budget realistically. Review your monthly expenses—auto loans, student debt, groceries, childcare, etc.—to determine what you can genuinely afford without financial strain. Avoid overspending based on emotional impulses, as it can put you at risk of losing your home if financial challenges arise. Your budget should guide you, and give yourself some room for unexpected costs.

7 Mistakes Homebuyers Must Avoid

3. Overpaying for a Home

Overextending on a home is rarely advisable. Though no purchase is foolproof, getting an accurate sense of a property’s value is essential before making an offer. Don’t rely on government valuations alone; instead, look at comparable sales data from recent months. A REALTOR® can help you determine a fair price based on the property’s true market value and comparable listings.

4. Skipping a REALTOR®

Homebuyers often think they can navigate the market on their own, but an experienced REALTOR® is invaluable. They represent your interests, connect you with inspectors, recommend trustworthy lenders, and provide insights into neighborhoods. They can help you avoid homebuyer mistakes, guide you on price offers, and advise on inspection outcomes. Finding a REALTOR® who aligns with your needs and communication style can make the process smoother and more informed.

5. Ignoring Credit Constraints

Boosting your credit score and saving for a down payment can take time, but it maximizes your buying power. Start by paying down existing debt, saving three to six months’ worth of expenses, and ensuring you don’t drain savings on a down payment alone. Once pre-approved, keep finances stable—don’t open new credit lines, close existing accounts, or make significant purchases before closing.

6. Overlooking Location and Structure

While cosmetic details can be changed, factors like location and structural aspects cannot. Keep an open mind about aesthetics, but prioritize the home’s location, yard size, and layout. Research crime rates, school ratings, and traffic patterns. Avoiding homebuyer mistakes like ignoring the neighborhood vibe or practical layout considerations can prevent long-term dissatisfaction.

7 Mistakes Homebuyers Must Avoid

7. Forgetting About Hidden Ownership Costs

For first-time buyers, ownership comes with added costs. Taxes, insurance, HOA fees, repairs, and utilities can add up. It’s wise to budget 2-3% of the home’s value for annual upkeep. For example, a $250,000 home might need $5,000-$7,500 per year for maintenance. Knowing these hidden costs upfront can keep your finances on track.

Make Informed Choices

Buying a home is a major life event, but keeping these potential homebuyer mistakes in mind will prepare you for a successful purchase. Focus on your goals, communicate with your REALTOR®, and decide if now is the right time to buy or if renting might be more prudent. Discuss your needs with a real estate professional to ensure a smooth and informed process.

For more homebuyer tips and FAQs, visit our website. We’d love to hear your feedback!