March 2019 - Ed Powers Real Estate - Fort Collins, CO

Whether you plan to stay in your home for years or put it on the market soon, there are dozens of ways to increase your home’s value. Upgrading the kitchen, adding decks, and making the living area more spacious add to the value of your home by thousands and bring enjoyment for you at the same time. There are other smaller ways to increase your home’s value. One important way is by increasing curb appeal. What does your home look like to a passerby? Following are 8 ideas for increasing your home’s curb appeal.

1. Spruce Up the Front Door

Your home’s front door is like a welcoming smile. Make sure yours is bright and attractive. If it’s in terrible condition, consider replacing it. Otherwise, a fresh coat of paint in a color that compliments your home will do. Polish or replace the doorknob and hardware. A metal kick plate at the bottom will do wonders to cover pet scratches and other damage.

2. Install Outdoor Lighting

Use low-voltage lighting to accent landscaping, the house, or sidewalk. This will also add to safety and security. Don’t worry if you can’t use lights that require wiring. Solar fixtures are available that will do the job.

3. Rejuvenate Your Lawn

Bald spots and weeds on your lawn are an eyesore for your entire property. Make an investment in getting yours up to par. Make sure your grass type is appropriate for where you live. Learn when and how to fertilize, water, and weed it properly. Keep your lawn mowed, raked and edged. If you live in a dry area consider drought-tolerant landscaping.

4. Container Gardens and Flower Beds

Flower beds and container gardens are a wonderful way to brighten curb appeal. If you already have flower beds, get them in shape by pulling weeds, pruning, and mulching. Buy your container gardens ready-made or create your own. Be sure to use plants that will thrive where you live, and consider the amount of sun or shade they will get.

5. Mailbox Makeover

A mailbox makeover is a quick and affordable way to add curb appeal. Choose a hanging dropbox that compliments your home’s trim work. If it sits on a post, give the box and the post a fresh coat of paint. Purchase attractive and visible lettering for the name and street number. Consider surrounding the mailbox with a flower bed.

6. Add Shutters and Accent Trim

Shutters and trim add a touch of subtle beauty to your home’s exterior. If you already have shutters, make sure they don’t have peeling paint. A color change for shutters and trim can revive a tired-looking exterior. If you are adding new shutters, look for shutters made of durable material such as PVC resins or polyurethane. Use durable, low-maintenance trim details.

7. Replace Gutters and Downspouts

Nothing shouts neglect more than an old rusting gutter system. Newer systems are available made of snap-fit vinyl that can be put together easily with simple tools. Another option is to invest some money into a copper system for really dynamite curb appeal.

8. Upgrade the Driveway and Walkway

Cracks in concrete driveways and walkways with vegetation growing through can ruin your home’s curb appeal. Fortunately, this problem is easily fixed with crack refill and driveway sealant. Stained concrete can be cleaned and repainted. If you have a dirt driveway, holes and washouts are unsightly and inconvenient. A load of fresh gravel will keep your driveway looking neat for a long time.

You’d be a homeowner right now if it weren’t for one thing: the down payment. Right? Even for those who have decent credit and make good money, the down payment is often the great homeownership killer.

For many others, who do have enough money set aside to make a substantial down payment, the question is: how much? Conventional wisdom—not to mention most of the banks and a good portion of homebuying and financial experts—will tell you that 20 percent is the standard bearer when it comes to down payments. But is it really necessary to put 20 percent down?

The short answer is: no.

Now for the long answer.

“Raising a 20 percent down payment isn’t an easy thing to do. Fortunately, you don’t have to. “It’s a myth that all homebuyers must have a 20 percent down payment to buy a home,” says Nancy Herrera-Siples, a Riverside, Calif., branch manager at Primary Residential Mortgage on U.S. News. “So why do you constantly hear that you need to put 20 percent down? Because if you don’t, it usually means you’ll have to shell out money for either private mortgage insurance or government insurance, which is usually financed by the Federal Housing Administration (FHA).”

And there’s another rub for those who are already struggling to come up with the minimum down payment: that extra couple of hundred dollars per month feels like a penalty. It’s not, of course—”Mortgage insurance protects the lender in case you can’t make your payments and the house is foreclosed on,” said U.S. News—but that money can make a significant difference for those who are stretching to buy a home.

Still, when your only option to buy is a low down payment, which can mean an FHA loan or one of the new low down payment loans from Freddie Mac and Fannie Mae—”At the end of 2014, the two government-backed companies announced plans to slash down payments from 5% to 3%,” said CNN—PMI might literally be a small price to pay. Especially if swelling rents are making homeownership look more and more promising. Remember that PMI does go away eventually when your loan balance is 80 percent or less of the home’s value. If you’re in an area where homes are rising in value, this could happen sooner than you think.

Still confused about the ins and outs of down payments? Here are a few reasons to go high…or low.

When to make a substantial down payment

When you’re looking to keep your monthly payment as low as possible and have cash to spare
When you just can’t fathom paying PMI
When your goal is to buy a forever home and own it free and clear
When you are approaching retirement age and can envision a reverse mortgage sometime down the line
When you want to buy your house and pay it off as quickly as possible
When the rate is lower with a higher down payment. “The more you put down, the better position you are in for negotiating a lower interest rate with your lender,” said Credit.com. Plus, a “low down payment might affect other loan features, such as…the points, which are upfront interest charges,” said Banking My Way.
If you’re worried about being under water. If the market should drop in your area, you run the risk of owing more than your home is worth.

When to go low

When you don’t have the funds for a higher down payment and can’t earn or borrow them quickly enough
When the rate on your FHA or Fannie or Freddie loan is comparable to that you’d get with a higher down payment
When you need to escape a high-rent situation and the monthly payment on a house is lower than what you’re currently paying, even with the PMI factored in
When you’re confident your home will appreciate quickly, allowing you to refinance and get rid of PMI quickly
When your investments can’t be touched without a penalty or are returning better than the interest rate you’ll get on your home
If you have something better to do with the money. “If you bought a $400,000 home, 5% down would be $20,000, while 20% down would be $80,000—a whopping difference. An immediate need such as a college tuition payment would make the smaller down payment more appealing,” said Banking My Way.
When you feel more secure setting money aside for emergencies instead of tying it all up in your house.

Message me if your thinking about buying your home at m.me/EdPowersRealEstate

Month: March 2019

Eight Ways To Improve Curb Appeal

Down Payment Dilemma: How Do You Know How Much To Put Down On A Home?

When to make a substantial down payment

Ed Powers Real Estate 970-690-3113 ed@EdPowersRealEstate.com www.EdPowersRealEstate.com