What You Can Do to Increase Your Home Value!

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Considering a home improvement either to make the home more suitable to your family’s needs or because you are looking to add value before you sell your home you’ll certainly want to investigate what impact your improvements will have on the value of your home.

Not every home improvement project adds value to your home and many projects that are undertaken do not add value equal to the cost of the project.  We are often asked, “What are the best low-cost home renovations we can make that will make our home more comfortable while adding the biggest bang for the buck?” 

FIRST CONSIDER THE BONES

While cosmetic improvements are always the most exciting as they leave a visual impact with the buyer, the ‘Bones’ of the home are critical.  The interior systems of your home are often referred to as ‘The Bones’.  By interior systems we are referring to both structural and mechanical elements that when combined make a house.  Heating, plumbing and electrical are the basic mechanical elements of the bones.  Buyers today are looking for turn-key homes and typically are not looking to invest into a home that will require any repairs, upgrades or replacements after the purchase is complete. 

START WITH EXTERIOR REPAIRS AND REPLACEMENTS

Many times Repair and Replacement projects can increase the value of your home more than an interior remodeling project.  Repairing and replacing projects can also be the least expensive type of project and not break the bank.

Roof

In an older home, if the roof needs to be replaced, then you’ll want to replace it before you try and sell it.  On the other hand, replacing a roof is expensive, if there are still several years of life left in those old shingles, don’t replace the roof yet.

Windows and Doors

The front door, garage door your windows and even you’re siding should all be considered as worthwhile renovations.  Today’s modern windows and doors offer both curb appeal and increased energy efficiency making them a sound investment.

These improvements are not only efficient but the added curb appeal will help sell your home quickly, as well.

Landscaping

Your home does not need to look like it belongs on a magazine cover to have curb appeal.  What it does require is a neat well-manicured lawn, free from weeds.    Add seasonal flowers to the planter areas and make sure any shrubbery is trimmed and looking good.  Consider replacing it with a new flowering variety of shrubbery.

Add colored bark or stone to planter areas, keeping them looking clean and fresh.

Remember that curb appeal is all about first impressions – many times a potential buyer will just drive by a home that does not speak to them, from the curb (or worse the pictures used online to market you home).

INTERIOR LIVING SPACE NEEDS ATTENTION AS WELL

Your home interior is where you live and want to feel both secure and comfortable.  There are many things to consider when choosing which project to take on.  Even if your plan is to stay long term in your home, try and look at each potential project as a buyer would, coming through the house for the first time – what will their reaction be?

Bathroom Improvements

Some will argue that the bathrooms are the most important room(s) in the house when it comes time to sell.  No one wants to buy a home that is perceived to have a grungy bathroom.  There are a number of inexpensive replacement projects you can take on that will help give the bathroom some zing.

For under $100 you should be able to find a nice spa-style shower head.  It’s amazing how everyone notices a nice shower head when looking at a home they are considering to buy.

Redo the bathroom floor with a neutral color tile for maximum resale value.  Replace those dated plumbing and light fixtures – you’ll be amazed at how far a couple of hundred dollars can go in making a total transformation in this important room in your home.

While you’re at it, spend just a few dollars more and replace those dated towel bars and paper holders as well.  If there is a window, then don’t forget the window treatment.  Of course, you’ll want a fresh coat of paint and this room is set.

Flooring

The first thing anyone notices when they enter a home is the flooring, after all everyone looks where they walk, right?  What do your floors say, “I am tired, I am worn out, I am beat up”?  Well, then it’s time for an upgrade.

The kitchen and bathrooms are two of the most important floors in the home.  They should NEVER be carpet or wood (water and wood just don’t go well together).  Tile is always the best.  Rip out that linoleum and tile it if you want to add value and appeal to a potential buyer.

About a decade ago, laminate flooring was the new hot thing in homes.  Today they are common and not a viable substitute for wood floors.  Remember, please, if you want top dollar from the sale of your home the buyer is going to want top end materials used throughout the home – you will when you go shopping for a new home, so give your potential buyers the same experience.

The kitchen is the very heart and soul of your home.  Anything you can do to improve your kitchen will undoubtedly improve the value of your home.  There are many minor projects you can take on that will add to the overall appeal and warmth of the kitchen.  Start with a fresh coat of paint.

Consider new flooring, especially if you have vinyl or laminate.  Tile is always best in the kitchen. 

Just like in the bathroom, consider new plumbing and lighting fixtures to give the room a more modern and contemporary look.  New kitchen cabinets are always nice, but if it’s not in the budget then look into resurfacing the existing cabinet doors and drawer faces.  This is much less expensive and will go a great distance at changing the overall appearance of the kitchen.  Of course you can sand down the cabinets yourself and add either a cost of paint or stain giving them a new look.  While this is a very labor intense project, it is relatively inexpensive.

A very affordable trick is to replace the drawer pulls and cabinet knobs – this simple project is both quick and inexpensive and can go a long way at adding a new personality to a tired and worn room. 

Today’s buyers almost always expect granite countertops (or some other solid surface – never tile or linoleum) and they are one of the projects that will return with the highest offers for your home.

OPEN FLOOR PLAN

Newer homes today are typically built with an ‘open floor plan’ or a floor plan that does not have interior walls defining individual rooms in the home.  An open floor plan will create a flow throughout the home which in turn makes the home feel larger and offer move line of site throughout the home.  Perfect for both family living, and entertaining.

If you have an older home, consider removing one or several interior walls.  Of course, you’ll have to pull permits for this and verify that you’re not disturbing a load bearing wall.  Electrical and plumbing considerations may also have to be made.  While it can be a bit more expensive to open up a home’s interior, the benefits and appeal it will have to potential buyers is staggering.

MARKET YOUR HOME FOR SALE

When it comes time to sell your home, you’ll want to maximize the improvements you’ve made and make every potential buyer aware of each.  You’ll want to show off all of your hard work and capital improvements you’ve made.  It’s important that every potential buyer who either comes to your home to preview it or is just surfing the internet is aware of everything you’ve done to the place.  You’ll want to have a Realtor® representing you that will provide marketing materials that will show off exactly what you’ve accomplished.  The improvements you’ve made will influence the price you ultimately sell your home for so it’s critical to showcase this to a buyer and influence them to decide what they will pay for your home.

Call us today at (951) 296-8887 and get the information you need to make the right decision.

For questions regarding available inventory and/or other real estate matters please contact, Mike@GoTakeAction.com.  Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR).

What is Your Home Worth? How Do You Know?

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Today’s Temecula Home Owner wants to make certain that they know the true value of their home before they put it on the market and sell it…the last thing any home seller ever wants to do is leave money on the table.  The uncertainty and ambiguity of the process can be daunting as well as frustrating often leaving the home seller with anxiety over their ultimate decision.

It’s amazing how confident some homeowners are when quoting a value they got on line from Zillow or some other mega-website that does everything at the touch of a button.  If only life were that easy. 

Everyone has been preached to, for years, to interview at least three REALTORS® before making a decision.  Sure, today many top agents have the latest portable electronic gadgetry that can wow the heck out of you and impress you with a wonderful marketing plan that is sure to bring prospective buyers to your home…but is that enough?  What good is 100 buyers touring your home in a weekend if it’s priced below fair market value?

When interviewing an agent, pay more attention to what the agent says and not what he shows.  Those gadgets of real estate wizardry can all be purchased for a price.  Local market knowledge and common sense, these are the attributes that truly make the difference.  Let me emphasize how critical it is during the interview process to pay attention to what is said.

COMPARATIVE MARKET ANALYSIS (CMA)

Regardless of how it’s delivered, the most common method of determining the value of a home, is by preparing a Comparative Market Analysis, aka  CMA.  This is nothing more than a detailed report that looks at the recent past and present market conditions of similar properties to determine a value.  Again, be aware that some agents purchase some pretty extraordinary software packages that polish all the bells and fine tune the whistles – the question remains…”WHAT DOES THE AGENT REALLY KNOW?”

Many agents will use comparisons of homes that are not at all similar.  Imagine living in a single story ranch home and having an agent justify a price by comparing your home to a 2-story colonial.  Believe it or not, it happens all the time.

Every good CMA will include similar homes that have recently sold – ideally in the last 3 months but never more than a year; homes that are pending – under contract but have not yet closed escrow; and active listing – similar homes that are currently competing with yours for today’s buyers.  A thorough CMA will also include similar homes that have been on the market but have been taken off either as an expired listing or perhaps it was cancelled by the home owner.  Each of these categories of homes tells a story about the current market conditions.  Let your prospective agent explain the story to determine if they really know what they are talking about.

THE BASICS

The basic data is relevant to all homes for sale – or sold.  It’s the starting point of assessing property value in any market.  Some of the basics that can sway the value of a home for sale include:

  • Bedroom Count
  • Bathroom Count
  • Square Footage
  • Garage – Number of stalls?  Attached or Detached?  Direct Access? 
  • Year Home was built
  • Overall condition
  • Lot size and condition
  • Amenities
  • Location
  • Neighborhood

US vs. THEM

Skills the best REALTORS® bring to the table will be interpreting the data and being able to determine the value of each adjustment in order to determine what your home is actually worth on the date the CMA is prepared.

Skilled REALTORS® will know what value a 4th bedroom has over a 3rd bedroom home.  Is a 3-car tandem garage worth the same as a 3-car side-by-side garage?  If not, what adjustment should be made, in your neighborhood?  If the kitchen has had a major remodel with new cabinets, granite counter tops and high end stainless steel appliances will that add value to the home or just attract more buyers?  Is a model match home worth the same as yours if it’s at the end of a cul-de-sac and yours backs to a major thoroughfare?

I can’t begin to emphasize how important it is to insist on having your prospective real estate agent explain every nuance of the CMA he’s prepared and evaluate how much he really knows and how much he relies on software.

IS YOUR LISTING ‘FOR SALE’?

Unfortunately, in today’s competitive market many agents believe they can buy your listing by suggesting a top dollar list price to get the listing, thinking they will later come back for a price reduction.  They’ll do this because either they just don’t know any better or because they want to appease the home seller who believes their home is better than the neighbors who just sold.

Other agents will take a listing at any price, even if it is way overpriced.  They believe that their marketing machine will generate phone calls and internet leads that will become new business for them, all at your expense – either way you lose.

FIGURES NEVER LIE…LIARS ALWAYS FIGURE

One of my earliest lessons in business was that figures never lie but liars always figure.  Take the time to carefully look over all of the CMA’s you’ve been presented, side-by-side, never feel rushed or pressured in a listing presentation.  Take your time and understand the differences of what each agent is representing.  Call them, question them and get to the bottom.  Compare apples to apples and bring everything together before making a mistake that could potentially cost you thousands of dollars and upset your timeline by choosing the wrong agent.

Call us today at (951) 296-8887 and get the information you need to make the right decision.

For questions regarding available inventory and/or other real estate matters please contact, Mike@GoTakeAction.com.  Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR).

WHEN BUYING A NEW HOME BE SURE TO CONSIDER THE NEIGHBORHOOD

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When considering the purchase of a home, there is so much more than the bedroom and bathroom count to consider.  Items like the kitchen counters, plumbing and lighting fixtures and even the landscape can all be modified to fit your personality…what can never be changed about a prospective home is the neighborhood it’s located in.  This single issue is perhaps the most critical element to selecting that perfect dream home. 

WHAT TO CONSIDER WHEN EVALUATING A NEIGHBORHOOD

Local Laws – Throughout Riverside County each city has their own laws on the books that often dictate what can and cannot be done with residential real estate.  In some cities, the laws change from neighborhood to neighborhood.  In the unincorporated areas of Riverside County there are County Ordinances that must be adhered to.

Depending on where you end up calling home the local laws can be dramatically different than what you are currently use to.  You may find that there are restrictions on where you can park and during which hours (no overnight parking is not that uncommon in parts of the county).  There may be limitations as to what type of vehicle (commercial?) can be parked in a residential neighborhood.

Other cities can and do restrict the type of animals allowed which means your pet pot belly pig may not be permitted.  Most cities restrict the raising of any livestock, including chickens and goats from residential neighborhoods.  Other cities will restrict the color you can paint a house (which means you don’t have to worry about having a neighbor with a purple fetish).

These types of laws are known as either ‘protective covenants’ or ‘restrictive covenants’.  It’s important to become familiar with the law of the land before you take possession.  These laws are intended to protect property values (tax base) and are what’s perceived to be what the vast majority of the people do not want in their established neighborhoods.

Homeowner Associations (HOA) – The HOA usually either provides valuable amenities and services or be a drain on your very existence.  Never assume you know how they operate, as they run the entire gamut from being very professional and caring well-oiled machines to corrupt, inefficient and even petty overlords.

It’s so important to know what you’re getting into with your HOA before you agree to live by their rules.  Do you due diligence by speaking to your new neighbors, research them on the Internet and even plan on attending a meeting (typically held once a month).  There are so many homeowners who loved the home they bought only to be overwhelmed by the restrictions imposed by their HOA.

It is so important to get your priorities straight when picking a neighborhood to live in.

Taxes and Insurance – Here in California homeowners are protected under the provisions of Prop 13 so that their property taxes are very predictable year-after-year.  Insurance, on the other hand is anything but predictable.  We have high risk areas for fire and earthquakes…two very real realities of life in Southern California.

It’s important to understand how the local taxes work and what the insurance companies think of the area your proposed neighborhood is located in.  When considering your property taxes, make certain you investigate and fully understand any ‘special assessments’ that are bundled with the property taxes and when they will expire.

Noise and Odors– Sure that railroad track must be a half a mile away, but when that 100 car freight train goes rolling through at 4 in the morning you have got to ask yourself if this is what you bargained for.  Maybe being close to the new hospital is a good thing until you start to hear the ambulances at all hours of the day and night.

Consider the noise level of a nearby school, when the kids are out for recess playing or there are 100 cars crowding the nearby streets waiting to pick up the children.  How about the convenience to the freeway – what level of noise does that bring to your property (remember, it’s not just the inside, think of those summer BBQ’s you want to hold).

Another environmental issue you need to consider is the local odors.  Riverside County has a lot of agriculture land that is covered with either crops or livestock.  One creates a lot of fertilizer and the other consumes a lot of fertilizer – either way there may be an unpleasant odor that finds its way to your home (along with the flies and other insects).

Entertainment – The good news is that Riverside County offers something for everyone.  Being close to the things you like to do means that you get to do them more often.  If you like wine tasting, then the Temecula Wine Country is for you.  If hiking is your thing, there are many trails scattered throughout the county.  Live concerts and other cultural events may have you considering being close to either downtown Riverside or Old Town Temecula.  Regardless of what you enjoy, there is a neighborhood in Riverside County to accommodate you.

Internet and Cell Phone Coverage – In todays connected world, high speed Internet access has become a critical element to consider when home shopping.  Just as critical, if not more, is having a good cell signal at the new home.  Today, so many people are working from home and have given up traditional land lines.  It’s imperative that a neighborhood has the capabilities to stay connected.

Exterior Light – This depends on what you want.  Some people find comfort with bright street lights offering a level of security while others cherish the darkness of the night and don’t want it invade by parking lot lights, street lights, traffic lights or any other light source that might invade your space.

Bike Lanes – There are many ordinances on the books protecting bicyclists and establishing bona fide bike lanes and paths.  Some communities embrace this and go above and beyond making their cities ‘bike friendly’ while others may not be in compliance with all of the rules in force.

In addition to bike lanes, many neighborhoods will also have fitness parks and jogging trails to promote an active and healthy lifestyle for the residents.  Just a couple more things to consider.

PRIORTIZE

There are going to be many factors into finding the perfect place to call home.  It’s more than just what is found within the walls or even the property boundaries.  The local neighborhood is where you will be living, meeting ne friends and raiding your family.  There is much to consider.  This list cannot be all inclusive, but it is a good place to start you thinking outside the box of the walls of the home and at the neighborhood as a whole.

Life is not all about how close you are to work or how close the shopping district is or how you’re going to maintain your new home.  Life is about the moments and those moments include your community and neighborhood.  So figure out what’s important to you and prioritize them accordingly…something only you can do.

Call us today at (951) 296-8887 and get the information you need to make the right decision.

For questions regarding available inventory and/or other real estate matters please contact, Mike@GoTakeAction.com.  Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR.

Buyer Alert – Don’t Be Left Behind

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The buying season is in full swing – odds are that if you are going to buy a Temecula-Murrieta home this year, you’ll buy by September.  Sure, you’ve been getting your financial affairs in order and you’ve been up at night searching the Interned and browsing again first thing each morning at all of the available homes for sale…but are you really ready to jump in and do what it takes?

Think of finding and purchasing a new home as a marathon.  It’s not going to happen over-night and it’s not going to be easy.  Just like in a 26.2 mile marathon most of the preparation must me achieving a mental attitude that you are in it for the long run.  Don’t give up and don’t look for shortcuts; be persistent and be consistent.

Looking for a Deal or a Home?

Many buyers will wear themselves out searching for ‘the right home’ to fall in love with only to lose their dream by insisting on submitting a low ball offer.  What’s sad is that many buyers will repeat the process several times before they realize this may not be the best tactic if they want to move before school starts in the fall.

Smarter buyers, with a local agent whose in-tune with the market, will know and understand the current market trends and know what homes are selling for in each specific neighborhood you are shopping in.  Current market conditions do not support the notion that low-ball offers will gain any respect from this year’s sellers who are still hoping for a repeat of last year’s buying frenzy that saw multiple offers and a nearly 25% increase in value. 

Do yourself a favor and prepare reasonable fair market offers – use current and reliable data to structure your offers and don’t rely on your need to negotiate the best deal.

If It’s Meant to Be…It’s Meant to Be

There will be homes that you really want.  You’ve analyzed all of the data with your REALTOR®.  You structure the cleanest best offer and then you submit it.  At this point, if you are going to maintain a healthy mental attitude, you have to let go of the outcome.  .

If the home you are fighting for is supposed to be yours and you have this type of positive mental attitude then the success will be that much sweeter and the loss much easier to deal with if you find yourself back on the street looking for that perfect home again!

Are Your Priorities in Alignment with Buying a Home?

It’s a tough question, your instinct is of course!  If that’s the case, when your agent notifies you that a home that meets every want and need on your list and is within budget in the desired neighborhood did you drop what you were doing to go look at it or did you ask to schedule a showing for Saturday afternoon after Juniors little league game? 

Do you keep getting overbid because you are asking for a 60 day escrow?  Maybe you want the Seller to contribute 3% towards your closing costs plus pay for a home warranty. 

The truth is there are many variables to every offer and typically lots of competition.  You need to be working with an agent whom you trust so that you can trust your agents’ advice and harness his expertise.  Consider each setback and learn from the experience – don’t become a victim of repetition.

TV Buyers are in Fantasy Land

If you ever watch any of the multiple television shows on the process of buying real estate you may be gaining some insight but trust me – this is not real.

First off, it is near impossible to look at 3 houses and one of them becomes perfect.  It’s going to take much more than this.

Second, the couple who doesn’t know what they want really need to decide and not rely on their REALTOR® to figure it out for them.  How many couples have you seen on TV where one wants to live in an urban environment and the other out in the country – all for $900 a month?  Well, you need to work this out with your partner (or yourself) long before you ever cross your first threshold.   Determine what you want, what you need, where you want to be and a realistic budget.

Open Escrow – Finish Line in Sight

Sure, you found the perfect home and have an accepted offer for a price you like, but it’s not yours yet and you still have a lot of work to get done if you are going to close on time…or at all (always remember, not every escrow closes).

Escrow can be anti-climactic after all of the energy that went into finding your new abode but you can’t slow down now – stay focused and do what needs to be done.  This includes showing up for all of the inspections, when they are scheduled; work closely with your lender, providing all of the necessary documentation (yes there will be hoops to jump through) they need – when then ask for it; and remain flexible because there will be unforeseen things that will happen that will require your prompt attention and you better be prepared to give it.

No one wants to see all of yours and your agents’ hard work and the thought of losing your dream home slip between the cracks.

If you and everyone around you can stay focused on the end game, jumping through the hoops as they mysteriously appear and give your home hunting experience the highest priority in your life, until it’s over the odds are definitely in your favor of being settled into your new home long before the kids return to school this fall.

Call us today at (951) 296-8887 and get the information you need to make the right decision.

For questions regarding available inventory and/or other real estate matters please contact, Mike@GoTakeAction.com.  Mike Mason, Broker/Owner of MASON Real Estate Cal. BRE: 01483044, Board of Director of your Southwest Riverside County Association of Realtors® (SRCAR).