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Five Ways to Build Home Equity
Whether you currently own a home or are thinking of purchasing one, you may be looking for ways to build equity. Home equity is the overall difference between the amount you owe on your mortgage loan and your home’s market value. Home equity can be used to take out a loan, invest, build long term wealth or sell your home for more than you owe and keep the profit.
The equity you have access to will increase as you make payments that pay off your mortgage balance. It can also grow when your home’s value increases. The following details five of the quickest ways to build home equity.
1. Make a Larger Down Payment
The simplest and quickest way to build equity in a home is to make a large down payment when you first buy the property. The down payment you make is immediate equity. Let’s say that you’re buying a home for $200,000. With a $10,000 down payment, you’ll owe $190,000 on the mortgage and have $10,000 in equity.
If you can afford it, you could instead choose to make a down payment of $40,000, which means that you would owe $160,000 on the mortgage and have $40,000 in equity when you first move in. Keep in mind that a 20% down payment will also remove the private mortgage insurance requirements for conventional loans, which is an added benefit.
2. Make Mortgage Payments More Often
Only a percentage of the mortgage payment you make each month is put towards the principal of your house. The remainder of the payment goes towards interest and taxes. When you make additional payments or provide a payment that’s higher than the minimum amount, you are putting more money toward the principal and increasing your equity.
3. Consider a 15-year Mortgage
If you take out a 15-year mortgage as opposed to a 30-year one, your monthly mortgage payments will be significantly larger. When you take this approach, you’ll be paying off more of the principal each month, which will help you build equity quicker. You’ll also pay less interest over the course of the loan.
If you’ve already purchased your home, you could decide to refinance the mortgage loan, which would allow you to switch from a 30-year loan to a 15-year option and build equity faster. Make sure that you can afford the higher monthly payments before choosing this solution, and make sure you take current interest rates into account as well.
4. Invest in Home Improvement and Remodeling Projects
You can also build equity in your home by investing in home improvement and remodeling projects that will increase the home’s value. The most popular renovations include kitchen and bathroom remodels. Make sure that you select projects that will get you the best return-on-investment (ROI). Reach out if you want to discuss projects with the highest ROI in our area.
5. Use Gifts and Windfalls
Consider building equity by using any gifts or windfalls you receive to pay down the balance of the loan. Do you receive birthday or holiday gift cards? If so, these can be converted to cash and added to your mortgage payment. The same is true of any inheritance you receive.
Building home equity gives you financial security and allows you to prepare for your future. By making a large down payment, paying more money each month, and improving the quality of your home, you can build equity relatively quickly.
Tips for a Successful Yard Sale
Yard sales are a great way to convert items that you hardly ever use into cash that can be saved, donated, or put towards a large purchase. However, a successful yard sale takes a considerable amount of preparation and planning. Here are some tips on how to hold a great yard sale.
Set a Goal
First, it’s a good idea to think about why you want to hold a yard sale. Are you hoping to generate income or use the sale to get rid of items you’re no longer using? Having a goal in mind can help you decide what to sell, how to price your items, and how flexible you want to be with hagglers.
Choose the Right Date
The best days to host a yard sale are usually Friday and Saturday. Consider the first Friday or Saturday of the month, after most people receive their paychecks and have more money to spend. Try to pick a date and time when you expect the weather to be mild and dry. You can’t predict or control the weather, but you can do a little internet research to see which weekends have had the best weather historically.
Price Out Items as You Gather Them
To avoid rushing, don’t price everything on the day before the sale. As you are collecting items to sell, you can create a comprehensive price list or go ahead and label each item with a price sticker. When pricing each item, think like your customers. They want every item to be at a steep discount.
Properly Advertise Your Yard Sale
Hang flyers and post online ads about the sale a couple weeks before it begins. You should also inform the people you know on social media a few days before the sale. Highlight any sought-after items that will be available in your sale, which can include furniture, specialty tools, collectibles, and toys. Make sure that you include the date and time of the sale as well as your full address.
Complete Preparations Early
In the week preceding the sale, gather as many tables as possible. If your friends or family can lend you a table, call them to ask well ahead of time. You should also have a cash box on hand with a wide variety of bills. Some additional items you may need include:
- Batteries
- Extension cords
- Light bulbs
- Calculator
- Chairs
- Cooler with drinks
- Hand sanitizer
- Pens
- Receipt book
- Sold tags
- Paper or plastic bags
Make Sure All Items are in Good Condition
Every item you’re selling should be in good, usable condition. Make sure that you include working batteries in electronic devices and pump air into any basketballs or soccer balls. Have someone on hand during the day to rearrange items and fold clothing so everything looks tidy and well cared for.
As long as you choose the right date, properly advertise the sale, and prepare for the event, you should avoid most of the problems that can occur when hosting a yard sale.
State Farm, Allstate stop selling home insurance to new customers in CA
State Farm and Allstate have announced they will no longer sell new home insurance policies in California because of wildfire risks and an increase in construction costs. Here are some facts:
- State Farm and Allstate are not leaving the California Insurance Market: State Farm and Allstate will continue to service and renew policies of existing clients in the state and will continue to offer new auto insurance policies. However, they will not be issuing any new property insurance policies for the time being in California.
- What are the implications of the decision for prospective homebuyers? In certain high-risk areas of the state, there are very few insurance companies willing to write new policies. In some higher risk areas, State Farm was the last private insurance company writing policies. In those areas, unless the Insurance Commissioner is successful in its effort to get more private insurers to write policies in such areas, the generally more-costly California FAIR plan may end up being the only property insurance available.
- Why did State Farm and Allstate stop issuing new policies? State Farm stated that it made the decision “due to historic increases in construction costs outpacing inflation, rapidly growing catastrophe exposure, and a challenging reinsurance market.” Allstate said the company “paused” its offerings “so they can continue to protect current customers.” State Farm and Allstate’s decision is not necessarily an indication of what other companies will do.
- Will more companies follow State Farm and Allstate’s move? There are still a wide range of companies writing policies in California. However, those willing to write new policies in higher risk areas in particular are declining and as stated above, with the departure of State Farm and Allstate, those in more high-risk areas may have no option than the FAIR plan.
- What are the main problems for the insurance market in California? The California market is heavily regulated and has various strict requirements for rate increases, which were put into place by Proposition 103 in 1988. However, there are two areas where possible changes could result in a better climate for insurance without requiring major changes to consumer-friendly rate increase requirements. Those include allowing insurance companies to have rates that better reflect their reinsurance costs and allowing insurance companies to utilize forward looking risk models. Current law only allows companies to look back when setting rates. However, given the issues with climate change, many insurance companies argue that looking backward does not allow companies to adequately capture risk.
- Where can I direct my clients for information if they are looking for homeowners insurance? The California Dept. of Insurance provides several information guides, tips and tools to help them understand home/residential insurance so that they can make the best decision for their situation. They can also call the California Dept. of Insurance Consumer Hotline for assistance.
- What is C.A.R. doing? C.A.R. has been in discussions with both the Insurance Industry representatives and the Department of Insurance on State Farm and Allstate’s move and other homeowner insurance issues. The Insurance Industry and the Department of Insurance have also been looking at and discussing ways to address the state’s insurance challenges. The issue is large and complicated. We have cautious hope that these moves may create some greater urgency on how to address this insurance situation.
June 1, 2023
https://www.car.org/aboutus/mediacenter/news/statefarm
Should you rent or buy? High home prices, mortgage rates challenge the American dream of homeownership
When Greg Morano proposed to his girlfriend Kayla Lewis, he knew their next big decision as a couple was looming: should they rent or buy their first home together? The couple spent months discussing the size, style and location of apartments before considering homeownership.
“I think that’s the dream everybody grows up with — it’s one day hoping you have something you can call your own, and finding your person, which, I found mine,” said Morano.
But the American dream of homeownership is being challenged by high home prices and mortgage rates, leading some to consider renting as a wiser option. According to a recent survey by the National Multifamily Housing Council, a public policy group, the monthly cost of owning a home is now an average of $1,000 more than renting.
Buying a home has traditionally been seen as the smarter financial move. But with interest rates still high, the median mortgage payment has reached a record high of over $2,000 per month since 2009, according to the Mortgage Bankers Association.
In major cities like Boston, where the cost of homeownership has risen by more than 30% in the past year, it may be cheaper to rent instead of buy. Other cities where renting is less expensive than owning include Seattle, San Francisco and Austin, according to real estate website Realtor.com.
Chloe Moore, a financial planner and former Atlanta homeowner, made a lifestyle and financial decision to sell her home and rent instead.
“One of the things I like to say is that rent is the most that you’ll pay and the mortgage is the least that you’ll pay,” said Moore.
According to Moore, purchasing a home is only advisable if you plan to stay for at least seven to 10 years, have enough savings for the down payment, closing costs and maintenance expenses, and can afford to pay property taxes.
“Make sure that you have your finances in order, understand your numbers and work with people that you trust,” Moore said.
Housing experts also suggest setting a budget and sticking to it, even during a bidding war. Additionally, experts advise using the 28-36 rule, which means spending no more than 28% of your gross monthly income on housing and no more than 36% on all debts.
As for Morano, he said homeownership was a little more affordable than some of the apartments available for rent. He and Lewis recently closed on a home in northern New Jersey.
https://www.cbsnews.com/news/rent-or-buy-home-high-prices-mortgage-rates-homeownership-rentals/
Homeownership as a Vehicle to Build Wealth
Over the last decade, the median-priced home in the U.S. gained $190,000 in value, making the typical homeowner 40 times wealthier than if they had remained a renter, according to a new report.
Low-income homeowners (those earning no greater than 80% of the area median income) built $98,900 in wealth as their homes while middle-income (those making more than 80% but less than 200% of median area income) and upper income (those earning more than 200% of median area income) homeowners accumulated $122,100 and $150,800 in wealth respectively, according to a report released Tuesday by the National Association of Realtors.
“Over a long time of period, home ownership is a solid path towards building wealth,” says Lawrence Yun, chief economist for National Association of Realtors told USA TODAY. “It works in two ways: first you have the advantage of home price appreciation and second, it forces homeowners to save for monthly mortgage payments which renters don’t have.”
To dive into where homeowners built the most wealth, there’s a handy chart with the story.
Top Features That Will Boost Home Values in 2023
With rising mortgage rates, many homeowners are worried about the sales prices of their homes. However, according to a recent report from Zillow, there are many things you can do to increase buyer appeal and value.
The real estate website compiled data from nearly two million homes listed for sale in 2022, analyzing home prices, along with 271 features and design terms mentioned in the listing descriptions. According to the report, these are the features that corresponded to higher home sale prices. Selling your home soon? Here are the elements you’ll definitely want to highlight.
Culinary Amenities Are Hotter Than Ever
According to Zillow’s research, listings that boost a home’s value also make a chef’s mouth water. Amenities such as steam ovens, pizza ovens, and, professional-grade appliances increased sales prices by as much as 5.3 percent, compared to similar listings that didn’t have these features. These elements can add up to $17,400 to the value of a typical home in the United States.
“Not every buyer will appreciate a chef’s kitchen or a putting green in their backyard, but those who do are willing to pay more for these personalized amenities,” says Amanda Pendleton, Zillow’s home trends expert. “Post-pandemic home buyers who had plenty of time for self-reflection now have a greater sense of what they want and need in a home.”
Homes that noted soapstone in the listing sold for 2.5 percent more than similar homes with old standbys marble and granite.
Another notable finding was that 2022 was the second year in a row that quartz was a highly coveted finish. So, if you are renovating your kitchen or bathroom in hopes of selling your home in the upcoming years, it’s definitely worth it to take a look at this durable finish that’s relatively affordable compared to many stone alternatives.
Sheds Help Sell
Sheds sell homes—especially those repurposed as private living spaces, such as offices, relaxation rooms, yoga studios, and more. These ADUs garnered a premium of 2.5 percent. So if you’ve added one in recent years, it was likely worth the investment.
Just keep in mind that homes with these sheds spent an extra two days on the market. Still, this is really no time at all considering the extra cash.
Modern Farmhouse Isn’t Going Anywhere
But these weren’t the only interesting findings of Zillow’s research. The report also stated that modern farmhouses increased in value by 2.4 percent. While many argue they’re tired of the modern farmhouse trend, it’s still a popular choice that buyers are looking for.
Want to Sell Your Home Faster?
The report also shared data on the amenities that helped homes sell more quickly. If you’re looking to get out of your home fast, think about adding easy and relatively affordable upgrades, such as doorbell cameras, heat pumps, and fenced backyards.
https://www.realsimple.com/features-that-boost-home-values-2023-7375268
Homeowners’ Zeal for Curb Appeal May Pay Off Handsomely
The COVID-19 pandemic changed the way Americans use their homes for daily living, relaxation and entertainment, adds Jessica Lautz, NAR’s deputy chief economist and vice president of research. “Homeowners have embraced their outdoor spaces, transforming them into oases with pools, patios, plants and greenery,” Lautz says. “These outdoor features … can also attract buyers if the owner wants to sell.”
Prioritizing Outdoor Projects for Resale
Most homeowners indicate a desire for an in-ground pool or an outdoor fire feature, but the ROI on these items may not be as high as simple lawn care and landscape maintenance, the report finds. The survey defines “standard lawn care service” as six seasonal applications of fertilizer and/or weed control on a 5,000-square-foot lawn and “landscape maintenance” as mulch application, regular lawn mowing, pruning shrubs and planting about 60 perennials or annuals.
The features that make homeowners happiest, however, aren’t necessarily the ones that earn the most at resale. The least expensive projects, such as standard lawn care service, have the highest cost recovery but one of the lowest “joy” rankings from homeowners, according to the survey. Instead, the report found that the following outdoor projects received the highest satisfaction marks among homeowners:
- In-ground pool
- Landscape lighting
- New patio
- New wood deck
- Fire feature
On the other hand, the items that ranked the lowest on homeowners’ “joy” scale were:
- Outdoor kitchen
- Tree care
- Standard lawn care service
- Installing a yard irrigation system
The majority of landscape professionals surveyed say the size and scope of outdoor home improvement projects have increased since the pandemic began. REALTORS® surveyed say the landscape projects they’ve seen most often since the pandemic began are the addition of an in-ground pool, landscape maintenance and a new patio.
How to avoid being ‘house-rich, cash-poor’ by selecting the right mortgage for your budget
Owning a home doesn’t just put a roof over your head — it can also put money in your pocket (at least on paper). According to a 2022 report from the National Association of Realtors, single-family homeowners accumulated an average of $225,000 in wealth from their homes during a 10-year period.
But what if the equity you hold in your most valuable asset doesn’t make you feel any richer when you’re looking at your bank accounts?
How to avoid becoming house-poor
The best protection against becoming house-poor is getting a mortgage that works with your budget.
First, think about the size of your mortgage loan. Financial experts generally recommend the loan stay below 2.5 to 3 times your annual salary. This means that if your household’s gross annual income is $160,000, you shouldn’t take out a mortgage loan that’s more than $480,000.
Next, consider how much you’re comfortable spending on housing expenses every month. The general advice here is to keep your monthly mortgage payment under 30% of your monthly income. For example, if your monthly paycheck before taxes is $6,000, you should aim for a mortgage payment of $1,800 or less.
Finally, make sure to shop around for the best mortgage rate when you’re ready to buy. A small difference in the interest rate can shave off hundreds of dollars of your mortgage payments. Some of CNBC Select’s favorite mortgage lenders include Chase Bank, which offers flexible down payment options, and SoFi, which advertises discounts and cash incentives for home buyers. Or, if your credit score is on the lower end, Rocket Mortgage is a solid option for a loan.
How life can turn you house-poor
With the growth of home prices far outpacing wage growth, it would be easy to assume that all house-poor Americans have simply taken on mortgages they can’t afford. But changes in the economy, career setbacks, and even break-ups can conspire to turn an affordable mortgage into something that’s a burden.
For example, say a family buys a home with a large down payment and has a mortgage they’re comfortable servicing. But after a few years, the couple separates. One of the spouses gets the house, which has appreciated considerably over time. Now this homeowner has an asset with a lot of equity tied to it, but they’re solely responsible for mortgage payments which eat up a huge chunk of their income (which presumably is also less after the split). The housing expenses don’t leave room for much else.
In a different scenario, a single homeowner lives in a house for two decades and still has a mortgage. Unfortunately, their line of work hasn’t offered much room for income growth. At the same time, inflation has increased the cost of living significantly, while property taxes have also shot up. Now the homeowner’s housing costs are higher while inflation reduces the purchasing power of their remaining funds.
As you can see, different circumstances can result in having plenty of equity in your home but not enough liquid assets. From a dip in income to investment losses to family changes, many roads can lead to the same place: all of your wealth is tied up in your home while you’re struggling to pay your bills.
What if you’re already house-rich, cash-poor
Being house-poor is a recipe for frustration and anxiety, where any unexpected expense threatens to become a crisis. Ultimately, you need to either increase your income or decrease your spending (or both), which means making tough choices. Some options homeowners should consider include:
- Downsizing: You don’t have to stay in the house that’s financially draining you. Look into buying a more affordable property and use the equity you have in your home to help you move. However, make sure you’ve lived in your current house long enough to avoid losing even more money when you pay off your current mortgage.
- Tapping into home equity: Some situations justify using your home equity. For example, if your home needs urgent costly repairs and you don’t have enough in savings, a home equity loan or line of credit can be helpful. If you have significant credit card balances eating into your budget, borrowing against your equity is also a viable debt consolidation option.
- Debt consolidation: If credit card debt from multiple cards is weighing you down but you don’t want to pay it off with the help of your home’s equity, you could use a balance transfer credit card to gather all your debts in one place. You can then pay off the balance without any interest charges during the card’s promo 0% APR period. CNBC Select’s top picks for the best balance transfer cards include the Wells Fargo Reflect® Card and the Citi® Diamond Preferred® Card.
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Note, however, that a balance transfer card usually requires an excellent credit score. Alternatively, you can look into a debt consolidation loan. You won’t get a 0% APR period, but you can still get a lower interest rate than what your card charges. Some of our top picks for debt consolidation loans include Upstart for those with average credit and LightStream for borrowers with higher credit scores.
- Mortgage refinancing: Taking out a new loan on the remainder of what you owe on your home can lower your monthly payments — if you get advantageous terms. Remember that refinancing loans have closing costs like a regular mortgage, so keep them in mind before taking this step. Plus, you may need to meet certain credit score requirements and have enough equity in the home (usually at least 20%).
- Renting out a room: Finally, you can get additional income by renting out one or more rooms in your home. Being a landlord can be a challenging endeavor, and you might not feel thrilled to share your space. Still, it can significantly boost your bottom line and help you pay for your home.
Bottom line
If you’re buying a home, be realistic about your budget to avoid becoming house-poor. That, of course, is easy to say — plus, a high home purchase price isn’t the only thing that can put you in this position. If this has already happened to you, know that you have options and try to take small steps toward a healthier financial balance. When your mortgage consumes too much of your income and your savings are non-existent, you’re one emergency away from a financial disaster.
What is a pre-approval when buying a home, and why do you need one?
If you’re ready to begin your home shopping journey, make sure you get a mortgage pre-approval first.
A mortgage pre-approval letter is an essential step in the homebuying process. Without pre-approval, it might be difficult to determine your budget. Plus, you risk not being taken seriously by sellers — especially in a highly competitive real estate market.
Below, CNBC Select breaks down how a mortgage pre-approval works and when you want to get one.
What is mortgage pre-approval?
A mortgage pre-approval is a document from a lender conditionally offering you a mortgage and containing its terms, such as the loan amount, monthly payments and interest rate. This is a lender’s promise that unless your financial situation changes by the time of purchase, you’ll be approved under the outlined terms.
A mortgage pre-approval is different from a pre-qualification, even though people often use these terms interchangeably. A lender will pre-qualify you based on the information you provide and typically without running a hard credit check and give you a rough estimate of how much you’ll be able to borrow. You won’t need to submit any documents to prove the information is accurate.
When you’re getting pre-approved, a lender will verify your creditworthiness. You’ll need to complete a mortgage application and provide documents such as your recent pay stubs, bank statements and tax returns. The lender will also perform a hard credit pull, meaning your credit score can temporarily drop a few points.
Your pre-approval letter’s expiration date can also vary by lender, but most allow you 30 to 90 days to shop for a home and officially apply for a mortgage.
Why you need a mortgage pre-approval
You want to get a mortgage pre-approval at the beginning of your homebuying journey for two reasons:
That’s the best way to learn your maximum loan amount
While you can estimate how much house you can afford using an online calculator or by pre-qualifying, a pre-approval will give you the most accurate number. This way, you’ll know your price range and what houses you can actually afford. Discovering a lender is willing to part with less money than you had hoped is always a disappointment, but at least it allows you to take stock of your finances or save more for a down payment before proceeding further in the homebuying experience.
You will position yourself as a serious buyer
A pre-approval letter shows that you can secure a mortgage. This alone gives you an advantage over potential buyers without pre-approval, especially in competitive markets where real estate agents and sellers can afford to be picky about with whom they work.
If you really want to give yourself an edge in the market, obtain pre-approval letters from several lenders. A house will probably be the most expensive purchase you’ll have made. A slight difference in the interest rates a lender charges can mean significant savings, so it pays to shop around. When it’s time to put in an offer, you can go with the lender that has offered you the best terms.
And don’t worry about extra hard inquiries on your credit report. When you apply with multiple mortgage lenders in a short period of time (14 to 45 days of each other, depending on a credit scoring model), the credit pulls will count as a single inquiry.
How to get pre-approved for a mortgage
Since pre-approval is a much more rigorous process than pre-qualification, you want to have all your ducks in a row before applying.
First, check your credit score as it will play a big part in the lender’s decision. You can use a credit monitoring service from your credit card issuer, such as CreditWise® from Capital One. You can also check your credit by using a free service from Experian — Experian free credit monitoring. The higher credit score you have, the better the terms you’ll receive on a mortgage.
You won’t see the exact score your lender will be checking as mortgage lenders use scoring models not readily available to the public. Still, it will give you a good idea of what you’re working with.
Next, prepare the documents that will show lenders your debt, income, assets and other aspects of your personal finances. While every lender has different requirements, having the following in hand is a good starting point:
- At least two most recent pay stubs
- Tax returns from the past two years
- Bank statements from the last 60 days
- Employment verification documents
- Employer contact information
- List of your debts
- Investment account statements, including 401(k) and IRA
- Proof of rental payments or landlord contact information
- Gift letters (if you’ve been gifted money for your down payment)
It’s best to have all your paperwork ready before you apply — this will save you time on the back-and-forth with the lender.
Bottom line
A mortgage pre-approval can help you gauge how much mortgage you can afford and position yourself as a serious homebuyer. It’s a good idea to apply for pre-approval at the beginning of your homebuying journey — or even better, apply with several lenders to ensure you get the lowest interest rate you can.
4 Things First-Time Home Sellers Regret Most
Selling your home is a big decision, which is why you want to make sure you and your property are ready for it when the time comes. From setting an asking price to deciding when to list your home, there’s a lot you’ll need to consider as a seller. The last thing you want to feel once your home is sold is regret over some of the choices you made—which many people say they do.
According to a new Zillow survey, 84 percent of Americans who sold a home for the first time in the past two years wish they had done something differently. The poll reveals that many recent first-time sellers have regrets about the pricing, timing, or marketing of their home. To avoid these mistakes when it’s your time to list, it helps to understand the survey participants’ key errors.
Pricing Incorrectly
The most common thing participants in Zillow’s survey say they wish they had done differently is set a higher list price. Now more than ever, it can be difficult to decide on how much to list your home for. Pricing it too high could lead to a slower sale, but pricing it too low may leave you wishing you had listed it for more.
“This spring’s sellers are more likely to regret pricing their home too high,” said Zillow senior economist Nicole Bachaud. “The price their neighbor commanded a year ago may no longer be realistic. They need to adjust their expectations if they want to avoid having their home linger on the market.”
Ignoring Online Curb Appeal
Don’t underestimate the importance of virtual curb appeal when it comes to selling your home. About 90 percent of recent first-time sellers think something could have helped them get a higher sale price—and 39 percent of those respondents believe that better listing photos could have boosted their sale (25 percent say a virtual tour also might have helped).
Many prospective buyers look for homes online, which means you shouldn’t ignore that website listing. Consider creating a media package that includes high-resolution photography to help highlight your home’s best features. According to Zillow, listings that include a virtual home tour get 69 percent more views and 80 percent more saves.
Bad Timing
Twenty-five percent of people who took Zillow’s survey say they wish they had listed their home a different time. While the best time to sell is a personal choice, if you have flexibility, the optimal time to list a home is during the second half of April, says Zillow.
Timing the sale of a home with the purchase of another house is one of the biggest stressors for sellers. About 36 percent of first-time sellers wish they had known how long it would take for their home to sell. About 37 percent of sellers say selling their home on their timeline, with a flexible closing date, or selling quickly was their top priority.
Skimping on Repairs
Sprucing up your home before selling it may be worth the extra costs. According to Zillow’s survey, 25 percent of participants believe they could have gotten a higher sale price if they had invested in more home improvements and repairs. Despite this regret, most sellers (66 percent) report taking on at least two home improvement projects before selling and 78 percent believe those projects helped them sell their home.
“The right projects can pay off,” said Amanda Pendleton, Zillow’s home trends expert. “Sellers need to think strategically about their return on investment before diving into repairs and renovations. Landscaping, interior painting and carpet cleaning are the most commonly completed seller projects for good reason. They boost online curb appeal and send a powerful signal to a buyer that a home is well-maintained.”
