Remodeling Then Selling?
Make These Improvements Too
They've decided to "wait out" the current challenges and are taking a "time out" to consider what other options are
available to them at this time.
It's been reported that a large percentage of these homeowners have already made a decision regarding those options and they've decided to put their downtime to good use.
They're going to upgrade, repair, and remodel their homes instead of moving on. Tappable home equity is fueling and paying for much of the work.
In fact, Discover Financial Services found in a recent survey that "58% of Gen Z and millennial homeowners are currently working on home improvements or plan to do so within the next three months", (as of 3-30-2022). They also found that the majority of the homeowners, 82%, say they're improving their homes as a form of investment for their future.
Those projections and percentages are being backed up by Bill Darcy, CEO of the National Kitchen & Bath Association. His association predicts a 19% increase in kitchen and bathroom projects alone this year.
Approximately 20 million American homes presently fall into what Mr. Darcy calls “prime remodeling age”. That means they’re 20 to 40 years old and ripe for upgrades and remodeling.
20 million homes!
If you can believe statistics, many of those improved homes will hit the market at some point in the near future. A new survey conducted by Nerdwallet.com found that nearly "1 in 10 U.S. homeowners (9%) plan to sell their home in the next 12 months".
The survey also found that 86% of those potential home sellers intend to spend money on major home repairs or renovations so their home appeals to a larger number of potential home buyers when they decide to list. That's all very positive news.
Why?
That news and those statistics equate to more homes available when prospective buyers (both those selling and buying again or first-timers) end their "time-out" and re-enter the housing market. And the homes that they'll have to choose from at that time will be outfitted and updated with features that will better meet their living demands and tastes.
A Win-Win!
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But are there other "upgrades", "renovations", and improvements that could be made (whether home seller or buyer)?
Could this "timeout" and period of downtime from the housing market be put to use in other ways as well?
Could upgrades and renovations be made that will also increase:
- The chance of saving money (both in the short and long term)?
- Broaden the number of housing options available when buying (whether first-time or step-up buyer)?
- Expand the number of financing options available (whether for a mortgage or HELOC)?
- Make navigation of a future transaction easier and more fluid?
- Increase the chances of successfully transacting a purchase?
- Keep an eye on your credit and credit scores (A free credit report can be easily obtained at www.annualcreditreport.com)
- Pay down credit cards when and where possible. Keep an eye on your credit limit. Never let the balance owed exceed that limit
- If trying to pay down your credit card debt, pay the balance down to under 50% (minimum), 30%, or 10% of the high limit allowed. This indicates to mortgage underwriters that you're able to restrain from using available credit
- Focus on saving (or saving more) for your downpayment
- Talking to a loan officer now, proactively and well in advance of taking action. Take measure to fine-tune your finances, debt, and credit or better position yourself
- A new job position
- A change of employment type
- A change in the number of hours you're working
- Thinking of starting a new business and becoming self-employed, etc.
Looking for mortgage financing answers, options, solutions, and experienced assistance?
Contact me! I'll put my 40 years of Mortgage experience and expertise hard to work on your behalf.
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