Finding the finances to fund that renovation

by Eugene "Jim" Hills

Whether you are renovating to stay in your home or getting it ready to sell, finding the financing for the work is the first job.

It could be an out dated kitchen, an overrun backyard or unusable basement space. Whatever the project or projects you have in mind, the first thing you have to consider is how you are going to finance it. Here are the most common options to make your dreams become a reality:

Cash

Paying in cash is the most straightforward financing option, just save until you have enough money to cover the expenses. This will help eliminate spending outside your budget; however, it can also extend your timeline.

Mortgage refinance

If you’ve been making payments on your home for a few years and your interest rate is higher than current market rates, you may be eligible for a mortgage refinance, reducing your payments and freeing up some money.

Cash-out refinance

You can tap into your home equity and borrow up to 80 percent of your home’s value to pay off your current mortgage plus take out more cash to cover the renovations. This option is encouraged only when you’re making improvements that will increase the value of your home, as it can add a lot of interest and fees.

Home equity

Getting a home equity line of credit allows you to borrow money against the value of your home. You receive usually up to 80 percent of your home’s value, minus the amount of your loan.

Retirement funds

Homeowners can consider pulling money from a 401K or IRA account, even though they aren’t specifically meant to cover a home renovation. This option might incur additional penalties or tax payments, but may be worth it when making improvements that will benefit them financially in the long run.

Buying a home • Moving • April 7, 2023

Prioritize tasks once you are moving in

by Eugene "Jim" Hills

Moving into a new home is an exciting time and there is so much to do beyond just unpacking all those boxes.

While you’re probably daydreaming about decor and paint schemes and new furniture, there are some basics you should cover first before you get into the fun stuff.

Change the locks

Even if you’re promised that new locks have been installed in your home, you can never be too careful. It’s worth the money to have the peace of mind that comes with knowing that no one else has the keys to your home. Changing the locks can be a DIY project, or you can call in a locksmith for a little extra money.

Steam clean the carpets

If you are keeping the existing carpets, at least for the time being, it’s good to get a fresh start with your floors before you start decorating. The previous owners may have had pets, young children, or just some plain old clumsiness. Take the time to steam clean the carpets so that your floors are free of stains and allergens. It’s pretty easy and affordable to rent a steam cleaner—your local grocery store may have them available.

Call an exterminator

Of course, you were diligent and had an inspection done as part of your purchase. However, prior to move-in, you probably haven’t spent enough time in the house to get a view of any pests that may be lurking. Call an exterminator to take care of any mice, insects, and other critters that may be hiding in your home. You’ll feel better.

Selling Your Home • April 7, 2023

Consider staging to help your home perform

by Eugene "Jim" Hills

Staging your home is all about putting the best foot forward for potential buyers.

To do that, staging a home can mean a few different approaches. It might be selecting just a few of your best items and moving much of the other furniture and furnishings out during the sales period. It definitely means taking all those inspirational magnets and children’s art pieces off of the refrigerator.

Another option can be to move all your possessions out and using a professional staging service. The pros will use their own furniture and give your home an inviting updated vibe that is likely to appeal to buyers.

Either way, by highlighting its most desirable features, you can draw more interest for your home and leave a lasting impression that is sure to help you sell it more quickly. Here’s what you should keep in mind as you prepare for your next open house or viewing!

Vision

Help buyers visualize the home as their own. Make it easier for buyers to imagine themselves making your house their home by removing personal memorabilia, knick-knacks, and photos. Instead replace them with simple decors, such as paintings, nature images, and plants.

Feel

Think sleek instead of comfy. Modern-day buyers are leaning toward modern, crisp, clean interiors over comfy, homey looks. When staging your home, keep a minimalist mindset, and incorporate bright colors and metal accents.

Cleanse

Deep clean the small spaces. It’s obvious to say you should clean your home before viewing, but don’t forget to cover your bases by deep cleaning the small spots. Take time to scrub porous areas like grout that may hold on to stains and baseboards where small pet hairs and dust love to cling.

Yardwork

Spruce up your landscaping. The first impression your home gives to potential buyers is its exterior. Ensure you have a freshly mowed lawn, neat hedges and shrubbery, bright flowers, and a clean driveway.

Senses

Set the mood. A home is so much more than just the way it looks, so you need to appeal to the other senses. Prior to having potential buyers over, set the mood by burning delicious smelling candles and selecting an upbeat, happy soundtrack to play in the background.

Buying a home • April 7, 2023

When buying, you can negotiate more than price

by Eugene "Jim" Hills

Whether you are a first-time homebuyer or a seasoned veteran, the negotiation part of the transaction can be a little daunting and stressful.

Most buyers focus on price when considering negotiating a purchase. However, it is necessary to ensure you are getting the best possible deal for your money. So, what else could you negotiate when buying a home?

Closing costs

Your closing costs are determined by a variety of factors, but you can expect it to be between 2% to 5% of the purchase price. Ask the seller to cover some or all of the closing costs upfront or request a closing credit that can be used to make specific updates and fixes to the home.

Furnishings

Love how the seller has furnished and decorated the home? Buyers often negotiate keeping couches, fixtures, landscaping items, patio furniture, appliances, and more. And many sellers agree, wanting to make the home more appealing.

Inspection and closing date

Buyer offers that include a quick inspection and close timeline are often more attractive to sellers who have been going through the process for far too long. Just ensure you allow yourself ample time to get your financing in place and complete proper, thorough inspections.

Home warranty

Sellers will often agree to pay the premium on the home warranty at closing and then hand it off to the new homeowner, who is responsible for the deductible on any future claims.

Repairs

Your inspection may uncover small or large repairs needed to bring the home up to standard. You can negotiate to have these items fixed before closing or ask for a price reduction to cover the costs.

Buying a home • Moving • April 7, 2023

Townhouse or condo? Which is right for you?

by Eugene "Jim" Hills

Whether a first-time buyer or you just want to purchase something smaller, townhouses and condos can both be great options.

Check out the differences between the two to help aid you in your search!

Condominium

Condominiums are similar to apartments in that you purchase an individual unit inside of a larger building, but not the property it sits on.

This generally includes access to the building’s amenities, such as the clubhouse, pool, and gym. However, condo owners are not responsible for the upkeep and repair of these common areas. Because of the number of shared spaces, living in a condo often allows for meeting new people and building a strong sense of community.

There is a fairly similar vetting process for loan approval as for a full-sized home; however, the lender will also look at the health of the condo association.

Townhouses

Those who purchase a townhome are often purchasing the complete unit, both inside and out, including the land it sits on. This might also include the driveway, yard, or roof.

Traditionally, these units are two- or three-stories tall and may also include common areas like pools and parks. Townhome owners pay a fee to a homeowners association every month and the loan process is the same as buying a full-sized home.

Best choice?

Both townhomes and condos offer less maintenance than a traditional home and generally offer great shared areas. Your decision ultimately comes down to you and your family’s needs and wants. Things you’ll want to take into consideration include location, lifestyle, family growth, and price.

Home maintenance • Interiors • April 7, 2023

Going from a sleep place to retreat space

by Eugene "Jim" Hills

For many people, the bedroom is little more than a place to sleep.

However, just because it’s always been that way doesn’t mean that we have to settle for cluttered and boring.

One trend that’s gaining steam these days is converting your current bedroom into a luxury suite (or something comparable). If you want to live like you’re renting a room at the Ritz, then you want to follow these tips.

Compartmentalize activities

Making your bedroom more functional is going to make it more luxurious. Add a gorgeous desk for working and a TV area for entertainment, and you’ll be living it up in no time.

Make it chic

Choose a color palette that is both luxurious and classy. Silver and gold can seem tacky, so choose muted shades that compliment each other.

Also, a brilliant and commanding headboard can instantly upgrade the look of your room without any other changes.

Light it properly

Finally, make sure that you have the right light to show off your designs. If it’s too washed out or yellow, then it will look drab and run down. Switch to brilliant LEDs and see the difference.

Choose accents wisely

We already mentioned a headboard, but some elegant drapes can also make your room feel more royal. Being strategic with your furniture accessories is going to both keep you under budget and avoid doing too much with the space.

Are you ready to lux your bedroom? You’ll be impressed by the results, and the feeling of decadence will make you more confident in your surroundings.

Home maintenance • Interiors • April 7, 2023

Make an asset of that unfinished basement

by Eugene "Jim" Hills

That unfinished basement may be dimly lit and a little rough on the eyes, but that just means it has a lot of potential.

With a little love and the help of the following ideas, you can spice it up in no time, get some great use out of the space and turn it into an asset when it comes time to sell your home.

Add a pop of color

Give your basement a whole different look without a big renovation by adding some color to space. Consider painting and sealing the floors, opening up the room by painting the rafters white or a light color, or creating a bold accent wall.

Divide the space

Want to make your basement a multi-use room? Partition out the area by installing an inexpensive curtain system. This can be done either with a curtain track or a simple wire, some hooks, and curtains will suffice.

Add foam mats

Whether you’d like to use the basement as a home gym to get a quick workout in or a place for the kids to play and rough house, adding some foam mats into the mix is a great and easy solution. They come in various colors and can quickly be picked up and tucked away if need be.

Use a large rug

As an alternative to adding mats, find a large, eye-catching rug to be used as a focal point, and furnish the area around it.

Add lighting

Basements often offer very little built-in lighting and few outlets around the room. Consider stringing café lighting across space from the rafters to give a nice ambiance and glow without any difficult electrical work.

Selling Your Home • April 7, 2023

What should you repair before selling your home?

by Eugene "Jim" Hills

So, you’re thinking it’s time to sell your home.

You may treasure the stories behind all those nicks, scrapes, worn carpeting and the “mature” landscaping, but prospective buyers are thinking about making their own memories, not honoring yours.

When selling your home, it’s of the upmost importance to ensure you are showing it in the best light. Taking time to highlight its strengths fix possible weaknesses can make a big difference in how fast it sells and for how much.

Here are four recommended repairs to make before selling your home.

Repaint

Giving your home a fresh coat of paint is one of the most cost-effective ways to spruce it up. If you are up and can do a good job, it can be a do-it-yourself project. Make sure cover any walls with scratches and chips and consider updating any accent walls with a more neutral coat. Don’t forget the outside, too. Weathered and worn siding and trim is among the first things buyers touring your home will see.

Repair floors

If your carpet is worn or stained, consider replacing them if a thorough cleaning won’t suffice. Hardwood floors are a very desirable feature in a home, so you want to ensure they look their best by fixing scratches or dull areas. And don’t forget the tile in your kitchen or bathrooms. Re-grouting can go a long way in making dingy tile work look brand new.

Refresh landscaping

Show buyers your home is the full package by dressing up the outside as well as the in. Clean walkways and driveways, plant seasonal flowers and plants, trim hedges and trees, install outdoor décor pieces and fill in mulch and gravel.

Fix fixtures

Leaky faucet? Rusted drains? Loose drawer handle? Making these small fixes can make a big difference to potential buyers with detailed-orientated minds. Improve your kitchen. An outdated kitchen can be a real eyesore in a home. Updating cabinetry, repairing or replacing countertops, and installing new faucets and sinks may be worth the investment.

Allowance option

All of that can sound like too much trouble or perhaps you just don’t have the funds available to hire the work done. If that is the case, offering buyers allowances so they can put their own personal touch on can be an attractive option.

Buying a home • Financing • April 7, 2023

Which down payment strategy is right for you?

by Eugene "Jim" Hills

Getting ready to buy your dream home can come with two less dreamy words: down payment.

For years, the standard guidance has been “save for a 20-percent down payment before you buy a home.”

The logic behind saving 20 percent is solid, as it shows that you have the financial discipline and stability to save for a long-term goal. It also helps you get favorable rates from lenders.

However, there can actually be financial benefits to putting down a small down payment—as low as 3 percent—rather than parting with so much cash up front, even if you have the money available.

Downside

The downsides of a small down payment are pretty well known. You’ll have to pay PMI (private mortgage insurance) for years, and the lower your down payment, the more you’ll pay. You’ll also be offered a lower loan amount than borrowers who have a 20-percent down payment, which will likely eliminate some homes from your search.

Upside

The national average for home appreciation is about five percent. The appreciation is independent from your home payment, so whether you put down 20 percent or three percent, the increase in equity is the same. If you’re looking at your home as an investment, putting down a smaller amount can lead to a higher return on investment, while also leaving more of your savings free for home repairs, upgrades, or other investment opportunities.

Happy medium

Of course, your home payment options aren’t binary. Most borrowers can find some common ground between the security of a traditional 20 percent and an investment-focused, small down payment. Your trusted real estate professional can provide some answers as you explore your financing options.

Buying a home • Financing • April 7, 2023

You like the price, but does the appraiser?

by Eugene "Jim" Hills

You’ve found your dream home and now it’s time to cross all your T’s and dot all your I’s before it’s all your own. And one of the first items on the closing checklist is the home appraisal.

So, what exactly is that?

The listing price is based on a market analysis done by a real-estate professional. Then, you and the seller may have negotiated any adjustments that each side thought was appropriate. You settled on a price and everyone signed the offer.

All done? Not quite.

The home appraisal is essentially a value assessment of the home and property. It is conducted by a certified third party and is used to determine whether the home is priced appropriately. It is this appraised value that the lender depends on in committing to financing your dream.

During a home appraisal, the appraiser conducts a complete visual inspection of the interior and exterior of the home. He or she factors in a variety of things, including the home’s floor plan functionality, condition, location, school district, fixtures, lot size, and more. An upward adjustment is generally made if the home has a deck, a view, or a large yard. The appraiser will also compare the home to several similar homes that were sold within the last six months in the area.

The final report must include a street map showing the property and the ones’ compared, photographs of the interior and exterior, an explanation on how the square footage was calculated, market sales data, public land records, and more.

After it is complete, the lender uses the information found to ensure that the property is worth the amount they are investing. This is a safe-guard for the lender as the home acts as collateral for the mortgage. If the buyer defaults on the mortgage and goes into foreclosure, the lender generally sells the home to recover the money borrowed.