All About Home Equity Loans

You have probably heard a lot about home equity loans if you have spent any time at all looking at home financing options. These are loans that are usually taken out by people who already own a home, and want to borrow against the value of the home. Not everyone can get a home equity loan—of course, you have to actually have equity in the home, as well as the right credit situation. Home equity loans are a great way to finance major renovations on your house.

What Is Equity?

It’s a term that is heard a lot, but for those new to the housing market, it might not be one you exactly understand. It’s quite simple, really. The equity in your home is the difference between what you currently owe on it and the current market value of the home. You can achieve equity in your home in two main ways. The first is by paying down your mortgage. The second is by increasing the value of your home, either through renovations you have done or a general increase in the market.

Loans Vs. Lines Of Credit

Along with home equity loans, you have probably heard about home equity lines of credit. While they are very similar, there is one major difference. A home equity loan is basically like any other mortgage loan. You take out a loan for the value of the home, and then you pay it back. When you have paid it off, the agreement is over.
A home equity line of credit is a little different. It allows you to borrow money against the value of your home in much the same way, but after you pay it off, you can borrow the same amount again. Think of it as a credit
card; you have a certain amount of credit available, and when you pay off what you owe, you can charge more to the card. A home equity line of credit offers you an ongoing credit line available for any need you might have.

Whichever option you choose, be careful not to borrow too high an amount. Pushing what you owe on your home back up to the market value can be dangerous. If there is a dip in the market, you could suddenly find yourself upside down on the home. If you have borrowed the money to make renovations, however, your improvements can make up some of that difference, building even more equity.

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Should You Be Present During Showings

Showing your home is a stressful experience; you have to keep it clean and ready, always looking its best, and you also have to consider where you’ll be during home showings. Most people choose to leave the home, but if a showing is scheduled at the last minute and you don’t feel you can leave, should you stay?

The Pros For Leaving

Most buyers prefer to look at home while the current residents are out. This is because it makes them feel a little more comfortable since it’s odd enough to be walking through and examining a stranger’s home. It allows them to make their observations and ask questions that might make an owner uncomfortable.
Especially if you have a family, it can be really hard for people to get a good look at and feel for the home with you and your kids around. Getting out of the house might be difficult sometimes, but allowing people to get the best possible look at your home means it’s more likely they’ll be interested in buying it.

Potential Pros For Staying

If you are there during a showing you can answer any questions your home buyers might have. Being able to answer those questions on the spot can help them to make a quicker buying choice. You may be able to provide
information about the neighborhood and home that the realtor can’t offer.
Being there and yet staying out of the way during a showing can be beneficial; consider going out into the yard, especially if you have kids who could get in the way. You’ll be nearby for questions and yet out of the way.
This may only work in nice weather but makes a good compromise.

So Which Is Better?

As a general rule, although there can be some benefit to your being there during a showing, it’s best that you do leave. Homebuyers want to feel free to be as critical as they need to be about a home they are considering for
purchase and your presence can make them uncomfortable doing this.
You and your family can also be a distraction for those who want to really get a good feel for the home—remember, they need to picture their family living there, not yours.

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How to get top dollar for your home

While you can’t control the economy (or the weather), there are a number of things you can do to improve your chances of buyers vying for your property over another. Here are Haven’s top tips to help you get top dollar for your home.

Make sure the price is right

You can ask whatever price you like, but whether anyone is prepared to pay is another matter. One of the biggest mistakes vendors make is believing their home is better than anyone else’s. It’s time to put your emotions in check and focus on the facts. Research the sales prices of similar properties in your area and price within that band. If you would like more than the market can offer, you may need to consider selling in a more bullish market.

One of the best tests of whether your property is priced right is to see how many inspections and genuine inquiries it attracts in the first 30 days. If interest is scant, then chances are your asking price is too high.

As much as vendors and buyers alike believe the selling agent is working against them, the agent is actually the expert who lives and dies by the market. Listen to their feedback and consider lowering your expectations, along with the price, if needed.

First impressions count

Presentation is everything when it comes to getting the best price for your home. It counts when buyers are scanning the real estate section and online listings, and it counts when interested parties rock up for a walk-through. The aim is to make sure the photos match what they see in person.

Some absolute essentials:

Fix anything broken.
Clean all surfaces, including walls, until they gleam.
Clear away clutter.
Remove signs of pets.
Get rid of any odors and stains.
Tidy lawns and gardens and prune or pull out any plants that are over-grown.

If your home has a tired-looking façade, give it a good clean with a water jet and consider if anything needs to be patched, painted or replaced. A few thousand spent on a face-lift will help your house stand out from the pack and could help you pocket an extra $10,000 to $20,000 from the sale.

Create space

Buyers want to envision themselves in your home so clear clutter to make room for their ideas. Minimize furniture to create the illusion of space, remove knick-knacks, appliances, and paper from surfaces and clean out cupboards (yes, people look in them) so they are only half full.

You may need to put your surplus items in storage but the inconvenience will be worth it.

Some sellers are going so far as to shift their existing furniture out and move rented furniture in. Known as staging, this increasingly popular trend aims to transform your home – with the help of a stylist – into something you would see in an interior magazine. Generally sought by vendors at the upper end of the market, staging can cost anywhere from $2,000 to $20,000 or more, depending on the type and quantity of furniture rented and how long it’s required. Those with more modest budgets and abodes might still consider spending a few hundred dollars on a stylist who can recommend how to arrange a room for extra wow.

Let there be light

Enhance the feeling of space further with light. Open blinds and curtains to brighten rooms or, if the window coverings are heavy, consider taking them down altogether. Just make sure your windows are sparkling!

You should also consider the aspect of your home and time of year when setting inspection times. West-facing homes in summer, for example, should be showcased in the morning or early evening rather than in the afternoon when the hot sun is beating on westerly windows.

If having a twilight or evening viewing, use light to create the right ambience. Make sure the front entrance is lit, but not glaring, and consider softening the lighting inside with lower wattage globes or well-placed lamps.

Have your paperwork in order

Show your readiness to sell by having a survey of your property and a building and pest report on hand for prospective buyers. It not only saves them time and money but shows you have nothing to hide.

A building and pest report will also tell you if any repairs are required before you go to the market. Most vendors leave it up to the buyers to get the building and pest inspection done. The problem is if the inspection reveals any issues, the buyers then have a bargaining chip to drive down the price. Better for you to manage the cost of repairs beforehand and leave less room for negotiations.

Something for seemingly nothing

Consider including something extra in the sale. If your outdoor entertainment area wows visitors, include your barbecue or outdoor furniture in the contract. We’re not suggesting you give them away – rather they are built into the asking price.

Other inclusions might be a water or garden feature, furniture that suits the style of house, home theatre equipment or a fridge that fits a certain-sized space. It might be the deal closer and means you have one less item to move.

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What Are Lockboxes

When a homeowner lists their house with a REALTOR®, they may choose to store their house keys in the lockbox for easy access for the REALTOR® showing the home. In fact, these handy accessories have all but replaced the need to keep a key under the mat. And not to mention, they are a lot more effective and secure.

Why REALTORS® Use A Lockbox

It’s no surprise that REALTORS® like to sell houses, but they wouldn’t be in business for long if the homes they show were to be vandalized or illegally accessed by an unlawful individual. A lockbox works to prevent anyone,
other than approved REALTORS®, from being granted access into the home. Not only does it allow the REALTOR® to be more effective in showing homes, but it also gives the owner some added peace of mind in knowing that their home is being protected.

The Cost

Lockboxes vary in price according to the unit itself. For instance, some lockboxes use a standard key to open while the more modern approach is a combination lock. In some cases, the seller may be required to purchase a unit if they prefer a REALTOR® to use it when showing their home to potential buyers. In other instances, the REALTOR® will provide the lockbox free of charge. The best way to know for sure is to ask your REALTOR® about their policy relating to lockboxes and what, if any, cost will apply to its use.

Lockbox Safety

When it comes to protecting any vacant home, careful planning is a must. Many experts and homeowners alike believe that having a lockbox alone will not protect the home, but rather the unit together with proper placement
would be the better combination for optimal security. Most REALTORS® recommend placing the lockbox in an area that’s concealed, one that’s not obvious at first glance, as opposed to leaving it in plain sight. Some may prefer to leave the lockbox near the entrance of the home because, after all, how many burglars would ever walk right up to the front door?
Now that you know where to place the lockbox, you need to know where not to place it. Never choose a location that’s far from the home or is inconvenient for the REALTOR® to access. In order to show your house to potential buyers, your REALTOR® needs to be able to get in the door and it’s not likely that they will be thrilled at the prospect of wading through an overgrown lawn, reaching blindly into a flower garden or sliding through the mud just to find your house key.

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Repairs To Make Before Selling Your Home

When selling your home, the last thing you want to do is invest more into it, but in most cases making a few repairs or renovations to your home before putting it on the market can really be worth the financial and time investment. You want your home to look fresh, modern, and clean, and with a little work and money, you can sometimes increase the value of your home by a considerable amount. Here are a few improvements that can really boost your home’s salability.

Fresh Coat Of Paint—Rooms with a fresh coat of paint look new and clean. You’ll want to keep the colors neutral and light, and this is a good opportunity to also make any repairs to ceilings and walls.
Flooring—Clean and polished hardwood floors or new carpeting is a big selling point for homes on the market. Again, if you plan on installing new flooring keep the colors neutral and the materials within the price range of the home in order to maximize your investment.
Kitchen Improvements—If your kitchen is outdated and your appliances old, then you may want to consider investing in some changes to this important room. A kitchen is often the major selling point of a home, and with a few cosmetic changes, you can transform its appearance. Fresh paint, new cabinetry, and a modern sink and faucet can really make a huge difference in the appeal and asking price of your home.
Bathroom Improvements—Bathrooms, just like kitchens, can make a big difference in the price of your home if they are outdated and shabby in appearance. New fixtures and a fresh coat of paint can really improve your
home’s appeal.
Exterior—Curb appeal is also an important point to remember when preparing your home for sale. You’ll want to fix any obvious exterior damage to your home and property, and consider adding some finishing touches such
as flowers.
Overall, most of these improvements are relatively inexpensive compared to the increased value they can give your home. It is always a good idea to get the advice of a REALTOR® before going ahead, to ensure that you will get maximum profit from your improvement investment.

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Selling An Income Property - T...

Selling an income property can sometimes be more complicated than selling your home residence, especially if it is occupied. Tenants may not put the same effort into making a home showing-ready as you would, so you will have to be more vigilant or wait until they have moved out to begin the process. Before you list, consider these important points.

Talk To Your Tenants
If you have people living in the property you want to sell, you should let them know about your plans to sell and discuss the process with them. Since they will have to move, they may decide they want to be out sooner rather than later. However, if you are beginning to show the home right away, they will need to be ready and able to cooperate with showings.

Set up times when it is acceptable to them to show the home. Be sure to work around their schedule; after all, it is their home and their things inside the home. Tenants will be more likely to help prepare the home for showings if you are considerate of their time and needs.

Hire Someone For Yard Work
If your tenants usually do the yard work themselves, consider taking it off their hands by hiring landscapers to handle it during the sale process. Since the tenants will need to keep the inside of the house tidy, have someone else
take care of the yard.
Professionals will keep the yard looking good and increase the curb appeal of the home while it’s for sale.

A Vacant Property
Selling a vacant income property is likely a little easier due to the fact that no one needs to coordinate schedules to set up showings. However, it also means no one is there to keep an eye on the home. You will need to keep an eye on the property to make sure it’s not in danger of damage. Since people who are looking to buy the home will probably want to live there, consider staging the home to make it more appealing. Home buyers often find that seeing the rooms set up for living makes it easier to picture their own family living there.

An income property isn’t creating any income while it is vacant and on the market, so consider selling while the tenants are still in residence. If that’s not possible, staging or minor improvements can make a big difference in how long it takes to sell.

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