How You Can Finance Your Home Renovation
Outdated kitchen. Overrun backyard. Unusable basement space. If you have a home renovation project on the mind, the first thing you have to consider is how you are going to finance it. Here are the most common options to make your dreams become a reality.
The Home Appraisal
You’ve found your dream home and now it’s time to cross all your T's and dot all your I's before it’s all your own. And one of the first items on your closing checklist the home appraisal. So, what exactly is that?
The home appraisal is essentially a value assessment of the home and property. It is conducted by a certified third party and is used to determine whether the home is priced appropriately.
During a home appraisal, the appraiser conducts a complete visual inspection of the interior and exterior of the home. He or she factors in a variety of things, including the home’s floor plan functionality, condition, location, school district, fixtures, lot size, and more. An upward adjustment is generally made if the home has a deck, a view, or a large yard. The appraiser will also compare the home to several similar homes that were sold within the last six months in the area.
The final report must include a street map showing the property and the ones’ compared, photographs of the interior and exterior, an explanation on how the square footage was calculated, market sales data, public land records, and more.
After it is complete, the lender uses the information found to ensure that the property is worth the amount they are investing. This is a safe-guard for the lender as the home acts as collateral for the mortgage. If the buyer defaults on the mortgage and goes into foreclosure, the lender generally sells the home to recover the money borrowed.
When you're ready to sell your home, doing a little preparation beforehand can potentially help your home sell quicker and for a higher price.
Maximize Curb Appeal
Getting buyers through the front door starts at the curb. Manicure the lawn, and trim the trees and shrubs. Pull weeds and plant some colorful flowers. Clear the walkways. Fix peeling paint and wind up that hose. Paint the address number on the curb.
Make Repairs to Visible Blemishes
Is there something that’s an eyesore, but an easy fix? If looking at it bothers you, it could bother a potential buyer and reduce the appeal of your home. Replace burnt-out light bulbs, fix that loose door handle, and make needed paint touch-ups.
Make a Buyer’s Entrance Inviting
Freshly paint the front door with a color that contrasts the house. Add a new welcome mat and hang a fresh wreath on the door.
Let the Light Shine In
Remove heavy window coverings to let in the natural light we all crave and add lamps to brighten up darker areas to add more cheer.
Remove the Clutter
This serves two purposes.
Remove Personal Items
It will be much easier for potential buyers to imagine your home as theirs when they can envision their own items in it.
Highlight Special Features
Use accents and color to draw eyes to special features that you want potential buyers to notice—throw pillows, plants, or other eye-catching accessories.
Use mirrors to make rooms look larger and lighter. Position opposite windows for best effect.
Clean Out Cabinets and Closets
Buyers are nosy and they WILL open the cabinets. Make sure your contents are orderly and organized.
Clean to remove any odors and do not cook any meals with heavy, lasting smells before a showing.
You can easily add appeal by quartering an orange and adding it to a pot of water with a cinnamon stick. Simmer on low for an inviting aroma. Or bake a fresh batch of cookies (and leave a plate of them on the counter for visitors).
Request a free estimate or consultation with me today! I'll l be happy to help every step of the way.