How to Refresh Your Home for a Quick Sell

Are you planning to sell your home but unsure what repairs or updates to make before you list? While it’s wise to tend to fixes and upgrades prior to putting your home on the market, you need to think carefully about what to makeover if you want to attract buyers and get the most money from your sale. Experts agree that checking comparative properties and considering your return on investment is an excellent initial step in deciding how to refresh your home for a quick sell. Since every home seller has different circumstances, we’ve compiled a list of general guidelines to help you figure out what you might want to renovate.

Here are some of the fastest and most affordable ways to update your home for a quick sell in the new year;

1.) Freshen Up Paint

Real estate agents frequently advise clients to paint their homes before they sell. Scratches, scuffs, chips, and peeling areas accumulate over the years, and while the homeowner may not notice them, buyers typically do. Additionally, many homes’ paint colors are faded, outdated, and unattractive to modern buyers. You don’t have to have a huge renovation budget to invest in a new coat of interior or exterior paint. If money is tight, find a good and affordable one-coat paint and then choose a neutral color to create a blank canvas for buyers. Freshly painted properties often sell quicker and command top dollar.

2.) Declutter

Cluttered homes tend to look disorganized and unkept, and they can prevent a buyer from seeing a property’s full potential. Decluttering, therefore, is one of the most effective refreshes you can make before you sell and it’s one of the cheapest. To declutter your home and turn it into a space that buyers can envision as their own, go from room to room, eliminating anything unnecessary. Store, give, or throw away knickknacks, furniture, and other personal belongings that you don’t use or that don’t add to the picture you want to paint for a future buyer. Think about model homes you’ve been in or staged rooms you’ve seen in magazines. This is the image you need to present to buyers if you want to sell your home fast. Don’t forget to declutter drawers, cupboards, and closets and organize what’s left.

3.) Maximize Curb Appeal

Maximize your home’s curb appeal if you want to sell quickly. You can get a realistic look at how your property’s exterior appears to potential buyers by walking the route leading from the street to your front door. Stand from a distance and inspect your house numbers, mailbox, garage door, gutters, walkway or entry steps, porch or deck, and front door. Pay close attention to landscaping, exterior lighting, railings, and fixtures like door knobs and doorbells. Does anything need to be fixed or refreshed? How can you make your home stand out from the crowd, either in cleanliness or design?

4.) Update Window Treatments

New window treatments make a massive difference in how a home presents to potential buyers. Old, antiquated, and torn or broken blinds, curtains, and shades can make an otherwise acceptable property look outdated and even like a fixer-upper. For a small investment, you can update your window treatments to modern versions that help brighten a room and delight buyers. When choosing new window coverings, consider options that allow privacy while letting natural light in. Also, take note of the new smart designs with high-tech and hands-off controls for ease and efficiency.

5.) Remodel Your Kitchen

Remodeling a kitchen returns 98.5% of a homeowner’s investment and promotes a quick sell. Even if you don’t want to or can’t do an extensive kitchen makeover, consider a minor refresh with a new backsplash, coat of cabinet paint, hardware set, major appliance, or statement light fixture. New kitchen tile can make the difference between a dated space and a modern room that’s ready for a new buyer.

6.) Focus on Fixtures

Great lighting makes a massive impact and produces a ‘wow’ factor that can convince buyers your home is what they’re looking for. Today’s lighting trends include textured and subtle pendant lights, hidden lights, and mixed-metal fixtures. When refreshing the lighting in your home, remember to ensure all bulbs match. Additionally, for a fast sell, focus on refreshing door knobs, electrical outlets, cabinet hardware, and faucets. Replace any that are dented, scratched, not working, or past their prime in appearance in any way. Source

After the Home Inspection, What’s Next for Sellers?

What does the inspection cover?

It’s basically a visual examination of the home’s structure and systems. An inspector will look at the roof and the foundation — and everything in between. Safety issues are key items.

The list of things you can expect to be covered by an inspection report include:

• HVAC
• Plumbing
• Electrical system
• Roof
• Attic, including visible insulation
• Walls
• Ceilings
• Floors
• Windows
• Doors
• Foundation
• Basement
• Structural components

Although the emphasis will be on these items, inspectors will also see if things like garbage disposals and carbon monoxide detectors are operational. They will also look for leaks, mold, and signs of water damage.

Prepare for an inspection

There are several things you can do that will make the inspection go more easily — and may earn you a better report. Try to look for what home inspectors look for.

Provide access. Make sure interior doors are unlocked and clutter is cleared from everything the inspector needs to see, such as the furnace and under sinks.

1. Clean house. The inspector’s job will be easier and more pleasant if your house is tidy and clean.
2. Replace burned-out lightbulbs. To avoid any question of faulty wiring or bad outlets, make sure all the lightbulbs work.
3. Clear around the house. Trim shrubs and move trash cans so the inspector can get a good look at the siding, trim, and windows.
4.  Flush the toilet. If it runs, get it fixed.
5. Test the pilot lights. These can be on your water heater, fireplace, and stove. Make sure they all work.
6. Tighten the hinges on cabinet doors. Make sure they hang straight and close well.
7. Shut the doors. Like with the cabinet doors, make sure they hang straight and latch properly.
8. Replace the furnace filter.
9. Label the fuse box. Make sure it’s accurate and legible. This will help you in an emergency as well as the inspector.
10. Check for leaks. Look under sinks, around faucets, at the base of the toilet, bathtub, and shower, and under the dishwasher and refrigerator.
11.  Look for signs of water damage. Examine walls, ceilings, and floors for warping, sagging, and buckling. Check the exterior for leaks and pooling water.
12. Eradicate bugs. Eliminate wasp nests and get rid of ants and any other noticeable insects.
13. Check the roof. Look for missing tiles. Clean out the gutters. Ensure the downspouts are positioned properly and functional.
14. Produce receipts for maintenance, updates, and other service done to your home, such as an HVAC service, a chimney sweeping, or a water heater service.

Be prepared for the inspector two hours before the scheduled appointment. Leave all utilities on and make sure the inspector has access to all areas. Take your pets with you when you leave.

Next steps after the inspection

Once your inspection is completed, the inspector’s report will be sent to whomever paid for the inspection. Usually, it’s the buyer, but the seller may schedule a pre-inspection before listing the home.

So, after the home inspection, what is next?

1. Buyer will review the report with their agent

The buyer’s agent will help the buyer understand the inspection report and decide whether to buy the house, ask for repairs, or cancel the purchase contract based on the inspection findings. The inspection report can be 30 to 40 pages long, says Hyatt-Zack, so having an agent to help understand the results is helpful. It’s important to note, the inspection report belongs to the buyer who paid for it. It’s part of a legal business agreement between the buyer and the home inspector. Even though it’s your house, the only thing the seller receives is a repair request, if the buyer creates one.

Unless there is an extraordinary exception, sellers will generally only get a copy of the inspection report if they paid for part of it, which can sometimes happen through shared closing costs.

2. List of repair requests sent to seller

A buyer typically has two to three business days to review the home inspection report and ask for repairs.

Just about every report contains a list of suggested repairs, as well as health and safety issues. It’s up to the buyer and buyer’s agent to determine which are reasonable to request the seller to fix.

Generally, cosmetic issues, renovations, or updates you want to do, landscaping, and repairs to outbuildings are considered unreasonable repair requests. You should stick to health and safety issues. Anything related to the electrical system (faulty breakers, improper or defective wiring, rusted panel boxes), plumbing (leaks), HVAC (damaged ductwork, inoperable system, faulty thermostat), roof (leaks, damage to shingles, chimney, flashing), or structural defects (wood rot, broken framing) may be fair game.

Buyers can also ask for removal of asbestos, lead paint, mold, and mildew.

3. Seller reviews and crafts response

The seller’s options in response to the buyer’s requested repairs are:

• Make the repairs
• Negotiate which repairs to do
• Refuse to do any repairs

In a seller’s market, the seller may have less inclination to fix anything — and may have other offers already on the table without contingencies. “Because of the [current] market conditions,” Hyatt-Zack points out, “sellers are less willing to fix things.”

A seller may offer a credit or financial concession, reducing the price of the home to allow for the buyer’s cost to fix any issues. However, some lenders require specific issues (such as rot, insect damage, or moisture problems) be addressed before a loan is funded. Nevertheless, if the seller refuses, the buyer can walk away and usually get their earnest money returned.

4. Buyer and seller make an agreement

Once the buyer and seller have come to terms with any repairs, they make any necessary updates to the agreement of sale (aka contract of purchase, contract for sale, sale agreement, or contract agreement).

5. Sale moves forward to appraisal and closing

Once the inspection period is finalized, the sale will move forward into the appraisal and closing stage.

Lenders require an appraisal to determine the current value of the property. The sale price and other terms can change or be negotiated if the appraisal is low. The closing process also includes a title search and the buyer’s mortgage underwriting before the closing date. Any one of these steps can delay or even undo the closing, so make sure to keep up with any requests from your agent during this time. Source

Happy 4th of July!

 

Happy 4th of July from us at Work and Associates Home Loans to all of you! 

We hope you have a fun filled and safe holiday weekend.

(916) 847-3090

margeate@workhomeloans.com

NMLS ID 394275 | DRE ID 01769353

Plan to Leave These 6 Items in Your Home When You Sell It

Yes, some of these items are technically outside on your property.

1 – Plants, trees, and flowers

Plants, trees, and flowers are rooted in the ground. Therefore, they are considered an integral part of the landscaping. 

It’s not unheard of for buyers to arrive at a house post-closing to find that show stopping peonies or flowers went missing between the walk-through and the closing. But that trick can land you in hot water if the buyer gets technical over it. 

If you have a special plant or shrub, mention it when you list the home. Or, dig it up and place it in a container garden until you sell. The difference is, moveable planters and containers may go with you. An exception to that container rule would be heavy concrete planters that are considered fixtures.

2 – Appliances

You love your shiny smart appliances, and you hate you have to leave them behind. However, they are considered part of a real estate transaction in most cases. In fact, appliances are even a marketing point in many homes, especially those modern, state-of-the-art models. By the way, it’s a nice gesture to leave the manuals and warranty information handy for the new owners. Plan to use part of the money you receive from the sale of your home to invest in new appliances and fall in love all over again. 

3 – Anything anchored into the earth

Do you have an outdoor swing that’s secured with concrete into the earth? Or do the kids have a basketball hoop stuck permanently into the ground? Either of those is a permanent fixture that should convey to the buyer. However, a freestanding basketball hoop that wheels into the garage for the winter is yours to keep. 

4 – Window treatments

Window treatments can be expensive, and they become a sticking point when buying or selling a home. 

Window brackets, rods, and blinds are secured to the window frame. Thus, they are permanent fixtures. However, your curtains are easily removable and might be okay to take with you. On the other hand, offers to purchase real estate will often stipulate that you leave the curtains as well. That case is particularly true when you have custom-sized windows. Regardless, the curtains might not fit your new home anyways, so it’s often best to leave them. 

5 – Installed features

Anything that you have mounted, bracketed, secured, or custom-installed is permanent. 

These items can range in size and include:

• Toilet paper or soap mounts in the bathroom 
• Television brackets (minus your tv, of course)
• Custom built-in furnishings or cabinets

In short, if you have altered your home to install a feature, plan to leave it with the property. Otherwise, you’re setting yourself up for a disappointing outcome when it’s time to negotiate. 

6 – Light fixtures

Any light fixtures that are hard-wired into your ceiling or walls are permanent. Leave them behind. This includes overhead lighting, pendants, chandeliers, or wall sconces. However, if you have upgraded to costly fixtures that you would be heartbroken to leave behind, you have one option. Before you list your home, replace these with the original lights—if you saved them. If not, they convey to the home’s new owner. It can be disappointing to leave behind things that you love when you sell your home. If you find that you struggle with passing a family heirloom cherry tree to a new owner and want to remove it, make sure you are clear on this upfront. 

Or, if you have a priceless blown-glass pendant light you had imported from Europe that you’re attached to, swap it out before listing. Otherwise, put yourself in the buyer’s shoes. They are viewing your home as their new one, and they fell in love with it thanks to your great taste. Pass the torch. Move on and feather a new nest. Source

NMLS ID 394275 | DRE ID 01769353

Mortgage Preapproval vs. Prequalification: What's the Difference?

What Is a Mortgage Prequalification?

A mortgage prequalification is a quick estimate of how much home you can probably afford. (At least according to the lender—your actual home budget should be a separate conversation.)

Why is it a quick estimate? Because, honestly, you don’t need to do much to get one. All you need is your name, phone number, and some numbers (real or fake) that show your income, assets and debts. Give these to your lender over the phone, online or in person—and they’ll give you a prequalification on the spot.

When is the best time to get a mortgage prequalification?

First, decide if you’re ready to buy a home. If you are, get prequalified.

Yeah, it’s really that simple. Since a prequalification gives you a big picture idea of how much mortgage you would be approved for, the best time to get one is in the very beginning—when you’re reviewing your budget. Think of it as the first step in the mortgage process.

What do you need to get a mortgage prequalification?

Here’s the truth—you need a lender and that’s about it. As long as you have numbers in your head or on paper, you can get prequalified.

What Is a Mortgage Preapproval?

A mortgage preapproval is a step above a prequalification. It’s a thorough investigation of your income, assets, credit history, rental history and debts. It will give you a concrete idea of how much home you can afford—according to your lender. When you get preapproved, a lender verifies you’re employed, checks that you aren’t falsifying the facts, and makes sure you aren’t swimming in debt up to your eyeballs.

When is the best time to get a mortgage preapproval?

The same as with mortgage prequalification, the best time to get a mortgage preapproval is when you’re ready to start shopping for a house. In fact, we’re going to let you in on a little secret—you can skip prequalification and go straight for preapproval.

When you receive your preapproval, keep one important fact in mind: Your lender will likely approve you for way more money than you should consider spending on a home. Stick with these two guidelines and you’ll have a home you can truly afford, while you work toward bigger financial goals like saving for retirement or paying for your kids’ college:

1. You need to put at least 5–10% down (20% will help you avoid paying private mortgage insurace). So if you have $20,000 saved, you can afford the down payment on a $200,000 home.
2. Your payments on a 15-year mortgage should be no more than 25% of your take-home pay. You’ll pay thousands less in interest with a 15-year mortgage than you would with a 30-year mortgage—and you’ll be out of debt in half the time!

You’ll be tempted to look at more expensive homes, especially when you see how much your lender thinks you can afford. But a huge mortgage payment will ultimately make your home a curse, not the blessing it should be. Source

How to Perform a Roof Inspection

A routine roof check is an essential homeowner box to check. A damaged or leaking roof can cause a lot of problems and even make your A/C work overtime. Use these tips to inspect your roof safely. Your roof is one of the most important parts of your home. A well-maintained roof in good repair protects your home from water intrusion, which is why it’s so important to inspect your roof regularly. Use these tips for how to perform a roof inspection on your own time.

1. Look for Algae, Moss, or Piles of Leaves

If you have binoculars, you can begin your DIY roof checkup from the ground. Start by walking around your house and checking your roof for piles of leaves or other growth or debris, all of which can cause serious damage to a roof. They can trap moisture, which can seep into the sheathing below your shingles and even into the structural elements of the roof itself. You should clear these away immediately.

Moss is especially dangerous because it soaks up rainwater like a sponge. The moisture can cause the wooden structure underneath your roof to mold and decay, which can compromise the structural integrity of your roof.

So, how do you get rid of pesky moss? You can apply moss killer and brush the offending moss away with a broom or brush, especially if the infestation is new. When you have your roof re-shingled, consider buying moss- and algae-resistant shingles—they may be more expensive than the regular shingles, but they can keep moss away for the lifetime of the roof.

2. Look for Buckled or Curled Shingles

Hot air in your attic can cause your shingles to warp, buckle, or curl. (This is typically an issue with asphalt shingles.) Misshapen shingles can compromise the integrity of your roof, letting in water and causing poor ventilation, so they should be replaced. If more than one-third of your shingles are curling during your roof inspection and repair process, it’s time to re-shingle the entire roof.

3. Check for Damaged, Missing, or Old Shingles

Missing or damaged shingles can also let water seep through your roof. If you have wooden shingles or wood shake shingles, inspect them for signs of dry rot, either from the ground or from a ladder (don’t walk on a wooden shingle or shake roof). Asbestos, slate, or clay tile roofs can suffer from breakage, so look for cracked, chipped, broken, or altogether missing shingles. If you’re performing a metal roof inspection, check for signs of corrosion, rust, stress wrinkling, or other wear. If you have asphalt shingles, check for signs of wear as you clean your gutters. Asphalt contains gravel-like granules. As the shingles age, these granules will break free and find their way into your gutters. If you see a lot of asphalt granules in your gutters, check the roof carefully for damaged or missing shingles.

4. Inspect the Roof Up Close

If you can, get up on a ladder and perform your roof inspection up close. While you’re up there, look for damage to the flashings around the chimney, dormers, and vent pipes. (Flashings are the metal materials on your roof that redirect water.) Damaged or corroded flashings can let water into the interior structure of your roof and could contribute to rot in the structure of your roof and the walls of your home. If you see damage, you’ll probably need to replace the flashings.

5. Investigate Your Attic

If your home has an attic, it’s important to get in there and look for signs of water leakage through your roof, especially after heavy rain. Doing so can help you spot damage that may not have been visible from the ground or your ladder. While running through your roof check, inspect your rafters and the wooden interior of your roof for signs of moisture, mold, and rot. If you see any water damage, you may need to fix your leaking roof.

Your roof is your home’s first line of defense against the elements. Even if you can’t afford to have a professional roof contractor inspect your roof twice a year, you can safely and cautiously check it yourself for signs of damage and wear. Regular DIY roof inspections will also help you get to know your roof, so you’ll be able to recognize problems before they get too serious. Source

When to Refinance Your Mortgage

Refinancing a mortgage means paying off an existing loan and replacing it with a new one. There are many reasons why homeowners refinance:

• To obtain a lower interest rate and smaller monthly payments
• To shorten the term of their mortgage
• To convert from an adjustable-rate mortgage (ARM) to a fixed-rate mortgage, or vice versa
• To tap into home equity to raise money for a large purchase, to consolidate debt, or to deal with a financial emergency,

Since refinancing can cost between 5% and 7% of a loan's principal and—as with an original mortgage—requires an appraisal, a title search, and application fees, it's important to know when it's worthwhile and when it's better to wait.

When Should You Refinance?

Refinancing your mortgage is a big step. As such, there are several things you should consider before you sign the paperwork. Most borrowers consider mortgage rates they want to refinance. Locking in a lower rate is an important factor to consider when you want to refinance because it effectively lowers your payments. But it shouldn't be the only thing to focus on when you want to renew your mortgage.

Here are a few other factors to consider before you apply:

• Your home equity. Make sure you have equity available in your home. This is key if the value of your home drops below the value when you purchased it. It's also important to note that many lenders (especially conventional lenders) won't refinance your mortgage if you don't have enough equity in your home.
• Your credit history. You won't qualify for a refinance if your credit score doesn't meet the minimum requirements. Take the time to build up your credit score before you apply.
• Refinancing costs. If you have a mortgage, you'll know how much you paid in additional costs. As such, you'll have to pay these expenses again—usually a small percentage of the loan. Try to find ways to negotiate so you can reduce the costs.

Other points you'll want to note are your debt-to-income (DTI) ratio, the overall term of the refinance, and whether you qualify for refinance points to reduce the interest rate on the loan. Source