Whether you’re planning to build an addition to your home, finally finish that basement, or add some bigger upgrades to boost your home’s value, home renovation projects can sometimes seem like nothing more than huge headaches.
But, no matter what your renovation needs are, if you’re properly prepared ahead of time with a smart home renovation plan, then your renovation project can go smoothly!
Design a Project Budget
Before you do anything else, create a project budget!
If you’re taking out a loan to pay for your renovation, decide what type of loan, how much to borrow, and how long it will take you to pay back so you can judge whether your renovation ideas are financially responsible or whether they’re a bit overambitious.
Make sure to plan an “emergency funds” section into your budget in case of any unpleasant surprises discovered during renovation!
Decide What You’re Doing Yourself
While home improvement shows may glamorize DIY renovations, look at your plans realistically before deciding to take on any tasks in your renovation.
Hiring a professional contractor might be a better financial decision than taking a week off of work to mini projects yourself.
Do Your Local Research
Before making any major changes to your home, check your local bylaws to see if there are any specific fees or other surprises you might run into after renovation. Checking with the building code and municipal bylaws of your area may also help you decide on a plan that further increases your home’s value by taking into account the neighborhood value.
Prepare for Life During the Renovation
Renovations can take a while, and can be quite loud and uncomfortable! Make a game plan for how you’ll adapt to your living quarters being transformed into a construction zone while the renovation is going on, or plan to move out temporarily!
Next time you’re thinking about that big renovation project, don’t dismiss the idea! With good planning and preparing, a major home renovation project can be a success!
While we can’t ever predict the fluctuations of the market with absolute accuracy, it’s always a good idea to explore ways to be prepared for the next possible real estate market crash!
So, how can you protect yourself and your investments to weather the next real estate storm?
BE CAREFUL TAKING OUT LOANS
Buying a home is an investment. For many, it’s the single most expensive thing they’ll buy in their lives. But, in an unstable market, it’s much more difficult to judge whether your home with appreciate with time or not. It’s always smart to only take out a loan for what you can reasonably pay.
DIVERSIFY YOUR INVESTMENT PORTFOLIO
Don’t put all your eggs in one basket, as the saying goes! If you want to be prepared for a housing market downturn, you may want to diversify your portfolio with stocks, bonds, as well as with home equity.
CREATE A SAVING PLAN
To be better prepared for a sudden market downturn, it’s best to start saving for it. Build up an emergency savings account. You should save enough money for 3 to 6 months’ mortgage payments so you don’t need to worry as much about defaulting or a foreclosure.
LOCATION OVER DESIGN
If you’re worried you won’t be able to sell your home when the market crashes in the Maryland location, Virginia location, Washington DC location, or anywhere else, remember this simple phrase: “location over design.” Even when the housing market turns sour, people still need to buy homes. Good neighborhoods won’t suffer in a market downturn as much as bad neighborhoods.
GET A FIXED-RATE MORTGAGE
This is possibly the most important piece of advice to take away from this article. Fixed-rate mortgages give you a huge amount of security because, if the market goes down, your mortgage won’t go up. This is something worth sacrificing a bit of square footage over!
If you’re bettered prepared for the next housing market downturn, you can ride out the storm in relative security and comfort even while others scramble to sell their depreciated homes and try to find a way to pay their rising mortgages.
If you’re working with a real estate agent in the Maryland location, Virginia, location, Baltimore location, or Washington DC location, you may have wondered how your realtor will be paid. For those buying a home, it’s a surprise to learn that your realtor’s commission comes from the seller’s end of the table. Let’s take a look at how commissions break down and how realtors earn their living.
If you’re unfamiliar with this term, a person who works on commissions is paid a percentage of the final sale price. For realtors, this means that all those hours they put in to help you buy or sell your home are not covered by an hourly wage. If your house fails to close, they don’t get paid for the work they put in. While commissions are negotiable, the standard rate for realtors is 6%. At this percentage, if a house closes at $250,000, the commission is $15,000.
The commission for agents comes from the seller’s proceeds at the close of their sale. As a buyer, if you work with an agent, their fee is also part of that commission. Using the previous example, if the commission is $15,000, that amount is split between the listing and buyer agents at whatever percentage they’ve negotiated. Most often the commission is split evenly with each agent earning 3%, but it can be negotiated differently. Agents work with buyers knowing that they might not see a paycheck because they hope that when it’s time for you to sell, you’ll choose to work with them again.
If you’ve worked with a real estate agent, you’ll know the amount of time, energy, and work they put into each and every house. Realtors know that unless your home closes, they won’t get paid. It’s why they do everything they can to help you find the home you love and close the deal.
Choosing a real estate agent may be the most important step towards selling your house in the Maryland location, Virginia location, Baltimore location, and Washington DC location successfully. With so many companies and names out there, how do you choose the best agent for you? Here are our top dos and don’ts for finding the perfect real estate agent to list your home!
Don’t just pick up the phone book and choose the first name that you see. Search online for local realtors and read the reviews. Come up with a short list of promising agents and then interview three or four of these. You need to choose a realtor you can work with because selling your home may not be a short process.
DON’T Hire Family Just Because They’re Family
If you have a family member that’s a realtor, you don’t have to hire them. Sure, there may be some pressure to do so, but if you’re uncomfortable with having them represent your home, go with your instincts! If you’re considering hiring them, interview them with your other realtors and see if their skills match what you need. Make sure that whatever happens with your home, you’ll be able to maintain your relationship with your family member.
DO Hire Locally
Realtors need to show your home, neighborhood, and community in the best light possible. To do this, you need a realtor who is from that community and knows it like you do. They’ll have the information buyers want about schools, restaurants, community activities, etc.
DON’T Choose an Agent Based on Commission
Often, choosing an agent comes down to money. If you have three agents you’re considering and one offers you a much lower commission rate, ask yourself why. How hard is an agent going to work for less than standard market commission? And what buyer agent is going to want to take their clients to see your home? A good realtor is worth their fee.
When you sell your house in the Maryland location, Virginia location, Washington DC location, or Baltimore location, any profits you make are subject to capital gains or recapture taxes. To avoid paying those taxes, you can reinvest the profits in a new property under 1031 exchange. To do this correctly, you’ll have to have a properly structured exchange.
There is a timeline for completing this exchange and you have just 45 days to find a property of similar or greater value than the one sold. You only have 180 days total to complete the purchase of the new property. This timeline is a bit tight if you want to take your time to shop around.
Another restriction on the 1031 exchange is the type of property purchased. You can’t sell your business property and buy a house, or vice versa. The property that is sold must be of like-kind to the property purchased. They don’t have to be exact though. You could sell a business and buy a business, or sell land and buy an apartment complex.
Debt and Equity
The 1031 exchange needs to be 100% in order to defer the taxes. This means that the equity or profit from selling the property needs to be reinvested 100%. If you make $50,000 on the sale of your house, you need to put that full amount back into the new property. If you owed $200,000 on the property, you need to replace that same amount of debt as well. You are exchanging the equity and the debt of one property for another.
Hire a Professional
Unless tax law and real estate are areas you considered yourself to be an expert in, you may want to consult a professional when looking at a 1031 exchange. There are risks involved and if not done properly, you’ll still have to pay the taxes you’re trying to defer. This is a great option for many people selling and buying a home, but to find out if it’s right for you, take the time to really learn the ins and outs of 1031 exchanges.
Pricing your home can be difficult. To figure out how much your house is worth before you list it, there are several things you can do. Here are our tips to calculate your asking price.
Search for Comparable Homes
House value are determined by the price similar properties recently sold for. Some real estate websites, such as Trulia, Zillow, and Realtor.com, make this information easy to find. Start with a search of your part of town or zip code and keep track of the price homes like yours sold for. Make sure the houses you check are comparable, meaning they have the same number of bedrooms, bathrooms, and are close in square footage and lot size. These sites do not always have the most accurate information so make sure to check other sources as well.
Call the Tax Assessment Office
The tax assessment office in your town or city will have records of what comparable homes recently sold for in your neighborhood or town. Using these records will give you a second set of numbers that are more reliable than what you may find online. Using both figures together, you can come up with a better estimate of the value of your home.
Get in Touch with a Realtor
Realtors are the market experts and will be able to help you price your home. They can either do it for you, or help you identify the key items to look or in your search and estimation. They’ll also be able to give you information on how the market is in your area. When there are more buyers than houses available, the price of listed homes will increase and vice versa. A realtor will know what to expect and help you set your price right.
If you’re ready to list your home for sale in the Maryland location, Virginia location, Baltimore location, or Washington DC location, or are just curious about how much it may be worth, you can make an informed estimate with just a little effort and time.
Selling a house takes plenty of work and time. Before listing your home for sale, put the time in to help it show at its best. There are lots of things you can do to get your house ready, but these four are the most important steps you NEED to take.
1. Remove Personal Touches
When a potential buyer comes into your home, they want to be able to see themselves and their family living there. Family photos and knick-knacks are distracting and shoppers will wondering what kind of people live there, not how they can make the house their own. De-clutter your space, including closets, and pack up anything that you don’t need. You want your house to look open and inviting.
2. Pack Up What You Want to Keep
If a buyer sees an antique chandelier or handmade ceramic sink in the house, they’ll think it’s part of the bargain. Things can get dicey if an offer is made and then those items are removed. Either tag big items as “not for sale” or pack up and replace what you can. You want to make sure you keep your great-grandmother’s vintage cabinet pulls and handles.
3. Clean, Clean, Clean!
A house for sale can never be too clean. Consider hiring professionals if you can, or put the work in yourself and do all those chores you may normally neglect. Wash your windows, wipe down door jambs and floorboards, and get under those appliances. While you’re at it, you can make minor repairs to cracks in the flooring, patching up small holes, and re-caulking if you need to. Some tasks like vacuuming and dusting should be done daily while the house is on the market.
4. Curb Appeal
The exterior of your home is the first thing potential buyers see. Cross the street and take an objective look at your house. Does it look appealing? You may need to touch up paint and clean up your landscaping. Clean the driveway, sidewalks, and windows. Pack up the kids’ toys and make sure you clean up after your pet everyday. Dress your house for the season, either with tasteful holiday decorations, or fresh flowers to give it that extra shine.
If you take these four steps, you’re home in the Maryland location, Virginia location, Washington DC location, and Baltimore location will show better and you’ll be more likely to get your house sold at the price you want. A little time now can pay off big later!
Are you thinking about moving and selling your house in the Maryland location, Virginia location, or Washington DC location? Selling your home with a realtor can be a process! – but it doesn’t have to be a mystery! That’s why we’ve complied a step-by-step timeline for selling your home with a realtor.
2 Months before Listing
Hire a real estate agent. Choosing a good real estate agent is so important in selling your home easily and quickly. A good realtor will be your guide through the process. They’ll be help you ensure you have all the documents and paperwork you need to list and close your home before it goes on the market!
6 Weeks before Listing
Check out your local housing market to get an idea of what your market is like. Maybe go to some open houses to get staging ideas. This is also the perfect time to make those essential kitchen appliance upgrades, cosmetic fixes, and other repairs before your house goes on the market. Repainting or cleaning your walls can give your home a major facelift and make it seem brighter and larger!
2 Weeks before Listing
Start decluttering and cleaning! Potential buyers can visualize themselves in your home if your home isn’t crowded or dirty Empty cabinets and closets, pack decorations, move out furniture – basically anything you can live without while your home is on the market should be packed up.
1 Week before Listing
Once your house is clutter-free and clean, your agent will arrange for photos to be taken and an attractive description written!
Listing Day and Closing Day
Now your agent will list your home on several real estate online platforms! It’s your job to make sure your home is presentable for showing at all times and your agent will work with potential buyers until you have an offer that you agree to. Once you’ve agreed to an offer, your realtor and your title/escrow company will help you transition ownership to the buyer.
Alternatively, you can sell your house to an investor like 8 Day Home Sale. We clean out your house for you and let you choose your own closing.
You’ve seen it everywhere. On the signs along the road or in advertisements you find in your mailbox or hanging on your door: “We’ll Sell Your House in 60 Days or We’ll Buy It Ourselves!” “Guaranteed Sale – I’ll Sell Your Home Quick or Buy It Myself!” “Sell Your House in 90 Days Guaranteed!”
Is it real or just a scam?
The real estate agents who promise to sell your house within a certain amount of days do sell your home in the perscribed time. However, it’s all the fine print you have to worry about.
You must agree to many concessions, including many expensive upfront costs. In most of these “Guaranteed Sale” deals, you must agree to pay a high realtor commission, a home inspection, a professional home staging, a home warranty, and possibly other concessions. You also must agree to lower the sales price of your home after it’s been on the market for a certain period.
This “deal” is actually only a deal for the realtor, not you.
To sell your home so easily and quickly, you’ll have to agree to let the agent sell your house below market value. Because your home is below market value, it’s likely you’ll get a flood of offers. And, if your home still doesn’t sell, your realtor will purchase your home at an even lower price, stipulated in the agreement you signed, then resell it at market value, making the profit that you could’ve made with a more invested realtor! The most important thing to look for when trying to sell your house is a realtor who will be on your side, trying to get YOU the best deal!
“Guaranteed Sale” realtors are only looking for the best deal for themselves. Don’t fall for this real estate trick! We see this a lot in the Maryland location, Virginia location, and Washington DC location.
To renovate or not to renovate. That is the question homeowners are asking themselves in the Maryland location, Virginia location, and Washington DC location before putting their house on the market!
You want to make it attractive to potential buyers, but you don’t want to spend unnecessary expense either. Whether you want to renovate your home before selling, or just put it on the market as-is is a choice that should be considered carefully!
Renovating before you sell PROS
Especially if the home you’re trying to sell has been around a while, renovation can give it a more up-to-date look, increasing its value and its attraction to potential buyers.
- Provides a ready-made home
People searching for a new home have mostly likely seen tens or even hundreds of homes already. A renovation could be just what your home needs to stand out from the crowd. Making a few tasteful renovations can help potential buyers envision themselves living in your home.
- Decreases reasons to not buy
Potential home buyers may feel overwhelmed by the amount of homes on the market, so, to narrow down their search, they are often critical of the smallest defects. By offering coveted updates, a newly-renovated home has less chance of being dismissed.
Renovating before you sell CONS
Renovations take time. If you don’t have time to oversee renovations, or you need to sell your home fast, renovating may not be the best choice.
Renovating your home can quickly become costly, which may reduce your overall ROI.
- Takes longer to be market-ready
Even though renovated homes tend to sell faster than non-renovated ones, renovations make it longer before you can put your house on the market. And sometimes that means you have to live in a home-turned-construction-site while the renovations are taking place!
8 Day Home Sale buys houses “as is” for a fair price. If you are looking to sell, talk to us first.