Before you decide to sell, see your home through a buyer’s eyes

Before You Decide to Sell, See Your Home through a Buyer’s Eyes

By Kevin Shirley, Associate Broker (DC), e-PRO, ASP, GRI

Your home – a castle full of love, where you have spent some memorable years of your life with family — is sometimes just a fleeting stop (is 20 years temporary?) in a series of lifetime abodes. But now you have decided to sell it. You might be ready to list your property in the public domain where buyers, agents, inspectors, and appraisers may explore the details, including its advantages and disadvantages. Although this is a simple business transaction at first blush, it can be a genuinely overwhelming and emotional experience for the owners or the family members.

That said, the main concern now is to get the highest possible value for the property. And it is possible, but only if you think about and see the home from a buyer’s perspective.

You may find unlimited home staging tips online. But not all of them are equally reliable. When you want to keep your listing on the top among competitors in the market, it is vital to make improvements that impress a potential buyer. Here we a few practical tips from experts and homebuyers to help you prepare your home for sale:

Take out dirt and dust

The first most thing that buyers observe while buying a new property or house, to be honest, is the dirt and dust around. If they find your home cracked, dirty, and full of dust, they are likely to get some negative thoughts in their mind. Moreover, if you have not cleaned your house for a long time, it may attract rodents and insects inside. Put more attention on cleaning the kitchen appliances, windows, doors, and the outdoors as well.

Service the heating and cooling systems

Before listing your house on the public domain, spare some time to check the heating and cooling system’s functionality. You may need to book an appointment with some licensed repairman to maintain and repair things well. Even if the listing and selling process is getting delayed, prefer to organize maintenance routines from time to time.

Trim overgrown trees

If we look at the buyer’s reviews and feedback, they often ignore homes with extensive tree branches coming close to the roofing or structure. These branches can cause damage to the house during windy and stormy days. Other than this, they can be the active path for a variety of destructive insects like ants and rodents to enter your home. Trim down them ahead of time to avoid buyer’s complaints.

Enhance overall curb appeal

A wide range of home sellers believes that curb appeal includes simply planting some new flowers and cutting down the unwanted bushes around. But, in reality, curb appeal has just as much to do with your house. Once you see through the buyer’s eyes, you will find many more things to handle. Improve the doorbell’s condition, door handles, broken windows, and clean up the indoor and outdoor area. Also, prefer to create ideal light on the premises to capture the buyer’s attention.

Once you execute these essential home staging steps, it will be easier to lock in a deal for selling your home at a profitable price.

How to Sell Your Home When You Have Pets

How to Sell Your Home When You Have Pets

By Kevin Shirley, Associate Broker, ASP, GRI, e-PRO

Selling a home as a pet-owner is not tricky if you eliminate evidence of the pets in the home. A thorough cleaning job is a good start.

Some people don’t like living in pet-owners’ homes because of the stereotype that pet-owners keep messy homes. However, with a thorough cleaning and careful planning, you can make it seem like your pets never lived there and avoid losing this segment of potential buyers.

If you want potential buyers to get excited about living in your home, make sure that you remove all evidence of a pet as you prepare to sell your home. By doing so, you can also avoid having to answer questions about whether there are any pets in the home.

Selling your home can be a stressful time for both you and your pets. By taking the initiative to remove the pets and the evidence from your home, you can attract a broader range of buyers.

Start With a Deep Cleaning

If you have pets in your home, a deep cleaning must be performed to remove all pets’ evidence. Some of the areas to concentrate on include carpets, tile and grout, floors, and walls. Have the carpets and tile steam cleaned to get rid of stains and smells that may have settled in. Vacuum thoroughly to get rid of the dander and make sure that there is no dander hiding in corners, as potential buyers will notice. You should replace the flooring in your home if it has become stained or smells. While you might be used to the smell, this is something that buyers will instantly notice, which will turn them off.

“Our sense of smell has a powerful effect on our emotions, our memory, and our perception of things. An initial odor on entering a house is sure to stick in the buyer’s mind, and he or she will likely deduct the cost of carpet replacement immediately from an offer as a result,” says Bill Gassett of RE/MAX Executive Realty. “A strong odor is, in fact, one of the top reasons a buyer will pass on a home.”

A thorough cleaning is likely one of the most crucial aspects of getting your home ready for sale when you have pets. If you are not sure how to rid your home of the odors of having a pet, consider hiring a professional cleaning company to take on the job.

Take Your Pets Out During Open Houses

“The last thing you want is to attract the perfect buyer, one in love with your house, who also happens to be highly fearful dogs, snakes, or other critters. In cases like this, if your pet is still in the home, that perfect buyer may not get much further than the front porch,” says Michael Corbett, real estate and lifestyle expert at Trulia.

The truth is that not everyone loves pets. If your pets are around during open houses, you could also be opening yourself up to liabilities. Not all home insurance policies cover pet bites or injuries. Before hosting an open house, check to see if your home insurance policy covers this. If it does not, make sure that your pet is not around when strangers come into your home.

Eliminate Evidence of the Pet

In addition to making your home smell free and damage free, you also want to make sure that you eliminate all evidence of the pet. Start by putting away pet accessories and photos that feature the pet. Many pet owners allow their pets to hang out in the yard. If you have a dog or other animal that enjoys outdoor play or lives in the yard, make sure that you patch up any holes in the lawn and fix any further damage caused by the pet.

Most potential buyers are not interested in your personal effects because they want to envision themselves living in your home. Homebuyers see pet accessories, photos, and other items as a reflection of the homeowner. You can also expect that a potential buyer will ask you to foot the bill for repairs to the landscaping that the pet has damaged.

Consider Sending Your Pet Away While You Try to Sell

While it may be hard not to have your best friend around, taking your pet out of the home while trying to sell will give you peace of mind. You won’t have to worry about whether the pet will attack or bother visitors, and you also won’t have to worry about smells and messes.

You also want your pet to be safe without the worry of the pet escaping or getting into trouble while you are distracted with other activities. Temporarily rehoming your pet during the sales process may also be less stressful for the pet, which is good for both of you.

If you are not sure whether it will be safe for the pet to stay in your home during the selling period, speak with your veterinarian. Certain types of pets may experience stress when they are exposed to conditions that are unfamiliar to them, such as strangers entering the home. If you want your pets to stay happy and healthy, consider sending them away.

Clean Regularly While Your Home Is on the Market

If you cannot send your pet on a “vacation” while you attempt to sell your home, you must regularly clean while your home is on the market. Think of each open house or buyer appointment as a new start to selling your home. If you want buyers to see your home in the best light possible, your home must be flawlessly clean and free of personal effects every time someone comes to view your home.

By making your pet-friendly home accessible to everyone, you can assure that the offers that you receive on your home won’t only be limited to people that love pets.

The Top 7 Qualities All Good Tenants Share

The Top 7 Qualities All Good Tenants Share

To find a good tenant, it helps to know what a good tenant actually is. Here are seven qualities all good tenants have.

Finding a good tenant isn’t easy. Even someone who looks good on paper may not be the best tenant. If you keep these seven qualities in mind while showing the property and during the application process, you’ll have a good idea of what type of tenant the person you are dealing with will make.

Leasing your rental to a new tenant sometimes feels like a gamble, but it doesn’t have to be. You can reduce your risk of future tenant issues by knowing the qualities all good tenants have and looking for those in applicants as you show the property and review the application.

Just keep in mind that to avoid violating the Fair Housing Act — a costly mistake you never want to make — you will have to apply your application criteria equally to all applicants. Also, make sure that the determining factors when you make your decision are measurable, such as the income-to-rent ratio and credit score.

A good tenant is responsible.

Not only does a good tenant pay the rent and other bills on time, but he mows the grass, pulls the weeds, changes the filters, and takes care of the day-to-day maintenance issues that are his responsibility. He also alerts you to potential problems that require your attention, such as termite tubes in the laundry room.

Punctuality is your first indication of whether a potential tenant is responsible. Check his credit report, too. If he doesn’t pay his bills on time, his credit score will reflect it. Also, watch for judgments for uncollected rent and damages. A responsible tenant will pay his rent on time and in full, and of course, he won’t damage the property.

A good tenant is respectful.

If your tenant doesn’t respect you, you’re in for trouble. He will likely try to take advantage of you by paying late or asking for concession after concession. You can tell whether he’ll respect you after he’s your tenant by the way he treats you before he’s your tenant. Trust your instincts on this.

Respect isn’t just limited to how he treats you. If the tenant isn’t respectful, he may abuse the property by doing things like slamming doors or letting his children color on the walls. Or, he may simply neglect the property because he doesn’t respect you enough to care.

A disrespectful tenant may also become a neighborhood nuisance because he doesn’t respect others enough to play his music at a reasonable decibel or keep the landscaping well-maintained.

A good tenant can pay.

This is a no-brainer. If a tenant cannot afford the rent, you shouldn’t be surprised when he doesn’t pay the rent. A good rule of thumb is that the rent should not exceed 30 percent of the applicant’s income. In fact, you may want to make that one of the written criteria for qualifying to rent the property.

But, just because the rent rate is less than a certain percentage of the applicant’s total income doesn’t guarantee that he will be able to pay. He may be overextended in other ways or live beyond his means. Again, a credit check is a good indicator of how the applicant manages money. Theoretically, the better he manages his finances, the better his credit score will be.

A good tenant is creditworthy.

Saying a tenant is creditworthy is another way to say he has a good credit score. The tenant’s credit score reflects whether he pays his bills on time, how much debt he has, and his type of debt. A detailed report may also indicate whether he has had judgments against him for uncollected rent or damages.

Running credit and background checks is an essential part of the application process along with verifying the applicant’s employment, verifying his rental history, and calling on his references. If you manage your own property, you can use online services such as Tenant Verification Service or TenaCheck, to check an applicant’s credit score. (A property manager will obtain the tenant’s credit score and verify his application if you use one to manage your properties.)

A good tenant is honest.

There are so many ways a dishonest tenant can trip you up. He can obviously lie about mailing the rent, having his hours cut, or not knowing why his check bounced, but he can also lie about what happened to the dishwasher or the information on his application.

During the application process, the only reliable way to catch a dishonest tenant is to verify his application’s information. Start by requesting a copy of his drivers’ license (most tenant screening services require one along with a completed application before running a credit check). Do his name and information match what is on the application?

Next, call his employer. You’d be surprised at how many applicants don’t earn as much money as they say they do on the application. Follow that phone call with one to his current landlord, even if it’s his aunt. Has he really lived there for one year or just since he was evicted from the last rental? Finally, call any references, if listed, to get their impression of him.

A good tenant is clean.

You want someone who will take good care of your property, not someone who will leave food remnants build up in the microwave or let trash pile up on the patio. Potentially, the bigger the mess the tenant makes while he is in your property, the bigger the mess you will have to deal with when he moves out. Also, filth can attract bugs and other pests and lead to an infestation.

If you have to be careful judging the applicant on his appearance, the appearance of his car, or the appearance of his current residence if you have the opportunity to meet him there. Refusing to rent to him solely on appearances can be a violation of the Fair Housing Act. Instead, cite a measurable indicator, such as his credit score, or the fact that he lied on his rental application.

However, if he meets all of your criteria, let him know your expectations for maintaining your property and include a “cleaning” clause in the lease. The “cleaning” clause will allow you to evict based on a violation of the lease if the property isn’t kept clean.

A good tenant is drama-free.

Some tenants thrive on drama. These are the tenants that call with excuse after excuse about why the rent is late: they lost their job, their wife left, their dog died. Their life is one problem after another, and you’re invited to the party.

It’s not as tricky to spot these tenants as you would think. They will tell you about their hard knock life (in fact, good luck getting them to shut up about it). Fortunately, these tenants often have histories of late payments and evictions, so you shouldn’t have any trouble finding a reason to not rent to them. A good tenant doesn’t make excuses and doesn’t bother you unnecessarily with his life details.

 

Friday Focus: Bathroom Updates

Friday Focus: Bathroom Updates

Bathroom Style Revolution and the Resale Market

It was tucked away in a backwater of The Wall Street Journal’s online Design tab, which is actually just a sub-section of their Real Estate section. “The Rise of the Colorful Bathroom” was like a conceptual hand grenade tossed into the placid lagoon of home decor orthodoxy.

As far as design insights likely to affect our area’s home resale market, the pointers found in Design lately haven’t been particularly noteworthy. This month, there had been a piece about metal versions of “The Classic Peacock Chair.” That might have had some impact in Rangoon, but here in town, where peacock chairs are few and far between, it scarcely ruffled a feather. Similarly, there had appeared “A Décor Lesson in Subtle Patriotism” with marginally subtle red, white and blue illustrations—but especially since it first appeared after the July 4th weekend, local readers were unlikely to run that one up the flagpole…

But now, tucked away beside a Most Popular Videos sidebar, came this subversive “Rise of the Colorful Bathroom.” An excellent illustration showed an example of how far the author was willing to go: it portrayed a stark blue bathroom wall and sink featuring clapboard-like blue-and-gray porcelain tiles: the blue plank special. Did this mark a warning shot over the bow of one of the longest unchallenged home décor conventions—that the American bathroom palette should be, in the author’s phrase, “compulsively neutral”?

If so, would the new trend force homeowners poised to enter the area’s home resale market to have to expensively retool their bathrooms’ calming hues?

Fortunately for the budgets of local home sellers, a close reading made that unlikely. Although the National Kitchen and Bath Association (NKBA) does report some tip-toeing by their members in the direction of bathroom color infusions, no more than 10%-15% of them actually expect to decorate more baths “in green, blue and black”—at least for this year. There were also tacit admissions that the Colorful Bathroom’s Rise might become somewhat diluted before it spreads much further. “Muted beats candy bright” was the caption describing a mid-toned bathroom, displaying an almost traditional “quiet, palatable personality.”

Some designers also expressed some reluctance to jump on the Colorful Bathroom train—at least in one part of the rainbow. Palm Springs designer Christopher Kennedy may opt for small touches of bright color, but will always “avoid pea greens and acid greens” because “they aren’t so great on the skin.” He goes in a rosier direction, with hip colors like blush “because it makes you look beautiful.”
As far as townhome resale prospects are concerned, one devil-may-care subhead gives away a quite possible impact. The genuinely cool blues to emphatic blacks are labeled “resale-be-damned” colors. As we near the end of the hectic peak selling period, most local sellers continue to choose much more of a resale-be-welcome disposition.

5 Tips to Modernize Your Home’s Outdated Bathroom

How many times a day do you find yourself in your home’s bathroom? A home’s bathroom sees some heavy traffic, and any prospective buyer will want to take a look at what it has to offer them. That’s why it’s absolutely vital that you dress up your bathroom just as you would any other room of your house for a buyer visit – and dress it up the right way. An attractive bathroom needs modern style and amenities, and you can install them to really wow your buyers.

A Modern Take on Your Walls and Floors

Tiles are all but a necessity in your bathroom since few other flooring and wall options handle the heat and humidity of your bathroom better. However, plain tiles in ugly colors will do nothing to impress. Take a page from today’s hot interior design trends, and check out the options available to you. Arty geometric patterns are all the rage in every interior style area and can have a bold and elegant impact in your bathroom. Classic whites will always have a bathroom color-picking place, but think outside the box: try metallic chromes or grays, bold blacks, or add a splash of color. Wine reds and nautical blues are excellent complements to blacks and whites, respectively, and will add visual interest and modern taste to your bathroom, without losing any classic flair.

Shedding Light on Your Situation

Good lighting is an essential part of any room, and you can modernize your bathroom quickly by simply updating the light fixtures. Consider the style you’d like your bathroom to show off, and adjust your lighting accordingly. Modern, sleek, and chic bathrooms benefit from strong lighting and elegant, minimalistic fixtures, but be sure that the glare isn’t painful. A more romantic style can call for softer lighting and more elaborate fixtures. The addition of stylish mirrors can not only accentuate your lighting’s effects but can also make the room seem larger.

Cabinets, Storage, and More

Bathroom cabinets don’t have to exist as an afterthought to the rest of the room – indeed, they can be what really pulls together the overall aesthetic. Your bathroom countertop is a perfect canvas to add a splash of pattern and color to an otherwise minimalist room or act as a sleek anchor in a room that pops with geometric design. Storage cabinets can be accented with attractive handles and, above all, no smart buyer can ever say no to loads of storage and counter space. Get creative with adding unique storage to the room, and you’ll be able to expand your bathroom’s utility and space astronomically. The addition of storage to a standing shower area is both shrewd and convenient, and wall storage units can be a tangible way to clear off bathroom counter space.

The Modern Way to Clean

Your shower and tub are the centerpieces of your bathroom, and if you’re looking to sell your home, bringing them into the modern age is an excellent way to up the wow factor for prospective buyers. While the traditional bathtub still has its devoted fans, standing showers are easily the most significant bathroom design trend today. Removing your tub for a standing shower will significantly expand your bathroom to the eye, and the accessibility and ease of cleaning that a standing shower grants is a huge plus for seniors and those with disabilities. The addition of seating in your standing shower can increase this accessibility for anyone who steps in. Standing showers are an undeniably great canvas for artistic interior design, and can make or break your bathroom’s aesthetic. More rustic rooms can benefit from cobblestone walls, while chic rooms are all about sleek smoothness.

However, the simple bathtub is hard to give up for many buyers, even withstanding showers’ trendy looks and convenience. Modernize your bath by taking it out of the wall and replacing it with a stylized ceramic standing tub. It’s a great conversation piece for the room and is sure to please any bathtub fan. If your bathroom has the floor space, you may want to consider splitting the difference: a standing shower and standing tub combo or the real favorite, a standing shower, and Jacuzzi combo.

It’s not just about showers versus tubs when it comes to this part of bathroom design: pay attention to other convenience features that can wow buyers. Removable showerheads and attachments make cleaning easy, and the addition of low lighting to your shower can make for a relaxing, romantic atmosphere – just make sure that the lighting is certified for wet and damp environments. For your hardware selection, stainless steel will always have a place in the bathroom design world. However, if you want cutting-edge style, try chrome or brass work.

Saving the Planet, One Eco-Friendly Toilet at a Time

Eco-friendly bathroom appliances are designed to lower a homeowner’s resource consumption by requiring less water and less electricity to use. Not only are they an earth-friendly way to go about your daily life, but they also will save you big on your water and electric utility bills and come with rebates from government programs: making them a very attractive buy for any homeowner, even those that couldn’t care less about the push for green appliances. Water-friendly showers, sinks, and toilets are available from any local home improvement store, and a switch to LED lights is as simple as changing the bulbs. Installation is simple and can often be at least partially covered by the government rebates mentioned above. You’ll be able to sell your home on its green merits, as well as its newly economical bent.

A modern, updated bathroom is an excellent addition to any home and can charm buyers when they set eyes upon it. Even the most straightforward bathroom improvement project can provide considerable results in a buyer’s eyes and can help your home sell for more, faster. Consider what kind of updates your bathroom needs to get with the times, and go forth to get it up to speed.

3 Things That Are Key to an Equity-Boosting Bathroom

A bathroom renovation can add value to your property if it’s done right. These three things are critical.
According to the 2015 Remodeling Cost vs. Value Report issued by the National Association of Realtors in conjunction with Hanley Wood’s Remodeling Magazine, a bathroom remodel can add up to 70 percent of its cost to the home’s value. But, you shouldn’t expect to recoup anywhere near that if you don’t make smart renovations.

How do you renovate your bathroom, so you add value to your home? Start by taking the time to assess your home’s value. (Consult a real estate agent for an accurate estimate.) The last thing you want to do is price yourself out of the market by spending $25,000 on a bathroom in a neighborhood where the average home price is $150,000.

Once you’ve set a reasonable budget, spend wisely. Every home will have different needs, and some renovations won’t make as much sense in one neighborhood as they would another. However, these three guidelines will keep you on track and help you add value to your home.

Think Simple

An upscale bathroom renovation—defined by the cost vs. value report as one that costs approximately $54,000—rarely offers a good investment return. Instead, it recommends sticking to midrange renovations of $40,000 or less. But even that figure can be misleading.

According to interior designer Katie Orin of Home Rescue 411 and KTO Designs, you can remodel a bathroom without spending a lot of money. Replacing the toilets and vanities may not be as sexy as glass tile, but it can have a huge impact, she says. Other cost-effective improvements can include replacing faucets, showerheads, or the mirror. Give the room a fresh coat of paint, and you have an inexpensive renovation that recoups a large percentage of your expenditures while adding value to the property.
On the other hand, you run a risk when you incorporate trendy elements and accents into your bathroom renovation. Those glass tiles look fabulous in the magazine, but they can make the bathroom look dated and worn in five years. (Contractors call this stylistic depreciation.) At that point, when buyers walk through your home, they mentally subtract value from your home because they’re calculating how much they will have to spend to update your renovation.

If your goal is to boost your home’s equity, keep your bathroom renovations modest and conservative. Don’t overspend, and don’t over decorate. Instead, focus on updating the essentials like the sink or faucets. When it comes to materials, choose basic, such as ceramic tiles, instead of trendy materials that will all-too-soon the property.

Make the Master Regal

If you are going to splurge a little on any bathroom renovation, make it the master bathroom. Buyers today have certain expectations when it comes to this area—at the very least, they want side-by-side sinks, an upgraded shower, and great lighting. Without these items, the master bathroom can actually be a turnoff, so spending a little more money may be worth the investment.

Balance is the key. You don’t’ want to overspend because you won’t be able to recoup your renovation costs, but at the same time, if you fail to make necessary renovations, you could turn buyers off. So, how do you strike that balance? Bring the bathroom up to date with buyers’ wants and needs but don’t go overboard. Add that second sink if you only have one in the master bath, but don’t install something over-the-top like electronically activated faucets, if you are more concerned about boosting equity.
The same applies to the shower. Buyers want an upgraded shower in the master bathroom, but that doesn’t necessarily mean you need to pull out the existing shower and put in a custom snail shower during renovations. If the shower is in good condition, you can hire a professional tub and tile re-glazer, Orin says. A white glaze will make the shower look new.

You don’t have to skimp, though. If you plan to stay in your home long term (five or more years), make the changes you want to your master bathroom. Just realize that you probably won’t see a boost in equity from upscale renovations like heated master bathroom floors, audio systems, and saunas.

Increase the Size

People have expectations when it comes to the number of bathrooms a modern house should have. A home with one full bathroom, even if there’s a second, half-bath, is just not going to cut it anymore. If your home has only one full bathroom, consider converting the half-bathroom into a second full one.
In the case of the home with one full bathroom and one half-bath, this could entail simply adding a shower to the existing bathroom. Or, you may have to knock out a wall and incorporate square footage from another room to increase the second bathroom’s size. It can be an expensive remodel, but it will almost certainly add equity.

On the other hand, if your property only has one bathroom, adding a second bathroom can increase the home’s value by up to 58 percent of the cost of your renovations. It’s not a great return, but it definitely makes the property easier to market since most buyers are looking for at least a 3-bedroom, 2-full bath home.

Adding a bathroom takes extra time and effort, so it’s not for everyone. The renovation is involved, especially if you physically add square footage versus converting existing space, like an unused closet, into a bathroom because it involves extending the foundation and roof and putting up new exterior walls. If that sounds expensive, it is. According to the cost vs. value report, you can spend anywhere from roughly $40,000 to $75,000 on a bathroom addition.

When in doubt about whether adding an additional bathroom is a good idea, talk to a real estate agent who can tell you what’s appropriate for the neighborhood and estimate how much value the new bathroom could add.

When Career Upheaval Results in a Relocation Scramble

When Career Upheaval Results in a Relocation Scramble

By Kevin Shirley, Associate Broker (DC), GRI, ASP, e-PRO

Remember the good old days, when most people could depend on staying in the same job in the same community for an entire career? Okay, the truth is, I don’t actually remember any time like that — but I do remember watching TV shows about it(!).

The truth is, as with so many other facets of 21st-century life, sudden career upheavals that cause someone to undertake an abrupt relocation are relatively common today. And accelerated timing requirements can make the situation more intense.

Even without that added obstacle, familiarity with the ins and outs of practical relocation is one of the most valuable assets you gain access to when selecting an experienced local REALTOR. Especially when a relocation is in your immediate future (even if it’s a future that became apparent without a lot of warning), the reality of having to deal with the multitude of details accompanying both moving out and moving in can seem like a vast gray, angry-looking cloud hanging overhead.

Just getting a handle on the details can go far to remove the mystery and dispel anxiety. Here is a shortlist of the elements that need to be determined and coordinated:

  • Professional and school requirements
  • Transaction imperatives in both communities
  • Moving and storage details
  • Utility requirements

Once a timeline is determined and a to-do checklist assembled, it will be possible to stay on top of the process. Most importantly, it will help highlight those details that seem to be falling behind — allowing them to get extra attention. Staying abreast of relocation details is the single most important keys that will lead to a smooth outcome. It’s one of Murphy’s Laws that, come moving day, any detail that has been put off until the last minute is likely to cause foul-ups of one kind or another. For instance, if the electric service wasn’t notified far enough in advance, count on the move taking place on the hottest day of the year. Unpacking cartons and moving furniture around without working air conditioners is a memory best avoided!

Any relocation is a challenge that requires a welter of decisions in areas that fall outside what people encounter in everyday living. Fortunately, it’s a challenge that your local real estate professional encounters regularly. Help with relocation to (or from) the DC area is just one of the areas of practical expertise that you can tap into when you put an experienced REALTOR on your team.

The days when most Americans expected to stay in the same community for a lifetime may be fading from memory, but being able to rely on your local real estate professional to help master some of the most challenging upshots is still here. They may say that nostalgia isn’t what it used to be, but that shouldn’t stop you from giving me a call anytime!

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KEVIN SHIRLEY is a real estate professional with almost twenty-five years of experience. He is an Associate Broker with Long & Foster Real Estate in Washington, DC. He is also an Accredited Staging Professional and a Graduate of the REALTOR Institute. He graduated from the University of Mary Washington with a Bachelor of Arts Degree in Classical Civilization and Art History. Find his author page on Facebook; e-mail him at kevin@realastute.com; call/text him on 202.320.6634.

The Cost of a Home Is Far More Important than the Price

The Cost of a Home Is Far More Important than the Price

Housing inventory is at an all-time low. There are 39% fewer homes for sale today than at this time last year, and buyer demand continues to set records. Zillow recently reported:

“Newly pending sales are up 25.5% compared to the same week last year, the highest year-over-year increase in the weekly Zillow database.”

Whenever there is a shortage in supply of an item in high demand, the price of that item increases. That’s exactly what’s happening in the real estate market right now. CoreLogic’s latest Home Price Index reports that values have increased by 5.5% over the last year.

This is excellent news if you’re planning to sell your house; on the other hand, as either a first-time or repeat buyer, this may instead seem like troubling news. However, purchasers should realize that the price of a house is not as important as the cost. Let’s break it down.

Several factors influence the cost of a home. The two major ones are the home price and the interest rate at which a buyer can borrow the funds necessary to purchase the home.

Last week, Freddie Mac announced that the average interest rate for a 30-year fixed-rate mortgage was 2.87%. At this time last year, the rate was 3.73%. Let’s use an example to see how that difference impacts the actual cost of a home.

Assume you purchased a home last year and took out a $250,000 mortgage. As mentioned above, home values have increased by 5.5% over the previous year. To buy that same home this year, you would need to take out a mortgage of $263,750.

How will your monthly mortgage payment change based on today’s lower mortgage rate?
This table calculates the difference in your monthly payment:

That’s a savings of $61 monthly, which adds up to $732 annually and $21,960 over the life of the loan.

Bottom Line

Even though home values have appreciated, it’s a great time to buy a home because mortgage rates are at historic lows.

Makeover Your Investment Property Kitchen for $500

Makeover Your Investment Property Kitchen for $500

There is nothing like looking at a design magazine or reading an inspiring article to get you excited about renovating your kitchen, but your options might feel limited on a tight budget. With so many resources available and enough elbow grease, you would be surprised how easily you can transform your kitchen.  Here are some simple ways to update your investment property kitchen without breaking the bank:

Paint

It goes without saying that paint can truly transform a room. Thankfully it is also a very cost-effective way to update an otherwise ugly space. The avocado green walls may have suited your grandma, but it’s contributing nothing but retro vibes to your kitchen right now. Aim to choose warm neutral tones as these colors give a welcoming impression and are more appealing to potential buyers.

Deep Clean

Nothing sends people running faster than a filthy kitchen. This might seem like an obvious step, but a sparkly clean space is one of the most inexpensive ways you can maintain the value of your investment property. Once your kitchen has gone through a deep clean, it will peel back layers of grime that accumulate through the years, revealing some things you may have never noticed before. If the grout was once stained but cleaned up nicely, you might be able to skip replacing it. A clean start will help you determine the areas that genuinely need updating and other areas you can save.

Update Accessories

One extremely minimal way to update your kitchen is simply to change out a few prominent kitchen accessories. This includes a new:

  • spoon rest
  • hand towels
  • fruit bowl
  • wine rack
  • colorful floor mat
  • decorative shelving
  • pretty utensil container

Another way to freshen up the kitchen on a dime is to display fresh fruit like lemons or oranges in large apothecary jars or place a vase full of fresh flowers on your kitchen counter. Sometimes a pop of color can add so much warmth. Lisa Canning, a Toronto-based interior stylist, adds, ” Swapping kitchen accessories in and out, such as dishtowels and counter-worthy accessories, is another simple and effective way to change the color and feel of a kitchen with minimal cost.”

Get Creative

Anyone on a shoestring budget knows you have to think outside of the box when it comes to decorating. An excellent way to save while updating is to re-purpose old items. Laura Gaskill of Houzz suggests, ” Work in rustic elements. Farmhouse accents instantly add warmth and character to a bland kitchen. Replace the kitchen or pantry door with a sliding barn door, hang copper pots from a ceiling rack or bring in a timeworn antique wooden stool.” Try visiting your local thrift store to see if you can find some statement pieces with rustic appeal. Glass mason jars also add a creative solution to storing grains, cereal, and spices, while still looking pretty on display.

Add a Chalkboard

Chalkboard walls bring a fresh, functional addition to your kitchen. Since the kitchen is the home hub, having a feature that’s easy to add and remove is an excellent budget-friendly investment. Chalkboards are great for displaying your menu, sharing note-worthy quotes, and entertaining children. There are several approaches you could take:

  • feature one cupboard as a ‘grocery list’ zone
  • use your chalkboard as an accent wall
  • frame it beside your dining table
  • paint a few inside your pantry
  • distinguish a space like your herb station or coffee bar

With enough creativity, the possibilities are endless and easy to paint over if you grow tired of it.

Revamp the Hardware

Changing the drawer pulls on your kitchen cabinets can give them an instantly modern new look. While focusing on cost-effective ways to update the kitchen, you should consider spray painting the old pulls. Beautyandbedlam.com shares some real-life design advice, “Why, oh why, did it take me so long to spray paint my kitchen cabinet knobs (or “pulls” for the decorators out there)? It took all of thirty minutes and makes such a remarkable difference. Seriously, if you have those infamous 80’s and 90’s ‘in your face, gold brass knobs’ take a minute and update them. You’ll add a fresh, perfect punch to your kitchen, bathroom, and bedroom…wherever you have outdated hardware (and trust me, my whole house is full of it).

Install a Back-splash

A lovely back-splash can give your kitchen a quick, updated look. Don’t think just because you have a small budget to work with that your options are minimal. Here are some out-of-the-box ideas for finding a fresh back-splash:

  • pegboard
  • vintage postcards or maps
  • salvaged wood
  • home-made mosaic

Add a Kitchen Island

You might not be able to go out and add the kitchen island of your dreams, but there are plenty of alternative use items that function as beautiful islands. Consider converting an old table, vanity, or desk into a statement piece for your kitchen. Check out your local thrift store and see what funky pieces you can find. Add a fresh coat of paint, install some new hardware, and your once-bare kitchen will dazzle. You can add cup hooks or shelving to one end for extra storage and a few barstools around the edge to provide additional seating. Kitchen Designer Nadia Hursky shares, “Have a large open-plan space with a kitchen island if possible. Buyers often want to multitask in the kitchen. They want to cook and have their kids do their homework and socialize in it.”

Factor in the Splurge

Chances are, there is one thing about your outdated kitchen that significantly bothers you the most. This is an area worth spending on; however, there are ways to cut corners and get the most bang for your buck. Narrow down the major problem areas of your kitchen and work your budget backward, considering what update will yield the best investment down the road.

Top 5 Things to Consider in a Home for Real Estate Investment

If you plan to buy a property as a real estate investor, you must choose carefully to improve your odds of success.

Choosing a home for real estate investment that will turn a profit requires a lot of research. All real estate is a high-risk investment. However, certain types of properties present greater risk factors than others. Here are some things to consider to improve your chances of success if you are trying to purchase a home for real estate investment.

If you are considering purchasing a home as a real estate investment, there are a lot of things that you will have to deal with to successfully invest in a property. In some cases, an investor may opt to simply buy and upgrade a property to resell. In other cases, the investor may be looking to rent the property out to tenants.

If you plan to purchase a home, you should be aware that many unexpected problems can arise that you need to make sure that you can budget for. If these unexpected events are not factored into your budget, you run a high risk of failing to realize your investment return.

Here are some things to consider if you are planning to purchase a home for real estate investment. In addition to evaluating the property itself, you should also figure out the property management costs involved if you plan to have tenants.

Will the Home Pass an Inspection?

Not all homes will pass a home inspection. This is especially true of foreclosed properties neglected either before or during the period the property was owned by the bank. If you are considering buying a home that appears to have significant issues, it is good to hire a home inspector to thoroughly investigate the property. If the home does not pass the inspection, you may find that the property has significant structural issues that might render it unlivable.

“The structure upon which your investment property is built is one of its most important elements. It’s also one of the hardest places to spot issues. Unless the foundation is buckling or significantly bowed, you may not notice some bulges and cracks. You may not have the tools to determine how level the floor is or how to identify if any shift is due to structural deficiencies or normal settling.” says Ken Horst, owner of MLS Maps.

Upgrades Required to Sell

If you are buying a home with the plan to update it and then sell again, you must consider the number of upgrades needed to make this possible. A thorough home inspection can help determine where there are issues so that you can obtain estimates on the repairs’ costs before you decide to buy.

Some homes may require simple upgrades, such as new flooring or a fresh paint job to sell. However, the changes that need to be made in older homes may be far more extensive. Homebuyers are looking for energy-efficient appliances, modern kitchens, and bathrooms. They may also want adjustments to be made to the electrical or plumbing system if it is outdated.

You may also find out from the home inspection that the upgrades’ costs are actually out of your budget. If there are too many repairs that will need to be made to realize a profit, you may want to skip out on making an offer on the property.

How Much Time Is Required?

It is also essential to consider how much time you have to dedicate to your real estate investments. If a home requires significant upgrades or you will be dealing with tenants, you will need to decide how much time you have to spend on this before you invest in the property.

When it comes to rental properties, some types of properties are more labor intensive than others. Dealing with tenants who occupy properties, such as vacation rental properties or college apartment rentals, can require more time because the turnover rates are higher in these kinds of properties. This means more time screening new tenants and a higher risk of vacancies depending on the area and the time of year.

Do the Numbers and the Research

Are you aware of all of the costs that are involved? Many first-time real estate investors make the mistake of underestimating the costs that are associated with buying a property. They realize that there will be repairs required to maintain the property. However, other costs may arise, such as legal fees, utilities, maintenance concerns, vacancies, and evictions.

“Development of real estate, land, Tenant-In-Common (TIC) investments, private real estate funds, fixer uppers, etc., all have much higher risk profiles than just simply buying a nice established cash flow investment property. In many of those investments, you will never see a dime of your money again because there are just so many things that can go wrong!” says Leonard Baron, a lecturer at San Diego State University.

Doing research and crunching the numbers before purchasing a property can help you determine if the property is the right opportunity for you as a real estate investor. By working with an agent specializing in buying and selling properties for investment, you have a better chance of finding a home that will be a winner.

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KEVIN SHIRLEY is a real estate professional with almost twenty-five years of experience. He is an Associate Broker with Long & Foster Real Estate in Washington, DC. He is also an Accredited Staging Professional and a Graduate of the REALTOR Institute. He graduated from the University of Mary Washington with a Bachelor of Arts Degree in Classical Civilization and Art History. Find his author page on Facebook; e-mail him at kevin@realastute.com; call/text him on 202.320.6634.