My Blog List

Wednesday, May 19, 2021

What's that Remodel Worth?

 

It’s exciting to update a kitchen, remodel a bathroom, add a master suite, convert a garage to a workout room, or add skylights. However, homeowners are sometimes surprised to learn how remodeling projects affect a home’s price when it comes time to sell.

Consider the Personal Value You Get

If you plan to live in your house for some time before you sell, don’t overlook the enjoyment or utility you will get from a remodeling job. Regardless of the eventual sales price, that may reason enough to embark upon the project.

Appraised Value Matters, Too

When a homebuyer applies for a loan, the lender usually requires an independent appraisal to determine if the value of the home is in line with the purchase price. That can be when the seller ultimately finds out the return on the project. For example, a pool that cost $85,000 to install could add only $30,000 to the appraised value of a home compared to a similar home nearby without a pool.

Remodels May Improve Marketability

Some improvements don’t raise the eventual sales price of a home but may still make the home more attractive to buyers. A remodel may even be the difference between not receiving any offers and getting multiple offers on a property a short time after it goes on the market.

Don’t Assume a Dollar-for-Dollar Return

Some projects add more value to a home than others—a new front door often tops the list—but a host of factors can influence how much any specific remodel pays off. Variables include the quality and appeal of the finished project as well as how it compares with similar features of other homes in the neighborhood. In many cases, a home’s sales price will increase but not by as much as the actual cost of the project.

Your REALTOR® can help you understand how remodeling projects can affect marketability and sales prices of homes, and can offer guidance on all your options when considering buying or selling a home.


Original post:  https://www.texasrealestate.com/members/posts/whats-that-remodel-worth/

Monday, April 12, 2021

11 Things to Never, Ever, EVER Do to Your House


What may seem like a good idea, often isn't. Here are 10 common mistakes new homeowners often make.

1.     Eliminate Your Only Tub


Even if you only use your tub to wash the mini-blinds, most real estate agents are adamant about having at least one bathtub in your house to preserve marketability.

A recent Houzz poll agrees, with 58% of respondents claiming, "you'll never sell that house without a tub."


2.     Leave Cabinet Doors on While Painting


Painting your kitchen cabinets pays off big at resale — it's a small investment for a big "wow." But the job's time-consuming, so it's tempting leave the doors on.   RESIST. At all costs.  It’s impossible to do a good job without removing the doors unless you have a professional painter come in and spray paint the cabinets.


3.     Put Starchy Food Down the Disposal


Today's garbage disposals can handle more challenging foods than earlier models, but starchy comestibles like potatoes, rice, and oatmeal still stump them.

Fun fact: Every Halloween, plumbers see an increase in calls because people are dumping pumpkin guts into the disposal.

Starchy foods clump when they hit water, clogging disposals and pipes. Instead, put them in the garbage can or, even better, your compost pile.  I must admit, I have been guilty of this one. 😊

4.     Plant a Tree Close to Your House


That young sapling just a few feet from your door seems so harmless. Until it grows up.  In addition to the risk of falling limbs, tree roots from mature trees can weaken your home's foundation and clog plumbing and sewer pipes.  Plant medium and large trees at least 30 to 50 feet from the house. Put small trees (30 feet tall or less) at least eight, preferably 10, feet away.


5.     Flush “Flushable" Wipes


Sewer systems are facing a growing menace: flushable wipes. Despite the name, most don't disintegrate, even after 10 minutes (compared to a few seconds for toilet paper).  Until a truly flushable wipe exists, don't flush them — or anything non-organic, for that matter. Stick with good ol' TP instead.


6.     Cover Wallpaper with Water-based Paint


You don't have to remove that dated wallpaper – simply paint over it. Just don't do it with water-based paint. It can reactivate wallpaper glue and cause the paper to peel. Instead, use oil-based primer, let it dry completely, and then apply latex paint over it. Oil-based primer has long been the industry standard and works well with oil and latex paints.


7.     Paint Exterior Brick


Brick needs to breathe. Paint chokes it.  Paint can destroy the brick and mortar and even cause the foundation to crumble. Talk about a hidden cost!  If you're itching for a new exterior look, try new shutters, paint the front door, or update your landscaping. Those moves can scratch your itch and boost your curb appeal. If you just can't live with your brick color, try brick stain, which bonds with the brick, allowing it to breathe.


8.     Let Ceiling Fans Run Forever


Ceiling fans don't decrease the temperature in a room; they increase how quickly your sweat evaporates, making you feel cooler.  Since it's only beneficial to run ceiling fans when people are in the rooms to enjoy their breeze, save money by turning them off when you're out.


9.     Keep an Old-Fashioned Thermostat


Maintaining a cozy home temp while you're at work or sleeping wastes money and energy. If your house came with a non-programmable thermostat, you'll have to manually change it multiple times a day to avoid all that waste. (Like you need another task on the way out the door.)  Install a programmable thermostat.  One in the $150 range saves a typical household $131-$145 annually, so it's practically free.  Most programmable thermostats can be connected to your homes internet (if you have internet) and can be controlled by a smartphone.  I love this feature on our thermostat.  I can control when I’m laying in bed or even out of town.


10. Put a Brick in Your Toilet


To decrease water use and save money, many people put bricks in their older, high-water-use toilets. But bricks crumble in water and can damage or clog pipes.

Replace the toilet ($350 or less) or fill a half-gallon milk jug with sand and drop it in the tank instead (saving about half a gallon per flush).  Actually we replaced our toilet with low flush toilets for less that $200.  Some cities have programs that offer low flush toilets to save the cities water supply.


11. Water Grass at Night


It may seem smart to water in the evening – especially if you have a sprinkler system, because electrical rates are lower. But without sun to evaporate it, water is more likely to cling to grass at night, promoting fungus. Instead, water in the morning when the air is cool, the sun is arriving, and there's less wind than midday.

Wednesday, March 10, 2021

What is a HELOC

 What is a HELOC

A home equity line of credit commonly called a HELOC is a type of financing that pulls value from your home. Using your home’s equity for a line of credit has some risk and you should carefully consider the Pros and Cons before you apply for a HELOC. Some reasons homeowners may consider a HELOC include:

Debt consolidation

Home improvements

Emergency needs

Business expenses

Long-term investments

Probably the most common reasons people get HELOCs is for Home improvements. You can upgrade your home or make it more functional to fit your needs. A HELOC might be a resource for aging adults to access some money to do upgrades to make your home safer.  You might use your home equity to finance a large, value-increasing home project like a kitchen or bathroom remodel. Strategically the idea is leveraging your existing equity to boost the overall value of your home.

A home equity line of credit is like a credit card. Do not confuse a HELOC with a home equity loan.  You have a certain limit up to which you can borrow and you take funds as you need them. You only pay interest on what you draw. With a home equity loan, you're still borrowing against your equity, but you're getting a sum of money all at once. You pay it back in fixed, regular payments.

Here are some of the pros and cons of a HELOC?

Pros of a HELOC

You may have no closing costs if you have good credit. There are no application fees or appraisal costs either which you typically have to pay those with most standard home equity loans.

There are no fees for a cash draw. If you were going to use a credit card for a project, as an example, you would have to pay a fee for a cash advance.

HELOCs offer very low interest rates. They're secured by the equity in your home, which is one reason that lenders offer competitively low rates. They're adjustable-rate loans, which may also help you get a lower initial rate, but this can go up over time.

Some HELOCs include the option to convert to a fixed-rate loan if you want locked-in rates. If you're in the repayment phase of a loan, it may happen automatically.

You have flexibility in how you repay your HELOC balance.

A HELOC is a type of mortgage, meaning your interest is tax-deductible.

There aren't restrictions on how you can use the funds with a HELOC. You're getting a line of credit with significant flexibility. You don't have to have your lender approve changes either.

Cons of a HELOC

Since your home is your collateral for a HELOC, you're putting it at risk if you default. You could lose your home if you become unable to make your payments on-time.

There may be various penalties or fees to be aware of, such as annual fees or inactivity fees.

Any new loan you get is added to your total amount owed on your home. When you have more equity, you also have more options. If you don't have equity and the value goes down, you might have to keep your property until there's a change.

One of the biggest downsides of a HELOC is the fact that they are adjustable-rate loans. This means that while your rate could go down, it can also go up. Our interest rates have been pretty steady and have remained at historically low rates.  If we have a spike in interest rates, some lenders will convert a HELOC to a fixed-rate loan eventually.

As with any loan, there are Pros and Cons you should consider before deciding if a HELOC is best for you. Make sure to consult a mortgage professional to your personal financial situation and what you want to finance before taking the leap into a HELOC.  Please feel free to contact the Sullivan Team at 817-330-9235 for trusted references of mortgage professionals that we work with.


Thursday, January 28, 2021

What You Should Know About HOAs

 



If you're thinking about moving, there are a lot of factors to consider aside from the house itself.

Homeowners associations are one example. Living in a community with a homeowners' association can have its benefits but also its downsides.

It's important to be well-aware of the implications of living in a community with a homeowners' association before you make an offer on a house.

The Basics: What Is An HOA?

An HOA is a governing body in a community, and you'll often find they're present in gated neighborhoods, planned communities, and apartment and condo buildings. An HOA is funded and operated by residents, and there's a board of directors.

HOAs have meetings, create budgets, and are responsible for enforcing regulations and rules. The rules set by an HOA are legally enforceable. A well-run HOA can improve property values because they work to make sure the community maintains a certain standard as far as how homes and lawns look. Poorly run HOAs can be expensive and make it difficult to own a home in the neighborhood because of the bureaucracy.

If you're a member of an HOA, you might pay dues monthly, quarterly, or yearly.

The dues are meant to go toward keeping up common areas like clubhouses, pools, walkways, and lighting.

Fees vary significantly depending on location and the neighborhood or building itself. HOA fees might be $50 a month to thousands of dollars a month.

How Do the Rules of an HOA Work?

HOA rules are referred to as conditions and restrictions, or covenants. If there is an HOA in a community where you're thinking about buying a home, you need to understand them well.

The majority of HOA rules are going to be related to the exterior of a home.

For example, you may be required to maintain your lawn in a certain way. You may only be able to paint your house in particular colors. In condos and apartments, the rules might be related to things like pet ownership.

If you don't follow the rules of HOA, initially, you'll be asked to comply. If you don't, you may have to pay fines, and then if it gets beyond that point you may face a lawsuit.

Additionally, if you don't pay HOA fees, the board can put a lien on your home or even require you to foreclose, depending on the state where you live.

What to Find Out About an HOA Before Buying

If you're looking at a home with an HOA, the following are things to find out or ask your real estate agent to find out for you:

  • Ask if you can attend an HOA meeting, or if that's not possible, request a copy of the most recent minutes. This will give you a feel for the behavior of the board members and whether their top priority is resident well-being.
  • Your HOA should be in good financial standing. Otherwise, you may be hit with an unexpected assessment that you have to pay if work needs to be done in the community.
  • Are there are a lot of issues between the board and homeowners?
  • You'll have to consider how well the HOA's rules will fit with your lifestyle and if you're comfortable with that kind of control being exercised over your home and living environment.
  • Go over, in detail, what HOA fees will include.

Finally, along with thinking about how HOA fees and rules will affect you now, you have to think about how it's going to affect the resell value of a home you buy. There are a lot of buyers who simply don't want an HOA, and if you do want to sell your home, your pool of buyers may be limited.

Over time, as HOA fees go up, it may put living there out of many people's price ranges, making it tough to sell your home.

Thursday, January 7, 2021

Your Guide to Protesting Property Taxes in Texas

In the Dallas and Fort Worth North Texas areas new property tax appraisal values for the current year are established in May. Property value notices are sent out to property owners on the 1st or 2nd of May. You can also look online at the appraised value set by your tax appraisal district by visiting their websites.

Here is a list of North Texas County Appraisal Districts websites and phone numbers.

Why should you protest your property taxes? Appraisal districts assessed property values may not be accurate because your home was likely never individually appraised. The proposed value of your home is typically based on a mass appraisal. Appraisal districts do not have the manpower or time available to appraise every home. 

You may protest the value on your property in the following situations:

  • the value the appraisal district placed on your property is too high
  • your property is unequally appraised
  • the appraisal district denied a special appraisal, such as open-space land, or incorrectly denied your exemption application
  • the appraisal district failed to provide you required notices
  • other matters prescribed by Tax Code Section 41.41(a)

Many districts will informally review your concerns and may try to resolve our objections without a formal hearing. It is important, even if you think you may resolve your concerns at the informal meeting, to preserve your right to protest by filing your Notice of Protest before the May 31st deadline. Most count appraisal districts allow you to file your protest forms online. Once your protest is received, the Appraisal Review Board (ARB) will notify you at least 15 days in advance of the date, time and place of your hearing.

You can appear in person, by affidavit or through an agent. If you fail to appear, you may lose the right to be heard by the ARB on the protest and the right to appeal. Be on time for your hearing and come prepared.

Helpful suggestions in preparing for your protest before the ARB.

  • Ask one of the appraisal district's appraisers to explain the appraisal.
  • Confirm that the appraisal’s property description and measurements of your property are correct.
  • Ask the appraisal district for the appraisal records on similar properties in the area to learn if similar properties are treated equally.
  • Work with a trusted REALTOR® for a Comparative Market Analysis using sales of properties that are like your property in size, age, location, and type of construction in the last 180 days.
  • Ask the appraisal district for all information it used to set the value of your property. The appraisal district must give you the copies of the data, even if the information would normally be considered confidential.
  • Ask for a copy of the data, schedules, formulas, and any other information that the appraisal district plans to introduce at the hearing. The appraisal district must deliver this information during the 14 days before the protest hearing.
  • Present your information in a simple and organized manner. Photographs and other documents may be helpful. Take an appropriate number of copies so that each member of the ARB will receive one.
  • After the hearing, the ARB will send their decision to you via certified mail. If you disagree with the ARB’s decision, you have the right to appeal. More information about the appeals process can be found at http://comptroller.texas.gov/taxinfo/proptax/protests.html.

Here is a chart that outlines the steps to protest your property value: (click to enlarge)


If you need help determining your property value, call Ingrid or John Sullivan 
at 817-330-9235 for a complimentary comparative market analysis.