Which Renovations Will Give You the Most Bang for Your Buck?

Today I want to share with you some home renovations you should consider and some you should avoid if you want a high return on your investment.

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If you’re thinking of making some renovations to your home, how do you know which ones will be a solid investment and which won’t?

It’s key to consider mass appeal for the sake of resale value.

Throughout any renovation process, it’s key to consider mass appeal for the sake of resale value. Whether you’re planning to remain in your home for a while or looking to freshen up the place to put it on the market, here are some renovations experts say will bring the greatest return on your investment:

• Entry door replacement, 96.6%
• Deck additions, 87.4%
• Attic bedroom, 84.3%
• Garage door replacement, 83.7%
• Minor kitchen remodeling, 82.7%

On the flip side, here are the renovations that yield the smallest return:

• Home office remodel, 48.9%
• Sunroom additions, 51.7%
• Bathroom additions, 60.1%
• Backup generators and master suite additions, 67.5%

These are definitely things to consider when thinking about making renovations to your home. If you have any questions about which renovations to make to your home or you’re thinking about buying or selling a home in our market, don’t hesitate to reach out to me. I’d be happy to help.

Is It Really Worth It to Sell Your Home Without an Agent?

Thinking of selling your home on your own to dodge the cost of a real estate agent? These home sale facts will make you think twice about that.

Selling in the greater Houston area? Get a market analysis report

Purchasing in the greater Houston area? Get full MLS access

If you're thinking of selling your Houston home, there are five reasons you absolutely should not sell without a real estate agent:

1. There are too many people to negotiate with: If you sell 'For Sale by Owner' (or FSBO), you'll have to negotiate with a myriad of people on your own, including the buyer who wants the best deal possible, their agent, the home inspector (who works for the buyer), and the appraiser, especially if the home's value comes into question.
2. Exposure to potential buyers: Studies have shown that 89% of homebuyers look for homes online compared to just 20% who look at printed newspaper ads. Most agents already have an Internet marketing strategy in place to sell your home; simply putting your own house on Zillow doesn't mean you know how to market a property online!
89% of homebuyers look for homes online compared to just 20% who look at printed newspaper ads.
3. Selling FSBO online has become increasingly more difficult: The amount and intensity of paperwork involved with selling a home has increased dramatically as industry disclosures and regulations become mandatory. The is why—according to the National Association of Realtors—the number of people selling their home FSBO has dropped from 19% to an 20-year low of just 8%.
4. You net more money when using an agent: Many sellers believe they'll save the cost of a real estate agent's commission by selling on their own, but fail to realize that people looking at FSBO homes are also people who believe they can save the cost of a commission. The buyer and the seller can't both save the commission. Studies have shown that the median sales price for FSBO homes is $210,000 while the median home sold by an agent sells for $249,000. That doesn't mean the agent can always get $39,000 more for your home, but that the people who sell FSBO are more likely to put themselves in a lower price point.

If you have any questions about selling your home or about the market here in the greater Houston area, don't hesitate to give me a call or send me an email soon. I'd love to help!

How to Figure Out How Much House You Can Buy

If you’re looking to buy a home but are unsure of how much house you can afford, here are five steps you can use to figure it out.

Selling in the greater Houston area? Get a market analysis report

Purchasing in the greater Houston area? Get full MLS access

One of the questions I get asked a lot as a Realtor is, “How much house can I buy?” In other words, how can you determine what your housing budget is when purchasing a house? There are five steps you must follow:

1. Figure out your household’s income after taxes. What do you and other income earners who will be contributing to the household bills bring home each month after taxes? Look at your last paycheck stub, ask your HR department, or use an online paycheck calculator to calculate this amount.

2. Make a list of your household’s recurring monthly expenses. This should include bills you pay every month and bills you only pay some months—like car insurance. If you don’t already have a way you’ve been tracking your budget, look at your checkbook, your bank statements, and your credit card statements to help figure out what you’ve been spending. Note which expenses are optional and which are necessary.

3. Make a list of expenses that you will add to when you become a homeowner. Expenses you’ll have that you didn’t have as a renter include water, trash, and home maintenance. You’ll also pay property taxes and hazard insurance. If you’re moving further from your job, your transportation costs may increase as well. If you’re going to make a downpayment of less than 20%, you’ll have to factor in the monthly cost of private mortgage insurance (PMI). Remember, it’s best to estimate high when planning your budget just to be on the safe side.

I can refer you to a local lender who can help you with these steps.

4. Determine how much you will have left after expenses to spend on housing. A lender can help you determine your maximum monthly payment by calculating what they call a debt-to-income ratio. Basically, this is what gets paid into the home versus what gets paid out on a monthly basis. Once you’ve determined your household budget, you should have an idea of what you’re comfortable paying on a monthly basis for a house. Don’t forget to leave room for emergencies, retirement, or whatever else you want to save for. In other words, count savings as a non-negotiable expense.

5. Figure out how much house you can buy. The No. 1 way to truly know what your budget will allow for on a house note is to sit with a mortgage lender and have them look at your credit score and finances. A great lender will be able to help you figure out what your ‘no-more-than’ amount should be, which will determine which price points you should shop in. As a Realtor, I can help guide you to a local lender who will be an expert in these areas.

If you have any other questions about this topic or you have a topic in mind you would like to see me discuss in a future video, please don’t hesitate to give me a call. I’d love to hear from you!