Should I Upgrade My Home Before Selling It?

One of the first questions I get when someone is getting ready to sell their home is, "Should I upgrade it?" There are a lot of factors to consider before answering that question, so in today's blog I,m going to discuss some of them, so that you will be able to make an informed decision on whether to upgrade or not.

A few things to consider before you answering the question of to upgrade or not are the competing inventory, the type of market, and your return on investment.

Competing Inventory - What are the other homes on the market around you like? Do they all have updated kitchens and your's doesn't? Is yours the only house with only one bathroom? Before deciding on whether to upgrade or not, it is important to know what your home will be competing against. If your home is seen as needing remodeled compared to the other homes, your home will naturally sell for less. Most buyers prefer a home they can move into with minimal effort. Because of that, a home needing more work will attract fewer buyers and sell for less. Ideally, to sell your home for the most money, your home would be near the top of the homes available, but not the top home either. You never want to have the nicest home in the neighborhood because you will never get what you should when you try to sell it. If you have a million dollar  home in a $500,000 neighborhood you most likely won't find a million dollar buyer.

Type of Market - The market plays a big role in your decision to upgrade. Is the market hot, neutral or cold? In a neutral and cold market, upgrades will pay off more.  It goes back to competition again. Anytime you are selling a home you want to think of other homes on the market as your competition. The more competition, the more it will take to get your home noticed and to make it stand out. If there's 100 homes for sale and only 50 buyers, your home better be in the top 50 homes or priced low enough to be attractive. If the market is hot, like it is now, upgrades, especially major ones, won't pay off as much. 

Return on Investment - If you are only making upgrades to help you sell your home, you don't want to spend $20,000 to sell your home for an extra $10,000. Makes sense right? The competing inventory and type of market both play a role in your return on investment, but the types of upgrades matter as well. You might love cars and have an incredible car collection, but adding a 6 car garage won't have a very good return on investment. 

So what home improvements give the greatest return on investment?

Kitchens and bathrooms are always at the top of this list. These are the two areas of the home people spend a lot of time in and they want these rooms to be nice. However, major kitchen and bathroom upgrades tend to move much lower on the list. (By major, think of a bathroom remodel over $50,000) So when you are looking to upgrade a kitchen or bathroom think upgrades not remodels. Can you paint the old dated kitchen cabinets instead of replacing them? New appliances are always a nice touch, but don't put a $10,000 stove in a $300,000 home. New faucets, shower heads and light fixtures can spruce up an old bathroom. Large walk-in showers are becoming very popular with homebuyers and bath tubs are on their way out. Will your master bathroom allow you to replace the tub and expand the shower at a reasonable price? 

Garage Doors - This is one many people don't think about, but a new garage door can typically fetch over 100% of it's cost. Why? Think curb appeal, which I'll discuss more in a bit.

Manufactured Stone Veneer - This is another curb appeal upgrade that can fetch close to 100%.

Entry Door - The first thing people will see and touch when they enter your home will be the entry door. It sets the stage for the home and if it is worn down, stained, cracked or just looks plain boring, replacing it is a great upgrade. If you already have a nice door, you might get buy with a fresh coat of paint or adding a splash of color to your exterior. 

Curb Appeal - This isn't a specific item, but it is the first thing people see when they see your house. First impressions matter. Psychologists say that we make up our mind about people within 15 seconds of meeting them. And the same is true when viewing a house. Most buyers will have already made a decision on your home before walking through the front door. You might be able to wow them and change their mind after they get in, but that is always harder than wowing them before they get in. When making a large purchase, we tend to focus on the negatives in order to eliminate the ones we don't want to buy. When a buyer walks into your home, they are looking to see what is wrong with it so they can move on to finding their dream home. If your home lacks curb appeal, they have already found several negatives before even setting foot in your home. So clean up the yard, paint or pressure wash the outside, plant some new shrubs or trim back the old ones, fix the cracks in the driveway and make your house look great!

If your home could use some upgrades, I'd look at the areas mentioned above first in order to get the best return on your investment. However, there are certain minimum maintenance issue that need to be taken care of before you sell your home. So if you have a budget to spend on upgrades, start with these issues first then decide what you can remodel with what you have left

1 - Patch holes and cracks in the walls and ceilings.
2 - Fix all broken appliances and HVAC systems.
3 - Repair leaky faucets.
4 - Replace worn or stained carpeting.
5 - Repaint dark or marred walls with a neutral paint color.
6 - Replace broken window glass.
7 - Repair the roof.
8 - Change out any dated light fixtures / ceiling fans.
9 - Replace old drapes and window coverings.
10 - Fix any code violations.

Buyers expect a certain minimal standard when they are buying a home and anytime a home doesn't meet those minimum standards they can really be turned off from your home. An upgraded kitchen is nice and maybe desired, but a working HVAC system and walls without holes are expected.

In todays' extremely hot seller's market, upgrades and remodels won't fetch as high of a return on investment. So keep your budget low and focus on the most desired upgrades. 

And of course, call me. I'd be happy to come walk through your home and make recommendations and discuss the specifics with you.

Are You Ready to Buy?

Trivia Tuesday August 1 2017

I'm fairly certain you would have trouble with the title company if you were to purchase an acre of land. As a REALTOR® I can't help but think how I'd write up this listing. I'm pretty sure it would go something like this.

One Acre lot for sale. Amazing views. Quiet neighborhood. No HOA fees. Very little traffic. Enjoy your own private acre of land far away from the noise and traffic of city life. If you've ever dreamt of living in complete solitude, this is the place for you. As a side benefit, if you need to shed a few pounds, residents who move here instantly weigh 6 times less than they did before! No diet or exercise needed! This property won't last long. Open house Sunday 1-4.

On a more serious note, the home inventory might be pretty low right now, but I am pretty sure that if you hire me to help you find your next home, we won't have to resort to buying property on the moon. So if you want to buy a home here on planet earth, give me a call.

Monday Morning Coffee July 31, 2017

As mentioned previously, global economic factors will affect your mortgage interest rates. Example - A hint of a taper in the European Central Bank's (ECB) bond purchase program drove European yields higher a few weeks ago, and U.S. yields followed. 

As a result, our local mortgage rates ended that week higher.

Yes, in today's global markets, a change in bond yields in one major region often produces a similar change in other markets. 

Despite these factors, mortgage rates are still extremely attractive!

"A life isn’t significant except for its impact on other lives."  ~ Jackie Robinson

Steve, a twelve-year-old boy with alcoholic parents, was about to be lost forever, by the U.S. education system. Remarkably, he could read, yet, in spite of his reading skills, Steve was failing.

He had been failing since first grade, as he was passed on from grade to grade. Steve was a big boy, looking more like a teenager than a twelve year old, yet, Steve went unnoticed... until Miss White.
Miss White was a smiling, young, beautiful redhead, and Steve was in love! For the first time in his young life, he couldn't take his eyes off his teacher; yet, still he failed.

He never did his homework, and he was always in trouble with Miss White. His heart would break under her sharp words, and when he was punished for failing to turn in his homework, he felt just miserable! Still, he did not study.
In the middle of the first semester of school, the entire seventh grade was tested for basic skills. Steve hurried through his tests, and continued to dream of other things, as the day wore on.

His heart was not in school, but in the woods, where he often escaped alone, trying to shut out the sights, sounds and smells of his alcoholic home.

No one checked on him to see if he was safe. No one knew he was gone, because no one was sober enough to care. Oddly, Steve never missed a day of school.
One day, Miss White's impatient voice broke into his daydreams.
"Steve!!" Startled, he turned to look at her.
"Pay attention!"
Steve locked his gaze on Miss White with adolescent adoration, as she began to go over the test results for the seventh grade.
"You all did pretty well," she told the class, "except for one boy, and it breaks my heart to tell you this, but..." She hesitated, pinning Steve to his seat with a sharp stare, her eyes searching his face.
"...The smartest boy in the seventh grade is failing my class!"
She just stared at Steve, as the class spun around for a good look. Steve dropped his eyes and carefully examined his fingertips.
After that, it was war!! Steve still wouldn't do his homework. Even as the punishments became more severe, he remained stubborn.
"Just try it! ONE WEEK!" He was unmoved.
"You're smart enough! You'll see a change!" Nothing fazed him.
"Give yourself a chance! Don't give up on your life!" Nothing.
"Steve! Please! I care about you!"
Wow! Suddenly, Steve got it!! Someone cared about him? Someone, totally unattainable and perfect, CARED ABOUT HIM??!!"
Steve went home from school, thoughtful, that afternoon. Walking into the house, he took one look around. Both parents were passed out, in various stages of undress, and the stench was overpowering!

He, quickly, gathered up his camping gear, a jar of peanut butter, a loaf of bread, a bottle of water, and this time...his schoolbooks. Grim faced and determined, he headed for the woods.
The following Monday he arrived at school on time, and he waited for Miss White to enter the classroom. She walked in, all sparkle and smiles! He yearned for her smile to turn on him. It did not.
Miss White, immediately, gave a quiz on the weekend homework. Steve hurried through the test, and was the first to hand in his paper. With a look of surprise, Miss White took his paper. Obviously puzzled, she began to look it over.

Steve walked back to his desk, his heart pounding within his chest. As he sat down, he couldn't resist another look at the lovely woman.
Miss White's face was in total shock! She glanced up at Steve, then down, then up. Suddenly, her face broke into a radiant smile. The smartest boy in the seventh grade had just passed his first test!
From that moment nothing was the same for Steve. Life at home remained the same, but life still changed. He discovered that not only could he learn, but he was good at it! He discovered that he could understand and retain knowledge, and that he could translate the things he learned into his own life.

Steve began to excel! And he continued this course throughout his school life.
After high-school Steve enlisted in the Navy, and he had a successful military career. During that time, he met the love of his life, he raised a family, and he graduated from college Magna Cum Laude.

During his Naval career, he inspired many young people, who without him, might not have believed in themselves.

Steve began a second career after the Navy, and he continues to inspire others, as an adjunct professor in a nearby college.
Miss White left a great legacy. She saved one boy who has changed many lives. I know, because I am the love of his life.
You see, it's simple, really. A change took place within the heart of one boy, all because of one teacher, who cared. ~ Alyson Stallings

With the new school year just around the corner, I wanted to say thank you to the teachers who work hard, for not nearly enough pay, in order to change the lives of your students. I'm sure you aren't told enough how important what you do is, but it matters. Most likely, if you are a teacher, you'll never know just how big an impact you have had, but you are changing lives. So thank you.

Buying a Home in 10 Simple Steps

     

     So you want to buy a home? You've saved and saved and finally have enough for a down payment and are ready to find the home of your dreams! Awesome! Now if only buying a home was as easy as buying a new outfit. All you'd need to do was go to the new home store, pick out your home, swipe your credit card and you'd be done. Unfortunately, buying a home isn't that easy, but it doesn't need to be overwhelming either. 

     Below, I'll break the process down into 10 simple steps, so that if you are ready to buy a home, you will know what to expect.

Step 1 - Find an Agent.  You can of course search online, go to open houses and try to do it on your own, but don't. The seller will have an agent working exclusively for their interests so you need one working for you. Ask friends and family for recommendations. Most people have someone they can recommend. Of course, since you are reading this blog, you already know a great agent so give me a call. 

Step 2 - Find a Lender. Not all lenders are created equal. You will be spending a lot of time working with your lender, so find one who fits your personality that you can work with. I recommend a local lender as well. Many times, local lenders know the agents. If you get into a multiple offer situation on a home, an agent who knows and trusts the lender to get the loan done on time can help your offer.
  
    If you chose a good agent in step one, they will be able to recommend lenders they have worked with in the past. If you chose me, of course I can recommend some great lenders!

Here's one I'd highly recommend.

Step 3 - Get Pre-Approved For A Loan.  We are currently in a seller's market with low inventory. That means most homes are receiving multiple offers. In fact, of the 108 homes that sold in Tracy, CA in the last 30 days, 65 percent of them sold in 14 days or less! If you aren't pre-approved for a loan your offer most likely won't even be looked at. 

     Pre-approval and pre-qualified are very different! Pre-approval means a lender has looked over your documents and as long as nothing changes between now and the time you close you will get the loan. Pre-qualified simply means you should be able to get a loan but nothing is really certain. Pre-qualifying is honestly a waste of time. Go the extra step and get pre-approved. (Did you notice above where I said "as long as nothing changes . . . "? That makes this a good time to remind you that once you have been pre-approved for a loan, don't make any big financial changes. Don't apply for a new credit card or a car loan or make a big purchase. Any big change can mess up your pre-approval, so just wait until after we find your new home.

Step 4 - Create a Wishlist.  How many bedrooms do you want? Is there a neighborhood you want to live in or a school you want to be close to? Do you need a pool? How about a 3 car garage, or a large back yard? Do you want a modern kitchen? An open layout? Now is when you start to figure out just what it is you are looking for in your new home. Think about your lifestyle and what type of home would best suit you and your family. Don't forget to think about your commute either. The city you want to live in might only be 20 miles from your work, but what is the traffic like? If you are going to commute, what is the freeway access like? Depending on where in town you live it could add 15 minutes to your commute just to get to the freeway.

     There's a lot to think about, but deciding what you want in your new home can be a lot of fun, so enjoy it.

Step 5 - Search for Your Home.  Here's the really fun part. Get online, drive around town, go to open houses and start looking for your new home. Your agent should be a big help here. Tell them what you are looking for and let them search. A great agent will be constantly watching for your new home and will contact you as soon as they find something you might like.

Start Your Search For Homes Online Here

Step 6 - View Some Homes.  Now that you and your agent have searched online and found some homes you may like, it's time to go see them. Schedule showings with your agent who will be happy to take you around to see multiple homes. Many times these will be private showings which means you get to avoid the crowds at the open houses. Viewing a home is when you can really see it and picture your family living there. Remember, pictures lie. Some agents take terrible pictures (which there is no excuse for) and when you view the home you will be pleasantly surprised. Other agents will do a lot of photoshop work to make the home look better than it really is. You won't know until you go see the home.

Step 7 - Make An Offer. You've searched and found your dream home and now it's time to make an offer. Your agent is a treasure chest of information and help at this stage. They can tell you what the home is really worth. Should you offer above or below asking price? What are some of the contingencies you can remove to help your offer stand out and what contingencies should not be removed? They can tell you what the market is like and if they expect multiple offers on the home. Your offer is much more than just price and your agent will help you navigate the offer and give you the best chance of buying your dream home.

Step 8 - Get Final Mortgage Approval. This is when your loan will be completely approved. As long as you were pre-approved and didn't make big financial changes afterwards, this should go smoothly.

Step 9 - Inspection Time. While you are waiting for your loan to finalize you will also get inspections done on the property. Your agent can recommend which inspections as well as good inspectors. Typically a pest inspection and a general home inspection are great ideas. You''ll have a chance to see if any major issues turn up. If something does turn up your agent can try to negotiate with the seller to have them fixed or reduce the selling price so you can fix them afterwards. The seller isn't required to fix them, but as long as you didn't waive your inspection contingency you will be able to back out of the contract if something does come up.

Step 10 - Close. Congratulations! This is the day you sign the paperwork and get the keys to your new home! Do some finger and wrist exercises before you show up to closing because you will be signing a lot of paperwork, but when you are done, the home is yours! Now all you have to do is unpack!

Buying a home is a big deal and most likely will be the largest purchase you will make in your lifetime. There is a lot involved and it could take awhile, but if you follow the above steps it will go much easier. And of course, the most important step is Step 1 - Hire a Great Agent!

Trivia Tuesday July 25, 2017

I'm not sure I'll be painting my door red, but paying off my mortgage will be a day to celebrate! 

How about you? How will you celebrate when your mortgage is paid off?

With interest rates still historically low, many people are refinancing to a 15 year loan in order to get their mortgages paid off sooner. If you need any recommendations for a great lender to talk to to see if this makes sense for you, call me. I work with some fantastic lenders and would be happy to recommend them.

Monday Morning Coffee July 24, 2017

The Fed now faces a bit of a dilemma regarding current policy. The Fed's stated target for inflation is 2.0%.

Last year, it appeared that inflation was slowly climbing to that level, as Fed officials had forecast.

This year, though, inflation has reversed direction. The release of the core PCE price index, the inflation indicator favored by the Fed, showed that in May it was just 1.4% higher than a year ago, down from a year-over-year rate of 1.8% just three months ago.

While many Fed officials believe that the decline in inflation this year is due to temporary factors, recent comments indicate that some officials would prefer to wait and see if this is true before further tightening monetary policy.

Thus, mortgage rates remain at extremely attractive levels for home buyers!

A Trooper's Story ~ By Jack Graham

(Publisher's Note: This story is sad, but TRUE... about a U.S. soldier who lived in Boonville, NY and was killed in Iraq. It is taken from a letter written by Senior Investigator Jack Graham of  the New York State Police to fellow members of the NY State Police and to the Syracuse Police who, on April 17, 2003, participated in a hastily planned ceremonial escort for the soldier. This is the kind of story that makes you proud to be an American.)

Here is the letter...
On Thursday, April 17, 2003, you participated in an escort detail for GREGORY P. HUXLEY JR who was killed in action in Iraq on April 6, 2003.

On behalf of the entire Huxley family and from me, personally, I want to say "Thank you very much."

Your professionalism, dedication and sincerity meant so much to the Huxley family, that words cannot describe their feelings at this time.
What most did not know was that the US Army had promised the family members that they would be taken to Dover, Delaware to be present when their son arrived from Iraq and there would be a full military ceremony in Dover for GREGORY.

Unfortunately, there was a communication problem and they were not present during that ceremony.
Then they were informed that the body of their son was being flown to Syracuse and that the funeral director could pick up the "fallen soldier" at the cargo area of the airport and that somebody would help them remove the casket from the cardboard shipping container for transport to Boonville, NY.
The funeral director felt that unacceptable for a nineteen year old young man that gave his life for this country and for the freedom of so many others.

As a family friend, he contacted me to see if anything could be done. We now had six hours before GREGORY arrived in Syracuse. Phone calls were made to State Police in North Syracuse and SGT Nick Harmatiuk took over from there.
What you participated in and observed the rest of  that day was truly an outstanding display of what this agency can do in very short time. What happened was just visually and emotionally overwhelming.
The procession left SP North Syracuse led by eight Syracuse PD motorcycles, followed by the hearse, four cars with family members and followed by ten State Police and Syracuse PD cars.

How ironic it was that when the procession was traveling parallel to the runway, the  plane carrying GREGORY landed next to it.
We were able to enter the planes cargo area and remove the shipping crate from the casket and drape the American flag over the casket. When the casket traveled down the conveyor belt, fifteen New York State Troopers and the same amount of Syracuse Policemen lined the path to the awaiting hearse - all at attention.

A hand salute was executed as six State Troopers proudly bore the flag draped coffin to the hearse. After a short prayer, the family was given some time to welcome their son home.
The entire airport was so quiet. I looked up at the concourse windows and saw a hundred or more people. They were all standing, watching, with their hands over their hearts, saluting a young man that they did not know.
Somehow they learned that a fallen soldier had come home and they wanted to honor his sacrifice.
The casket was then placed in the hearse and the procession left the airport in the same fashion as we arrived, only this time with a young hero that our hearts will never forget.
The motorcade was escorted to the thruway entrance by the Syracuse Police Department's motorcycles. All traffic was stopped for the procession and we headed east towards Boonville.

After getting off the thruway, we found that every intersection that the procession encountered was controlled by State Troopers, allowing us a safe, unimpeded passage.
At each intersection, the State Trooper stood at attention, saluting the fallen soldier and his family, giving him and his family the respect that they deserved. How emotional that was to see and now to reflect on.
When entering the Village of Boonville, the main street was decorated with an infinite number of American Flags and yellow ribbons. As we approached the center of town, all of the church bells began to peal at once recognizing and saluting Gregory's arrival.
Hundreds of people holding American flags lined the street, some with their hand over their heart and some weeping for GREGORY for what he sacrificed, for us and his country.
As we drove by the village park, the National Anthem was being played, for GREGORY, and I think, for all of us.
At the funeral home, eight veterans lifted the casket out of the hearse and into the home with the family.

GREGORY had returned home.
GREGORY'S family said to me later that the images I have just described will always be etched in their hearts, forever.

But the one memory that will always be there first, was of the State Troopers at the airport, standing at attention, saluting, with tears running down their cheeks for their son, a fallen soldier. A hero whom those Troopers never personally knew.
Our jobs take many different avenues in life. We hope that during our day or shift that we have made a difference, a positive contribution.

On this occasion you did just that. An entire family knows that you cared to do your very best to honor their son. Their words and expressions told me just that.
You made a difference yesterday, and you did it well.
The rewards we receive for details like this one do not come from anywhere but from the heart. Take pride in what you accomplished, because it was distinct and without equal in this Trooper's eye.
I have had so many good things happen since I have been a State Trooper, but  in those twenty four years, I have never been more proud of the New York State Police as I was yesterday - A fallen soldier, a hero, a son, a brother has finally come home, in grand deserving style, thanks to all of you.

Jack Graham
Senior Investigator
New York State Police