When you own a home, there’s a natural desire to invest in landscaping projects that help beautify your yard. But for those who are preparing to sell, the emphasis should be on specific projects that boost your home’s curb appeal and add to its value. The following landscaping tips can help you position your home to sell at the best price. We also recommend talking with your agent about the best landscaping ideas for your home that buyers in your area are looking for.
Landscaping Tips That Can Increase Your Home’s Value
Flower Beds
Beautifying your flower beds is a matter of making improvements in two areas: the flower beds themselves and the border surrounding them. Flower-lined pathways leading toward your home’s front door help guide buyers’ eyes and create a natural aesthetic order to your front yard. Plant colorfully to inspire a vibrant look or choose fewer flowers for a more uniform consistency. Add fresh mulch or beauty bark to your flower beds to make them pop. Creating a border with stone, brick, clay, or another similar material will help delineate flower beds from grass while delivering a clean, refined aesthetic to your property.
If you’re designing new borders to your flower beds, think about the traffic patterns, the orientation of the house in relation to the rest of your neighborhood, and your front yard’s location to ultimately settle on the best sight lines. Spend time weeding the area where your border will go. To dissuade future weed growth, consider adding a thin layer of sand or gravel between the dirt and your border pavers. Finally, clean your hardscaping with an outdoor cleaner or pressure washer to get rid of built-up dirt and moss.
A fresh lawn will make a solid first impression on prospective buyers. Here are a few basic lawn care tips:
Fertilize at the appropriate time of year for your local climate
Set your lawn mower blades at the proper height to ensure you’re not cutting your grass too short
Water regularly to keep your lawn healthy
If you live in an arid climate, grass alternatives may be a more popular local choice. No matter where you live, once you’ve decided to sell, you can rest assured that spending time and energy on caring for your lawn will pay dividends once you’ve staked your “for sale” sign.
Landscaping Lighting
Once you’ve fixed up your garden beds and tended to your lawn, you’ve done well to ensure that your home’s landscaping will look its best—during the daylight, that is. To ensure that buyers feel the work you’ve put into your home around the clock, consider installing landscape lighting. This will help to put your home’s qualities on full display during the nighttime, while also adding a welcoming touch for potential buyers and passersby.
Front Porch
Add planters to your front porch to create flow from your front yard to your entrance. For the ultimate front porch aesthetic, think of ways that you can create symmetry with your planter boxes. Nest them along the borders of windows, select planter boxes with dimensions that compliment a seated bench, or place identical boxes on either side of your front door. This will direct attention to your home’s front entry and helps to instill that all-important first impression in buyers’ minds.
Average prices in Metro Denver just exceeded $700,000 in Metro Denver. Larimer County isn’t far behind.
For the month of March, the average residential sales price in the 5-county Metro Area was $704,000. This does not include Boulder County.
Larimer County was $691,000 and we expect to see an average exceeding $700,000 in the very near future.
It’s also interesting to note the average price for properties currently listed for sale and not sold yet. In Larimer County it is $848,000 and in Metro Denver it is $1,100,000.
You might be asking, why have prices appreciated to this level? Quite simply, supply and demand.
The Front Range has a healthy, growing economy plus an incredibly high quality of life. Meanwhile, standing inventory is low which results in upward pressure on prices.
In some ways, the process of buying a second home is like buying a primary home. However, there are several key differences that require consideration before you make an offer. Whether you have visions of curating your ideal vacation home, are planning for retirement, or view the property as an investment opportunity, a second home can be the answer to your real estate ambitions. Owning two homes, however, means your responsibilities as a homeowner will double. Keep the following information in mind as you work with your agent toward purchasing a second home.
What to Consider When Buying a Second Home
Costs of Buying a Second Home
Purchasing a second home will typically come with all the expenditures you encountered during the process of buying your primary home. However, you may have to pay more up front for a second home, since loans for a secondary residence are riskier for lenders. Consider how making a lump sum payment may affect your financial health before beginning the buying process.
To get an idea of what you can afford, use our free Home Monthly Payment Calculator by clicking the button below. With current rates based on national averages and customizable mortgage terms, you can experiment with different values to get an estimate of your monthly payment for any listing price. By adding your resulting figures to your current monthly mortgage costs, you can make a well-informed estimation of your total monthly mortgage costs for both homes.
Financing Your Second Home Purchase
Finding the right financing for your second home purchase will depend on how you intend to use it. You and your lender will explore the different home loan types available to you to find the one that best suits your needs. Your lender’s rates and qualification requirements will vary based on how often you plan on living there and whether it’s an investment property, among other factors. If you plan to rent the property periodically, talk with your lender about what parameters would result in it being classified as an investment property. You’ll need to obtain a landlord insurance policy as well, on top of your existing homeowners insurance. These additional costs—along with rental maintenance expenses—need to be accounted for, even though renting out the property will help generate income.
Other Factors that Influence a Second Home Purchase
Besides being financially prepared, how will you know you’re ready to buy? For starters, finding and buying the right secondary residence is a matter of timing. It’s vital that the purchase of your second home aligns with your life goals. If you’re planning on purchasing the home for retirement, take time to investigate the area’s assisted living resources. If the area is a popular vacation destination, talk to your agent about how seasonality affects the local market conditions, whether you’re buying in a buyer’s market or a seller’s market, and how you can formulate your best offer.
If you aren’t familiar with the area, get to know the locale before you start sending offers. It’s helpful to schedule your visit off-season to get the clearest picture of what everyday life is like there. Plan to stay for enough time that you can get a sense of the atmosphere beyond a tourist’s first impression. Your experience there will help inform whether it’s the right time to buy.
For more information on second-home ownership, read our blog post on renovating your vacation home, with a seasonal breakdown of common home improvement projects.
Investing in a home is a great way to build passive income but earning from your investment will take a little groundwork to become a well-oiled machine. This is your beginner’s guide to owning an investment property so you can set up that foundation properly to avoid future headaches.
Make sure it’s livable
It’s important to start with your home inspection before you start making plans. Use the inspection report to prioritize the maintenance issues.
Before a tenant moves in, make sure the home is livable. Handle the important items that affect the livability of the property, either now or in the near future. If the inspector noticed a leak in the roof or holes that could lead to infestation, take care of those first. Other maintenance issues to prioritize are the fuel and the hot water source.
If your city has inspection and registration requirements, be sure to cross check those inspection checklists with your current property. If the property wouldn’t pass now, make sure it will pass by the time the city sees it.
Upgrade the space
Once your property is in livable condition, it’s time to upgrade. If you have any left-over budget after the necessities are handled, consider adding a bedroom or a bathroom where you can find the space. These rooms heavily impact the rental price, and the more you have the higher the price. If there’s no space for another bed or bath, think about finishing the basement or upgrading some of the appliances to make the property more attractive to potential tenants.
Use similar properties in your neighborhood as your inspiration. These units are your competition, think about what you can add, or even take away, that would help you compete. Ask yourself what about your home is unique and in what ways does that affect your rentability? If every unit in your area has hardwoods, how can you make your carpeted home appealing? Maybe new carpet? Or is switching to hardwoods, or vinyl laminate that looks like wood, worth it?
Market it to future tenants
You need two things in your listing: 1) Great Photos 2) An Amazing Description
After you’ve perfected the property, it’s time to tell potential tenants that it’s available. Creating the listing is essential in drawing eyes on the unit so you can show it to as many people as possible.
Renters looking to move are quick to make their first impression of a property with thumbnail photos on a map. So, take lots of great, bright, photos of the entire place to showcase the amenities and show potential tenants what it looks like, then choose the best photo to be the first in the lineup. Remember to get the lighting is just right to show every corner of the listing. Dark photos scare tenants away, making them think the unit is dingy and dirty. Light and bright photos show a clean home that’s move-in ready. They can imagine themselves living there a lot easier than in dark and cramped looking units.
Next, they’ll read the description. This is again where other listings in your area can help you.
Read other listings to structure your description and to draw inspiration on what tenants might think is important. Find the selling points and emphasize those above the unique features, especially if those unique features are obvious in the photos.
Hello there, I’m Windermere Real Estate’s chief economist, Matthew Gardner, and welcome to the latest episode of Mondays with Matthew. This month we’re going to take a look at Blockchain technology and cryptocurrencies themselves and how both may impact home buyers and sellers in the future.
But before we dive into the potential impacts of cryptocurrency on the residential housing market, I must preface this by saying that the very word “crypto” is one that certainly divides people. Some see it as revolutionary, a tangible asset that will take over one day as the de-facto global currency, while others believe it to be unsustainable and ultimately valueless. And there are even some who firmly believe that it’s nothing more than a Ponzi scheme.
Now, everyone is certainly entitled to their opinion, and I will refrain from offering my own view on the currencies themselves, but, although still in its infancy, it continues to evolve and is garnering significant interest from individuals and large corporations alike.
Why are corporations interested, you ask? Well, a recent report from Crypto.com1 put the number of people around the globe who own some form of cryptocurrency at more than 295 million and they are forecasting this number to explode this year and hit the 1 billion mark! And the value of all these currencies today? As of March 14, the combined value of all cryptocurrencies was 1.74 trillion dollars2 with the largest, Bitcoin, valued at almost 740 billion dollars. So, it should not be a surprise to see many mainstream companies across multiple industry sectors start to introduce ways to accept crypto as payment for goods and services.
Companies moving into this space include AMC movie Theaters3 who recently announced their plan to accept coins by the end of this year. Fintech companies like Paypal and Square are also betting on crypto by allowing users to buy currency on their platforms. And, unsurprising to most, Tesla is also interested, but have yet to confirm whether they will accept coins as payment for their vehicles or not.
With cryptocurrencies now gaining traction in mainstream businesses, the housing sector has started to take an interest too with the emergence of companies like Propy, whose goal is to totally automate the home sales process by introducing Blockchain based technology to allow transactions to occur entirely online using smart contracts. Other companies are figuring out how to use blockchain technology to grow the “fractional-ownership” segment of the housing market.
But when it comes to simply buying a house—well that is an entirely different situation. Of course, a home buyer could easily cash out the Crypto they have and use those funds for a down payment, or even to buy a house outright. But we don’t see more of this today as they understand selling their currency is a taxable event and, more than likely, taxes owed will hit their balance sheets pretty hard. And knowing that this is a real issue in the market, it should come as no surprise that a company has come up with a plan to overcome what is seen as one of the biggest obstacles to using digital currency for home buying.
Blockchain Technology and Cryptocurrencies in Real Estate
And they are Milo, who claim to offer the world’s first “crypto-mortgage”. Essentially, they will allow borrowers to use Bitcoin—but only Bitcoin as of right now—as collateral for a 30-year mortgage.
How this works is pretty simple. All buyers have to do is to “pledge” their coins on a one-for-one basis. Simply put, someone looking for a $500,000 mortgage would have to put up $500,000 worth of Bitcoin. This way, they don’t actually have to sell their coins, so there are no tax implications. And instead of going through a FICO credit check and showing proof of income to evaluate a borrower’s creditworthiness, Milo evaluates them based on their crypto wealth as well as the value of the property they are hoping to buy.
And in exchange for locking up their crypto, borrowers get a 30-year mortgage for their home purchase can also make their mortgage payments via traditional currency or Bitcoin. But there are differences between this and a traditional mortgage. First off is the interest rate. It currently ranges anywhere from 5 to 8% depending on the loan-to-value ratio. This is higher than the rate they could get today.
And the interest rate is not fixed, but variable, and based on the prevailing price of Bitcoin. The rate can go up or down depending on the value of the Bitcoin they have pledged, and this mortgage rate will be adjusted every year. Interestingly, if the price of Bitcoin goes up, borrowers can actually take back some of their crypto once a year. If the price of Bitcoin goes down, they may be asked to provide more crypto as collateral.
And finally, when the buyer sells, on closing Milo is paid back in U.S. dollars, and then the seller gets the Bitcoins they used for collateral back, along with the profit made on the sale.
I think that this is certainly an interesting play in the ownership housing sector and, although still in its infancy, looks to meet the needs of crypto owners who don’t want to face the tax obligation that would occur if they were to sell their coins to buy a home. Now, I must make clear that Windermere is certainly not endorsing Milo. In fact, I personally have concerns about the program given how volatile cryptocurrencies are.
You see, it is possible that users may be caught out by the value of their Bitcoin dropping significantly and, if this occurs at or around their anniversary date, it could significantly raise the interest rate—and therefore the monthly payment—on that loan, and if the price drops too far, then they may have to go through what is, in essence, a margin call, where they will have to submit more funds to the lender to bring them back to a point where equity in the home combined with the value of the Bitcoin covers the loan itself.
And I would add that if for some reason the buyer has to sell the home within the first three years4 of purchase there are pre-payment penalties that will be incurred. All in all, it is an interesting model, but it is still in its infancy. As always, time will tell how well it gets adopted.
The bottom line for me is that the likelihood of Cryptocurrency revolutionizing the way we buy homes from a finance perspective is still several years away, but after that, who knows! Something that does have the capacity to be adopted into the mainstream far quicker is the blockchain technology itself. I personally see title insurance as a segment that could benefit significantly and may well adopt this tech sooner than others.
With title insurance companies responsible for verifying and ensuring that a buyer or lender (depending on the type of title insurance) gets either clean ownership or a lien position in the land in question, Blockchain could change many aspects of how these processes are carried out. Here are some of the benefits:
The Potential Benefits of Blockchain Technology in Real Estate
Security. More than 25 percent of title reports (alta.org) detail some form of defect to the title itself, but the ability of blockchain to immediately detect erroneous or potentially fraudulent information can significantly help to support the reliability of the records, therefore making the job of title insurance companies much more straightforward.
And then there’s smart contracts, which are actually a form of e-closing that is already beginning to be embraced by some in the industry. This technology makes the transfer of ownership almost seamless. Literally, it would take just a few clicks of a mouse. And this is also a massive benefit for the industry as the closing process would also change dramatically and become far more effortless and less time consuming than today’s standard means of closing on a home purchase.
And finally, record-keeping. While fraud and tampering are huge concerns for title companies, blockchain could all but eliminate these instances within ownership records. And, as it would convert land records to a distributed ledger, it cannot be altered within the blockchain itself, therefore making it safe in perpetuity. Blockchain, by design, prevents bad information from disrupting the chain and any attempt to tamper with it can be easily detected and therefore avoided. This is a massive upgrade from the county ledger that title insurance companies find themselves working with today.
No one can deny that Blockchain and cryptocurrencies, while still relatively new, do not appear to be just a flash in the pan. As we have discussed today, a number of companies continue to make inroads into the real estate world. Will some fail? Of course. But others will succeed. So, while still in its infancy, we should all have some sort of understanding of its potential to be a disruptor in the housing space in the future.
It’s my own personal belief that the Blockchain tech itself will be the thing that gets adopted by the real estate world faster than the rise of crypto as a way to buy or finance a home but, whatever your thoughts on this topic are, I think that it is highly unlikely that we will see it simply fade away over time.
As always, if you have any questions or comments about this particular topic, please do reach out to me but, in the meantime, stay safe out there and I look forward to visiting with you all again next month. Bye now.
Whether you are buying or selling a home, mold is something to be mindful of. Health concerns and potential damage make mold a red flag for buyers. Even if you’re not planning to sell any time soon, taking care of mold problems now can prevent even larger and more costly issues in the future. Contrary to what some people think, mold is not a geographic problem—it can occur anywhere, no matter where you live. Here is some basic information about mold and how to deal with it.
What is mold?
Molds are microscopic organisms that are found virtually everywhere indoors and outdoors. There are thousands of different kinds of mold. Their natural function is to help break down dead materials such as stumps and leaves so the nutrients can be used by the environment. For molds to grow, they need two things: an organic food source—such as leaves, wood, paper, or dirt—and moisture.
Mold Causes Damage
Mother Nature uses mold to decompose plant material. Unfortunately, when present indoors, it can be equally destructive. Mold growth can damage furnishings, such as carpets, couches, and cabinets. If it goes undetected or neglected, it can also cause serious damage to walls and structural elements in your home.
Mold is present everywhere, and most people tolerate exposure with no adverse effects. If allowed to spread, however, it may cause problems. As molds grow, they release thousands of tiny spores that travel through the air. When inhaled in large enough amounts, these spores may increase the risk of adverse health effects in some people, particularly respiratory problems. A less-common strain of mold called “black mold” can be particularly troublesome to those who are especially sensitive.
No matter your local climate, your home is vulnerable to mold. There are many sources of mold problems, from faulty air conditioners to poorly positioned sprinkler systems. Here are the most common sources of mold inside the home:
Flooding
Leaky roofs or damaged gutters
Heating or cooling system problems
Poor drainage next to foundation
Plumbing leaks from toilets, refrigerators, and dishwashers
Damp basement or crawl space
Leaking windows or doors
Steam from shower or cooking
Indoor exhaust from dryer
Detecting Mold in Your Home
If you can see or smell mold inside your home, it’s time to act. Any area that has sustained past or ongoing water damage should be thoroughly inspected—you may find hidden mold growth in water-damaged walls, floors, or ceilings. Walls and floors that are warping or discolored can also indicate moisture problems, as can condensation on windows or walls.
How to Prevent Mold in Your Home
Since mold is always present, there’s no way to eliminate it completely. You can control indoor mold growth, however, by controlling moisture.
Remove the source of moisture by fixing any leaks or other water problems.
Make sure your bathroom fans and dryers are properly vented to the outside. Always use the exhaust fan when cooking or showering.
Use a dehumidifier to reduce moisture levels in the air. Make sure your AC system is well maintained and is the correct size for your home. A faulty AC system can cool the air without removing the water vapor, creating high humidity.
Insulate your home well to prevent indoor condensation.
Have your heating, ventilation, and cooling systems professionally cleaned annually. Air-duct systems can easily become contaminated with mold.
Dry clean your carpets (as opposed to wet cleaning them).
Avoid carpeting bathrooms and basements.
Clean any moldy surfaces as soon as you notice them.
How to Deal with Mold in Your Home
Mold can be a manageable problem. If you have a mold problem that is isolated to a small area—less than a square yard or so—you can try to resolve it yourself. However, if your mold problem is severe or if you have extensive water damage, it’s best to call a professional contractor who specializes in mold removal.
Porous items that are hard to clean, such as carpet and drapes, should be discarded. Moldy sheetrock and ceiling tiles can be removed and replaced. Hard, nonabsorbent surfaces such as glass, plastic and metal should be thoroughly cleaned with soap and water and allowed to dry completely. For solid items that are semi-porous, such as floors, cabinets, and wood furniture, scrub with an ammonia-free cleaner and hot water to remove the mold. Rinse with water and dry thoroughly. After cleaning, apply a mildewcide to kill mold and spores.
When cleaning mold, remember to wear gloves, a mask, and eye protection, and work in a well-ventilated area. Never mix cleaner containing bleach and ammonia; this can result in the release of a toxic gas. And be sure to throw away any sponges or rags that you use for cleaning. For more information on how maintaining your home can prevent damage, read our blog post on how to handle water damage.
To successfully sell your home, you need to attract buyers. This is why open houses are an integral part of the selling process: they allow buyers to experience the property for themselves and envision what life will look like in their new home. To prepare for an open house, you’ll need to work closely with your agent. They can advise you on what buyers in your area are looking for to increase your chances of selling your home.
How to Prepare for an Open House
The earlier you can begin prepping your home for an open house, the better, since getting it in prime showing condition will take time. Start by decluttering and organizing room by room. To truly get your home sparkling clean, you can’t miss those hard-to-reach areas like the baseboards, under your furniture, and your appliances.
To best position your home to sell, consider hiring a professional stager. A well-staged home helps it appeal to the widest possible array of potential buyers, not only for in-person showings, but in online photos as well. Professional staging is equal parts science and art. Stagers are experts in depersonalizing a home while maintaining its stylistic qualities to give buyers the opportunity to imagine the space for their own use. It isn’t just about psychology, though. Staging is a high-ROI expenditure that can add real value to your home.
It may feel counterintuitive, but your absence can be your greatest asset in making your open houses successful. Buyers will often feel uneasy in the presence of the seller as they tour, which will limit their ability to envision their own lives in the home and get excited about the prospect of ownership. Accordingly, you may need to arrange for temporary accommodations during the times your home is being shown. It’s helpful to solidify these plans several weeks in advance to avoid an eleventh-hour scramble.
Put buyers in a feel-good mood with Windermere’s “Open House” playlist on Spotify. Click the image above to listen.
Working with Your Agent
Your agent will be your greatest asset in preparing for open houses. They are experts in understanding how to effectively market your home and how the local market conditions will impact their marketing plan. Once you know it’s time to sell, they’ll analyze data to accurately price the property and keep it competitive in the current market. They’ll also work with you to schedule open houses at the times when buyers are maximally available and actively searching for listings.
Your agent will also help you to stay safe while selling your home. The reality of open houses is that you’re opening your doors to an influx of unfamiliar faces, and it’s worth it to take a few safety precautions beforehand. Perform a thorough walkthrough of your home with your agent to make sure all valuable belongings, medications, family heirlooms, and other important items have been properly secured and/or removed. Once you’ve given your home a clean sweep, discuss your process for screening potential buyers.
For more resources on preparing to sell your home, our Home Selling Guide has everything you need: selling tips, moving checklists, our Home Worth Calculator, and info on how an agent can help.
30-year mortgage rates just exceeded 4% for the first time in three years according to Freddie Mac.
We have new advice for anyone considering a home purchase in the next couple of years.
Buy before 5. This means buy before rates go to 5%.
Even though rates have been ticking up over the last several weeks, we believe that in a few years we will look back on this time and realize what a tremendous opportunity it was to have a mortgage under 5%.
So, don’t be discouraged by recent uptick in rates. Instead, feel great that you were able to buy before rates hit 5%.
Your home’s façade and front yard play a role in its curb appeal, but the backyard is for you and your household to enjoy. Spending time making improvements to your backyard will help to maximize your enjoyment of your property and can increase its value. These backyard design projects will help to beautify your yard while creating opportunities for new ways of spending time in it.
Consider butting up your built-in seating to your deck’s banister or railing and wrapping it around the perimeter. This will help make your deck more welcoming while saving space that would be taken up by chairs. For an even more efficient space-saving strategy, keep the space underneath your built-in seating open or install a drawer system to store your backyard and/or outdoor kitchen items and tools. If a deck rebuild isn’t in the cards, try simpler improvement projects like restraining it or adding outdoor lighting.
2. Build a Tool Shed
Every backyard requires maintenance, and you typically need tools to keep it in tip-top shape. A useful DIY project for your backyard is to build a tool shed to house your garden tools and landscaping equipment. This will give them a safe, dry storage space, which helps to extend their useful life and avoids having to make unnecessary replacements. When in doubt, add extra shelving space, as you very well may build out your tool collection over time. Once your shed is complete and all your tools are in their right place, install a secure locking system to protect your equipment.
Image Source: Getty Images – Image Credit: vgajic
3. Create an Outdoor Cooking Area
Outfitting your backyard for a robust outdoor kitchen with all the bells and whistles can be expensive. Fortunately, you can create an outdoor cooking area without having to break the bank. Depending on your local climate, it may be wise to cover this area with some sort of roof structure. If so, be sure to leave ample room between your cooking equipment and the height of the roof to allow flames and fumes to safely escape.
Different types of barbecues can satisfy your outdoor kitchen needs, depending on how much room you have to work with. Charcoal grills are ideal for smaller spaces, while built-in barbecues can provide a more comprehensive grilling setup if you have the allotted square footage.
4. Give Your Flower Beds a Makeover
Flower beds have quite an impact on the overall aesthetic of your backyard. If your flower beds are overgrown, start by pulling out the weeds. Use a garden trowel; this will help to dig up the roots and decreases the chance of recurring weeds. Remove all the weeds and debris, then rake the soil to prepare it for composting. While you rake, keep an eye out for rocks and gravel and remove them from the flower bed.
Now you’re ready to add a new layer of compost. This does wonders for the health of the soil and encourages new plant growth. Sprinkle in two to three inches of compost and work it into the soil with a shovel. You can also experiment with adding other nutrient-rich ingredients or plant materials that are conducive to soil in your climate, such as peat or manure.
5. Build Your Ultimate Patio
For many homeowners, building a patio exists at the crossroads between a DIY project and one that requires a professional’s expertise. Whichever route you choose, executing a patio installation can take your backyard to the next level. Choosing your patio material is the first step. Concrete, flagstone, brick, terra-cotta, and pea gravel are all common patio materials that have their respective advantages and disadvantages. If having a patio that’s built to last is your top priority, then brick, flagstone, or concrete may be the way to go. These materials also complement a variety of house styles, as well. If you’re looking to create a more relaxed environment in your backyard, then pea gravel or clay may be more your style. These materials recall aspects of the beach and seaside living.
For more information on how you can take your yard to the next level, read our blog post on seven ideas for creating a beautiful yard:
Facebook
X
Pinterest
Copy Link
