David Metzdorf's Blog
Whether your family has grown or your personal lifestyle has changed, you may have found yourself faced with the decision of building an addition on your existing home or purchasing a new one. There are both benefits and disadvantages to both options so it's important to take time to consider your own circumstances as well as the pros and cons of building an addition before you make your final choice.
Should You Build a New Addition? 3 Benefits to Consider
If you are trying to decide if now is the right time to build a home addition, these are three benefits that you may want to think about as you make your choice:
- An addition will allow you to create more space in your home. Most people choose to build up or build out their home in order to create more living space. Essentially, this is your opportunity to create the home that you want out of the house that you already have.
- You can get creative when it comes to putting on an addition. There are many options for home additions. Some people choose to build out their home in order to add a family room for additional living space or a sunroom to maximize their enjoyment of all the seasons. Others prefer to build up the home in order to create an extra bedroom or another full bathroom. No matter what, you have complete creative freedom in the design of your addition.
- An addition allows you to live in the home that you want without leaving your neighborhood or dealing with the logistical frustrations of moving. For many, the cost of an addition is significantly less than the cost of purchasing a new home and moving into it.
The Disadvantages of Building a New Addition On Your Home
Of course, as with any decision, there may be some disadvantages that you have to think about. Here are a few you may want to consider:
- An addition may not offer the return on your investment that you need. Many people mistakenly believe that their addition will instantly add a significant boost to their resale value. However, that is not always true. Depending on the size and the extent of your addition, you may inadvertently out-value your existing neighborhood. You may want to consider how your new addition will make your house look in comparison to the others that are nearby.
- An addition may take a significant amount of time, and may force you to live in a construction zone for a while. Some people choose to temporarily relocate for the duration of the addition, which can be both physically and emotionally taxing.
- Depending on the addition that you design you may lose some of your property space. If you decide to build out your home and create a larger footprint, then you may not have as much outdoor living space to enjoy after the addition is complete.
Building a home addition is a significant investment of both your time and resources, but most people are thrilled to have customized their home and created a space that they genuinely love.
Some home projects and improvements can't wait - a leaking hot water heater or a water damaged floor need to be replaced right away. Other, planned renovations and upgrades are optional. Consider not only your current needs, but the potential impact of any large planned upgrade on your home's value before you proceed. If you are upgrading your home to sell it soon, the improvements you make should add value to your home and be recouped when you are ready to sell.
4 Home Improvements that Add the Most Value to your Home (and 3 That Don't)
Some upgrades enhance the overall value of your home, while others allow you to improve the look of your home, and recover the majority of your costs when you sell. According to Bankrate.com, the best places to invest your upgrade dollars include:
A new garage door: It may not be fancy or a feature you notice, but replacing a sagging, out of date or ailing garage door with a newer, more secure model is a money savvy upgrade. The average garage upgrade costs about $3,600 -- and adds about $3,500 to the selling price of the home, making this a renovation that (almost) pays for itself.
Kitchen Update: Bringing a dated or worn kitchen up to current day standards -- a makeover that usually costs about $22,000 for the average home -- can improve the selling price of your home by thousands of dollars. The average kitchen update boosts the value of a home by up to $18,000.
Enhance your yard with a deck: According to the Balance, adding a deck in your backyard expands your living space and allows you to add value to your home. The average cost of a wood deck is $10,000 -- and that deck adds an average of $9000 to your home's value, making it easy to add space without a huge investment.
Replace siding: The curb appeal of your home has a significant impact on your ability to sell it and on the price you receive. According to the Balance, replacing aging siding with a similar quality new version allows you to recover about 75% of your investment. It will also make your home more appealing to buyers.
Projects that Don't Add Value to your Home
You should not take on these projects if you truly want to enjoy the results for a while, as they won't have much of an impact on the selling price or value of your home. Some, like swimming pools, can even scare away buyers that would otherwise be interested in your property. According to the Balance, the worst home upgrades include swimming pools of all types, interior painting (because buyers may prefer different colors) and whole roof replacement (except in emergencies).
The home buying process can be long and daunting. From trying to find the right home to facing rejected offers, it can seem endless. Eventually, you will find the right home and get that offer accepted. Now you must face the next phase what’s called “closing” on a home. What exactly happens at the closing table can vary based on your own situation, but the important thing to know is that the closing table is where the deal is sealed and signed. The home of your dreams will finally be yours!
Find The Location
The location of the closing will be determined beforehand. It’s usually at a lawyer’s office but it could be at a realtor’s office. The attorney who has been chosen will be noted on the closing documents you receive before you get there.
Get Ready To Write Large Checks
When you’re closing on a home, this is the time that the downpayment is expected along with all of the lawyer’s fees, taxes, commissions, assessments, and other agreements. This money should be presented at the time of closing and there’s no wiggle room on the timing, so be sure you have the cash handy in your account. Often, a bank check will be required to pay these fees along with the downpayment. Your lender will give a a detailed report of the fees that are required before you even head to the closing table, so you’ll have time to prepare.
Do Some Hand Stretches
There will be plenty of pens available at the closing. You’ll be there for awhile signing many important documents, so bring some water. If you don’t have a safe or file folders, you’ll want to get them as well. Depending on how your closing is conducted, a lawyer or other authorized person will be present to explain the legal jargon to you for every piece of paper that you’re signing. Every document that you sign should be saved for your reference and safe keeping. The proof of insurance and the deed to your property are definitely documents that you’ll want to have handy for a long time to come. Your home is one of the largest purchases that you’ll ever make in your lifetime, so be sure to keep that paperwork in order.
After Closing Ends
After all of the papers are signed and the walkthrough of the home is complete, you’re a homeowner! In most cases, you’ll be able to call the home your own immediately. In some special cases, there are post-closing agreements that include repairs that couldn’t be done ahead of time, or other transactions that the seller may have agreed with you on at an earlier date.
In most cases, everything will be taken care of right at the closing table. One of the most exciting moments is when the keys are handed over to you! After a long time of searching, many phone calls, and a lot of work, now you can start putting that elbow grease into your home!
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If you want to enjoy a fast, seamless and profitable home selling experience, it helps to be flexible. That way, you won't feel pressure to accept the first homebuying proposal that comes your way. Instead, you can listen to various homebuying offers, consider their pros and cons and choose one that matches or exceeds your expectations.
Unfortunately, the stress associated with selling a house can escalate quickly. And if a home seller is not careful, he or she risks making rash decisions that may lead to subpar results.
When it comes to selling a house, it generally is a good idea to be flexible. Now, let's take a look at three tips to help sellers maintain their flexibility throughout the home selling cycle.
1. Evaluate the Housing Market
The current housing market may favor buyers or sellers. If you want to maximize the profits from your home sale – and maintain your flexibility throughout the home selling journey – you should examine the real estate sector closely.
Assess the prices of available houses in your city or town that are similar to your own. This will allow you to see how your residence stacks up against the competition and price it appropriately.
Furthermore, evaluate the prices of recently sold houses in your area. With this housing market data, you can determine whether you're preparing to enter a buyer's or seller's market and plan accordingly.
2. Don't Hesitate to Counter a Buyer's Offer
After you list your house, it may be only a matter of time before you receive an offer on your house. However, just because you receive an offer on your house does not mean that you have to accept this proposal.
Remember, your duty as a home seller is to accept the ideal homebuying proposal based on your home selling goals. If an offer fails to meet your expectations, you should not hesitate to counter or reject this proposal.
In most instances, it helps to counter a buyer's proposal. If you submit a counter-offer that matches a buyer's needs, both you and a buyer can move forward with a transaction. Or, in the worst-case scenario, a buyer will reject the counter-offer, and you can move forward with your attempt to sell your house.
3. Work with a Real Estate Agent
If you're unsure about how to stay flexible throughout the home selling journey, you can always hire a real estate agent. In fact, with a real estate agent at your side, you can get the insights that you need to succeed in any housing market, at any time.
A real estate agent will learn about your home selling goals and help you map out a successful home selling journey. Plus, he or she will list your residence, promote it to the right groups of potential buyers and ensure you can make an informed decision about whether to accept, reject or counter a buyer's proposal.
Want to sell your house? Consider the aforementioned tips, and you can operate as a flexible home seller.