Almost 70% of the homeowners believe that their residential property is their biggest asset. Therefore, maintaining it well in a competitive real estate market is a top priority for many. However, to enhance the value of a property for building equity or getting a better sale price, several owners end up splurging on unnecessary amenities or installations. So how can you decide what works? Continue reading to find out!
First impressions might not be accurate; however, in real estate, they can definitely be a game-changer. Homeowners should ensure that their space doesn’t deliver an outdated vibe, particularly the areas such as the bathroom and kitchen. Focusing on the aesthetics of the home doesn’t mean one indulges in luxury kitchen remodeling or upgrading media rooms. In other words, one doesn’t need to dish out on an extravagant kitchen remodeling consisting of stone countertops, custom cabinets, or commercial-grade appliances to make the cut. A kitchen remodeling capable of holding modern amenities or having the potential for customization would simply suffice. The same approach is to be taken for the bathroom. Adding decent flooring and upgraded fixtures can go a long way than fancy embellishments like designer fixtures or heated flooring.
Prospective homebuyers also desire their new homes to be smart as well as secure. Therefore, one should consider installing intelligent technology in their property such as fire and gas detectors, door locks and lighting, security alarms and cameras, and thermostats.
Homeowners should also pay close attention to the curb appeal, i.e., how the property looks from the exterior. Simply put, a home’s exterior look should motivate a prospective buyer to come inside and take a look. While making changes, the paint of the exterior walls and a well-maintained landscape are two things that should make it to the homeowner’s upgrade checklist.
Likewise, homeowners should attempt to make their property low-maintenance. Any prospective buyer will shy away from the option of quoting on a property that needs major maintenance work, especially related to plumbing, wiring, roof, HVAC system, or kitchen remodeling. Therefore, before putting up the property for sale, homeowners should get the necessary improvements and repairs done to increase their prospects and home value.
Lastly, having an energy-efficient property can vastly contribute to the appeal; however, one should only consider getting upgrades such as double-pane windows, efficient appliances, enhanced attic insulation, or LED lightings for a quick boost in the home value. Homeowners installing eco-friendly technologies like solar panels should be aware that it will help in the long-term, but it might not instantly increase the home value. Since they’re dealing with big investments, financially as well as structurally, homeowners should think their decision through before getting a house.
Tag – homes
A reverse mortgage is a type of loan that allows homeowners to receive payments on their house as opposed to them making payments to the lender. At first glance, this option seems too good to be true. But, before committing to it, there are some nitty-gritty details that people must consider when opting for this type of financing. So, here is some information regarding the pros and cons to consider when getting a reverse mortgage.
Advantages
Disadvantages
A reverse mortgage is a loan that allows individuals older than 62 to improve their financial well-being. They can convert part of their home equity into lump sum cash, fixed monthly payments, or line of credit, according to their preference. The money can be used to pay for medical bills, in emergencies, or to pay off a mortgage. Here’s what you should know about reverse mortgages in case you’re looking for one.
How much can you borrow?
For reverse mortgages, the loan amount can’t exceed the value of the property against which it is borrowed. Federal regulations require lenders to ensure that the loan amount doesn’t exceed the value of the house by structuring the transactions accordingly. Additionally, these regulations state that the owner/borrower is not liable to pay off the balance amount in case it exceeds the property value.
How are reverse mortgages paid for?
A reverse mortgage is payable when the borrower sells the house, relocates permanently, or dies. Unlike forward mortgages, reverse mortgages don’t need the borrower to make any monthly payments. They are only liable to pay interest on the money received, which is rolled back into the loan balance. While the owner gets to keep the title to the home, their home equity reduces over the loan tenure.
Who can take a reverse mortgage?
This type of loan is ideal for seniors and retirees whose net worth comes mostly from the value of their home. Seniors who don’t qualify for a home equity loan or can’t refinance due to limited cash flow or poor credit can opt for reverse mortgages. Home Equity Conversion Mortgage (HECM) for purchase is a reverse mortgage that allows seniors to buy another property. That said, it is complex, and you should study the risk factors before getting one.
What are the risks associated with reverse mortgages?
Reverse mortgage scams are not unheard of. Unreputable vendors could offer to help seniors secure reverse mortgages by undertaking house repairs. They don’t provide quality results and get away with the homeowner’s money instead. For spouses living together in a home with only one spouse named as a borrower on a reverse mortgage, the other spouse can lose the home if the borrowing spouse dies first. Besides, reverse mortgage lenders charge fees and closing costs and may also charge mortgage insurance premiums for federally-insured HECMs.