Why Remodeling Your Home Is Worth It

If you are considering selling your home at any point in time, please read through this post because it will be very beneficial to you. Two years in a row now, the cost compared to retained value of remodeling your home has gone up. What does this mean? Basically, it is becoming increasingly profitable to remodel your home in one way or another. Every 20 years or so there is a need for remodeling due to obvious reasons; trends change and styles go out of style. Now is that time! New buyers are putting stress on new types of features. As a real estate agent out in the trenches seeing multiple homes every day, I can testify to the fact that most homes out there need some type of remodeling. The homes that sell quickly and for the highest prices are the ones that have been recently remodeled and updated.

What do I mean by remodeling? Remodeling includes projects such as the following:

- Remodeling the attic for an extra bedroom (Average project cost: $49,438; cost-to-value ratio 84.3%, an increase of 15.6% compared to 2013.)

-Remodeling (finishing) your basement (Average project cost: $62,834; cost-to-value ratio 77.6%, an increase of 10.4% compared to 2013.)

Although these are very beneficial remodeling projects, you may not be willing to spend those amounts at this point in time. If you are considering selling your home very soon, you may want to look more into replacement projects with the best return on investment. Some of the best replacement projects you can do are replacing the windows, siding, roofing, and the garage door(s). However, the most important and cost efficient replacement project:

- Entry door replacement (steel) - this replacement will return approximately 96.6% of the cost into your pocket. There is a low initial cost to replace the entry door and it adds a tremendous amount of curb appeal (Also, the entry door is the first thing the buyer will notice before walking inside and the first impression is CRUCIAL.)

One more aspect to consider which will add a lot of value to your home, as well as having the largest increase in percentage of cost-to-value ratio: back-up generator. These past years have been a flurry of storms, whether it be rain, snow, wind, etc. power outages have been way to frequent for people's liking. A back-up generator, more than anything else, adds security and comfort to a home. It would be well worth the effort to have one installed on your home.

[chart and statistics research found on http://www.remodeling.hw.net/cost-vs-value/2014/trends]

Top Factors To Consider Before You Buy A Home

   
     Whether you are a first-time home buyer entering the market or a seasoned homeowner jumping into the market yet again, there are a few factors that NEED to be considered before you put your signature down.

Financial Status

     First and foremost you need to be fully aware of your financial status, because knowing your financial boundaries is key. If you need a mortgage then it is best to contact a mortgage representative as soon as your ready to begin your home search. The mortgage representative will go over your finances and come up with a price range that you will be able to afford. If you do not need a mortgage or would like to begin figuring what your financial status is on your own, then here is a list of considerations for determining your affordability; Cash available for downpayment, your monthly income, your current debt, and your monthly expenses. Also, your credit score is a key role in your ability to obtain a mortgage as well as a determining factor in what your mortgage rate will be. Better credit means lower rates, so if you have any issues on your credit history be sure to resolve them before you apply for a loan.

Real Estate Agent
     Not everyone will utilize a real estate agent, however I would highly recommend it. From negotiating to utilizing the best vendors, real estate agents can help for a smoother process with less stress and a more beneficial outcome for you. Also, as a buyer you will not be covering any of the commission costs towards the agent because the seller is responsible for that. There are countless reasons to use an agent BUT you need to be very carful to pick the right agent for the job. There are bad apples in every bunch so you need to do your research; search online, ask family and friends for recommendations, and do not be hesitant to interview a few different agents before you make your choice. The agent will be working with you throughout the entire home buying process, so make sure you choose an agent that you can get along with. Also, make sure the agent you choose is familiar with and knowledgeable in the area you are searching.

Location
     Once you have chosen the town or city you will be moving into, the next step is figuring out what part of that town or city is most suitable for you. Make some time to drive through different neighborhoods during all different times of the day and week in order to get a feel for all the areas. Keep an eye out for factors such as traffic patterns, noise levels, and social behaviors. If you happen to see some of the locals outside do not be afraid to stop by and ask their opinion on the area as they would know best.

Utility Costs
     Utilities can really add up for a home and you need to know every expense that you will be incurring to make sure you do not get stuck in an unfavorable situation. Question the seller not only on the amount of yearly expenses but on their frequency of use as well. Not every person lives the same way; the current seller could say that the utilities are low, but the reason for that could be that the seller does not make much use of the utilities. If low utility costs are a main focus of yours then you may want to search for homes with updated, high efficiency appliances.

Resale Value
     The resale value of the home is typically something that is overseen by the buyer, however it is definitly one of the most important aspects of a home purchase. A home is typically the largest purchase you will ever make, therefore you need to make sure you are making a sound investment. Do as much research as you can to develop an estimated future value.

Mortgage Backing For Previous Foreclosed Homeowners

     Obtaining a mortgage in today's market can be a difficult task for some people. Credit scores are the focal point for mostly all lenders and it is causing many people to be rejected as the lenders are requiring a score of approximately 640 for an FHA loan and 740 for a conventional loan. In the case of people affected by the housing market crash and forced into foreclosure, the feat of obtaining a mortgage may seem impossible. NOT ANYMORE! The Federal Housing Administration (FHA) is giving some former home owners a second chance at home ownership. The FHA has sent a letter to mortgage lenders saying that they will offer mortgage insurance to homeowners that once filed for bankruptcy or homeowners that lost their homes through short a short sale of foreclosure during the economic recession. This is great news for many people whose credit scores were ruined by the housing crash.

"FHA recognizes the hardships faced by these borrowers, and realizes that their credit histories may not fully reflect their true ability or propensity to repay a mortgage," according to the letter FHA sent to lenders.

     This does NOT mean that every single person who was foreclosed upon will receive this mortgage backing from the FHA. If you are someone who fits into this category, you will still be obligated to meet all other FHA requirements and the FHA needs to see proof that you are no longer financially constrained. In other words, it will not be a free-for-all as it was in the beginning of the housing bubble where mortgages were handed out regardless of your financial situation. Potential buyers that were once foreclosed upon need to show proof that they are financially able to afford the amount they are being lent. These borrowers will also have to take part in housing counseling and the FHA is requiring all lenders to make sure at least a year has passed since the foreclosure or bankruptcy occurred.