Factors Affecting Real Estate Market

There are a number of factors which control the productivity of a real estate market. These factors make the market to be very volatile hence, it may not be a good venture for everyone. To profit from this industry, you must have superlative analytical skills. The most important factors to consider when evaluating chances of getting better returns from the market include:

Economic growth

Every downturn in the real estate market gets blamed on the economy. Factors such as politics or production play a significant role in the state of the economy. This also affects the housing market. The demand for property is dependent upon an individual's income. In case of an economic growth, there will be an increase in the amount of income and as a result, people will be willing to spend a larger portion of their money on housing facilities. Generally, the demand for property can be assumed to be income elastic.

During a recession, people will not afford to purchase houses. Others may lose jobs thereby making it impossible to make mortgage payments. They may end up losing their houses i.e. houses can be repossessed. Therefore, the state of the economy will have a direct impact on this market.

Demographics

These are data describing the general composition of the population in terms of gender, age, population growth, income and race. It is one factor which enables realtors to anticipate trends in this market. Possessing better anticipation skills can protect you from these dynamisms and hence increasing the probability of profiting from the market. Shifts in the demographics affect the housing market immensely. It is only through these statics that you can determine the types of property in demand and their market value.

Interest rates

The housing market is also affected by the interest rates. Higher interest rates increase the cost of mortgage repayments and as a result, only very a few individuals will be willing to buy homes. In fact, most people prefer renting to buying. Take for instance the drastic increase in interest rates in the United Kingdom between 1990 and 1992. There was a steep fall in the cost of houses. This was also evident in 2007 when there was another serious crisis in the real estate market. This is actually an indication that; global economy, banks and governments can influence the housing market by manipulating interest rates.

Apart from these, interest rates also affect the equity investment. For instance, when there is an increase in interest rates in the housing market, the yield on real estate investment (REIT) becomes less attractive. This reduces their value. On the other hand, in situations where there is a decline in interest rates, the high yield on real estate investment (REIT) becomes more attractive. This makes their value to increase. It's important that all realtors keep an eye on all factors within the local and the global market which can affect the interest rates.

Mortgage availability

In situations where banks are willing to lend mortgages; very many people will be able to borrow large amount of money and hence, they will be able to purchase houses. This increase the demand. For instance, between 1996 and 2006; banks and building societies did not have very stringent lending criteria and hence, quite a number of people could access mortgages. However, after 2007 when there was a serious credit crunch, both building societies and banks tightened the lending criteria. This move denied quite a number of people access to mortgages thus reducing the demand for property.

Generally, these are some of the most important elements which affect the housing industry. If you plan to venture into this market, you must be able to analyze all these elements as they will help you to determine the market value of a property.

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How to flip a house: what you need to know?

Flipping houses is a lucrative business for many full-time flippers. It also provides considerable side income for part-time house flippers. If you watch HGTV on any given day, it is likely that you will come across several shows where property investors take dilapidated homes, which are eyesores, and then convert them into jaw-dropping and chic abodes. Not only that, but they also manage to make a profit after some major renovations.​ This is the world of house flipping.

What Is House Flipping?

Flipping is a quick-profit strategy where an investor buys real estate at a discounted price and then improves the property to offload it at a better price. Rather than buying a property to live in, you are purchasing a home as a real estate investment. It is worth mentioning that the main goal of flipping is to purchase low and sell high.

Flipping houses can be an extremely lucrative strategy, especially if the real estate market is performing well. Note that foreclosures and old homes are popular properties to use in house flipping. This is because most real estate investors can buy these properties fairly cheaply, improving their potential profit.

Can real estate investors actually flip houses without any money down? The answer is yes. If you want to flip a property but don't have enough money for a down payment, don't worry. There are options that will allow you to easily enter the house-flipping market.

Here are three great options to help you flip homes with no money.

1. Hard Money Lenders

If you are not content with parting with a significant amount of money upfront to buy real estate, then a hard money loan can be the answer. Hard money lenders are people who lend money to others at a high-interest rate and often charge points on top of that. Hard money lenders will usually let you borrow comparatively more than conventional banks and other financial institutions.

A hard money loan is one of the best options for individuals who are experienced investors and have one or multiple existing properties. They are also ideal for owner-occupants with substantial equity in their homes and a great credit score.

Another great thing is that you can finance all the property repairs with some hard money lenders. Unlike conventional bank loans, your ability to get hard money financing is not determined by your creditworthiness. However, the fees and rates are often higher with hard money loans. Note that the interest rates may range from 8-15%, and the points range from one to five.

You should also keep in mind that a majority of hard money lenders will typically only loan you a certain percentage of the purchase price — usually around 70%. When evaluating various hard money lenders, you should pay close attention to interest rates, fees, and loan terms.

2. Private Money Lenders

If you have all the technical skills and experience to flip houses, but not the funds, then this option is best for you. Private money lenders are individuals who have the funds and would like to invest in real estate. However, they just do not have the expertise and time, or would rather be on the golf course or beach than swinging mallets. Private lenders have liquid money to spare and are willing to lend you at a predetermined interest rate. Perhaps the most suitable source of finance for no money deals is a private money lender.

The money partner or lender can sit back, relax and pay the money, while the other partner will manage the logistics of the real estate project and ensure they complete the house flip quickly and professionally. You can borrow the whole purchase amount and repairs plus some other costs if you manage to find the right private lender.

It is worth noting that the amount of money the lender will provide you will depend on the comfort level between you and the private investors, the experience, and the real estate deal.

3. Wholesaling

Another great option to flip real estate with no money is using real estate wholesaling. Wholesaling homes is an excellent idea for investors who already have a viable flip business. Keep in mind that for property wholesaling to work in your favor, you've got to have an existing and reliable network of real estate investors looking for a few fix-and-flip deals. So, you cannot simply purchase a house and hope for the best. It is vital to have a plan to succeed. Wholesalers often make money based on a specific percentage of the final sale price, which is typically between 5% and 10%.

When wholesaling fix-and-flip properties, you are selling the opportunity to buy a house without ever assuming the title. You will make an assignment fee as you are acting as an intermediary.

Final Words

Flipping homes with no money down often entails being creative, working with other investors, and thinking outside the traditional loan box. Your best chances of obtaining funding are private money lenders, real estate wholesaling, and hard money lenders.

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WHAT TO KNOW ABOUT FINANCING THE CONSTRUCTION OF A HOME ?

 

1. CAN I GET A LOAN TO BUILD? 

Yes. A greater down payment, typically between 25 and 30 percent, is normally required to build a home, so a loan may help you get there. To purchase vacant land, you'll need a separate loan, which normally has higher interest rates than a traditional mortgage.

2. WHAT ARE MY MORTGAGE OPTIONS?

 When it comes to building a home, there are Home Construction and Self-Build Mortgages. Your construction loan is then utilised to pay for the construction. Interest rates and conditions differ from one lender to the next.

3. HOW LONG DOES IT TAKE TO BUILD? 

A house takes 10 to 16 months to build on average, providing everything goes according to plan. That doesn't include clearing the land or issues like bad weather, lack of manpower, and delays on materials.

The dream of building a home is appealing to many Canadians who are eager to plan for exactly what they want. But, before you start building, there's a lot to know about what to expect in terms of price and process. 

So how much does it cost to build a house in Canada? The cost ranges from $90 to $265 per square foot for a detached home. But of course, that price varies based on region and other factors, such as Covid-19. 

According to Altus Group's 2021 Canadian Cost Guide, the price per square foot for a detached home in major Canadian cities is as follows: 

Vancouver: $145 – $265 

Calgary: $125 – $195 

Edmonton: $125 – $195 

Winnipeg: $120 – $185 

Greater Toronto Area: $140 – $240 

Ottawa: $120 – $200 

Montreal: $105 – $175 

Halifax: $90 - $150 

St. John's: $115 

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How To Stay Motivated As a Real Estate Investor

 So you've finally decided to pursue your life-long passion of becoming a real estate investor! More importantly, you've educated yourself on several investment strategies (to include exit plans). Although you love what you do, you find it quite challenging to stay motivated on a day-to-day bases. On some days you even ask yourself rather or not you've made the right decision. Yet the lure of lucrative passive income has propelled you to take the risk.

Most if not all successful real estate business owners share similar struggles. However, to stay driven and reduce risk, practice the following tips starting today:

1. Have clearly defined investment goals upfront: visualize it, do it, and be it!

2. Make a list of your "whys". Your list should evoke some emotions. In other words, write down the reasons why you want to achieve your list of goals. Your list of "whys" will keep you motivated and unafraid of accomplishing your investment goals. Your "whys" will also help you overcome the hurdles that may stand in your way.

3. Knowledge. Know and understand the latest techniques and investment strategies. Knowledge prevents mistakes and mitigates risk. It will also give you the confidence to be able to influence others.

4. Kick the Tires. Evaluate real estate deals by talking to brokers and other investors. Fully immerse yourself by learning while doing!

5. Always be grateful. Practicing gratitude and spending some time reflecting on the things you are thankful for gives you a much better perspective and mindset.

6. Focus on the long-term plan. Focus on your long-term goals when you're feeling unmotivated. Having problems collecting rent from tenants? Just got hit with major repairs for one of your properties? Expenses and problems will happen from time to time. Assess the situation, fix/solve them, and move forward with your business.

7. Plan for how you will deal with a lack of drive. Temporary setbacks are bound to happen. You're only human. Think of what others in more adverse situations have endured. Yet ultimately they have reached their goals, Using them as an example will push you through your most trying times.

Lastly, stay positive! Be positive and surround yourself around positive people. Positive energy will lift you up and increase your motivation and productivity. Being positive will also help you deal with the various changes in your business. This in turn will enable you to handle the pressures that come with the real estate investing industry.

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Tips To Help You Achieve Success As A Real Estate Investor

 

If you are looking for a great way of building your net worth, investing in real estate is a great idea. You can make a lot of money if you do it the right way. However, if you don't follow the right techniques, this venture can cost you a lot of money. Therefore, we have shared a few tips with you that can help you achieve success as a real estate investor.

Opt for a Good Location

Location is the first thing that people consider when they need to buy a residential, vocational or commercial properly. Ideally, the property you are going to buy should be near a workplace and school. Similarly, if it's close to the marketplace, people can go there without burning a lot of gas or killing a lot of time. Therefore, it's much better to choose a better location.

Upgrade or Renovate Your Property

It's better that you upgrade your property features to make it more appealing. For instance, you may add home automation, such as automated lighting. The same is true about commercial real estate as well.

If you offer wheelchair lifts, for instance, it can make your property more useful for people with disabilities. This will attract many more buyers. Actually, it all depends upon how convenient your property is. If your property offers features that can help people make their lives easier, more people will show their interest in what you offer.

Improve Property Conditions

More buyers will contact you if your house or apartment is well maintained. However, make sure you don't go beyond the limits. In other words, you may not want to spend an arm and a leg just to make your property more beautiful. It won't increase the value of your property exponentially. Although it may be worth it in certain situations, spending too much is not a good idea.

Let's take a look at a few tips that can help you make your property well-maintained.

Kitchen: if you do it right, your kitchen can increase the value of your property by up to 80%. Therefore, if you renovate your kitchen by spending $15,000, you can sell your house at 80% higher price.

Plumbing: we all need clean running water. Keep in mind that rusty pipes pose a health hazard in addition to reducing the beauty of your house.

Landscaping: If you maintain your landscape properly, it can add ambience to your house or apartment. In addition, landscaping helps reduce your energy bills.

Do Your Research

Make sure you consider the type of people that you think will be suitable if you want to sell or rent your house. If you want to get the highest return on your investment, make sure you contact the right people. Otherwise, you won't be able to earn a lot of profit or find good buyers. Opting for the right clients can help you find a great deal.

Conclusion

So, these are a few tips that you can follow if you want to get the most out of your investment. Hopefully, you will find these tips pretty helpful.

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How Custom Bi-Fold Doors Can Help You Save Space

 If you have a wonderful house with a great view of your garden or picture-postcard scenery spread gorgeously in front then you need doors that give an unimpeded view.

Consider the standard options like sliding doors. A part of the opening will always remain covered regardless of whether you use two partitions or three partitions. French doors simply do not suit large openings. The answer is custom bifold doors especially when the opening is large and an unrestricted view is desired. They save space and give an unhindered view of the exteriors.

The term bifold doors may be a misnomer since these doors are, in effect, made up of several panels that fold together like an accordion or concertina into a compact bunch of panels that do not take up much space and stay neatly on one side of the opening. You have a clear view. Standard panel sizes may range from 24 to 36 inches in width or customized to suit the width of the openings, which could be a better option in some cases. Custom bifold doors can help save space and the use of matching hardware means it will be a joy to operate.

Customization could take several forms. You can choose to have bifold doors with narrow or broader panels to suit design considerations and aesthetics of how the door will look when fully closed. Narrow panels do give a nice look but in some cases one may wish for a less obstructed view in which case broader panels serve the purpose. Cost will also vary. Obviously more panels lead to higher cost but the advantage is that opening and closing the bifolds will be easier when the door has narrow panels and they take up less space.

Where there are doors with glass the question of curtains or blinds always comes up. Here again customization helps when you choose double glazing panels with inbuilt blinds that are totally sealed within and can be opened or closed by sliding a magnetic latch. Such integrated bifold doors also help save space and present a neater appearance. Then there are small details that the installer and manufacturer will take care of such as using quality sliding tracks, pivots and hinges that integrate seamlessly into the aluminum frame. Another matter that necessitates customization is whether to place the track at the top or bottom. It is best to consult a reputed door supplier and installer and get a site inspection in order to get a customized fitting.

Bifold doors are not meant just as a partition between indoors and outdoors. They can also be used indoors to good effect as space savers between rooms. One can have a larger opening without the inconvenience of large door panels creating obstructions in confined spaces.

Bifold doors have several advantages such as ease of use, complete opening up of a room to the outside, security with the right set of hardware and energy efficiency. These advantages can be further enhanced by customizing the bifold panels along with glazing and hardware fittings.

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How Land Is Prepared For Home Construction

 

Have you ever wondered what has to go into making a site ready for a house to be built on it? There's a lot of prep work that goes into ensuring the property will be appropriately graded and suitable for your new house.

Once you have found the perfect place to build your house, the construction company will start by clearing the land. Any trees or shrubs will have to be removed if they fall inside the site plan for the house. There are times you can design the house around an existing plant, if for instance you have a historic tree in your yard. For any plant that is removed, there is some more work involved than just felling a tree or cutting a plant back. All of the roots will have to be extracted, so there may be some digging involved.

Before taking down a tree, think about how much shade it can offer. This can really mean a big reduction in cooling costs during the summer. Plus, trees help pull pollutants out of the air and add oxygen back. They serve as places for animals and birds to nest and raise their young. This can be really fun to watch in the spring.

Once the site has been cleared, the contractor will have to come out to compact and level the ground. This may involve scooping up soil in one place and moving it to another part of the property. Any soil that can be relocated will save you the haulaway fees. The contractor will then create the foundation trenches on which to put the house. There may be a need for some extra dirt to be brought in if the ground is not as solid as it should be. Some heavy machinery will be deployed to firm up the ground and dig the trenches.

Next it's time to set up the stakes that will indicate the location of the corners of the house. They'll do this so the concrete pouring team will know where the footings are to go. It's important to find out the topography of the land, in case your house has to be stepped up into the hillside. Your contractor may also go ahead and have your driveway poured while the concrete truck is there.

Utilities come next. You'll see the contractor lay the lines for electricity, water, natural gas, and sewer. If there isn't any sewer connectivity in the area, you'll see them dig a space for the septic tank.

If the plans call for a basement, this will be dug out and smoothed off. This will be the time to make sure that there aren't any drainage issues. The last thing you'll want is a wet basement that is always leaking.

Should you decide to have your home built on a hillside, the contractor may be doing some erosion control on the property, so you don't end up unintentionally meeting your neighbors.

While there is a lot of prep work that goes into getting the land ready for a house, attention to detail and some good planning will make it all smooth and successful.

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Important Questions to Ask Your Home Builder

 

Building a home is one of the biggest financial and important events in a family. A home is where the family relationships are built up over time and where lifestyles are established. So a lot of thought and fore planning is required. The building process can take a considerable length of time and it is important to pose these questions to your builder before you sign on the dotted line of any agreement with him.

• How long will it take for the house to be completed? Is there any compensation for delay?

• What is the quality of material that will be used? What are the warranties being extended?

• What will be the price for the construction and at what stages it will have to be paid? How will the milestones be inspected before payment is made?

• Will any energy saving measures be incorporated?

• Who will be supervising the construction and can any changes be made during the construction process? Who will be the point of contact during the construction process?

• Will I have access to the premises during the process of construction?

• Can I follow the construction of my house online on the website of the builder? Will the website be updated regularly?

• What are the standard features being offered and what are the other options available that I can upgrade to?

• What is the design best suited for my family?

• Will locally available and environmental friendly material be used for construction? Will the paint being used cause allergies to occupants?

• Will it be possible to make extensions to the building at a later point in time? Will the building be designed to accommodate such extensions?

• Will the building be earthquake proof?

• Will there be capillary breaks in the foundation? Capillary breaks prevent the water and moisture from the ground from seeping up the walls and causing dampness and wood rot. It is one of the important things to remember.

• Will the drainage and sloping ensure that my house is waterproof?

• Where will the windows be located? Will they let in enough sunshine and fresh air? Will the windows be soundproof?

• Is the landscaping included?

• What are my responsibilities in the execution of the project?

• What is the best price that I can get for the project?

Getting clear answers for the above questions can avoid a lot of frustration later and will ensure that the construction process proceeds smoothly.

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Metal Roof Cost 2021

Standing Seam

If you are a homeowner considering installing a new metal roof on your house, then undoubtedly, one of the burning questions on your mind is how much will it cost?

Right of the bat: The national average cost to install a new residential metal roof is between $9.50 and $16.50 per square foot, depending on the metal type and profile, roof difficulty, and project location.

This price range is for the installation of architectural or residential grade Kynar 500 or Hylar 5000 metal roofing system like interlocking metal shingles or tiles, metal shakes, or standing seam. It includes all the necessary materials, matching metal trim, and supplies, building permits, professional installation and site clean-up, and comprehensive warranty from the installer.

For an example of a typical project, you can expect to pay between $19,000 and $33,000 for a new 2,000 sq. ft. or 20-squares metal roof fully installed on a typical house.

Note: Installation prices can can vary greatly, depending on the type of metal and profile you want to install, whether it be standing seam, metal shingles or shakes, overall project difficulty, your home’s location, and from company to company in the same area. The pricing difference in quotes from one contractor to another can be surprisingly high, which is why it’s so important to get several estimates from both local installers and those from outside the area.

Did you know? In very expensive coastal cities and fire-prone areas on the West Coast including California, Oregon, and Washington state, standing seam metal roofs are currently averaging between $14.50 and $20.00 per square foot to install. Metal shingle roofs, meanwhile, are selling for between $12.50 and $16.50 per square foot in the same markets.

The increase in prices signals a significant inflation of 5% to 10% compared to the previous year. This price inflation is not unique to metal roofs. In fact, many asphalt shingle manufacturers have increased the prices of their products by 5% to 10% since last year, which also impacted the overall end consumer costs by about 5% to 10% compared to the previous year.

Most contractors measure roofs in squares. One square is equal to 100 sq.ft. A typical single-family house has a roof size of 1,700 to 2,000 square feet or 17 to 20 squares.

Important cost factors: Your roof’s overall complexity and the local real estate market conditions (property values and robustness of the local economy) are the two most important factors determining the price of a new metal roof. Note that the total amount of professional labor required (which is tied to the overall complexity of the roof) is by far the most significant cost factor!

On a possible wider range of prices: Because metal roofs come in different materials and metal alloys like aluminum, steel, zinc (premium metal), etc., and profiles like metal shingles, shakes, tiles, corrugated, ribbed, and architectural and structural standing seam panels, you can expect a rather wide price range between $8.50 and $20.00 per square foot of metal roofing installed. The actual price per square foot will depend on the material type and profile, project complexity, and location. This wider price range translates to a total replacement cost ranging from $17,000 to $40,000 for a typical 20-squares or 2,000 sq.ft. roof.

Less-costly Metal Roofs: Corrugated Steel and Ribbed Panels

If you opt for a less-costly system such as corrugated or ribbed metal panels, your cost will likely fall within $5.50 to $8.50 per square foot or $550 to $850 per square installed, depending on the metal thickness (gauges for steel or mils for aluminum) and the quality of paint finish (polyester or acrylic paint vs. Kynar 500 or Hylar 5000) for the system being installed, as well as your home’s geographic location.

Important Points to Keep in Mind:

When considering the price of metal vs. asphalt, it’s important to keep in mind that with metal, you are not only paying more for a premium product and a longer-lasting material than asphalt, but you are also paying for a specialized, often tedious and involved (and hence costly) professional installation that requires special skills and expertise from the installer, as well as appropriate tools and equipment.

Keep in mind there are several factors that may influence your final price for a new metal roof. These include the type of metal and the roof style you choose, your home’s geographic location, and the overall complexity of the roof.

https://www.roofingcalc.com/metal-roof-cost/#guideintro

                  

New Shingle Roof   Average Price $7500                    New Metal Roof Average Price $14500

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What Upgrades Increase Home Value? 19 High-ROI Improvements Buyers Love

     

Upgrades that add physical square footage or make the home feel more spacious

Home buyers appreciate ample space. Regardless of income bracket, people who bought a home within the past three years or planned to buy a home in the next three years wanted more square footage, according to NAHB’s 2017 Home Buyer Preferences study shared with HomeLight. That desire among buyers has only gained momentum in the wake of the coronavirus pandemic. In 2020, 44% of real estate agents cited the “need for more space” as the no. 1 moving motivator.

1. Finish your basement

High-income buyers (those earning $150,000 and more) in the Northeast, Middle Atlantic states, and Pacific Northwest in particular like basements, NAHB’s study shows.

“You’re adding more heated square footage,” explains Russell, which bumps up your house into another price bracket.

Even among homes ranging from $250,000 to $400,000 in Georgia, an unfinished basement can add about $15,000 to $20,000, Russell says. If finished, a basement can add even more — up to $40,000 or $50,000 to the asking price.

Finishing a basement will run you $18,400 on average, but can cost up to $34,000, largely depending on your square footage. The project involves installing drywall, flooring, and paint but can recoup up to 70% of the cost, according to HomeAdvisor.

2. Open up the floor plan

Knocking out the right wall creates that spacious layout on buyers’ wish lists. NAHB’s survey shows that buyers favor designs that are either completely open or partially open around the living room, dining room, and kitchen.

An open arrangement allows for more natural light, which is always inviting, It feels like you have more space to play with.

A home still needs structural support and definition between spaces, so consult with a contractor or interior designer before picking up a sledgehammer. If there’s no definition, it’s kind of paralyzing for a buyer.

Source: (Luis Yanez/ Pexels)

Upgrades that enhance your home’s curb appeal and exterior

Curb appeal is all about making a splash with buyers before they even enter your home.

For starters, attractive landscaping implies that the home is well-maintained. In fact, in a 2018 survey, 17% of Realtors said that a landscape maintenance project recently resulted in a sale. To mow the lawn, prune shrubs, apply mulch, and plant about 60 perennials or annuals over about 2,800 square feet costs about $3,000 — but has a 100% return on investment, NAR says.

And 2019 HomeLight data backs up that focusing on buyer first impressions is crucial: 76% of agents agreed that curb appeal is the no. 1 project you should complete to improve your home’s marketability, and over 94% believe curb appeal will even boost your home’s value.

Other ways to make the outside stand out include:

3. Add stone veneer to the front of your house

In a midrange home, replacing a 300-square-foot band of existing vinyl siding from the bottom third of the street-facing facade with adhered manufactured stone veneer costs an average of $9,537 but recovers about 96% of that at resale, according to Remodeling magazine’s 2020 Cost vs. Value Report.

Try the slim lines and dynamic colors of Chisel Gray Stackstone by Glen-Gery, or consider the rounded texture of Nottingham Tumbled Ledge by Coronado Stone Products.

4. Get a door of steel

Replacing an existing entry door with a steel one has proven to recover anywhere from 69% to 91% at resale over the past three years, statistics show. Buyers will appreciate the energy efficiency, low maintenance, and cold-blocking powers of metal.

Try the highly rated http://JELD-WAN Lite Craftsman Front Door with Brickmould ($283) or the slightly more upscale Chatam by Stanley Doors ($436).

5. Replace your garage door

A new garage door practically pays for itself if you reuse the existing motorized opener, recouping about 95% of your costs at resale, statistics show.

You can’t go wrong with a simple upgrade from the best-selling Clopay Classic Collection ($238).

6. Touch up your exterior paint

If you’re on a budget, you don’t have to repaint your whole house to make it look new again.

Touch up any flaking or chips, or pressure wash the exterior to remove dirt and mold. You also can just paint the front door and trim.

A front door in a bold color like buttery yellow, powder blue, or forest green makes the entrance pop against a neutral exterior, says ProTect Painters, a painting franchise since 1995.

Source: (Papakah/ Shutterstock)

Upgrades that add style for less in key rooms

Buyers will look at your kitchens and baths and either be relieved that they don’t have to gut them or start counting up the dollar signs.

But the key with bath and kitchen remodels is to keep costs down and avoid total overhauls that don’t have great ROI. Think functional and updated, rather than breathtaking and luxury.

7. Swap out your fixtures in the kitchen and bathrooms

New drawer knobs, pulls, and faucets in a matching style give a room a cohesive, modern look, and this small, inexpensive upgrade alone can have a big impact on buyers.

Trends vary nationwide, so ask your real estate agent what buyers look for in your area.

Try brushed nickel and matte-type stainless-steel fixtures for a contemporary style, or oil-rubbed bronze if your home has a more classic look.

8. Do a minor remodel rather than an upscale one

You can do a minor kitchen remodel of a 200-square-foot kitchen for about $21,000, and recover about 77.6% of your spend at resale. Compare that to a major, upscale kitchen remodel, which will only recoup 58.6% of your costs.

The key money saver in a minor remodel is that you replace cabinet fronts with an updated style, such as the trendy and functional shaker cabinet fronts, and leave the cabinet boxes in place.

Likewise, a midrange remodel of a bathroom for $21,377 recoups about 64% of its cost at resale, compared to an upscale bathroom overhaul (56%).

Skip the heated floors, heated towel racks, body-spray fixtures, and frameless glass enclosures.

Ceramic tile floors and new, standard fixtures will do the trick!

9. Install hardwood floors or refinish your existing ones

According to NAR’s 2019 Remodeling Impact Report, refinishing hardwood floors recovers 100% of the cost at resale, while new wood flooring recoups 106% of costs.

Source: National Association of Realtors’ 2019 Remodeling Impact Report

That said, the cost recouped on updated flooring depends on its current condition and your house’s price range.

“Generally, if I get to a higher-end home and the carpets are decent, I don’t advise them to replace (the carpets) because I know that someone’s going to come in and replace it with hardwood,” Russell says. Some buyers and sellers will negotiate a flooring allowance if the seller doesn’t want to take on that cost.

However, if you have pets or your carpet has seen better days, a few thousand dollars to replace it is money well spent, Russell says.

10. Paint in a neutral palette

Light, neutral wall colors make for a good palette for resale because buyers can easily imagine their belongings in the space.

If you already have neutral wall colors, you can paint the trim, molding, and windows with a washable and durable satin or gloss finish for a low-cost renovation that produces a dramatic change.

One combination that designers in the Colorado area like for an upscale look is white walls with black trim.

Source: (Sindre Strøm/ Pexels)

Upgrades that reduce maintenance hassles

If your house is 10-15 years old, any big-ticket items that buyers might have to repair or replace in the next few years could be off-putting. Making those repairs now helps you get your best asking price:

11. Redo the roof

Replacing a roof recovers 107% of its cost at resale, according to NAR. “A house sitting there at $250,000 with a brand-new roof is going to bring more value than the house sitting next door that’s the same floor plan with a 15-year-old roof,” Russell adds.

12. Pump up the HVAC

Buyers often ask when the HVAC was installed or replaced, as well as if the home has a tankless hot water heater, Russell says.

No wonder NAR notes that an HVAC replacement recoups about 85% of its cost upon resale.

13. Siding that’s on your side

Is your home’s siding in good shape? Regardless, some buyers will ask about siding brands that have been in the news because of problems such as durability or mold.

So know what brand you have and when it was installed, Russell says. If you need to replace it, new fiber-cement or vinyl siding recoups about 63%-76% of its costs at resale.

Upgrades that make your home more efficient

The majority of buyers think of green features to save on their utility bills. As of 2019, the NAHB notes that buyers would pay an additional $8,728 upfront to save $1,000 a year in utility costs. These upgrades can help:

14. Replace your old toilets with low-flow fixtures

Toilet technology has improved since 1994, when federal law restricted toilet tanks to 1.6 gallons per flush (GPF).

Low-flow toilets now move less water more forcefully into the bowl with each flush. Try the Glacier Bay 1.28 GPF High Efficiency Single Flush round toilet for about $89 or Kohler’s Cimarron 360 Complete Comfort Height 1.28 GPF Single Flush elongated toilet for about $199.

15. Put in energy-efficient appliances

Appliances with the Energy Star symbol, the federal certification that they reduce energy use without sacrificing performance, ranked either as desirable or essential home features among nearly 90% of moderate-income home buyers in the NAHB study.

16. Get energy-efficient windows

Home buyers of every economic background, from those with incomes under $75,000 to those with incomes over $150,000, ranked Energy Star-rated windows among their most-wanted features, whether with triple-pane insulating glass or with low-e insulating glass, the NAHB survey says.

What’s more, replacing double-hung windows with insulated vinyl windows recovers about 74% of the costs, notes Remodeling magazine.

However, the government’s minimum energy-efficiency standards for new windows varies nationwide based on your climate zone.

The U.S. Department of Energy has an online guide to these standards. The guide is broken out by region and deciphers the labels on these windows so you can shop for those that meet your area’s minimums for stopping heat flow, blocking the sun’s heat, and allowing a certain amount of light to enter.

Source: (GregoryButler/ Pixabay)

Upgrades that cater to your area’s trends and demographics

Certain features appeal to different demographics, depending on your neighborhood as well as your price point.

Millennials, for instance, represent 38% of all homebuyers, the largest group of buyers in 2020. Some of their top wants involve smart home technology, such as high-end Wi-Fi access and keyless entry.

Buyers on the older end of the spectrum, on the other hand, are thinking about convenience, accessibility, and aging in place.

Depending on the types of buyers dominating your market, consider the following upgrades:

17. Make your laundry room more accessible

A lot of home buyers prefer not using the stairs to do laundry. The NAHB survey shows 68% of moderate-income buyers and 69% of high-income buyers prefer having the clothes washer and dryer on the main floor instead of in the basement or the garage.

Some homes above $200,000 have a larger laundry room with a drop zone for children’s backpacks and shoes, or connect the laundry room to the master bedroom instead of the kitchen, Russell says.

“You’re able to access your laundry room from your master bedroom, but you also can access it from your hallway,” she says, “which is a huge trend we’re seeing right now. … especially with people buying ranches because they’re downsizing.”

18. Turn your shower into a walk-in

Although 77% of home buyers with moderate income (under $75,000) in the NAHB survey ranked having both a shower stall and tub in the master bathroom as essential and desirable, Russell says that in her area, some older buyers as well as younger ones are fine with just a shower in the master bath.

(To qualify as a “full bath” to an appraiser, a bathroom must have a full-size tub, but it doesn’t have to be the master bathroom. A tub in a secondary bathroom is fine, especially for bathing children.)

“A lot of builders in our area are not even putting a tub in the master bathroom … and if they do a tub, it’s a freestanding tub. Nobody wants a whirlpool tub anymore. They’re dirty; they’re gross,” Russell says.

A prefab walk-in shower kit costs between $800 and $2,500, based on quality and size; professional installation is extra. Consider DreamLine’s Prime Semi-Frameless Sliding Shower Enclosure or Classic Low Threshold Shower Stall with grab bars and molded seat.

19. Install a smart thermostat

Just like energy-efficient appliances, programmable thermostats and other energy-management systems have widespread appeal, ranking among the three most-wanted home technologies in the NAHB survey.

A smart thermostat can adjust your house’s energy consumption depending on the latest gas or electricity prices, or even allow you to phone in instructions such as turning on the furnace before you get home. Prices range from $150 to $400 or more, plus installation from a trained electrician or HVAC contractor. Try the Emerson or Aprilaire 8600.

Be strategic as you look around your home, deciding what you want to revamp so buyers see your place as someplace they want to live.

“Some buyers just don’t have the vision to see what it could be,” Russell says, but even little things can help buyers say, “You know what? We don’t have to do anything to this house. It’s perfect. Let’s go in at a strong price.”

by Valerie Kalfrin
https://www.homelight.com/blog/what-upgrades-increase-home-value/