Will A Home Security System Increase My Home Value?
September 1, 2009
Yes! Home Security Increases Home Value
It’s been quite an interesting week for your friendly, neighborhood blogger. This weekend, I came home to find that someone had picked the lock on my back door and let themselves in. Luckily, we were not home at the time, and nothing was taken. We locked up and made the house secure once again, only to find the same exact thing the very next morning - door was open, but nothing had been touched! So what does this have to do with your home value? Good question. You see we’ve concluded that we either pranking poltergeist or an indecisiveve intruder! I’m leaning towards the latter. The fact that nothing was taken, leads me to believe that they’ll be back and this time with a plan to probably take a lot of our valuables! Well, we weren’t too happy about the idea so we’ve decided to purchase a simple home security system. It will monitor our home around the clock and immediately sound the alarm when something’s not right.
We have multiple reasons to be happy with our decision and I thought that’s what I’d share with you today! In addition to the peace of mind and responsible citizen aspect of home security, there are actually a lot of financial benefits as well!
Save On Homeowners Insurance
The first is that you’d be amazed at what you save in your home owner’s insurance. Items like dead bolts and alarm systems are fairly inexpensive and easy to install. Some companies will offer you 15-30% savings if you have the appropriate security coverage for your home.
Increase Your Resale Value
You can also add value to your home when you’re ready to sell, but the amounts will vary based on the size and scope of the individual features you have. For example if you put a $20,000 security monitoring system in a 1500sq ft bungalow, you’re not going to recoup the cost of the system, and would more than likely detract from the home itself, therefore loosing it’s appeal to the majority of potential buyers. In other words you’d actually loose value. However, if you have an appropriate amount of security, something that doesn’t scare buyers away, you could see an increase of thousands of dollars at selling time!
So to sum up, please excuse the self-narrative nature of this particular blog post, but I thought it would be especially important to mention in light of the number of burglaries going on right now. Many people are finding themselves in tough times due to the economy and resorting to desperate measures. This compromises the safety of your home and your family. Therefore, anything you can do to protect them, and your home with the added bonus of earning a little bit of money on the side will prove to be extremely beneficial in years to come.
What Is A Home Value Assessment?
August 28, 2009
What You Need to Know About Home Value Assessments
When trying to determine the current value of your home, there are a lot of similar sounding terms that are thrown around to help you do that. One of the most commonly confused terms is “home value assessment”. The reason for this is that it’s easily interchangeable with the term “home value appraisal”, but you might be surprised to find that there is actually a significant difference between the two.
A home appraisal is an optional service in which you pay a third party Apprasier to evaluate your home and determine the current home value. This is generally done by people looking to sell their home, get a home equity loan or those wanting to refinance their current mortgage.
A home value assessment on the other hand, is generally used to describe the process in which a local county official will assess the current condition of your home in order to determine the amount of property taxes you should pay. Therefore, it traditionally is associated with less appeal than an appraisal.
A home assessment represents a typical, or average value for a property in relation to other property values within a specific period of time. Depending on where you live, this time frame can vary from six months to two years! It is not usually associated with the current trends in the real estate market because the value of a particular property will depend on the sales of the other homes nearby . Assessments are NOT based on larger sales activity trends which you might see county-wide or within a zip code area.
Instead your assessment value will be based on typical values within your neighborhood. While the sale of a property will affect a home’s assessment, the effect will be diluted by the mass appraisal methods and results usually from within the past year. Consequently, this time lag means that the assessments of properties that have sold very recently may differ from the sale price which is generally based on appraised value and real estate market trends.
It’s also important to note that transitory elements such as neighbors who don’t mow their lawns, or are consistantly noisy, will not affect your assessment. Whereas things like house construction, neighborhood boundaries and lot size remain relatively constant and therefore will likely play a factor in your home’s assessment.
Quick Facts
- An assessment is when the local government assesses your home value in order to determine how much property tax you should pay.
- Most government agencies do home assessments every 2-4 years, but can vary based on location.
- Home assessments are based on smaller, local areas such as your neighborhood versus larger trend tracking boundaries like counties and zip codes.
- An appraisal can be can be done by an actual Apprasier for a fee of or by your local Realtor, usually free of charge!
- If you feel you’ve received an unfair assessment of your home, you can contact your local tax officials and contest any findings.
In the end, it’s good to know the major difference between home value assessments and home appraisals. And while there’s not a whole lot you can do to affect your home assessment, it is important to be prepared for any changes that may take place. Taxes: Just one of the many joys and responsibilities of home ownership!
Home Resale Value
August 24, 2009
We get a lot of questions from people asking us about the resale value of their homes. It’s an important part of both the buying and selling process. When shopping for a home, you need to keep in mind it’s potential resale value 5, 10, and 15 years down the road. If you’re selling, than your resale value is essentially your home’s current value.
In either case, it is always best to contact your local real estate agent. In addition to being a go-to resource for any questions about your home, you can also request a comparative market analysis or CMA. A CMA will list the sales activity in your neighborhood for up to one year. Here you can determine the percentage of homes actually sold out of all those listed and you can see the average amount of time it took for those homes to sell. If you compare your homes attributes to the similar homes on the CMA, you’ll be able to have an idea of where your home’s value will fall so long as you can avoid the emotional bias that eliminates the objective judgment needed for your home. This, again, is where having a Realtor comes in handy.
If you’re looking to increase the resale value of your home, there are plenty of tips out there that can add value, but you want to be sure you get the best bang for your buck! Here is a list of popular renovations and their rate of return.
- Roof Replacement:
Avg. Cost = $14,000 - Rate of Return = 74% - Value at Sale = $10,360
- Bathroom Remodel:
Avg. Cost = $30,000 - Rate of Return = 75% - Value at Sale = $22,500
- Basement Remodel:
Avg. Cost = $55,000 - Rate of Return = 79% - Value at Sale = $43,450
- Major Kitchen Remodel:
Avg. Cost = $55,000 - Rate of Return = 83% - Value at Sale = $45,650
- 2nd Story Addition:
Avg. Cost = $110,000 - Rate of Return = 83% - Value at Sale = $91,300
- Window Replacement (Vinyl):
Avg. Cost = $10,000 - Rate of Return = 84% - Value at Sale = $8,400
- Window Replacement (Wood):
Avg. Cost = $11,000 - Rate of Return = 85% - Value at Sale = $9,350
(get more helpful information on custom window replacement from these Maryland replacement windows experts)
- Minor Kitchen Remodel:
Avg. Cost = $18,000 - Rate of Return = 86% - Value at Sale = $15,480
- Siding Replacement:
Avg. Cost = $9,500 - Rate of Return = 87% - Value at Sale - $8,265
Keep in mind these are averages and will be different based on the materials used and the styles incorporated. If you’re going for maximum return, keep your designs fairly neutral. You can add your personal style or flair by using accessories, pillows, art, etc, but you’ll want your over all design to appeal to as many buyers as possible to increase the resale value.
How to Determine Your Home Value
August 13, 2009
With the current economic times that we find ourselves in, many people, even those who aren’t selling their homes, are at the very least, curious as to what their home is worth. So unless you’re willing to dish out the $300 - $600 on an actual appraisal, you might want to do some of the work yourself. Here are a few tips to follow.
Research the median home value for your area. There is no cookie cutter formula out there that says a three bedroom, two bath home with 2,000 sq ft is worth $300,000. Instead you have to get online and check out local real estate. Go to local open houses to find homes that have similar features such as square footage, bedrooms, bathrooms, basements etc and see what the asking price is. Be sure to view homes that you believe are valued a little above AND below yours.This will give you more comparisons by a specific feature (i.e. pool vs. no pool)
The houses that are on the market have usually had some kind of professional appraisal from an actual Realtor or Appraiser who knows the current market trends and thus most home prices are pretty accurate. Once you have this information, you can begin to assess and compare your own home.
Factors That Determine Home Value
- Square Footage: The more the merrier!
- Bedrooms: Usually having 3-4 bedrooms increases your buying pool. Just don’t sacrifice a garage or dining room to do it.
- Bathrooms: Most buyers prefer anything over one.
- Lot Size: Land will always be in high demand so the more you have the better!
- Location: Homes with a view or in historic locations tend to yield more value, whereas the opposite is true if you’re next to noisy train tracks or a land fill!
- Extras: Crown Molding, basements, pools, updates in kitchens and baths, and new flooring all raise home value and can set your home apart from your neighbor.
- Rule of Thumb: If there are less homes available in your area, the value of your home goes up! Conversely, if you have many comparable homes in your neighborhood, you can actually lose value.
Tools to Help Determine Home Value
There are a ton of online tools to help you find your home’s value, but none are considered 100% accurate. While we recommend consulting a local real estate agent, you can also try the website of your local county appraiser. They usually have great tips and an FAQ section to help answer any questions.
Keep in mind that if you’re planning on buying, selling or accessing equity in your home, you will almost always need a professional appraisal. In this case, look for agents who are licensed and have good references to help avoid headaches down the road.
Know matter how you do it, determining home value is never a sure thing, but by staying on top of your home value and the current market trends, you can be sure to get top dollar amounts when it’s time to cash in!
Location, Location, Location!
August 7, 2009
Location is the Key to Maximize Your Home Value
Many first time home buyers and even experienced real estate investors always seem to focus on the functionality and charm of a proposed property. They look for updated kitchens, ample closet space, and the white picked fence and they expect these characteristics to lead to increased property value over time. But many fail to remember the unofficial slogan of the real estate industry - “location, location, location!”
The truth of the matter is that the actual physical structure looses value over time. It’s the land underneath it that appreciates in value. This is a significant distinction considering that buying a house (or any property) is one of the biggest investments you will ever make.
Foreclosures Affect Home Value
July 31, 2009
Foreclosure Listings Can Affect Home Values
So you want to sell your home, but you are wondering about your current home value right? It’s no surprise in today’s market that with exceptional upgrades and luscious landscaping, one can still find their home value is a lot less than what they would have predicted and the culprit could be your neighbor.
One reason for this has to do with the recent increase in foreclosures. Having just one foreclosure in your neighborhood can bring down the real estate values in the surrounding area. In a study released in May of 2009, researchers at Fannie Mae and the University of Connecticut found that if you lived within 300 feet of just one foreclosure, your home value could decrease by as much as 1.3% and that living within 300-500 feet of a foreclosed home can decrease it’s value by .6%! Read more
GetMyHomesValue.com Releases New CRM Software
July 24, 2009
GetMyHomesValue.com Releases Free Updated CRM Solution for Clients
In order to better serve it’s current clientèle, GetMyHomesValue.com announced the release of their newest version of “Prospect Maximizer,” a CRM (client relationship management) program for real estate agents, earlier this month.
The newest version will feature a completely redesigned user-interface, a faster and easier to use automated follow-up system, and is able to track scheduled events, calls and meetings in addition to receiving new mobile device updates!
Access to GetMyHomesValue.com’s Prospect Maximizer 3.0 is included with a monthly subscription to GetMyHomesValue.com’s lead generation services.
For mor information on Prospect Maximizer 3.0, visit the GetMyHomesValue.com support forum or read the full press release here.
Simple Steps to Increase Your Home’s Value
July 13, 2009
Seven Quick and Easy Steps to Increase the Value of Your Home
With home values hitting their lowest points in years, it’s important that you do everything you can to get the tip-top dollar for your home. But the best way to do that is to prepare long before the “for sale” sign goes up. Whether you’re listing the home by yourself, or utilizing a professional real estate agency; there are some simple steps you can follow to negotiate the best price possible.
Step 1:
Get someone to walk though and around your property. Allow this person to be candid with you about what they see. Make a list as you go along of anything that stands out as a potential turn off to prospective buyers.
How to Remodel Your Older Home to Increase Its Value
July 9, 2009
Need to Increase the Value of an Older Home?
Many buyers today love the charm offered by older homes, however, they tend to lack the modern conveniences that families prefer today. So if you’re looking to sell your old home, here are a few quick tips to increase it’s value.
1: The kitchen is often the gathering place for a home. For today’s buyers, it must be functional with modern, up-to-date appliances. Another way to add value to your home is to update finishes, such as drawer pulls, faucets and counter tops. If you’re thinking about doing a complete kitchen remodel, be sure to consult a professional designer to maximize the return on your investment.
2: Bathrooms in older homes tend to be small and scarce. If you’re looking to attract more buyers, consider adding a master bath. In smaller bathrooms, light neutral paint and updated fixtures go a long way. Most buyers are usually looking for 2-2 ½ bath in a standard three bedroom home.
3: Basements: If you got it… Flaunt it! Finishing a basement adds extra living space and therefore extra value to your home.
4: In older homes, closets are like bathrooms. Again they are small and not very abundant. Without adding a walk-in closet to every room, consider increasing closet potential with closet organizers and additional storage in the mud room, garage and pantry.
5: It’s always a good idea to check under your carpets for hardwood floors. Buyers prefer the charm of old hardwoods over carpet. If your hardwood floors are in good condition, they can be refinished fairly inexpensively.
6: Central heating and air-conditioning is a must have for homes these days. If budget allows, consider “green” options like geo-thermal and solar panels. Keep in mind that window units are unattractive and inconvenient and can lessen the appeal of your home.
7: And finally, look up! Remove any popcorn ceilings and any other dated, era-specific features like dark wood paneling and mirrored walls.
If you follow these guidelines you can increase the value of your old home and who knows, after all the updates, you may not even want to leave.
How Well Does Zillow “Zestimate” Your Home Value?
November 4, 2008
No one questions the popularity of Zillow and the convenience of their ability to quickly answer home value questions through the Zestimate. But has anyone ever questioned the accuracy of a Zillow’s home value calculation?
Home sale prices are public information. Zillow has assembled that information and developed a formula that considers “zillions” to create a home value estimate for about 67 million properties nationwide.
Zestimate’s include a low value, a high value, and a number somewhere inbetween that is Zillow’s best estimate. But Zillow’s Zestimate is not perfect. Because Zillow’s estimate is 100% dependent on the amount of data they place into their “secret formula,” a Zestimate can be inaccurate. The wider a home value range on a Zestimate, the less data Zillow has, the less accurate a Zestimate.
Upon receiving a Zestimate, Zillow highly recommends home owners use the number as a “starting point in figuring out the true value of a house.” While the public information Zillow uses in its equation is effective in determining a starting point for a homes value, the Zestimate equation has never stepped foot inside a home to review a homes condition or a evaluate a homeowners sense of color.
Zillow does recommend hiring a professional appraiser or receiving a Comparative Market Analysis (CMA) from a real estate agent after discovering their best guess at your home value.
If connecting with a real estate agent and receiving a free, no-obligation home value estimate is something you’re interested in doing now that you’ve learned the ins and outs of the Zillow Zestimate, GetMyHomesValue.com can connect you with a local real estate agent. To get started, simply type your zip code in the box in the top right corner and follow the instructions on the next page.