The real estate domain is witnessing a lot of buzz. Both buyers and sellers seem optimistic, better informed, and well prepared about their buying and selling choices. Property values are slowly climbing. Homeowners are looking for ways to increase their home equity. Refinance is fast emerging as the most sensible choice.
However, getting the maximum value for your home is not easy. Buyers are quite hesitant in making a quick decision. They like to inspect every aspect of a house. The smallest of untended parts of the house can ruin the appeal of a house. Lending institutions are ready to invest time in investigating a homeowner’s collateral, i.e. the house. This is why repairing a home becomes vital—it helps homeowners qualify for refinancing and prepares their home for a better sale.
Making Sense of All this Renovation Talk
It is difficult to define the true worth of a home. An old property, perhaps in shambles, could be a prized catch with enchanting history for some buyers. Other families might want to ensure that every part of their new home works without any hassle. Renovating and doing it in time is essential to raise your home’s market value. A renovation in time means that it is done before the problem transforms into a major expense, i.e. overhauling or reconstruction. Here, we provide more clarity about the need for smartly executed home repairs and renovations.
Repairs & Renovations for Refinancing
When a homeowner applies for refinance, condition of the house is among the most important considerations for the lender. Most refinancing organizations conduct a valuation. The idea is to find the real, market worth of the property. This is based upon many parameters like the rates at which other homes have been sold in the vicinity.
The overall state of the property affects the valuation officer’s decision. For instance, leaky faucets or creaking staircases can weigh down the valuation. Further, smarter renovation can help homeowners get an appraisal from the evaluating officer. This can be done by adding an additional shower or increasing the storage spaces.
Similarly, smart landscaping to make the property look bigger can help. Here, putting up larger windows that allow more sunlight to come through is a common practice. Similarly, a cultured fireplace or manicured garden can make a good impression. The attempt should be to repair or renovate the smallest of household spaces/areas than can add to the property’s cosmetic or utilitarian value.
Repairs & Renovations for Selling
It is better to present a visual sales pitch rather than argue for the price of a home. The reason is simple—what can be seen makes a faster, better impression and speaks a million words. Does this mean turning your home into an interior designer’s abode? Not really.
You need to play your renovation cards well to spend less and still, make an impact. Buyers are usually turned off by homes where the basics aren’t in place. For instance, exhaust fans that hardly serve the purpose or drawer knobs that fall off at the slightest touch. It is necessary to ensure that every functional entity in the house performs its duties. Even the doormat should play its part—a worn out doormat that cannot scruff away the grime is of little use!
Other, cost effective repairs and renovations that can help to get a better price for a home:
- Fresh grouted lines on tiled surfaces
- Fresh polish on wooden surfaces
- New paint job on aged walls
- Refurbished patio to make a good first impression
- New veneers for kitchen and bathroom cabinets
- A renovated, systematically arranged garage
Repairing and renovating your home is essentially an investment. You can make considerable monthly savings with a refinance. Similarly, a better selling price for your home means more profit.