Location is made up of many factors. We are all aware of the positive ones, such as schools, appearance, walk-ability and so on. Let’s look at some of the negative things that could affect the desirability of a property and its location, and possibly prevent you from selling a property quickly.
A couple of negative indicators to watch out for:
1) A large number of foreclosures can bring down the value of a neighborhood very quickly.
2) Is the neighborhood on the upward or downward swing? You can often discern this by driving up and down the streets. The best time is in the middle of a work day. A neighborhood should be quiet in the middle of a work day; most people should be at work. If that’s not the case, I stay away.
3) Crime rates can also affect a neighborhood. There are many ways to research local crime rates. One tip, go to the local store at an odd hour and see how you feel about it. Sounds simple but it works.
The second biggest key is the condition of the property. A study done from Coldwell Banker found that 87 percent of first-time buyers don’t want to buy a home that requires them to do a lot of work. They want the home in “move in” condition.
According to an article in RISMedia, when a contractor’s work totals $40,000, that increases the asking price by $100,000. This is a very broad statement but the point I’m trying to make is that putting a little effort, money, and TLC can add up.
So what do you fix for maximum return? Here are a few ideas:
Repairing things like leaky pipes & broken windows are a must
Replacing a roof (with a guarantee) increases the listing price
A new driveway can really help with curb appeal
Landscaping
Hardscape – walls, decks, arbors, fountains etc… Consider these carefully, they can be expensive and not add a lot of value
Softscape – the plants – consider a color theme then use it along with a layering effect of various plants to create a custom look. It’s also nice to use seasonal plants
Repair fences and gates
Clean the carpets if in VERY good condition or replace
Eliminate clutter and trash
Paint – keep it neutral – bold or off beat colors can scare buyers off
Refresh hardware – this can be an inexpensive way to give a new look
It’s also very important to stay within the neighborhood standards. An eight by eight closet with built-ins won’t get you the ROI (return on investment) in a neighborhood that has small closets.
So what is the ROI for fix up projects? The list below is compiled from several published surveys and shows typical payback for some popular remodeling projects:
Kitchen remodeling – 90%
Add a bathroom – 90%
Bathroom remodeling – 80%
Install central heating – 90%
Install central air – 75%
Add a deck – 70%
Replace windows – 70%
Add a room – 55%
Build a pool – 45%
Finish a basement – 40%
It is a fine balance, not to over improve but to make the property desirable so that it will move quickly.
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Editors’ Picks
AUD/USD: The hunt for the 0.7000 hurdle
AUD/USD quickly left behind Wednesday’s strong pullback and rose markedly past the 0.6900 barrier on Thursday, boosted by news of fresh stimulus in China as well as renewed weakness in the US Dollar.
EUR/USD refocuses its attention to 1.1200 and above
Rising appetite for the risk-associated assets, the offered stance in the Greenback and Chinese stimulus all contributed to the resurgence of the upside momentum in EUR/USD, which managed to retest the 1.1190 zone on Thursday.
Gold holding at higher ground at around $2,670
Gold breaks to new high of $2,673 on Thursday. Falling interest rates globally, intensifying geopolitical conflicts and heightened Fed easing bets are the main factors.
Bitcoin displays bullish signals amid supportive macroeconomic developments and growing institutional demand
Bitcoin (BTC) trades slightly up, around $64,000 on Thursday, following a rejection from the upper consolidation level of $64,700 the previous day. BTC’s price has been consolidating between $62,000 and $64,700 for the past week.
RBA widely expected to keep key interest rate unchanged amid persisting price pressures
The Reserve Bank of Australia is likely to continue bucking the trend adopted by major central banks of the dovish policy pivot, opting to maintain the policy for the seventh consecutive meeting on Tuesday.
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