Jeffrey Bastress' Blog
Having equity in your home is an incredibly valuable thing. It allows you to borrow against your house and shows that the value of your investment is rising. Equity defined is the difference between your home’s value and the amount you still owe on the home. Equity allows you to move forward with other properties and sell your current one.
As you pay down your mortgage, your equity increases. There is, however, always a risk of an equity slide where values drop a bit. There are a few ways that you can help your home’s equity value to increase faster.
Pay Towards The Principal
The first few years that you’re a homeowner, you’ll be paying a lot towards the interest and only a little towards the principal value of the loan. The quicker you pay down your home loan, the faster you’ll increase the equity of your home. Check your budget and see how much extra you may be able to pay. Then, talk with your lender to see if there are any pre-payment penalties.
Complete Home Improvement Projects
You may not know that many home improvement projects can increase the value of your home substantially. There are many projects that you can complete in your home that won’t break the bank yet will give you a significant return. You can start simple, or think big. Some of the best home improvement projects that will add value to your home include:
- Complete kitchen remodel
- Replacing countertops
- Refinishing cabinets
- Installing new appliances
- Replacing garage doors
- Bathroom remodel
- Putting on addition
- Landscaping renovations
Any of these home improvement projects can add value to your home, bringing the equity value of the home up. Even if you’re not planning on taking out any equity in your home for some time, any improvement projects that you choose to do are beneficial for both you and how your home affects your finances.
Increase The Amount Of Your Downpayment
You can increase the value of a home before you even buy it. If you put the traditional 20% down on a house, you’ll build equity a bit faster than if you put down a lower amount such as 3% or 5%. If you have already purchased your home, you can ask your lender to do what’s called a cash-in refinance. This type of refinance is where you bring cash to the refinancing closing table in order to lower the balance of your mortgage.
The homebuying journey can be long and arduous, particularly for an individual who makes mistakes along the way. Fortunately, an informed homebuyer can identify potential problems early in the homebuying journey and take the necessary steps to resolve such issues without delay.
Now, let's take a look at three common mistakes that homebuyers make, along with the best ways to eliminate these problems before they escalate.
1. A homebuyer spends too much time debating whether to submit a home offer.
The housing market moves quickly, and a homebuyer who hesitates to submit a competitive offer on a residence risks losing this house to a rival homebuyer.
Ultimately, it pays to learn about the real estate market. That way, if you fall in love with a house, you'll be better equipped than other homebuyers to submit a competitive offer before it's too late.
Check out the prices of houses in cities and towns where you'd like to live. This may help you narrow your search for the perfect home and provide housing market data that highlights how much it may cost to acquire your dream residence.
Also, take a look at the prices of recently sold houses in different areas. This will enable you to determine whether you're working in a seller's market or a buyer's one.
2. A homebuyer foregoes a home inspection.
Even though a homebuyer may want to rush through the purchase process, there is no reason to forego a home inspection.
When it comes to buying a residence, it is always better to err on the side of caution, and a home inspection offers a valuable opportunity to learn about a house's condition and uncover any "hidden" problems with a residence.
For example, a home inspection may reveal roof damage that could lead to thousands of dollars in roof repairs in the near future. On the other hand, a home inspection may show there are no major issues with a residence, thereby verifying that a house is a sound investment.
Don't forget to consider a variety of home inspectors before you schedule a property inspection. This will ensure that you can find a home inspector who possesses the necessary skills and expertise to perform a deep evaluation of a home before you finalize your purchase.
3. A homebuyer tries to purchase a house without support from a real estate agent.
For those who want to streamline the homebuying process, expert help may be necessary. Luckily, you can hire a real estate agent who can help you seamlessly navigate the homebuying journey.
Real estate agents are easy to find in cities and towns nationwide. Meanwhile, these housing market professionals are available to help you narrow your home search, submit offers on residences and much more.
If you need additional help during the homebuying journey, it usually is a good idea to hire a real estate agent. By doing so, you can receive the expert guidance and support that you need to go from homebuyer to homeowner.
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Want to add your house to the real estate market? If you're operating in a seller's market, you may be able to generate plenty of interest in your house as soon as your residence becomes available.
A seller's market commonly features an abundance of homebuyers and a shortage of home sellers. As such, a home seller who lists a high-quality residence in a seller's market could earn a significant profit.
Operating in a seller's market offers many opportunities for home sellers who prepare accordingly. Lucky for you, we're here to ensure you can get the best price for your residence in a seller's market.
Now, let's take a look at three tips to help you optimize the value of your house in a seller's market.
1. Complete a Home Appraisal
A home appraisal will help you understand your house's strengths and weaknesses. That way, you can perform any home improvement projects before you list your residence. You may be able to boost your chances of a quick property sale too.
Typically, a home appraisal requires just a few hours to complete. A home appraiser will visit your residence and inspect it both inside and out. Then, this appraiser will provide you with a report that details your home's condition.
Review the results of a home appraisal report closely. By doing so, you can prioritize various home improvements and work toward transforming your ordinary residence into one that will stand out in a seller's market.
2. Analyze the Housing Market
How does your residence stack up against comparable houses that are currently available? Examine the housing market to find out.
Evaluate the prices of houses that are similar to your own. This may help you establish a realistic price range for your residence.
Also, look at how long recently sold properties were available before they were purchased. This may help you understand how long it might take for you to get the best price for your residence in a seller's market.
3. Collaborate with a Real Estate Agent
When it comes to selling a home, there is no reason to embark on the property selling journey on your own. Thankfully, real estate agents are available in cities and towns nationwide, and these housing market experts are happy to assist you in any way they can.
A real estate agent can provide details about what to expect before you add your residence to a seller's market. He or she will help you plan ahead and ensure your residence features an awe-inspiring exterior and flawless interior that differentiate your property from others.
Moreover, a real estate agent will help you alleviate stress throughout the home selling journey. This housing market professional can respond to your home selling concerns and questions and provide plenty of guidance to help you make informed decisions.
There is no need to leave anything to chance when you list your home in a seller's market. Instead, take advantage of the aforementioned tips, and you should have no trouble stirring up interest in your house.
When it comes to selling a house, it helps to plan ahead. By doing so, a home seller can identify and resolve potential home selling hurdles right away.
With the right approach to selling a house, any seller can minimize problems along the way. In fact, the right approach may increase the likelihood that a seller can enjoy a speedy home selling experience.
Now, let's take a look at three tips to help sellers streamline the home selling journey.
1. Price Your House Competitively
What is your house really worth? This question is difficult to answer for a home seller, as many factors impact the value of a home.
A home's age and condition likely will play important roles in your residence's value. Furthermore, external factors like the crime rates in the city or town where your home is located or your house's proximity to parks and schools may affect your residence's value.
To establish a competitive price for your house, you'll want to study the local housing market. Look at the prices of available houses that are similar to your own; this data can help you define a competitive initial asking price for your residence.
In addition, it frequently helps to perform a home appraisal. During a home appraisal, a property expert will assess your house and provide a property valuation. Then, you can use this valuation to determine the ideal asking price for your house.
2. Conduct a Home Inspection
Although a home inspection generally is completed after a seller accepts a buyer's offer on a house, there is no need to wait. Instead, a home seller can conduct an inspection prior to listing a residence to learn about a house's strengths and weaknesses.
Review the results of a home inspection closely – you'll be glad you did. After a home inspection, you can identify any underlying problems with your house and take the necessary steps to resolve these issues. That way, you can prevent such problems from cropping up after a buyer submits an offer on your house.
3. Hire a Real Estate Agent
If you are unsure about how to price your house or complete other home selling tasks, there is no need to worry. Remember, you can always hire a real estate agent who can provide plenty of support throughout the home selling journey.
A real estate agent understands the ins and outs of selling a house. As such, this housing market expert can teach you about the real estate sector and ensure you can achieve the best possible home selling results.
Typically, a real estate agent will set up home showings and open house events, negotiate with a buyer's agent on your behalf and simplify the home selling cycle. With a real estate agent at your side, you should have no trouble receiving expert responses to your home selling questions too.
Ready to add your house to the real estate market? Use the aforementioned tips, and you can reap the benefits of a speedy home selling experience.