Fannie Mae recently released their “What do consumers know about the Mortgage Qualification Criteria?” Study. The study revealed that Americans are misinformed about what is required to qualify for a mortgage when purchasing a home.
According to Remodeling's 2016 Cost vs. Value Report, you'll recoup an average of 64% of what you paid for a renovation if you sell your home this year.
We've previously discussed Return on Investment (ROI) about how much more (or less) than an asset's cost it is (or will be) worth at resale. It went a little something like this.
OK. The same concept of ROI applies, perhaps but not always on a lesser scale, to the effect of improvements made after purchase to the resale value of that asset.
Many (not all) buyers want gorgeous granite, jacuzzi tubs, bedroom fireplaces and similar creature comforts. And where these add great value...prestige, will they amount to a dollar for dollar increase in financial value? It depends.
It's never good to have the most expensive house in the neighborhood. First, they can stand out like the a Taj Mahal near Quonset huts. Gaudy is definitely not good, IMHO. Worst, pride in ownership can be a bitter pill to swallow when no one cares how much that Italian marble tub cost. When it comes to comparable values, a tub's just a rub-a-dub-dub. Sorry, couldn't resist.
Quickly. What is relatively worth more, adding attic insulation or a bathroom that will relieve congestion come school time? Before we tell it, understand you'll recoup about 67% of improvements on average. Drum roll, please...
Attic insulation, by a long shot of 2:1. Sad but true.
So be careful what you ask for, you might not get it. Unless it's help to pay for remodeling projects on that would be perfect home were it not for the host of improvements needed to make it your castle, whether necessary or not.
With Fannie Mae's and Freddie Mac's HomeStyle Renovation and FHA's 203k loans, it is relatively easy to turn that ugly house into the nosy neighbor's bane of existence.
How about we add energy efficiency upgrades to our efforts and receive up to $8,000 in help to do so?! This is HOT! No pun intended. Learn more here.
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As an incentive for new and existing homeowners to buy homes with high energy efficiency ratings or make upgrades (furnace, insulation levels, windows, etc.) to an existing home, the state of Colorado is offering up to $8,000!
There are hundreds, if not thousands of extra programs that help with adapting homes for folks with disabilities, down payment. closing and other costs. Check them all out here!
According to Investopedia, ROI measures the amount of return on an investment relative to the investment’s cost. To calculate return on investment, the return of an investment is divided by its cost with the result expressed as a percentage:
Compared to precious metals (silver, gold), stocks and bonds, at 6.8% real estate provides the highest ROI on a national scale. Not to be confused with ROI, consider the Pikes Peak market saw a 8% increase in average sales prices from December 2014 - December 2015.
Not that it is risk free, but with variables such as appreciation, comparative property values, income history and such accounted for with relative certainty, in real estate it is said the money is made at the time of purchase, not so much at its sale. It is no wonder more millionaires have been made in real estate than anywhere else and with careful analysis, you could be the next!
With access to every home listed in the area, we analyze and maintain a database of properties sold as-is which include short sales, estate sales and bank owned properties available at all times. Just click the image to the left for your free download.
Thanks for reading. We look forward to serving your current or future real estate needs.
Don't worry—we'll do the painful math for you so you know what splurges to kick to the curb in 2016.
Depending on where you are in the country, it can take over 10 years to save for a down payment. Here are some things you can do to cut that time down considerably:
$9,397 total savings!
Yes, with a lot of focus (and sacrifice), it’s possible to save close to $9,400 to use for the all important down payment for your home purchase. But, why?
Many don’t realize there are assistance programs that can cover:
And the truth is these programs are available in most areas, sometimes regardless of income!
As home buying advisors, we pride ourselves on our dedication to helping anyone who wants to own a home with that goal.
Contact us today for your personalized consultation!