Your primary home you currently own can become your first investment property. So you owe it to yourself to ask, “should I sell or not sell?” multiple times and look at all the options to keep the property as much as you can before selling it. Often times, the house you owned for the last 5+ years have gained a lot of equity that may give you an opportunity for you to become an investor. Many established investors are currently looking for the properties like yours for the-5 years-ago price. Looking from investor’s point of view, you already have that exact property that you bought 5 years ago. So why not keep that property, turn it into your first investment property and potentially make it into cash generating business?
Questions to ask yourself before selling your real estate:
Can I buy my next property without selling my current property?
What would be my net gain/loss if I rent my current home?
Net Gain: Market rent price – Full house payment (mortgage, tax, insurance, utility, maintenance cost, management fee).
If net loss, what would it look like if I had to pay $200/month out of pocket to break even? Costing $2400/year to keep as an investment.
What would it look like in 3 years if/when the rental market rate goes up while paying down the mortgage principal?
What would it look like when the mortgage is paid off in 20 years?
What other options will I have financially then?
What are my current options? Here are a few options you might consider.
Cash-out refinance first and wait to qualify for the next mortgage.
Apply for a HELOC (Home Equity Line Of Credit) and use that money as downpayment for next house.
Borrow money against other investments you have.
One of the real estate regret I still have is selling my first Portland home that I bought in 2005. I hope you don’t have the same regret by selling without looking into keeping it. Ask yourself this question anytime when you are thinking about selling real estate.
First impressions are crucial, especially when it comes to selling your home. Luckily, there are some easy and affordable upgrades you can do to make your home stand out from the moment potential buyers arrive.
1. Enhance The Curb Appeal
Try some affordable upgrades like pressure washing the exterior, painting the front door or shutters, replacing old fixtures, adding fresh greenery to garden beds and window boxes, and creating an inviting outdoor living area with chairs on the porch or stoop.
2. Kitchen Makeover
Did you know that the kitchen plays a crucial role in selling a house? The good news is that you don’t need to break the bank to make it more appealing. If you’re on a tight budget, you can update the backsplash by using peel-and-stick faux tile, tin tile, beadboard paneling, or painting the existing tile.
3. Minimize Furniture
When it comes to getting your home ready for sale, one of the most important things to focus on is decluttering. A cluttered home can turn off potential buyers, so it’s essential to get rid of any unnecessary items. One way to achieve this is by reducing the amount of furniture in each room. Professional stagers often remove up to half of the furniture in a home to make it look more spacious. This allows buyers to move around the house freely and appreciate its unique features, like a fireplace or built-in bookshelves. By minimizing clutter, you can help your home appear more inviting and appealing to prospective buyers.
4. Rearrange Your Furniture
When it comes to preparing your home for sale, rethinking your furniture placement can be an effective way to enhance its overall appeal. Arranging your furniture in a way that maximizes the space and highlights the unique features of each room can make a big difference.
5. AddAn Office Space
With the rise of remote work and homeschooling, having a designated workspace has become increasingly important for many homebuyers. By making efficient use of available space, you can appeal to potential buyers who require a home office without compromising on other essential features of your home.
6. Depersonalize
One important aspect of preparing your home for sale is creating a neutral and welcoming environment that allows potential buyers to envision themselves living there. To achieve this, remove personal items such as family photos and children’s artwork that may distract buyers from imagining their own lives in the space.
Work on these tips and you might just have a potential buyer knocking on your door. Which tip will you do first?
When looking to maximize the value of your home, it’s important to know which improvements will have the greatest impact. The right upgrades can make all the difference in what buyers will pay for your property. To help you decide which improvements to work on, we’ve shortlisted a few upgrades that can potentially increase the value of your home.
1. Convert or Build a Home Office
We all saw the world shift when the pandemic hit. Office work has found its way into our homes and for some, it means making room for a work-conducive area.
In a survey done by HomeLight during Fall of 2021, results showed that 60% of top real estate agents had clients with home office as a top priority in their property search. With this demand, home offices add over $10,000 in resale value, according to a mid-2020 data by the same company.
To accommodate an office in your home, you can try converting spaces such as walk-in closets. Or, you can also go big and construct an accessory dwelling unit (ADU) right in your backyard. Whichever way you want to do it, you’ll benefit either way — while you’re living in your home and when you decide to sell your home in the future.
2. Finish an Unfinished Basement
If you have an unfinished basement, you might want to fix it up prior to selling your home. According to HomeAdvisor, it can get sellers a potential of 75% return on investment (ROI) with a finished basement of around 400-1,500 square feet. Turn it into an office, a guest room, a great room, or just leave it blank and let potential buyers imagine what they’ll make of the space.
3. Touch up or re-do your exterior paint
Out of all the upgrades in this list, exterior touch ups may be the most doable and economical. Although this upgrade is not as drastic as the others, it can change your home’s curb appeal instantly — from looking run-down to brand-spanking new! Here are some ways you can change the exterior look of your home:
Pressure wash the exterior, including the sidewalk, driveway, patio or deck. Nothing beats a sparkling home free of dirt and those green algae.
Paint the main door with a bold color against a neutral exterior, as often recommended by designers.
Check the exterior of your home for any flaking or chipped paint. If there are any visible paint issues, it would be better to at least touch them up.
Go all-out and re-do the exterior paint entirely.
4. Add a deck or patio
Outdoor dining, back yard barbecue, outdoor gym or additional living space — decks and patios are a fantastic way to get your daily dose of fresh air while entertaining or getting a bit of sweat on. These spaces are a common addition to any American home and can add an average of over $7,000 in resale value. Building a deck can cost you around $4,300, which will likely lead to a positive ROI when you decide to sell your home.
5. Install New Windows
According to a study by the National Association of Home Builders (NAHB), 90% of home buyers found energy-efficient windows to either be essential or desirable. Replacing your home’s windows can be expensive, but an estimated 80% of the cost can be regained at resale, according to a HomeLight survey.
If you choose to install new windows, make sure to check the the U.S. Department of Energy’s online guide that contains the government’s minimum energy-efficiency standards for new windows. These standards may vary based on the climate zone where the home is located.
6. Kitchen and Bathroom Remodels
Swap out the kitchen and bathroom fixtures and drawer knobs for a newer, modern design. If your home has a more traditional or eclectic vibe, replace the fixtures and knobs with a design suited for its style. The important thing is to get a refresh from all the gunk that has been stuck in the nooks and crannies of these items. If done right, this simple and inexpensive swap can give your home a cohesive feel.
If you have the budget to make a minor remodel, this can garner you an estimated amount of 71% ROI, according to HomeLight. Comparing that to a major kitchen remodel, which can only get you 56% ROI, the minor remodel is the better choice. For bathrooms, a minor remodel can get 60% ROI while an upscale remodel gets 5% less.
Here are some items that you might want to remember when remodeling your kitchen or bathroom:
Replace the countertop. Granite countertops add more value to your home, but it can be expensive. A less expensive option would be to put in granite tiles instead of a whole slab.
Replace the cabinetry. If you don’t have the budget for this, you can make your cabinets look modern and brand new with a fresh coat of paint.
Replace the appliances. Upgrade the appliances into stainless steel and energy-efficient ones.
Replace the old fixtures and drawer knobs with standard ones. This won’t cost you as much, so make sure you include this in the remodel.
Replace the old tiles. You can also have them regrouted to save money. This feels the same as having a fresh coat of paint on your wall.
Refinish the tub and liner. This is an inexpensive way to make the bathroom look brand new.
We hope these tips help you sell your home quicker and at a higher value!
So you’re thinking about making some big changes in your life this year — moving to a different home or even finally cashing out on your investment property. You decide to sell your house to make these changes possible. What now?
The real estate market is ever-evolving and can be difficult to navigate, but there are a few steps you can take to make your home more desirable and increase its value.
Clean and declutter
First and foremost, a thorough cleaning and decluttering is required. A clean and well organized home not only looks more appealing, but it also puts potential buyers at ease. Removing personal items such as family photos can also help potential buyers visualize themselves in a home. It’s like giving the buyers a blank canvas to work on.
Complete Repairs and Negotiations
Before putting your home on the market, make sure that any repairs or renovations you’ve been putting off are finished. You wouldn’t want potential buyers to think that you did not take care of the home you’re selling. It also helps buyers focus more on painting their lives in your home, rather than the patchy paint on the walls.
If you have an unfinished basement, completing it will add usable square footage to your home. Ever since the pandemic, more people have migrated to a remote or work-from-home set up. An office space would definitely be a bonus room. These things will lead to an increase in the listing price and potentially earn you more in the end.
Price Your Home Competitively
Do some research on the local real estate market to ensure you’re pricing your home competitively. Examine recent sales in your area and set a reasonable asking price. The first published listing price is quite important because it sets the tone for your listing. Price it too high and you’ll get few offers or none and may result in a longer listing period. You wouldn’t want your listing to go stale on the market. This can potentially scare buyers into thinking that there must be something wrong with the home. Now, if you price it too low, you might not get your money’s worth back for the house. Buyers may also request additional closing costs or repairs to the home after inspection. This will eat up a chunk of the sale price and may leave you with nothing but a loss. So, make sure the price is right!
Create An Eye-Catching Marketing Plan
Create an eye-catching marketing plan to entice potential buyers. When marketing your home, make sure to use all of the available resources. Use online listings, local newspapers, and even word-of-mouth advertising to advertise your home. Once you launch your advertisement onto the internet, don’t forget to be patient and persistent during the process. It may take some time to sell your home. Between responding to inquiries and entertaining buyer walkthroughs, it can take much of your time and effort. But if you keep at it, you will get your home sold soon enough!
Find An Experienced Real Estate Agent
Finally, look for an experienced real estate agent. The agent will help you with all the steps mentioned above and more! Real estate agents will assess your needs such as the net profit for your home and your selling timeframe. They will also help you prepare your home to make sure that it’s market-ready. Marketing, open houses, showings and buyer inquiries are some of the services that agents carry out during the listing phase. In a multiple offer situation, they can help you assess the best offer to take, based on their real estate knowledge and past experiences. From offer straight to closing, good real estate agents will guide and assist you throughout the whole process. This makes for a more enjoyable and less stressful sale.
Let’s take a quick look at the current real estate market in Beaverton, Oregon. Weekly real estate data which prepares the sellers and buyers with more up-to-date information than other delayed data. Altos Report.
With the yearly seasonality, we are seeing pending sales inching up, home buying demand is increasing. Price is somewhat flattening overall. The biggest difference makers are available tools for the buyers: rate buy-down, better negotiation leverage, loans with free refi in the future, more houses to choose from.
