homeowners

A Homeowner’s Net Worth is 36x Greater Than A Renter!

Over the last six years, home ownership has lost some of its allure as a financial investment. As homeowners suffered through the housing bust, more and more began to question whether owning a home was truly a good way to build wealth. The Federal Reserve conducts a Survey of Consumer Finances every three years, and recently released their latest edition. Some of the findings revealed in their report:

The average American family has a net worth of $81,200
Of that net worth, 61.4% ($49,856) of it is in home equity
A homeowner’s net worth is over 36 times greater than that of a renter
The average homeowner has a net worth of $194,500 while the average net worth of a renter is $5,400

Bottom Line

The Fed study found that home ownership is still a great way for a family to build wealth in America. If you have any questions about home equity of home ownership at any time, give us a call at 775-432-6300.

5 Home Improvement Projects to avoid

If you plan on moving in two to three years, don’t invest money in home improvement projects that won’t increase the resale value of your home.

1. Gourmet Kitchens with High-End Accessories

Kitchen additions don’t pay off when you list your home for sale. In general, too much customization in a home turns buyers away.

2. Whirlpool Baths

Potential buyers will not pay extra for a newly installed whirlpool bath. In addition, the costs for installing a whirlpool tub can be prohibitive and raise energy bills.

3. Home Office Remodeling

The average home office renovation costs around $28,000 and you will receive about a 46% return on investment for this pricey model.

4. Garage Additions

Homeowners who build a garage typically only see a 62% return on an investment that costs tens of thousands of dollars. Not a good idea if you plan to sell soon.

5. Expensive Landscaping

Creating an over-the-top backyard paradise won’t add to your asking price. So, if you plan to sell your home in the next few years, you won’t recoup the cost of expensive landscaping in the sale.

California Association of Realtors

5 Exterior Projects Sellers Can’t Afford to Overlook

If you’re looking to get your home sold quickly and for the best price possible, making a good first impression is crucial. While getting your home’s interior in tip top shape is an important piece of the puzzle, the exterior of your home can’t be overlooked.

Here are five exterior projects that all home sellers should deal with before putting their house on the market.

1. Landscaping. Look around your neighborhood and see if your yard stands out among the others. If not, there are plenty of easy fixes that aren’t too costly. Start by planting some shrubs and flowers. Choose a colorful palate for the flowers and choose those that are easy to care for. In addition, make sure your lawn is mowed and remove any leaves and debris from the yard. Be sure to mulch if needed. You want potential buyers to see a beautifully manicured lawn that ultimately sets the mood for the rest of the house.

2. Painting. Since exterior paint jobs require more time and effort than painting the interior of your home, it’s normally a good idea to go with professionals. While you won’t need to drop a lot of money to paint your home, real estate experts believe that it’s an easy return on investment. If the color on your house is fading, you should consider sprucing it up with paint. Be sure to choose a color that works well in your neighborhood and check with your agent for suggestions as to what colors sell best (right now yellow seems to be hot!).

3. The Backyard. One of the biggest wish-list items for buyers is a big backyard for kids or dogs to run around in. Make sure to clean your yard and keep it maintained so that prospective buyers can envision using the space. It’s important to make the yard look as spacious as possible, so you may want to consider getting rid of that old tree house or swing set. For those with pools, make sure they are clean and the water is blue.

4. Roof Work. Roofs aren’t always something homeowners think about because they typically last for a long time, but every prospective buyer will eventually ask how old the roof is. This doesn’t mean you need to add a whole new roof, but if you have broken shingles or a leak, fix them. Things like this will come out during the inspection anyway, so if you take care of problems ahead of time, it could save you from having to come down in price. Also, if you have skylights, take the time to clean them while you’re concentrating on the roof.

5. The Front Door. You don’t need to get a new door, but make sure the one you have is clean and painted if needed. Fix any springs that may make the door close quickly and make sure screen doors aren’t ripped. Also, check to make sure house numbers aren’t falling off and that the doorbell works. Add a new welcome mat and your entrance way is set.

For more information about exterior projects that shouldn’t be overlooked, contact us today.

By Keith Loria