One thing many sellers want to know the answer to, is, “what can I do to raise the value of my home?” This may not always be an easy question to answer. There are many options home owners have to raising their home’s market value. The real question that needs to be answered is, which upgrades will give you the most bang for your buck?

Coldwell Banker’s On Location describes five easy, cost-effective upgrades any homeowner can use to increase their home’s market value.

The first recommended upgrade is to create space. Depending on the age and style of your home, this may or may not be a large project. According to the National Association of Home Builders, Americans spent $216 billion in home remodels in 2008 and projects

that remodels will outpace new construction in the next 10 years. There are now many cost-effective ways to remodel various rooms and open up the floor plan of your home.

The second recommended upgrade is to add light. Increased light in the home has many benefits—homes with ample natural light can save extra money on their monthly electric bills. Well-lit homes are also more calming and visually more pleasing than darker-lit homes.

The third recommended upgrade is to put in green features. There is now an endless amount of technology available to home owners when it comes to green appliances, and the benefits to making your home “green” are numerous. Here, the EPA lists their top 10 steps to making your home energy-efficient.

The fourth recommended upgrade is to replace the flooring. Flooring is one of the top things that sees the most wear and tear in the home over long periods of time. Better Homes & Gardens provides a great overview of the many types of flooring, along with pros and cons of each type.

The final recommended upgrade is to get rid of questionable features. Every house has them—and they all need fixing. Some of these fixes may not be on the lower end of the cost scale, but replacing them yourselves, as opposed to hoping potential buyers will be “ok” with them may be the deciding factor in getting your home sold!

Many potential homebuyers have been waiting for precisely the right moment, like an alignment of planets, when interest rates reach their lowest point for the cycle, when home prices touch the cellar floor before beginning to firm again, and when sellers are still anxious enough for a sale that they will agree to most of the terms of sale the buyers propose.

It is a bit like waiting for the price of a share of stock to hit the floor before bouncing back because the company’s profits have started to improve.  One of the problems in this waiting game is that the bounce all too often comes at an unpredictable moment, and once the stock has started to gain in value, there is no turning back the clock.  We too frequently end up wishing we’d just acted as soon as we saw that the stock’s value was very good, rather than waiting for its price to go even lower.

Most important, as we look at real estate purchases, is the fact that interest rates, similarly, can turn on a dime. 

A bit of unexpected news from world politics, a problem in a seemingly benign Treasury security auction, or a gasp of anxiety that overtakes investors in the credit markets can send interest rates higher (or, indeed, lower) on a moment’s notice.  Though rates may edge back to where they were before the precipitating event, they often do not, and the homebuyer is left with a higher interest rate and the feeling that he or she just missed the boat. 

The purchase of a house is primarily motivated by the fact that you’ve found the home that will elevate the quality of your life in the present and in the future.  You love it; you can afford it; you don’t stand to gain that much by gambling on lower interest rates (and the possibility that someone else will scoop it up).

Some current market rates for loans include*:

Let’s talk about making today’s financing work for you right now, while rates are still attractive and homes are affordable. 

*Notes:
*Rates quoted based on 12/21 pricing--rates subject to change daily
*Pricing assumes fully documented income, assets, and excellent credit
*Pricing scenarios based on purchase money transactions
*Minimum conventional and FHA program parameters apply.