How to know when to update your family home?
Photo by Anete Lusina from Pexels
The real estate market is burgeoning amidst the Coronavirus pandemic. Mortgage rates of around 3.3% are at an all-time low and the real estate market is prime for sellers. If you are considering capitalizing on these optimal market conditions, you may be preparing to list your home for sale. However, if low inventory and premium listings prices are deterring you from buying, you may be contemplating other options for capitalizing on the booming market. Either way, selling or staying, it may be time to update and improve your family home.
Home updates can situate your house for a quick and lucrative sale in a market where home inventory is low and selling prices are high, even above listing prices, as a result of increased homebuyer traffic. Although buyers are paying market premiums for real estate, some home improvements could certainly maximize your ability to earn top dollar. Updates to consider that will improve the value of your home include minor and major kitchen remodels, bathroom updates, landscaping, exterior improvements to siding and/or paint, replacement windows, a basement remodel, or even an attic bedroom conversion. It may seem counterintuitive to invest money in expensive projects only to turn around and sell your home. However, current trends indicate that buyers are willing to pay top dollar for homes as a result of low market inventory. You’ll want to keep an eye on housing market news in the event that you want to sell your home. By increasing the foot traffic to your listed home, you may even induce a bidding war. Home improvement costs like those mentioned above will inevitably earn a nearly perfect return on the investment.
Minor bathroom remodels can yield a 102% return with simple improvements to outdated fixtures, tiles, shower doors, and a fresh coat of paint. Improving curb appeal with fresh landscaping has a 100% return rate. Adding sod or colorful plants and manicuring overgrown shrubbery will increase traffic and produce serious buyer traffic. Moreover, minor kitchen remodels have a return rate of 98%, while major kitchen remodels have a return rate of 91%. Finally, exterior improvements like replacing siding, sprucing up entryways, or fresh paint will yield a 95.5% return.
It can’t be overstated that home updates greatly improve the marketability of your home. The return rates speak for themselves. Even the projects that are under 100% on the return will give back in other ways. The updated improvements to your home will increase traffic and desirability. In a cut-throat market where sellers are earning well-above asking prices, you will undoubtedly earn back those improvement costs as a result of the traffic they create.
Furthermore, if selling is not appealing to you at this time, you could still capitalize on low loan rates by refinancing your mortgage and renovating. Doing so will afford you the opportunity and, more importantly, the capital to finally make those improvements you’ve dreamt about for so long. As previously noted, mortgage rates are as low as 3.3%. If staying in your current home is more desirable than selling, you can still benefit from these excellent mortgage rates. If you’ve got equity in your home, you could refinance your current mortgage for more than you owe and use a cash payout to finance the updates.
Now maybe the perfect time to update your kitchen with new appliances, tile, countertops, cabinets, or flooring. Maybe you’ve finally had enough of your outdated bathroom fixtures. Or maybe this is finally the opportune time to finish that full basement with all its glorious potential. No matter the updates you dream of, this real estate market is prime for your home improvements.
So, how do you know when it’s time to update your home? The answer to this truly depends on your goals. If you’d like to move from your current home and earn top dollar on your sale, then it may be time to make some home improvements to make your home more attractive and marketable. If moving isn’t right for you, you can certainly still benefit from desirable mortgage rates to improve and update your home. Either way, if you’re hankering to make significant changes, whether that means moving or staying put, now is the ideal time to do so.