The Simple Truths of Real Estate: Part 3

This is the last of our three-part series called the Simple Truths of Real Estate. Just like in life, there are some things in real estate that are always true; no matter the geography or the market condition. To recap…

Truth#1:  It doesn’t matter what the neighbors’ home sold for in the past

Home values are dynamic. They rise and fall with market conditions, just like a company stock on an exchange. What a house was worth five years ago, last month or even last week has no bearing on the value of a house today. This can be a difficult pill to swallow.

Keys to Your Home

Truth #2:  A home is worth what a ready, willing and able buyer will pay for it. 

What matters is what a buyer thinks it’s worth — and what a buyer will offer on a property.  Also, if the buyer requires financing, whether a lender will approve a loan at that amount.

House Values

Truth #3:  Home improvements will not make a home value increase in an amount equal to or greater than what was paid for the improvements.

A corollary to the third law of real estate is that money spent on maintaining a home adds zero to the home’s value.

The Skinny on Home Improvements

So, you are thinking of investing is a home improvement project and you want to get the best return for the amount invested where should you spend your money?  Think about the kitchen and bathrooms. Kitchen and bath improvements tend to have higher rates of payback than others.  It is rare; however, that the improvement will add equal or more value to a home than what it cost.

Home Improvements

What if My Home Improvement Doesn’t Add Value?

One of the questions that I receive quite often from homeowners is, “Should I do a home improvement if it doesn’t add value.”  No one wants to decrease the value of their home, but owning a home is not just about increasing the value of a home it is about enjoying your home.  My advice, if you are going to use and enjoy your home improvement then you should do it.

Someone Really Likes Airplanes

What About Home Maintenance?

Cleaning the gutters, having the HVAC services twice a year, fixing the roof doesn’t increase the value of your home.  It means that you are a good and conscientious homeowner, but it doesn’t increase the value of your home.

Sure, the fact the water heater, air conditioner, and roof are newish will likely appeal to some buyers. That might well be what triggers their decision to buy your home versus another one, but they don’t make the home intrinsically more valuable.

Does it suck to dump $3,000 into an air conditioning repair on a home you’re not even going to live in? You bet it does. But try selling a home without air conditioning in places it gets over 80 degrees. Good luck selling a home anywhere without a water heater or a roof.

If fundamental repairs are needed, the owner is just going to have to suck it up and make them and not expect to recoup any of that money — or be prepared to discount the list price to compensate.

Time for a New A/C Unit!

About Log Pond Realty

Home is where your story begins. Home is where hopes and dreams are born, memories are made, and lives are lived. We would love the opportunity to assist you in writing your new story.

We service the Triangle region of North Carolina including Raleigh, Cary, Apex, Holly Springs, Morrisville, Fuquay-Varina, Durham, Chapel Hill, Wake Forest, and Garner.

Phone 919.589.3576 | Email at inquiries@logpondrealty.com   

Spring Home Checklist

Spring arrives on March 20th and will last for 92 days, 17 hours and 55 minutes…so, what are you waiting for? Let the home projects begin.

 

~Tori Toth

You may not have noticed but spring has arrived!  The days are definitely getting longer and as I write this article the temperature here in Raleigh is 80 degrees!  If you haven’t already done so, now is a great time to plan your spring home projects.   

Many homeowners believe spring maintenance is all about the cleaning. Certainly, a good cleaning of the exterior and interior of the home is a good idea, but maintaining the systems, appliances and home structure is a must!  Here are some spring maintenance checklist items.  

Now is the Time for Spring Home Projects

Outdoor Home Projects

  • Clean gutters and downspouts.   
  • Siding: Clean siding with a pressure washer to keep mold from growing. Check all wood surfaces for weathering and paint failure. If the wood is showing through, and the immediate area and apply a primer coat before painting. If the paint is peeling, scrape loose paint and sand smooth before painting.
  • Roof: Inspect roof surface flashing, eaves, and soffits. Perform a thorough cleaning. Check flashings around all surface projections and sidewalls. 
  • Inspect driveways and paths.  
  • Air Conditioning. Just as you readied your furnace for fall, now is the time to make sure that air conditioning units are in good working order for the warmer months ahead. 
  • Check sprinkler and irrigation systems.  
  • Fertilize/Seed Lawn 
  • Mulch Beds 
  • Plant Spring Flowers in Pots (Front Entry/Entertaining Area) 
  • Organize Garage 
  • Clean Patio Furniture 
  • Clean Grill 

Indoor Home Projects 

Here are some ideas to refresh the inside of your home:   

  • Clean Light Fixtures 
  • Touch Up Paint + Baseboards 
  • Wash Windows/Blinds 
  • Wash/Maintain All Appliances 
  • Clean Out Closets (Seasonal Clothes) 
  • Clean Behind & Underneath ALL Furniture 
  • Add Seasonal Décor 
  • Remove Christmas Decorations:  Just noticed that we still have a couple of Christmas decoration scattered around the house!   
Taking Care of Your Home

How to Decide?

It can be difficult to prioritize your home projects.  After all, the list above is pretty extensive and spring is a great time to spend time with the family and check out all of the great things to do around the Triangle area!  Here are a couple suggestions to assist you with your spring home projects.  Start by handling any projects that can cause major damage like a leaky roof, or projects that could affect your safety in the home. Look to upgrade items that can help you save money, like replacing windows. Complete low-cost projects that make an impact, for instance, new paint before tackling the bigger projects.

Home Sweet Home

About Log Pond Realty

Home is where your story begins. Home is where hopes and dreams are born, memories are made, and lives are lived. We would love the opportunity to assist you in writing your new story.

We can be reached via phone at 919.589.3576 or via email at inquiries@logpondrealty.com 

We service the Triangle region of North Carolina including Raleigh, Cary, Apex, Holly Springs, Morrisville, Fuquay-Varina, Durham, Chapel Hill, Wake Forest, and Garner.

Sources

Family Handyman Home Checklist 

Tori Toth Spring Home Goals 

Bob Vila Spring Home Checklist 

Home Advisor Home Checklist   

Summer at the Pond

Summer at the Pond is coming to a close! It has been a truly amazing summer for Kelly and I.  We are so blessed to have had the opportunity to have helped some amazing clients realize their dream of homeownership.  We have also enjoyed lots of laughs of laughs in the process.

Thank you to our clients for trusting us to help you begin a new chapter in your lives.

Thank you to our team, our friends and our families for your help and support.

We can’t get enough of these happy faces and can’t wait for the next adventure in the wild world of Real Estate!

About Log Pond Realty @ RE/MAX United

Home is where your story begins. A home is where hopes and dreams are born, memories are made, and lives are lived. We would love the opportunity to assist you with assisting you to write your new story.

We can be reached via email at inquiries@logpondrealty.com or by phone at 919.589.3576.

We service the Triangle region of North Carolina including Raleigh, Cary, Apex, Holly Springs, Morrisville, Fuquay-Varina, Durham, Chapel Hill, Wake Forest, and Garner.