December 18, 2024

6 Home Renovations That Cost More Than They’re Worth

When planning home renovations, it’s essential to know which upgrades provide a solid return on investment and which don’t. While some projects may enhance your living experience, they might not increase your home’s value enough to justify the cost—especially if you plan to sell soon. According to Southern Living, here are six costly home improvements that often fail to pay off, along with budget-friendly alternatives.


1. Swimming Pools

Installing an in-ground swimming pool can cost upwards of $30,000 but typically adds only about $5,000 to your home’s value. Additionally, many buyers are wary of the maintenance and safety concerns associated with pools.

Alternative: Opt for an above-ground pool that’s affordable and removable.


2. Upscale Kitchens and Bathrooms

Luxury kitchen and bathroom upgrades—like custom cabinets, high-end appliances, and designer fixtures—recoup only 40–50% of their cost. While a minor kitchen remodel is worthwhile, over-the-top features don’t deliver the same ROI.

Alternative: Refresh spaces with low-cost updates like new cabinet fronts, ceramic tiles, or a fresh coat of paint.


3. Garage Conversions

Converting a garage into living space may seem appealing, but garages are highly desirable, especially in areas with limited parking or harsh winters. Losing one can lower your home’s resale appeal.

Alternative: Finish your basement instead, which can recoup around 86% of the cost while keeping the garage intact.


4. Sacrificing a Bedroom for a Primary Suite

Turning a bedroom into a larger primary suite might sound appealing, but even a small guest bedroom is often more valuable than added space or a walk-in closet. There are exceptions—like adding a second bathroom in a one-bathroom house—but this renovation typically recovers only about 56% of its cost.

Alternative: Enhance your bedroom with affordable upgrades like new furniture, built-in storage, or fresh paint. Consider small-scale changes to maximize existing space.


5. Installing Carpet

Wall-to-wall carpeting, especially over hardwood floors, can hurt resale value. Buyers often prefer wood or vinyl flooring, which are easier to maintain and have broader appeal.

Alternative: Invest in refinishing hardwood floors, which can recover nearly 150% of the cost. For new flooring, choose wood or high-end vinyl.


6. Building an Addition

While additional bedrooms or bathrooms can make a home more functional, the cost of building an addition far exceeds the value it adds. On average, you’ll recoup just 25–35% of the investment.

Alternative: If you’re not staying in the home long-term, consider whether moving to a larger property makes more sense financially.


Final Thoughts

If you’re planning to sell soon, focus on cost-effective improvements that enhance your home’s appeal without breaking the bank. Consulting with a real estate agent can help you determine the best strategy for your home and market.

Source: Southern Living Magazine, Brandee Gruener, “6 Costly Home Improvements That Won’t Boost Your Property Value” (December 4, 2024).

December 7, 2024

Maximize Your Sale

If you’re considering selling your house in 2025, timing is key. Each season offers unique advantages that can help maximize your success. Here’s a quick guide to the benefits of selling your house in each season:

 

Winter – Motivated Buyers, Less Competition

During the late fall and winter months, homeowners might hesitate to list their properties, waiting for the perceived “hot” spring market. However, this quieter season offers unique advantages. With fewer homes on the market, your property has a better chance to stand out and attract motivated buyers who are serious about making a purchase before the new year. They often have pressing timelines, such as relocating for work or locking in current interest rates, making December, January and February an ideal time to sell.

 

Spring – High Demand and Competitive Offers

Spring is prime time for house sales, as warmer weather encourages buyers to start their search. Selling your house during the months of March, April and May often means more buyer interest and the potential for multiple offers, helping you achieve top value.

 

Summer – Ideal for Families and Flexible Timelines

Summer is perfect for families who want to settle in before a new school year. Selling your house during June, July and August can be especially effective if you have buyers with children or those who have more time to view homes on vacation.

 

Fall – Serious Buyers and Cozy Curb Appeal

Fall buyers tend to be focused on moving before the holidays, and the season’s cozy aesthetic can make your house feel even more inviting. With many buyers still active, selling your house during the months of September, October and November offers the advantage of high demand with less competition.

 

If you’d like help deciding the best season to sell your house in 2025, we’re here to provide expert insights and support. Whatever the season, we’ll make sure your sale is a success.

Call me at (817) 300-8535 to discuss how we can achieve your real estate goals

Home BuyingHome BuyingHome Buying November 21, 2024

Understanding Assumable Mortgages: What Home Buyers Need to Know

In today’s dynamic real estate market, buyers are increasingly exploring alternative financing options. One often-overlooked possibility is an assumable mortgage. This financing strategy could be particularly valuable in our current interest rate environment, but it’s essential to understand both its benefits and potential pitfalls.

What Is an Assumable Mortgage?

An assumable mortgage allows a home buyer to take over the seller’s existing loan. The buyer inherits the original interest rate, remaining principal balance, repayment period, and all other loan terms established by the previous owner.

Types of Assumable Mortgages

Most conventional fixed-rate mortgages are not assumable. However, FHA loans, VA loans, USDA loans, and some conventional adjustable-rate mortgages (ARMs) typically offer assumption options. This limitation in availability makes finding a home with an assumable mortgage one of the primary challenges for interested buyers.

How Assumption Works: A Real-World Example

Let’s say Sarah is selling her home, which she purchased in 2021 with an FHA loan. Her original loan amount was $300,000 at a 3.25% interest rate, with $275,000 currently remaining on the balance. The home’s market value has increased to $350,000.

If John wants to buy Sarah’s home today when market rates are 7%, he could assume Sarah’s loan at 3.25% for the remaining $275,000 and secure additional financing or provide cash for the $75,000 difference.

Benefits of Assuming a Mortgage

Assuming a mortgage in a high-rate environment can lead to significant monthly savings through a lower interest rate. The process typically involves reduced closing costs compared to new mortgage origination fees, and the assumption process is often faster than applying for a new mortgage.

When Assumption Makes Sense

An assumable mortgage becomes particularly attractive when current market rates significantly exceed the existing loan rate and the remaining loan balance is substantial. Success depends on having funds available for the down payment difference and meeting the lender’s qualification requirements.

Potential Drawbacks and Challenges

The primary challenge lies in equity gap financing—funding the difference between the loan balance and purchase price. This often requires a second mortgage at current market rates, and some lenders may be hesitant to provide such financing.

Qualification requirements present another hurdle. Buyers must meet the lender’s credit and income requirements, and for VA loans, eligibility for VA benefits is necessary (active service members, veterans, or eligible surviving spouses). Additionally, the original lender must approve the assumption.

Making the Decision: Key Considerations

The length of time you plan to stay in the home significantly impacts the value of an assumption. A longer stay allows the potential savings from a lower interest rate to compound over time, helps offset any higher-rate gap financing, and better amortizes transaction costs. Before proceeding, ensure you can qualify for the assumption, have adequate funds for the equity gap, and carefully compare the assumed rate to current market rates.

Steps to Move Forward with an Assumable Mortgage

Success with an assumable mortgage requires careful preparation and evaluation. Begin by calculating total costs, including gap financing, and comparing various financing options. Consulting with a qualified mortgage professional can help ensure you understand all implications of the assumption process.

While the potential savings can be substantial, assumable mortgages aren’t universally beneficial. The key lies in understanding your financial situation and carefully evaluating all available options before making this significant financial decision.

Ready to Explore Assumable Mortgages?

Navigating assumable mortgages requires expertise and careful consideration of your unique situation. As your real estate professional, I’m here to help you understand your options. Whether you need a trusted lender referral, want to discuss finding homes with assumable mortgages, or have questions about the assumption process, let’s connect. Contact me today for a personalized consultation about your home buying journey.

Home OwnershipHome Ownership November 21, 2024

Why Lowering Market Value Doesn’t Always Reduce Your Tax Bill

Recently, a friend asked me about their property taxes and why hiring a protest company didn’t result in a lower tax bill. They shared their experience, and it’s a situation many Texas homeowners can relate to:

“We got our 2024 property value notice back in April with a Market Value of $216,414 (which seems inflated for our neighborhood) and an Appraised Value of $186,557. We hired a protest company, and they managed to lower the Market Value to $207,202—a reduction of $9,212. However, our taxes didn’t go down; in fact, they increased by 10.7%! Was it a waste to hire a protest company?”

This question touches on some key elements of how property taxes are calculated in Texas.

1. Market Value vs. Appraised Value

In Texas, your property taxes are based on the appraised value, not the market value. While the market value is the estimated selling price of your home, the appraised value is the taxable amount determined by your county’s appraisal district.

If you have a homestead exemption, the appraised value is subject to a cap and cannot increase by more than 10% per year, regardless of how much the market value increases. This means even if a protest company successfully lowers your market value, it may not reduce your appraised value—and, therefore, your taxes—if your appraised value is still below the new market value.

2. Protesting Market Value

The protest company did their job by reducing the market value. However, if your appraised value is capped and hasn’t yet caught up to the market value, lowering the market value won’t directly impact your taxes. The appraised value still has room to rise within that 10% annual limit.

In this case, the appraised value increased, as allowed by the cap, which is why the tax bill went up despite the market value reduction.

3. Are Protest Companies Worth It?

Protest companies aren’t necessarily a scam, but their results can vary depending on your situation. They’re most effective when your appraised and market values are very close, or if your property doesn’t have a homestead exemption. If your market value is far higher than your capped appraised value, their efforts won’t translate into immediate tax savings.

The Bigger Picture

Unfortunately, this situation highlights a challenge many homeowners are facing. Even with efforts to lower market values, rising appraised values and tax rates often lead to higher bills. Between property taxes and rising insurance costs, so many Texans are feeling the strain.

While I wish there were an easy fix, I hope this explanation helps clarify what happened and why the taxes increased despite the protest. If you’re dealing with a similar situation, know that you’re not alone, and understanding how these systems work can at least help make the process less frustrating.

November 17, 2024

The Night Shift: Your 20-Minute Secret to Morning Bliss

Listen up, fellow chaos warriors! Ever walked into your kitchen at 7 AM, spotted last night’s pizza party aftermath, and wished you could time-travel back to make better life choices? Same here! But what if I told you there’s a way to wake up to a home that looks like cleaning fairies visited while you slept? (Spoiler: It’s actually just you being a responsible adult for 20 minutes, but let’s keep the fairy tale alive! 🧚‍♀️)

Welcome to what the pros call the “closing shift” – except instead of closing down a Starbucks, you’re shutting down Casa Chaos. And trust me, it’s way more fun than it sounds!

Your 20-Minute Game Plan to Morning Magnificence

1. Sink Attack! (5-7 minutes) 🚰

First stop: the kitchen sink, aka the bacteria party central. Time to shut down that microscopic rave! Load up the dishwasher or channel your inner dish-washing deity. Pro tip: Turn on your favorite song and pretend that scrubbing brush is a microphone. Just remember to actually clean while you’re performing!

2. The Great Migration (5-7 minutes) 📦

You know all those random items doing the couch-to-counter walk of shame? Time for Operation: Everything-In-Its-Place! Chase down those rebel remote controls, wrangle the wild charging cables, and guide those lonely socks back home. Think of it as a treasure hunt, except you already know where everything belongs (right?).

3. The Surface Sweep (1-2 minutes) 🧹

Armed with your trusty cleaning spray, become the superhero your countertops deserve. Those mysterious sticky spots and breakfast crumbs? Not on your watch! Bonus points if you tackle the bathroom mirror before those toothpaste spots become permanent art installations.

4. Couch CPR (1-2 minutes) 🛋️

Show that sofa some love! Fluff those cushions like they’ve personally offended you, fold blankets with the precision of a military operation, and rescue any snacks that have fallen into the cushion void. Your future self will thank you when they’re not sitting on yesterday’s popcorn kernels.

5. The Final Farewell (1-2 minutes) 🗑️

End your shift by saying goodbye to the day’s trash. It’s like a mini-decluttering ceremony – out with the old, in with the clean bags! Plus, no more midnight trash runs when that banana peel starts getting too friendly with your nostrils.

Bonus Round for Overachievers! 🌟

Still feeling energetic? (Who are you, and what have you done with my reader?) Here are some extra credit tasks:

  • Let the robot vacuum do its happy dance across your floors
  • Save your future self from the morning wardrobe crisis by laying out tomorrow’s outfit
  • Set up the coffee maker (because let’s be real, tomorrow-you will need it)

Remember, this isn’t about achieving domestic perfection – it’s about being kind to your future self. Think of it as sending a love letter to Tomorrow You. And Tomorrow You? They’re going to wake up, look around at their serene space, and feel like they’ve got their life together (even if they’re still wearing mismatched socks).

Now go forth and close that shift like the household boss you are! 💪

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Inspired by “The 20-Minute Cleaning Routine You Should Do Every Night, According to a Professional Organizer” by Mary Cornetta for Better Homes and Gardens, November 12, 2024

Current MarketCurrent MarketCurrent MarketHome Buying November 13, 2024

Breaking Down NAR’s Latest Report: 4 Reasons Homebuyers Should Feel Optimistic About 2025

Here’s a breakdown of NAR’s latest report that brings encouraging news for potential homebuyers in 2025-2026:

The housing market is finally showing signs of positive change, according to the National Association of REALTORS® (NAR) Chief Economist Lawrence Yun’s latest forecast. If you’ve been waiting on the sidelines of the housing market, there are several encouraging developments to note:

  1. Relief from High Interest Rates – Yun predicts mortgage rates will stabilize around 6% (ranging between 5.5%-6.5%), with multiple interest rate cuts expected in 2025. As he notes, “Maybe the worst is coming to an end.”
  2. More Homes Coming to Market – The report brings excellent news about housing inventory, with Yun stating that “the worst of the housing inventory shortage is coming to an end.” This means more choices for buyers who have struggled with limited options.
  3. Strong Sales Growth Ahead – NAR projects approximately 10% growth in existing-home sales for both 2025 and 2026, while new home sales are expected to increase by 11% in 2025 and 8% in 2026.
  4. The Value of Homeownership – The report emphasizes the significant wealth-building opportunity that homeownership represents. Yun highlighted a striking statistic: the median net worth of homeowners in 2024 is $415,000, compared to just $10,000 for renters. As he explains, “If you don’t enter the housing market, you are in the renter class where wealth is not being accumulated. If you want to participate in the housing market, the sooner you get in, the sooner you accumulate wealth.”

With stable job growth, improving inventory conditions, and stabilizing mortgage rates on the horizon, 2025-2026 could present an excellent opportunity for those looking to achieve their homeownership dreams.

November 12, 2024

Simple Changes That Can Help Sell Your Home

Have you ever wondered why some homes sell quickly while others linger on the market? Sometimes it’s just a matter of making a few key changes that can transform how buyers see your property.

Learning from Experience

When we’re called in as a second listing agent, we often notice opportunities for improvement that could make a real difference in attracting buyers. The good news? These same tips can help anyone preparing to list their home for the first time too.

Common Challenges (And How to Fix Them)

Here are some frequent issues we’ve noticed in homes that struggled to sell initially:

First Impressions Matter

  • Dark or unclear listing photos that don’t showcase your home’s features
  • Personal items (like family photos and diplomas) that make it harder for buyers to envision themselves in the space
  • Cluttered rooms that feel smaller than they actually are
  • Very specific decorating styles that might not appeal to everyone
  • Heavy window treatments that block natural light

Looking After Your Investment

  • Visible maintenance issues, like rotting wood or peeling paint
  • Overgrown or neglected landscaping
  • Empty homes showing signs of needing care
  • Dated features that could use refreshing

Setting the Stage

  • Rooms that need better furniture arrangement
  • Dark paint colors that make spaces feel smaller
  • Areas that could benefit from better lighting

Small Changes, Big Impact

It’s amazing how seemingly minor adjustments can transform a space. Here are some simple steps that can make a real difference:

  1. Clear the Clutter
    • Pack away personal photographs
    • Clean off countertops and surfaces
    • Organize closets and storage areas
    • Remove excess furniture to make rooms feel larger
  2. Brighten Things Up
    • Switch heavy curtains for lighter ones
    • Consider neutral paint colors for dark walls
    • Make sure all light fixtures work
    • Give those windows a good cleaning
  3. Take Care of the Basics
    • Fix visible repairs
    • Touch up paint where needed
    • Check that all doorknobs and handles work properly
    • Address any maintenance concerns
  4. Show Off Your Yard
    • Keep the lawn tidy
    • Refresh mulch in garden beds
    • Add some colorful flowers
    • Clean up the exterior
  5. Make Spaces Welcoming
    • Arrange furniture to show how rooms can be used
    • Add a few simple decorative touches
    • Give each room a clear purpose
    • Create neutral, inviting spaces

The Before and After

Sometimes sellers give us skeptical looks when we suggest adding a plant here or removing a diploma there. “Will this really make a difference?” they ask. But once the changes are made and new photos are taken, the transformation often surprises everyone – in the best possible way!

A Fresh Start

Whether you’re listing your home for the first time or trying again, these simple changes can help buyers see your home’s true potential. Sometimes it’s those little details that make all the difference in helping a buyer fall in love with your property.

Every home has potential. Sometimes it just needs a fresh perspective to help that potential shine through.

Need help getting your home ready to sell? Let’s talk about how to make your property stand out to buyers.

November 10, 2024

Property Condition: Making Smart Choices When Selling Your Home

When your home has been on the market without selling, it’s natural to wonder if its condition played a role. Let’s look at how property condition affects buyer interest and what improvements might make sense for your situation.

Understanding Return on Investment

Not all home improvements are created equal when it comes to selling. While you might love that custom water feature you installed, buyers might see it as maintenance headache. Here are some improvements that typically offer the best return:

  • Fresh paint (interior and exterior)
  • Updated lighting fixtures
  • Modern hardware on cabinets and doors
  • Professional carpet cleaning or replacement
  • Basic landscaping improvements
  • Kitchen and bathroom updates (think surface-level, not complete remodels)

These relatively low-cost improvements often provide the biggest bang for your buck in terms of buyer interest and offer prices.

The Power of Minor Updates

Sometimes, small changes can dramatically impact how buyers perceive your home. Consider these high-impact, low-cost improvements:

  • Deep cleaning of all surfaces
  • Caulking around windows, tubs, and sinks
  • Fixing leaky faucets and running toilets
  • Replacing outdated light switch plates
  • Power washing exterior surfaces
  • Trimming bushes and adding fresh mulch
  • Cleaning or replacing weathered front door hardware

These updates might seem minor, but they signal to buyers that your home has been well-maintained.

When to Sell “As-Is”

Sometimes, making improvements isn’t the best strategy. Here’s when selling “as-is” might make sense:

  • If you need to sell quickly
  • When improvement costs would be difficult to recoup
  • If comparable sales don’t support a higher price even with updates
  • When your property would appeal to investors or renovation-minded buyers

The Impact of Deferred Maintenance

Buyers today are particularly sensitive to maintenance issues. Here’s how deferred maintenance affects buyer behavior:

  • Many buyers overestimate repair costs
  • Maintenance issues often lead to lower offers than the actual repair costs
  • Buyers might use maintenance issues to negotiate aggressively
  • Some buyers won’t even consider homes needing significant work
  • Financing can be harder to obtain for homes with maintenance issues

Making Smart Decisions About Improvements

Before deciding on any improvements, consider:

1. Your Timeline

  • How quickly do you need to sell?
  • Do you have time to complete improvements?
  • Are contractors available when you need them?

2. Your Budget

  • What funds are available for improvements?
  • Which improvements offer the best return?
  • Could strategic price adjustments work better than improvements?

3. Your Market

  • What conditions are buyers expecting in your price range?
  • What features are current buyers prioritizing?
  • How much competition exists from updated homes?

Moving Forward

Whether you choose to make improvements or sell as-is, the key is making an informed decision based on your specific situation. Consider getting input from real estate professionals who can:

  • Providing market-specific advice about improvements
  • Connecting you with reliable contractors (ask me about pay-at-close options)
  • Helping you understand which issues might impact financing
  • Guiding you toward the most cost-effective solutions

Ready to discuss your specific situation? I’d be happy to provide a no-obligation consultation to help you evaluate your options and develop a strategy that makes sense for your home and circumstances.


Remember: The goal isn’t to create a perfect home – it’s to make smart choices that help your home sell for the best possible price in your timeframe and budget.

November 10, 2024

Keeping Warm AND Safe: A Complete Guide to Space Heater Safety

When winter temperatures drop, many homeowners turn to space heaters for additional warmth in their homes. While these portable heating solutions can be effective, especially in spaces like finished basements, converted attics, and home offices, it’s crucial to understand how to use them safely.

Understanding Space Heater Safety
Supplemental heating can make challenging spaces more comfortable, but it’s important to know both the benefits and responsibilities that come with space heater use. Let’s explore the essential guidelines that every homeowner should follow.

Essential Safety Guidelines

1. Strategic Placement is Key
The most important factor in space heater safety is proper positioning. Maintain at least 3 feet of clearance from any furniture, curtains, or decorative items. Always place heaters on solid, flat surfaces – never on carpets or rugs.

2. Size and Space Considerations
Choosing the right size heater is crucial for both safety and efficiency. Follow this simple formula: calculate 10 watts per square foot of space you want to heat. For example, a 150-square-foot home office would need a 1,500-watt heater for efficient warming.

3. Power Management
Here’s a critical safety tip: never use extension cords with space heaters. Direct wall outlet connections are the only safe option. If you find yourself needing an extension cord, that’s usually a sign that you should reconsider the heater’s location.

4. Smart Features for Modern Homes
Today’s space heaters often come with built-in safety features that make them more secure and efficient:

  • Automatic shut-off mechanisms
  • Tip-over protection
  • Smart phone controls
  • Eco modes for energy efficiency

Energy Cost Considerations
When choosing a heating solution, it’s important to consider long-term costs. A typical space heater running 8 hours daily can add about $50 to your monthly electric bill. However, newer models with Eco Mode features can cut these costs by up to 50% – an important factor when choosing your heating solution.

Home Heating Tips
When evaluating your home’s heating needs, pay attention to areas that might benefit from supplemental heating:

  • Rooms that feel consistently colder than others
  • Areas that might need additional insulation
  • Spaces where central heating doesn’t quite reach

Understanding space heater safety is crucial for winter comfort and security. By following these guidelines, you can keep your home both warm and safe during the colder months.


*This article was inspired by safety guidelines from Shivani Vyas’ recent publication on space heater safety (November 2024).*

Home Selling November 8, 2024

The Price is Right: Why Correct Pricing Makes or Breaks Your Home Sale

When selling your home, no single decision impacts your success more than your initial asking price. While it’s tempting to “test the market” with a higher price, this strategy often backfires, leading to longer selling times and, ironically, lower final sale prices.

Why the First 30 Days Matter Most

Your listing’s initial month is crucial. This “golden window” generates the highest concentration of showings and buyer interest. Fresh listings appear at the top of search results, trigger automatic alerts to potential buyers, and create natural buzz that’s hard to recapture later.

Think of it like a movie premiere – there’s excitement when it first releases, but that enthusiasm quickly fades. When a home lingers on the market, buyers often assume something’s wrong with it, even if the only issue was the initial pricing strategy.

 

Warning Signs Your Home is Overpriced

  1. Limited Showings and Offers

If your home has been listed for several weeks with minimal showings or no offers, it’s likely priced too high. Today’s buyers are well-informed and can easily spot (and avoid) overpriced listings.

  1. Consistent Negative Feedback

When potential buyers consistently comment that your home is overpriced compared to similar properties they’ve seen, it’s time to reassess. As the National Association of Realtors notes, this feedback often leads agents to adjust their price recommendations based on market conditions and property uniqueness.

  1. Helping Sell the Competition

Consider this scenario: Your home’s market value is $400,000, but you’ve listed it at $420,000. Qualified buyers searching in the $375,000-$400,000 range won’t see it, while those looking at $420,000 properties will find better value elsewhere. Your overpriced listing actually helps sell other homes in the area.

  1. Extended Market Time

The longer your home sits on the market, the more likely buyers are to question what’s wrong with it. In today’s market with growing inventory, a stale listing becomes increasingly difficult to sell, often leading to:

  • Buyers assuming there are hidden problems
  • Perception of seller desperation
  • Buyers waiting for further price reductions
  • Lower offers than the reduced price

 

The Strategic Advantage of Correct Pricing

Here’s a counter-intuitive truth: pricing at or slightly below market value often yields a higher final sale price than starting high. Strategic pricing creates urgency and competition, potentially leading to multiple offers and stronger negotiating power for the seller. Just last month this strategy worked for one of my sellers, getting them several above-asking-price offers.

 

Remember: The market determines your home’s value, regardless of what you paid for it, your improvements, or your financial needs. Working with an experienced real estate agent to position your home correctly from day one remains your most powerful tool for achieving the best possible outcome.

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*Credit: Portions adapted from Keeping Current Matters*