Tag Archives: Real Estate market Trends

High-Resale Value Projects You Can Tackle In a Weekend

You live in and love your home, but there might come a time when you have to leave it. And when that time comes, you’ll want to get as much money as you can for your property so you can move onward — and upward.

In order to increase your abode’s value, you might think you have to put in a ton of time, effort and money, but that’s not entirely true. Instead, you can take on weekend projects over time to spruce the place up so when it’s time to sell, you have a completely updated property that’ll end up selling itself.

Ready to get to work? Roll up your sleeves and start on one of the following five weekend projects.

1. Repaint Your Kitchen Cabinets

When it comes to smart investment in your home, the kitchen is one of the best places to start. Buyers expect kitchens to be updated. Stone countertops, stainless appliances and sleek flooring all make a space feel modern. Obviously, these changes require a lot of money and, sometimes, a lot of time. That’s why you can tackle it in bits and start first with your cabinets.

Old wooden cabinets with equally dated hardware — think oak doors with shiny brass handles — don’t require a complete gut job. Instead, spend a weekend repainting them a more neutral hue. Finish the project off with new metallic knobs and pulls to complete the modernized look.

2. Make the Eye Go up With Crown Molding

Most homes have roughly the same ceiling heights, but there’s a little trick to make yours look bigger — crown molding. Yes, that white line at the top of your painted walls will draw eyes upward, making the room appear airier than it may very well be.

The project is easy enough to complete, too. You might not be able to install molding throughout your entire home over a single weekend, but you can certainly tackle the project on a room-by-room basis. Again, start with the spaces likely to draw in the most moolah:

  • Kitchens
  • Bathrooms
  • Living spaces
  • Master bedrooms

These tend to be the make-or-break rooms when it comes to a big purchase. Crown molding adds a bit of detail, a feeling of luxury that’ll certainly add to the bottom line.

3. Boost Curb Appeal — and Backyard Bonuses

No one will come in your home unless the first impression is stunning. Another DIY project should be a landscape overhaul of your front yard. It can be something as simple as adding a path of pavers to your front yard or sprucing up your flowerbeds with colorful blooms. All of this will catch the eye of potential buyers — and fatten up the bottom line of the offers they make.

Another easy fix — your garage door. If it’s street-facing, it’s another area for prospective buyers to look at, and it has a great return on investment.

You don’t have to stop with the front of your home. Especially if you live in a climate that permits lots of outdoor activity, you’ll want a backyard to match. Some may require you rent or buy tools for landscaping and other applications, but imagine the payoff with, for example, the beauty of a functioning fire pit in your backyard. Not only will you be able to enjoy it while you’re still living in your home, but potential buyers will easily be able to envision themselves sitting around a fire.

4. Beautify the Bathrooms

Bathrooms have a big effect on buyers. They expect clean, modern updates, just like in the kitchen. Overhauling your powder room is an easy weekend task that might require small swaps, such as a new modern light fixture over the vanity or a new vanity altogether.

Your full bathrooms will require a bit more attention if you want them to be up to snuff. Again, look in the familiar places:

  • Lighting fixtures
  • Cabinets
  • Hardware
  • Countertops
  • Tile

You don’t have to shell out a ton of money to have someone else re-tile a wall or backsplash in your bathroom, either, if you have the patience to demo and tile the space yourself.

5. Out With the Really Old

Some accents once considered fresh and fashionable now give your home a dated appearance. You probably already know what in your home screams 70s, 80s or 90s. Whatever it is should go in due course.

The list of outdated design elements is truly endless, but some of the biggest offenders are old-school wallpaper, the floor-to-ceiling wood paneling that may or not be actual wood, and, of course, popcorn ceilings. By removing these three offenders alone —your home will snap right back into 2017.

Once people start envisioning themselves living in your home, you won’t have to envision offers pouring in — they’ll start coming thanks to your hard work!

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Buyers Flocking to ‘Harshest’ Market Yet

The climate is gradually moving toward spring-like temperatures…but it is burning up in housing, with prices rising 8 percent year-over-year, according to a new realtor.com® report. The climb in March sent the median list price to $280,000—above the prior record $275,000 from July 2017.

Based on data from realtor.com, there were 1.29 million March listings (a decline of 8 percent year-over-year), and homes lasted 63 days on-market (a 7 percent decline year-over-year and a 24 percent decline month-over-month).

“Our latest inventory data tells us buyers are out in full force this spring,” says Javier Vivas, director of Economic Research for realtor.com. “Never in history have there been more eyes on fewer homes than today. At the end of March, we observed price gains that put us on pace for half of the homes listed this summer to be above $300,000. Buyers are not just paying more for the same home; the mix of homes in the market is rapidly changing.”

 According to Vivas, the most affordable homes are the most scarce—and the most sought-after.

“The injection of new listings above $350,000 remains healthy, but inventory between $200,000 and $350,000 remains anemic and non-existent under $200,000,” Vivas says. “This bodes well for buyers in the upper and luxury tiers but paints a darker picture for the entry-level market. If the pattern holds, one in 12 listings nationally will be listed above $1,000,000 this summer, while only one in three will be listed under the $200,000—the sweet spot targeted by nearly half of all buyers. In February, above-$1,000,000 homes made up only one in every 40 home sales.”

 “March housing trends show the inventory depletion we’ve seen over the last two buying seasons is carrying over to this year,” says Vivas. “It’s going to be a languid search for buyers this season as they face the harshest, most competitive buying conditions yet.”

by: Suzanne De Vita, RISMedia

What to Consider When Selling Your Home in a Rising Rate Environment

There are many economic variables to consider when selling your home when interest rates are rising. If that’s the only changing economic variable, you’re generally going to see a negative impact on both home sales and home prices. This means as interest rates rise, the buyer pool for your home is going to shrink.

In 2008, the Federal Reserve set rates at 0.25 percent because of the recession and the lack of buyer confidence or demand. Since then, buyer confidence and buyer demand have risen. In December 2015, rates climbed to 0.5 percent and continued to rise to where they are today at 1.5 percent. The Fed has noted rates will rise to 2 percent in 2018 and then 3 percent by 2020.

What Happens to the Ability to Sell Your Home With These Rises in Interest Rates?
If interest rates rise 1 percent and all other economic factors remain the same, purchasing power for homebuyers will decrease by just over 11 percent; therefore, every quarter-percent (0.25 percent) rise of interest rates reduces homebuyer purchasing power by 3 percent.

That means for a home purchase of $300,000, a 1 percent interest rate rise reduces buying power to just under $267,000. So, someone who potentially may have been able to purchase your home may no longer have the buying power to do so. This creates a smaller buyer pool and less demand for your home. It’s also likely to increase supply as fewer people are able to purchase homes.

If mortgage rates rise, it becomes more probable for indecisive buyers to rush into the market, and the short term will likely see a decent boost; however, it could add extra pressure if rates continue to rise without leveling out.

While interest rates play a role in the housing market, there are a variety of personal and economic factors to consider, as well.

What Other Economic Factors Play a Role?
Supply and demand play crucial roles in determining the movement of home prices. If supply goes up, home prices go down. If supply goes down, home prices will probably go up. If demand increases, home prices mostly likely will as well; however, if fewer people are looking to buy homes, then prices will most likely decrease. As a seller, these are important factors to consider when putting your home on the market.

The sale of new homes is another factor to consider alongside rising interest rates because supply and demand will always play a factor in the home-buying process. Supply increases when new homes are created. Assuming that interest rates don’t rise too rapidly, paying attention to new-home inventory levels will give you an indication of what to expect as a seller.

Monthly income, as it relates to monthly mortgage payments, is a more important variable to gauge than interest rates alone. Your debt-to-income ratio plays a larger factor in your ability to qualify for a mortgage than interest rates alone. When monthly income rises, your ability to absorb higher interest rates does, as well. This means that as long as people are making more money, they’ll also be able to pay off any increase in debts.

When the real estate market crashed in 2007-2008, monthly payments of principal and interest were nearing 25 percent of the U.S. median family monthly income. Even with a rise in interest rates, Americans are currently seeing the highest monthly median income in the last 35 years. Because of this, the percentage of monthly income going toward monthly payments is still well below levels that analysts consider dangerous.

One of the largest surprises is the percentage of all-cash transactions for home purchases. Even with interest rates at historic lows, the percentage of all-cash transactions is higher than normal.  Overall, we seem much more hesitant to take out mortgages than we have been in the past.

High stock market valuations allow people to diversify their percentage of assets, cash out and reinvest in real estate to keep their portfolio balanced.

The number of distressed properties is a result of a strong job environment. This allows folks to pay their mortgages without defaulting, while also helping to keep prices up even with a rise in interest rates.

While interest rates play a large factor in selling your home for top dollar, they’re in no way the only deciding factor. All of the factors mentioned above should be taken into consideration before you rush into selling your home because of high interest rates.

By Ryan Fitzgerald,  Raleigh Realty