It’s a seller’s market and that means if you’ve wanted to sell your home, now’s the time to do it. These high ROI improvements can increase your property’s value.
Calling all homeowners – if you’ve been putting off selling your home because of the pandemic, now is a pretty good time to consider pulling the trigger and contacting a real estate agent. There’s a lot of buyers taking advantage of the low interest rates and they’re buying houses faster than seller’s putting their homes up for sale. That means you have the potential to sell your home quickly and if you tackle these popular upgrades with a high return on investment, you could walk away with a pretty penny in your pocket.
Let’s take a look at some insights from top agents where they share what upgrades are the most in-demand but will also increase your home’s value.
Upgrading the bathroom
Upgrading the bathroom has always been one of those renovation projects that people tackle first (or look for when shopping for a house). An upgraded bathroom is so desirable because it’s nice to be able to have some “you time” in a space that’s relaxing, functional, and looks amazing.
The top components of an upgraded bathroom that appeals to buyers includes double vanity sinks, luxury shower heads, a large linen closet, new light fixtures and maybe even custom tile work.
Hiring a professional landscaper
Unless you yourself are a landscaper, you can tell which yards have a professional landscaper come by and take care of the yard. Professional landscapers can work their magic and turn a brown yard, overgrown shrubs, flower beds with weeds, and overgrown shrubs into enviable features. Landscapers who are also hardscapers can create masonry retaining walls, water features, and create customized walkways – all of which only help to improve your property’s curb appeal.
Improving or building a patio or deck
When you’re working on your curb appeal, you don’t want to forget the backyard – namely improving an existing deck/patio or creating a new one. Buyers and homeowners alike want a space outside where they can sit outside and enjoy the weather or entertain. If you have enough space for a large deck/patio, you could build a built-in grilling station, a lounging area and a dining area.
Upgrading the kitchen
The bathroom may be a big point of interest when it comes to home improvements, but so is an upgraded kitchen. We tend to spend a lot of time in the kitchen so it would make sense that kitchen upgrades are as functional as they are stylish. Features buyers want include a central kitchen island, more cabinet space, enough counter space (with granite counters) to prepare meals, and stainless steel appliances.
Create a welcoming front porch
It doesn’t matter if you’re interested in selling your home or if you just want to improve the overall look of your home, your front porch should make a statement. You can do this by creating a welcoming seating arrangement with seasonal decor. You can use different materials than the rest of the house to turn your front entryway into a focal point. You can even paint your door a complementary color to the rest of the house.
High ROI home improvement projects are worth the investment
Your home is your sanctuary and of course you’re going to want to make it look it’s best, regardless if you’re trying to sell it or not. When you invest in your home, it increases the value and it gives you a sense of pride because your home looks great. If you need to stick to a budget, you could always ask a real estate agent for advice regarding what buyers really want and what upgrades sell houses the quickest.
Someone out there wants to help save you time, stress, and money. Here’s how you find them.
Image: HouseLogic
Everyone in the market for a house has different wants — pre-war charm, a lush backyard, a welcoming front door in Pantone Ultra Violet, perhaps — but at the end of the day, they all share a need in common: money. Lots of it.
That’s where your mortgage lender comes in.
The right lender can save you time, anxiety, and loads of cash. And the right loan officer — the professional who represents the lender — can be a powerful ally when you close on a mortgage. As with any potentially life-altering partnership, it’s important to choose wisely.
Only You Know Which Lender Is Your Type
There are three types of mortgage lenders — retail banks, credit unions, and mortgage banks — as well as mortgage brokers, who compare loan products via a coterie of potential lenders to help you, the client, find the right one. Before you start narrowing down the candidates, you have to know what you’re looking for, and where to find it. Let’s talk about your options.
Retail Banks
What they are: These are your Chases and Banks of America, plus your local banks. They do their own underwriting (in a nutshell, investigating your finances), so retail banks, especially the smaller ones, can sometimes offer lower fees and less-stringent credit requirements. If you like to have your accounts all in one place, you may want to use your own bank or credit union.
Who you’ll work with: You’ll be assigned a loan officer, who will receive a commission or bonus for writing your loan.
Credit Unions
What they are: They’re not-for-profit and customer-owned, so they’re not beholden to shareholders like a bank. Because of that and their not-for-profit tax status, they typically offer more personal service and lower fees. The flip side is less convenience: They have fewer branches and ATMs.
And to apply for a loan, you must be a member of the credit union’s community, which could be faith-, employment-, interest-, or union-based, among other things. That said, it’s typically not difficult to become a member; the National Credit Union Administration’s Credit Union Locator is a tool for finding credit unions near you.
Who you’ll work with: As with a bank, you’ll be assigned a loan officer, who will receive a commission or bonus for writing your loan.
Mortgage Banks
White-Glove Treatment or Lower Rates?
Getting in touch with an online lender may be more difficult than with traditional lenders. If you’d prefer more hand-holding, consider whether online lenders’ often lower rates and fees are worth the tradeoff.
What they are: These banks, such as AimLoan and PennyMac, only offer home loans. Many online lenders, like Rocket Mortgage by Quicken Loans, operate as mortgage banks.
Who you’ll work with: A mortgage bank will assign you a loan officer, who will receive a commission or bonus from the lender’s gross fees for writing your loan. An online lender is going to offer less hand-holding.
Mortgage Brokers
What they are: Mortgage brokers are essentially personal home loan shoppers — they act as liaisons between home buyers and mortgage lenders to help people find the lowest rates and the best mortgage terms. They’re able to get home buyers the best mortgage rates because they leverage their existing relationships with lenders — something individual home buyers can’t do. By doing the heavy lifting for the borrower, the idea is that they make loan shopping more convenient — and perhaps a bit faster.
Who you’ll work with: A mortgage broker can be an individual agent or a group of agents, who act as independent contractors. In exchange for their services, mortgage brokers typically charge a 1% to 2% fee of the loan amount, which is either paid by the borrower or the lender at closing.
Now that you’re armed with the basics, you’ll want to give yourself time to weigh the options about which lender, exactly, to work with.
It Pays to Shop Around Before You Commit
Over the life of the loan, seemingly subtle differences could add up to tens of thousands of dollars. That money belongs to future you and all your dream vacations, renovations, and remodeling #goals.
So before you choose your specific lender …
Thoroughly research any retail bank, credit union, mortgage bank, mortgage broker, or online option you’re considering. Make sure you’re clear on what they can offer you. About one in five (21%) home buyers said they regret their choice of mortgage lender, according to a J.D. Power survey. You’re doing your homework so that won’t be you.
Don’t be shy about seeking advice. Survey your family, friends, and coworkers — especially the ones who are nerdy about money.
Ask your real estate agent for a second opinion. They have experience with reputable lenders, particularly in your city or town.
Now, let’s say you’ve narrowed your list of potential lenders to at least three candidates. The next step? Finding out whether they will give you a loan.
You Should Seek Out a Lender’s (Pre-)Approval, Too
There’s a world of difference between being pre-qualified for a loan and being pre-approved. Pre-approval means you’ve got skin in the game. It means you’re a boss. And it’s proof that you can buy.
Besides being the grown-up thing to do, pre-approval puts you in a better position when you make an offer. Everyone takes you more seriously. Pre-approval provides evidence to your real estate agent and the seller (or seller’s agent) that a trusted financial institution is willing to finance the purchase.
In most housing markets, sellers are going to expect your to be pre-approved when you make your offer. And when you’re pre-approved, you’re more likely to have your offer accepted — or at least, you won’t lose out on a bid because you have to go back to the bank to get approved for a loan.
As for pre-qualification, it’s an approximation and not necessary unless you have no clue about your creditworthiness and just want a snapshot.
By contrast, with a pre-approval, a lender typically goes deeper and tells you more specifically how big a loan you can get. Caution here: Just because the lender says you can take out a loan for an amount, doesn’t mean you should. Consider your lifestyle and monthly budget to decide on the responsible loan amount for you.
Keep a Lid On Credit Pulls
Lenders pull your credit to pre-approve you, which can ding your score. But don’t let that hinder your comparison shopping; credit bureaus cut mortgage shoppers some slack. Still, this isn’t the time to apply for a car or furniture loan.
To get pre-approved, you must also authorize a lender to pull your credit.
Borrowers with credit scores of 760 or higher can typically qualify for the lowest interest rates.
Borrowers with credit scores below 650 may need to apply for a non-conventional mortgage, such as a Federal Housing Administration (FHA) loan — a government-backed loan that requires a minimum credit score of 580 but lets borrowers make as low as a 3.5% down payment.
Borrowers with credit scores below 580 can still qualify for FHA loans, but they’ll have to make at least a 10% down payment. The lower the score, the tighter the requirements become.
When you’re pre-approved, you’ll receive a Loan Estimate. This three-page document is about to be your new best friend.
It Makes Good Sense to Get Pre-Approved by at Least Three Lenders
A Loan Estimate spells out a future loan’s terms, including:
The interest rate
The length of the loan
Estimated costs of taxes and insurance
How interest rates and payments might change over time
Other important financials
By comparing loan estimates, you can effectively size up your loan options and decide which lender is best for you — and your future. (If you need help navigating the details, the Consumer Financial Protection Bureau offers a sample Loan Estimate with helpful tips and definitions.)
Getting pre-approval early in the process also gives you an edge over other buyers. Here’s why:
The amount you’re approved for can help you determine your price range, and thus save time and frustration when shopping.
It sends a signal to your agent and sellers that you’re serious about buying a home.
It’ll help you move quickly to make an offer when you see a home you like.
And it’s an excuse to celebrate! You now have everything you need to move ahead with that one special lender — and, at the same time, connect with an officer or broker who can help you select the home loan product that’s best for you.
So have a cocktail. Do a dance. Lay back and relax in one of those fancy sheet masks. You’re a (huge) step closer to getting a new house.
HOUSELOGIC
HouseLogic helps consumers make smart, confident decisions about all aspects of home ownership. Made possible by REALTORS®, the site helps owners get the most value and enjoyment from their existing home and helps buyers and sellers make the best deal possible.
In June, winter nights are probably the last thing on your mind. But early summer is the perfect time to plan for those “OMG it’s only 4:30, and it’s already dark ” moments by adding or updating landscape lighting.
The most energy-efficient, easy-to-install option is solar lighting, but it won’t perform as well on dark or snowy days. For light no matter the weather, install electric.
LED bulbs last up to five times longer and also use less energy than comparable bulbs.
With a bit of preventative maintenance, your home’s siding will stay clean and trouble-free for up to 50 years. Fifty years! Clean it this month with a soft cloth or a long-handled, soft-bristled brush to guarantee that longevity.
Start at the bottom of the house and work up, rinsing completely before it dries. That’s how you avoid streaks.
#3 Focus on Your Foundation
Image: Martb/Getty
There’s no better time for inspecting your foundation than warm, dry June. Eyeball it for crumbling mortar, cracks in the stucco, or persistently damp spots (especially under faucets). Then call a pro to fix any outstanding issues now, before it becomes an emergency later.
#4 Seal Your Driveway Asphalt
Image: Cveltri/Getty
Your driveway takes a daily beating. Weather, sunlight, cars, bikes, and foot traffic – all of these deteriorate the asphalt. Help it last by sealing it. Tip: The temperature must be 50 degrees or higher for the sealer to stick, making June a good month for this easy, cost-effective job.
Thanks to Father’s Day, June is the month everyone can get a deal on tools, tool bags, and that multitool you’ve had your eye on. If it’s time to replace a bunch of tools, or you’re starting from scratch, look for package deals that offer several at once. These can pack a savings wallop, offering 30% off or more over buying the tools individually.
KELLEY WALTERS
Kelley Waltersis a Southern writer and editor. She focuses on interior design and home improvement at outlets from HGTV to Paintzen. She lives in Italy a month every year, drinking Negronis and writing in internet cafes.
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