A recent article from a reputable news source was titled: Here’s why some homeowners still can’t sell. In the opening bullets of the article, the author claimed, “Negative equity is one of the main reasons why there are so few homes for sale.” The article then goes on to soften that stance but we want to bring better clarity to the equity situation.
A recent report from CoreLogic (which was quoted in the article) revealed that over 80% of all homes now have “significant equity,” which means the home has over 20% equity. That level of equity allows the homeowner to sell their home if they so desire. (There was no reference to significant equity in the article.)
If eight out of ten homeowners now have significant equity in their homes, it is hard to make the claim that lack of equity is “one of the main reasons why there are so few homes for sale.”
Here is a map showing the percentage of homes in each state which currently have significant equity:
Thoughts on Homeowner Equity
If you are one of many homeowners who is debating selling your home and are wondering how much equity you have accumulated, contact a local real estate professional who can help you determine if now is the time to list.
With every new iPhone release, we discover new ways we can’t live without our devices. The iPhone 8 is water proof, rust proof, and has the most durable glass yet. It has enhanced stereo speakers, wireless charging, a stellar camera, and more. However, it comes at a hefty price: $699-$949.
You may see that price tag and think, there is so much I could do with $1,000! And you’re right. With $1,000, you could buy a thousand donuts, fly to Europe and back, or even take a couple of cruises.
Or, you could tackle a home renovation which will add value and character to your home. You may be surprised by the scope of projects you can pursue with a $1,000 budget. Here are a few to get you inspired.
Swap out your old front door.
The front door is a signature part of your home’s first impression. If you’re selling your property, a brand-new door in a flattering color can help draw buyers. If you’re renovating for yourself, you can choose a door that speaks to your personality and makes your house feel fresh.
Front Door Installation: $900
Give your bathroom an upgrade.
With this budget, you can have both your toilet and your sink replaced professionally. These two elements can instantly change the way your bathroom looks and feels. Seriously–each installation should take less than two hours! If you’ve always wanted a porcelain vessel sink, consider treating yourself now.
Get the kitchen island you’ve been dreaming of.
Didn’t realize you could have kitchen island for less than 1k? Now that you know, it’s time to get to planning! These fixtures afford so many conveniences. You can chop and prepare foods, create an eating area, or use their drawers and cabinets for storage. You can get a medium moveable island with cabinets and a butcher block top for $225-$550. Built-in ones typically range in price from $500-$2,000.
Kitchen Island Installation: $130-$2,000
Ditch that rickety garage door.
An old garage door can make you feel less secure and bring down your curb appeal. With a new one, you can change up the color and style, and consider useful features like insulation. Some homeowners brave this as a DIY renovation, but that approach is not recommended. These doors are heavy, and if the electrical system is compromised during the installation, you could be looking at a big headache.
Garage door installation: $1,000
Try your hand at a DIY project
You can make some excellent additions to your property all on your own, with a little bit of handy work. Follow a step-by-step guide or buy a ready-made unit to guarantee correct installation, and you’ll be flying through the renovation like a pro. Here are a few which will come in under $1,000.
Add cabinets to your laundry room. You’ll wonder how you’ve ever lived without them. Even one or two cabinets can make a huge difference, allowing you store laundry items out of sight and keep the room more manageable. Basic cabinets run about $150-$200 each.
Treat yourself to built-in bookshelves. It sounds more complicated than it has to be. You can actually purchase pre-made shelving units and install them yourself for $200-$500. Gather all of those books and knick-knacks from cluttered surfaces and integrate them into one cohesive, organized space.
Spruce up your outdoor space with a “bistro patio.” This is a big project, but it will be well worth it to have an outdoor gathering space for those good-weather days. These patios are typically 7×7, which is a perfect size for the DIY-inclined. Outfit it with a few chairs and a firepit, for casual nights under the stars. Materials cost anywhere from $400-$900.
There are many possibilities, with a budget the size of an iPhone 8 price tag. Each of them has the potential to add value to your house, by upping the curb appeal and creating useful amenities. If you have $1,000 to put toward a home renovation, you can make it go a long way with any of these high-impact projects.
Written by the experts at Home Advisor this article was showed on RIS Media’s Housecall
Every homeowner wants to make sure they maximize their financial reward when selling their home. But how do you guarantee that you receive maximum value for your house? Here are two keys to ensure that you get the highest price possible.
1. Price it a LITTLE LOW
This may seem counterintuitive. However, let’s look at this concept for a moment. Many homeowners think that pricing their home a little OVER market value will leave them room for negotiation. In actuality, this just dramatically lessens the demand for your house (see chart below).
Instead of the seller trying to ‘win’ the negotiation with one buyer, they should price it so that demand for the home is maximized. By doing this, the seller will not be fighting with a buyer over the price, but will instead have multiple buyers fighting with each other over the house.
Realtor.com gives this advice:
“Aim to price your property at or just slightly below the going rate. Today’s buyers are highly informed, so if they sense they’re getting a deal, they’re likely to bid up a property that’s slightly underpriced, especially in areas with low inventory.”
2. Use a Real Estate Professional
This, too, may seem counterintuitive. The seller may think they would make more money if they didn’t have to pay a real estate commission. With this being said, studies have shown that homes typically sell for more money when handled by a real estate professional.
A new study by Collateral Analytics, reveals that FSBOs don’t actually save any money, and in some cases may be costing themselves more, by not listing with an agent.
In the study, they analyzed home sales in a variety of markets in 2016 and the first half of 2017. The data showed that:
“FSBOs tend to sell for lower prices than comparable home sales, and in many cases below the average differential represented by the prevailing commission rate.”
The results of the study showed that the differential in selling prices for FSBOs when compared to MLS sales of similar properties is about 5.5%. Sales in 2017 suggest the average price was near 6% lower for FSBO sales of similar properties.
Price your house at or slightly below the current market value and hire a professional. This will guarantee that you maximize the price you get for your house.
Many people are interested to know what kind of return on investment they can expect when upgrading certain items in their homes and which items they should prioritize first. This is especially relevant when selling their home or investment property.
When it comes to house sales and particular rooms, the kitchen is often the room that will make or break a sale. Kitchen projects that are budgeted between 6-10 percent of the total home value will see the highest ROI. Putting your finances into kitchen upgrades is a worthwhile endeavor when it comes to optimizing your home for selling purposes.
The top five projects to prioritize when it comes to the best return on investments are: replacing the entry door, installing a new fireplace, remodeling the kitchen, converting the attic into a bedroom, and replacing the exterior siding or cladding.
For an illustrated look at the best projects to focus on when renovating your home, see the below infographic created by Senator Windows.
shared from Housecall
One of the biggest misconceptions of home buying? The 20% down payment. Here’s how to buy with a lot less down.
Buying your first home conjures up all kinds of warm and fuzzy emotions: pride, joy, contentment. But before you get to the good stuff, you’ve got to cobble together a down payment, a daunting sum if you follow the textbook advice to squirrel away 20% of a home’s cost.
Here are five creative ways to build your down-payment nest egg faster than you may have ever imagined.
1. Crowdsource Your Dream Home
You may have heard of people using sites like Kickstarter to fund creative projects like short films and concert tours. Well, who says you can’t crowdsource your first home? Forget the traditional registry, the fine china, and the 16-speed blender. Use sites like Feather the Nest and Hatch My House to raise your down payment. Hatch My House says it’s helped Americans raise more than $2 million for down payments.
2. Ask the Seller to Help (Really!)
When sellers want to a get a deal done quickly, they might be willing to assist buyers with the closing costs. Fewer closing costs = more money you can apply toward your deposit.
“They’re called seller concessions,” says Ray Rodriguez, regional mortgage sales manager for the New York metro area at TD Bank. Talk with your real estate agent. She might help you negotiate for something like 2% of the overall sales price in concessions to help with the closing costs.
There are limits on concessions depending on the type of mortgage you get. For FHA mortgages, the cap is 6% of the sale price. For Fannie Mae-guaranteed loans, the caps vary between 3% and 9%, depending on the ratio between how much you put down and the amount you finance. Individual banks have varying caps on concessions.
No matter where they net out, concessions must be part of the purchase contract.
3. Look into Government Options
The U.S. Department of Housing and Urban Development, or HUD, offers a number of homeownership programs, including assistance with down payment and closing costs. These are typically available for people who meet particular income or location requirements. HUD has a list of links by state that direct you to the appropriate page for information about your state.
HUD offers help based on profession as well. If you’re a law enforcement officer, firefighter, teacher, or EMT, you may be eligible under its Good Neighbor Next Door Sales Program for a 50% discount on a house’s HUD-appraised value in “revitalization areas.” Those areas are designated by Congress for homeownership opportunities. And if you qualify for an FHA-insured mortgage under this program, the down payment is only $100; you can even finance the closing costs.
For veterans, the VA will guarantee part of a home loan through commercial lenders. Often, there’s no down payment or private mortgage insurance required, and the program helps borrowers secure a competitive interest rate.
Some cities also offer homeownership help. “The city of Hartford has the HouseHartford Program that gives down payment assistance and closing cost assistance,” says Matthew Carbray, a certified financial planner with Ridgeline Financial Partners and Carbray Staunton Financial Planners in Avon, Conn. The program partners with lenders, real estate attorneys, and homebuyer counseling agencies and has helped 1,200 low-income families.
4. Check with Your Employer
Employer Assisted Housing (EAH) programs help connect low- to moderate-income workers with down payment assistance through their employer. In Pennsylvania, if you work for a participating EAH employer, you can apply for a loan of up to $8,000 for down payment and closing cost assistance. The loan is interest-free and borrowers have 10 years to pay it back.
Washington University in St. Louis offers forgivable loans to qualified employees who want to purchase housing in specific city neighborhoods. University employees receive the lesser of 5% of the purchase price or $6,000 toward down payment or closing costs.
Ask the human resources or benefits personnel at your employer if the company is part of an EAH program.
5. Take Advantage of Special Lender Programs
Finally, many lenders offer programs to help people buy a home with a small down payment. “I would say that the biggest misconception [of homebuying] is that you need 20% for the down payment of a house,” says Rodriguez. “There are a lot of programs out there that need a total of 3% or 3.5% down.”
FHA mortgages, for example, can require as little as 3.5%. But bear in mind that there are both upfront and monthly mortgage insurance payments. “The mortgage insurance could add another $300 to your monthly mortgage payment,” Rodriguez says.
Some lender programs go even further. TD Bank, for example, offers a 3% down payment with no mortgage insurance program, and other banks may have similar offerings. “Check with your regional bank,” Rodriguez says. “Maybe they have their own first-time buyer program.”
Not so daunting after all, is it? There’s actually a lot of help available to many first-time buyers who want to achieve their homeownership dreams. All you need to do is a little research — and start peeking at those home listings!
Welcome to 16201 Ginger Avenue in Mead. This home features 3 bedrooms and 3 baths in Mead’s popular neighborhood of Western Meadows.
You will agree this home is spotless and shows as such with it’s clean and tidy set up.
On the main level you will find wood flooring, vaulted ceiling and an oversized master bedroom suite with large walk-in closet. The laundry room, complete with folding table, is also located on this level.
The lower level features a generous family room that walks out to a large patio. Enjoy the beautiful Colorado mountain views that we love so much, from the patio.
Additional features include a spacious 3-car garage and an unfinished basement ready for you to put your own touches on.
This home has fantastic curb appeal, beautifully manicured landscaping and a private fire-pit area – perfect for year around use!