Selling your home in Thomasville is one of the most stressful things you’ll ever go through and one of the most important decisions you’ll ever make. However, there’s a lot more to selling your home than just sticking a sign out in the front yard. Most likely, your home will need a little work before it is perfect.
Therefore, you’ll have to decide whether you need to take care of home improvement issues yourself or, to sell with the expectation that the buyer will be the one to do so. We put together a few pros and cons to doing it each way to make your decision a little easier.
Do The Improvements Yourself
Choosing to complete needed improvements yourself means that you will likely get a higher sales price for your home. In addition, with less work to do, it opens up your home to more buyers than one that is a fixer-upper does. Selling will usually be faster and closing more likely to go smoothly.
On the other hand, chances are good that you will not get the full value you put into those improvements at the closing table. In addition, when you are moving, money may be tight making this an even more difficult proposition.
Sell It As A Fixer Upper
The main benefit of selling your home as a fixer-upper is that you will not have to put that money in up front. If you are in a difficult financial situation or selling your home at a loss, this may be necessary. Additionally, you aren’t the one that has to deal with the contractors and calling around to get quotes on all of the work.
One of the downfalls to selling your home as a fixer-upper is that you’ll likely get a lower price and some buyers won’t even come out and check out your house if they think there is too much work that needs to be done. Plus, depending on the type of work that needs to be done, you may wind up in a pickle during the inspection process. Certain problems can prevent lenders from closing on the deal. You often find the closing process is slower and fraught with more concerns.
The reality is, it really depends on whether doing the improvement yourself or selling it as a fixer-upper is the right choice. Discuss your concerns and speak honestly about your financial picture with your First Thomasville Realty selling agent and perhaps you will have a better idea of which of these options is the smart choice for your situation.
Today’s homebuyers can have specific ideas and personal preferences that influence their decision on what attracts them to a particular property. While some prefer a fixer-upper, many desire a home that’s as close to turn-key as possible. First time home sellers may help expedite the process with six selling tips.
Determine Right Listing Price
A Thomasville home priced competitively in its market typically sells faster. Professional REALTORS® like those at First Thomasville Realty know the area and look at comparative listings to help determine the right listing price. First time home sellers often think their home should list higher, and this can turn away buyers. Trust a real estate agent to know the right price that will attract potential buyers for a sale that makes all parties happy.
Curb Appeal Makes a Difference
Great curb appeal has the power to attract buyers and create a positive first impression. Simple enhancements add to curb appeal:
- Mow the lawn or make sure the walk/driveway is clear of snow/ice
- Prune overhanging branches and trim bushes
- Remove any sickly or dead vegetation
- Replenish missing mulch or rocks in landscape beds
- Replace worn house numbers and/or mailbox
- Add fresh potted plants to porch for pop of color
- De-clutter yard by removing lawn ornaments/art and all kids’ toys
- Have all exterior lighting in working condition
A fresh coat of paint on the front door, clean windows, and a sidewalk swept free from leaves and debris also add to the overall welcoming look.
De-clutter and Depersonalize
Once potential buyers enter the home, it’s time to make another important impression. Homebuyers should be able to visualize themselves living in the space. De-cluttering and depersonalizing the home helps. The fewer items in a room, the larger the space feels. Key areas to de-clutter include the kitchen and bathroom, in particular the countertops. Remove all personal items, storing out-of-sight in a closet or cabinet.
In addition, remove personal photographs and large collections if possible. Children’s rooms don’t need to be completely depersonalized, but it’s essential to de-clutter the space to show it to its best advantage.
Repairs and Replacements
Every home has a few small items that need repair but have fallen to low priority. Before listing the home, take the time to make these repairs and replacements. Tighten that loose cabinet in the kitchen, replace the torn bathroom window screen, and refresh the caulk in the showers. Sometimes it’s the little things that turn off homebuyers and these small repairs may be the tipping point for a sale.
Offer the Extras
In a competitive market, offer extras to entice buyers. Generally, these extras are appliances that stay with the home as part of the sale. Other extras a seller may include within the price of the home are items like window treatments and outdoor accessories like patio furniture.
Consider a Pre-inspection
A pre-inspection can help reduce concerns potential buyers have regarding the home’s current condition. It’s a way to reassure buyers that the house doesn’t have any hidden issues. However, getting a pre-inspection doesn’t mean homebuyers won’t want their own home inspection, too. Consult with a real estate professional to help determine if a pre-inspection may be helpful.
First time home sellers in Thomasville don’t have to be overwhelmed with the process. With the right preparation and the help of First Thomasville Realty, home selling can move swiftly.
1) Do I have enough equity to get a mortgage?
To get a conventional loan, you will usually need to have at least 20 percent equity. This means that your house will have to be worth at least $250,000 to get a $200,000 loan. If you have less equity, you could end up having to pay for private mortgage insurance, which can easily add $100 or more to your monthly payment.
2) How’s my credit?
Most lenders will look at your credit score as a part of determining whether to make you a loan. With conventional lenders, your rate will depend on your score and the higher it is, the lower your payment will be. Other lenders, like the FHA and VA programs have an all or nothing rule. If you qualify, your rate won’t be based on your credit, but if your score is too low, you won’t be able to get any loan.
3) What do I want to accomplish?
Mortgages typically offer a choice as to their term. While the 30-year loan is the most popular, shorter term mortgages save you money since you pay less interest over their lives. They also get you out of debt sooner, at least about your house.
The drawback is that they carry higher payments since you pay off more principal every month. This can make them less affordable for some borrowers.
4) How’s my current loan?
If you have an adjustable rate mortgage, you may want to switch to a fixed rate mortgage simply for the additional security it offers you. On the other hand, if you are planning to move relatively soon, your current mortgage could be a better deal whether it’s fixed- or adjustable-rate.
When trying to decide what to do, compare the cost of refinancing with what it would cost you in additional interest to hold on to your existing loan. While the breakdown is different for every borrower, generally, you’ll need to keep your current house and loan for anywhere from three to six years to break even on the costs of refinancing.
Deciding what to do with your mortgage can be complicated. Working with a qualified loan broker that can consider every angle with you can help you to make a better decision.
Do rooftop solar panels add value to a home, and are they cost-effective in terms of energy savings? The short answer is yes, say the experts. Although more than a million U.S. homes boasted solar panels in 2016, the percentage of solar-equipped households is still miniscule.
That may change, however, as domestic prices for solar installations continue to decrease and property values rise.
The Pros and Cons of Solar
While there is global agreement on the need to encourage cost-effective, non-polluting renewable energy sources, it is also acknowledged that solar effectiveness is not equal in all locations or situations.
Several Southwestern states boast abundant sunshine, a high percentage of roofs that face in the proper direction for solar capture, and high consumption of electricity, including the the need for air conditioning. Experts predict that California could supply 74 percent of its total electrical needs if its roofs were clothed in solar panels. On the other hand, Nevada, with a much smaller population and a different climate, only has the ability to supply 14 percent of its total need. The truth is that solar is not equally beneficial in all locations.
Even so, according to information provided by the Union of Concerned Scientists, more than half of U.S. states have reached or are close to the point where rooftop solar costs are on par with grid costs for electricity. In areas where utility companies offer net metering, solar producers can return excess energy for credit, which results, in the best of cases, in a monthly electricity bill that is extremely low, perhaps even zero.
Before committing to rooftop solar panels, homeowners should ask some pertinent questions. An investment in solar is still pricey, even though installation costs have dropped by about 50 percent over the past decade. With government incentives of various kinds, the total cost may dip to $10,000 or below for an average size home.
On average, the payback on that initial investment will be long-term, even though monthly savings on electrical bills can be immediate. Panel leasing is a popular option, with no initial down payment required, although the lease term may extend for 10 or even 20 years. Another option in some areas is to invest in a solar farm or cooperative.
Pertinent questions include personal motivation: Are solar panels simply a way to save money or do they demonstrate eco-consciousness and a concern for quality of life? Owners should also consider how long they plan to own a specific home before investing in rooftop panels.
Current data suggests that buyers will pay a premium for solar-equipped homes. A study by Energy Sage confirms that buyers in some states are more “pro-Solar” than other U.S. residents, but notes that the national value boost is around $15,000 for an average solar home, and higher in select locales. That equates to between $3 and $4 per kilowatt of solar power generated.
Even though the added value is not uniform throughout the country, it is obvious that rooftop solar panels are emerging as mainstream home amenities.
You’ve probably heard that living near excellent schools or having curb appeal can boost the value of your home. However, a home’s value is dependent upon a lot of different factors. Some of these things are more obvious than others. Things that might seem insignificant can have an impact on your home’s worth. Here are some surprising things that can affect the existing value of your home or how much a buyer is willing to pay for it.
#1 A Blue Kitchen or Bathroom
Painting your home is an easy and cost-effective way to update your Thomasville home. Just make sure that you select the right colors. Based on recent research, walls that are painted cool neutral colors like blue are more likely to appeal to buyers. According to a 2017 study by Zillow, homes with blue bathrooms sell for an average of “Zillow Talk, The New Rules of Real Estate,” homes that are near a Trader Joe’s or Whole Foods grocery store appreciate up to 40 percent faster than other homes. The presence of a popular store like a Trader Joe’s has a positive effect on market values over time.
#3 A Joanna Gaines’ Aesthetic
Joanna Gaines urban farmhouse aesthetic is more than just chic; it can have a surprisingly positive effect on the value of your home. According to a Zillow analysis of home sale descriptions from 2016, houses that had the keywords “farmhouse sink” and “barn door” sold quicker and at a premium compared to similar homes. Listings that had the words “barn door” sold 57 days quicker and for 13.4 percent more than similar homes. For sale listings that included a “farmhouse sink” sold for 8 percent more. So, if you plan to make interior updates in your home, you might want to watch a couple of episodes of “Fixer Upper” for inspiration.
#4 Your Proximity to Starbucks
Do you live within a quarter of a mile from a Starbucks? If so, then you are in luck? A study released by Zillow in 2015 found that homes that were within a quarter of a mile from the Seattle-based coffeehouse increased by 96 percent on average from 1997 to 2014. This number is well above the average of 65 percent of all U.S. homes.
Whether you are in the process of buying a new home in Thomasville or updating your existing home, think about the above factors as they may play a role in the value of your home.