Homeowners can do plenty to spruce up their home and make it more enticing for buyers. But when they’re narrowing their list, what are a few quick fixes that can have a big impact? Besides a fresh coat of paint, Redfin highlighted some additional ideas on its blog, including:
Update the door.
A new front door can be a cost-effective update that can make a big difference, real estate pros say. “Solid wood doors are always a classic style for homes not to go out of style anytime soon,” Redfin notes on its blog. “They’re solid and typically last much longer than alternative materials like fiberglass. Additionally, front doors with inlaid glass can also give your entryway more natural light for the interior of your home.”
First, make sure all interior lights have the same color temperature so it’s consistent throughout the home. “Updating your light fixtures, ceiling fans, and even your hardware on doors and cabinets is an easy and cost-effective way of increasing the perceived value of your home,” Redfin notes. For example, replace dated brass light fixtures to more contemporary ones, like lights with a black finish. Find fixtures that will add more light and brighten your home too.
Upgrade your mailbox.
It may sound trivial, but the look of the mailbox is all part of helping to build a strong first impression from the curb. “It’s also the easiest home improvement you can do,” Redfin notes at its blog. “It could just be a new mailbox that replaces the old, weathered one you’ve had for years. … Or you could upgrade to a ‘next generation’ mailbox that allows USPS to deliver large packages to your mailbox instead of your front door.”
The 30-year fixed-mortgage fell 8 basis points this week, averaging 3.57%, Freddie Mac reports. The lower rates are drawing out more home buyers in the fall market.
“Despite the economic slowdown due to weakening manufacturing and corporate investment, the consumer side of the economy remains on solid ground,” says Sam Khater, Freddie Mac’s chief economist. “The 50-year low in the unemployment rate combined with low mortgage rates has led to increased home buyer demand this year. Much of this strength is coming from entry-level buyers—the first-time home buyer share of the loans Freddie Mac purchased in 2019 is 46%, a two-decade high.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 10:
30-year fixed-rate mortgages: averaged 3.57%, with an average 0.6 point, falling from last week’s 3.65% average. Last year at this time, 30-year rates averaged 4.90%.
15-year fixed-rate mortgages: averaged 3.05%, with an average 0.5 point, falling from last week’s 3.14% average. A year ago, 15-year rates averaged 4.29%.
5-year hybrid adjustable-rate mortgages: averaged 3.35%, with an average 0.3 point, dropping from last week’s 3.38% average. A year ago, 5-year ARMs averaged 4.07%.
Many homeowners attempting to save money on household projects are turning to DIY projects. But do-it-yourself fixes can be costly, shows a new survey from Clovered, a home insurance company.
Eighty-seven percent of more than 1,000 homeowners recently surveyed admitted to making a mistake while attempting a do-it-yourself home improvement project. The median amount spent on fixing those DIY mistakes was $137.50, the survey showed. Millennials tended to spend the most in fixing their mistakes, spending up to four times as much as baby boomers—$200 versus $50 post-mistake.
The top DIY mistake across all generations was starting a project without the necessary supplies or tools. Gen Xers tended to admit to picking the wrong paint, and millennials were the most often to skimp on materials, the survey showed.
Thirty-two percent of DIYers admit to having to contact a family member or friend to help them finish a home improvement project. Seventeen percent said they then hired a professional contractor to complete the job.
One in four homeowners who attempted to DIY also injured themselves. The most common injuries were “cutting myself with a sharp tool or project material” (74.9%), “hitting myself with a hammer or other tools” (58.4%), and “tripping over materials” (49%).
In the last month, mortgage rates have fallen to their lowest monthly averages in more than three years, and economists predict they’ll stay there well into 2020—and even possibly lower. Last week, the 30-year fixed-rate mortgage averaged 3.65%, down 1.06 percentage points from a year ago, Freddie Mac reports.
The lower rates are translating into savings for home buyers. For example, the average borrower taking out a $300,000 mortgage is unlocking savings of about $225 on their monthly payments, or about $2,700 per year, CNBC reports. Freddie Mac economists predict that 30-year rates will average 3.7% in the fourth quarter of 2019, Fannie Mae predicts rates to average 3.9%, and the Mortgage Bankers Association is forecasting a 3.8% average.
Next year, according to Fannie Mae, rates could drop as low as 3.4%. “Rates fell for most of this year, and lower rates have translated into a stronger housing market,” notes Freddie Mac economists. “Both home sales and housing construction are firming. We expect a significant increase in mortgage refinance originations in the coming quarters.”
As mortgage rates drop, forecasters also expect home price growth to moderate. Fannie Mae, Freddie Mac, and the MBA all predict home price growth to slow to 2.2% appreciation by 2021. Home sales are expected to remain elevated. The National Association of REALTORS® is forecastingexisting-home sales to rise 0.6% in 2019and by another 3.4% in 2020.
Home shoppers are increasingly sizing up the yard space of homes they’re considering purchasing. The top outdoor features they’re eyeing include the deck, entertainment space potential, and size of the front yard.
However, the reality that many consumers are facing is that most new homes have less yard space. Having more space for a larger home is one reason. But a fallout from higher costs of lots and rising home prices have also prompted builders to shrink more yards to keep costs lower and build more on one lot.
But this doesn’t necessarily mean Americans don’t love their yard space. Nearly 70% of home buyers say they want a large backyard when looking for the perfect home, according to a new survey from Porch.com, a home remodeling website. Porch.com surveyed more than 980 homeowners about how much value they put into their outdoor space.
In most cases, the desire to have a big yard was less about aesthetics and more about the practical use, the survey found. Seventy-one percent said that having a bigger backyard would help their family spend more time outside, nearly 60% said it would be fun, and 42% said it would help them lead a more active lifestyle.
“Opting for a property with more yard space doesn’t just mean the occasional barbecue or having to keep up with landscaping,” researchers note. “Research suggests spending more time outside can be beneficial to your health, resulting in lower blood pressure, a boost in mental health, and a lower risk of cancer. In one study, participants who spent time walking around trees performed better on a memory test than those in urban environments.”
A majority of respondents say they want a backyard to relax and enjoy nature and for the entertaining space and extra area for their pets and family to enjoy. Porch.com researchers found that people with pets or children tend to spend more time outside, and those who have access to a backyard average more time outside weekly.
Lease applicant identity fraud is significantly growing, warns a new report from CoreLogic, a real estate data firm. Many apartment property managers are reporting some form of identity-related fraud, which is costing them thousands of dollars in losses from renters, the report says.
The two most common frauds landlords are reporting are renter applicants who are using fraudulent identities or who are misrepresenting their intentions.
The report shows the typical reasons that applicants are likely committing fraud are an attempt to live rent-free until evicted or to hide their true identity or history because of their possible immigration status, criminal history, poor credit history, or no job history.
Many of these applicants—except the ones desiring to live rent-free until eviction—are paying their rent on time. “They feel justified in committing fraud because they know you wouldn’t rent to them—for good reason—if you knew the truth,” the report notes. “The fact they pay rent on time, however, does not lessen the risk they present.”
The report calls out four main types of identity fraud that property managers need to beware:
First-person fraud (also called “muling”): The applicant (or mule) acts for another person in renting the apartment, using their identity and information. Another person—different from the listed applicant—then moves in. The applicant may be a family member or friend, or it may be a scam to rent out the apartment on their own and charge above-market fees to the person living there.
Synthetic identity fraud (fictitious identity): A scammer creates a fake identity—likely one that is taken from multiple stolen sources, often from children, elderly, or deceased people—to apply on a rental application. This is the fastest growing type of identity-related fraud. It accounts for 85% of all identity fraud, the report notes.
Third-party fraud: A person’s identity is unknowingly stolen. Their Social Security number, date of birth, or other forms of identification may be used by another person to fraudulently apply for an apartment lease in someone else’s name.
Identity manipulation fraud: A scammer slightly alters some of their information in a way that may look like a typo or spelling error. For example, a Social Security number may be off by one number or a slightly different name or an altered birth date may be noted. “The goal of identity manipulation is to confuse the system so that the application doesn’t connect to the fraudster’s true identity,” the study notes.
Certain home remodeling projects are making homeowners happier and proving to be well worth the cost and time when they sell their properties, according to a new survey from the National Association of REALTORS®, which includes insights from the National Association of the Remodeling Industry.
After completing a home remodeling project, 74% of more than 2,100 consumers surveyed reported having a greater desire to be in their home, 65% say they experienced increased enjoyment, and 77% felt a major source of accomplishment, the 2019 Remodeling Impact Report shows. Researchers examined 20 projects and surveyed REALTORS® and consumers on home renovation projects.
“REALTORS® and homeowners alike recognize the value of taking on a major home remodeling project,” says NAR President John Smaby. “While these tasks can be time-consuming and costly, the projects are well worth the temporary inconveniences, as this report shows, and the final products ultimately reward us with feelings of accomplishment, satisfaction, and higher home values.”
NAR calculated a “joy score” for each home remodeling project studied. The score, a scale from one to 10, is based on homeowners’ overall perceived happiness with their renovations. The higher the joy score for the project, the more homeowners felt satisfaction from it.
Some of the highest joy scores for interior projects centered on complete kitchen renovations, closet renovations, full interior and interior room paint jobs, kitchen upgrades, and basement conversions to living areas.
The exterior jobs with the highest joy scores were new fiberglass or steel front doors, new vinyl and wood windows, and new roofing.
The Resale Benefit
Remodeling can be money well spent at times of resale. Overall, the top remodeling projects for recovering costs at resale were from new roofing, hardwood floor refinishing, and new hardwood floor installation.
NARI remodelers say that homeowners spend on average about $7,500 for new roofing, but real estate pros estimate that sellers will recover $8,000 at resale—an estimated 107% of the value recovered.
On new wood flooring, the average cost homeowners spend on an update is $4,700, but a 106% potential return is possible at resale (real estate pros estimate $5,000).
The Happiest Home Projects
But remodels aren’t just for the potential payback at resale. “The NAR report shows us that people often remodel for resale purposes, but it also reminds us that homeowners remodel too, with the desire to make a home their own,” notes Lawrence Yun, NAR’s chief economist.
Here’s a closer look at the study results on the home improvement projects that made homeowners the happiest:
Kitchen renovation
Joy score: 10
Ninety-three percent of consumers said they had a greater desire to be at home since the completion of their kitchen remodel; 95% said it’s increased their sense of enjoyment when at home. “The kitchen is a space homeowners frequent regularly throughout the course of the day,” Yun says. “So when that area is remodeled to owners’ exact preferences—as they enter and exit the room—they continually experience the satisfaction of a job well done.”
The biggest reason behind a kitchen renovation was to improve functionality and livability, according to 46% of respondents. Also, 24% said they wanted to upgrade worn-out surfaces and materials, while another 20% said they had recently moved into their home and wanted to customize the kitchen to fit their particular tastes. “Kitchens serve as the ‘heart of the home’ for many, and whether you like to entertain or cook, updating a kitchen ensures greater access and use as homeowners age, especially when the upgrades take accessibility into account,” says Robert Kirsic, a certified kitchen and bath remodeler and also NARI’s 2019–2020 president.
Closet renovation
Joy score: 10
Upgrading home closets also made for instantly happier homeowners. Sixty-eight percent of consumers surveyed say they feel a major sense of accomplishment when they think about a completed closet renovation project. More than half say the most important result is improved functionality and livability.
Full interior paint job
Joy score: 9.8
A fresh coat of paint can do wonders for improving the look of a house—but it also improves the mood of those living there. Eighty-eight percent of respondents reported a greater desire to be home since having their home freshly painted.
New fiberglass front door
Joy score: 9.7
The installation of fiberglass front doors can also help for resale and happiness, the survey found. Seventy-nine percent of respondents said that they’ve had a greater desire to be home, thanks to their new front door. Sixty-seven percent say they have an increased sense of enjoyment when they’re home.
New vinyl windows
Joy score: 9.6
The happiness around new windows mostly comes from the result of improved functionality and livability. Forty-seven percent of respondents said they were motivated to update their windows to improve their home’s energy efficiency, and 23% want to upgrade worn-out surfaces, finishes, and materials.
Home buyers looking for a purchase loan and homeowners who want to refinance are responding well to low mortgage rates. “While mortgage rates generally held steady this week, overall mortgage demand remained very strong, rising over 50% from a year ago thanks to increases in both refinance and purchase mortgage applications,” says Sam Khater, Freddie Mac’s chief economist. “As economic growth decelerates, it is clear that low mortgage rates will continue to support the mortgage market, and we expect that to persist for the remainder of the year.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Oct. 3:
30-year fixed-rate mortgages: averaged 3.65%, with an average 0.6 point, up slightly from last week’s 3.64% average. Last year at this time, 30-year rates averaged 4.71%.
15-year fixed-rate mortgages: averaged 3.14%, with an average 0.5 point, falling from last week’s 3.16% average. A year ago, 15-year rates averaged 4.15%.
5-year hybrid adjustable-rate mortgages: averaged 3.38%, with an average 0.4 point, unchanged from last week’s average. A year ago, 5-year ARMs averaged 4.01%.
The living room—that main gathering spot in a home—is a critical part in your showings. Home stagers recently chimed in at Apartment Therapy with their favorite tips for creating a better-staged living room.
One of their biggest pieces of advice centered on the tendency to cram too much furniture into one space. Ensure the living room has proper flow with sizable walkways among furnishings. Nathan Thompson with Pavilion Broadway, a luxury interior design company with staging services in the U.K., told Apartment Therapy he has a rule of thumb to get the distance right: At least an 18-inch walkway between furniture pieces; with larger spaces, he recommends doubling that to 36 inches.
Getting the portions right is equally as important, designers say. Smaller furniture isn’t necessarily a way to make a space look smaller or inviting. Placing smaller furniture in a large room or one with high ceilings can cause the space to look out of scale, Thompson says. “Coffee tables should be about half the size of your sofa,” he says. A rug should be large enough that it at least touches the front legs of your furniture, he adds.
Designers also suggest avoiding the habit of wanting to be too matchy with your living room design. “If you purchase a matching sofa, loveseat, and chair, anything else you put with it will look like the odd man out,” Justin Riordan, interior designer and founder of the home staging company Spade and Archer Design Agency in Portland. While he’ll match lamps, he says he doesn’t like to match furniture when trying to create a sophisticated, designed space.
Americans are growing concerned by the growing threats of an economic slowdown, but that doesn’t seem to be affecting housing. Recent housing reports are showing that lower mortgage rates are buoying buyer demand into the fall months.
“Despite fears of an economic slowdown, the housing market continues to be a bright spot in the economy,” says Sam Khater, Freddie Mac’s chief economist. “While mortgage rates have ticked up in recent weeks, they remain lower than they were a year ago, which will help boost sales headed into the fall.”
Freddie’s forecast follows on the heels of several housing reports last week that suggested a solid housing market. Existing homes rose to the highest level in 17 months in August, according to the National Association of REALTORS®’ latest report. More new homes are entering the pipeline as well: Housing starts and building permits surged to a more than 12-year high in August, the U.S. Commerce Department reports. Further, for the second time in three months, new-home sales rose above 700,000 as more home buyers weigh new-home construction. (Read: Home Sales Up for Second Consecutive Month and More New Homes Are Entering the Pipeline)
Freddie Mac economists predict that the 30-year fixed-rate mortgage will remain below 4% for the remainder of this year, which could continue to bode well for the housing market to ease affordability concerns somewhat for potential buyers. With lower mortgage rates, economists are predicting that home prices will also moderate, appreciating at 3.4% in 2019, which is in line with long-term growth.
With rising housing demand and a projected slight uptick in inventory, economists forecast that home sales this year will be slightly higher at 5.98 million in 2019 and next year reach near-2017 levels of 6.03 million.
Much of the high demand in the housing market lately has been coming from young adults. “The millennial cohort has now entered the housing market in force and is already driving major changes in buying and selling patterns,” Frank Martell, president and CEO of CoreLogic, said in a statement about its latest housing index that showed home prices moderating. “Almost half of the millennials over 30 years old have bought a house in the last three years. These folks are increasingly looking to move out of urban centers in favor of the suburbs, which offers more privacy and a greener environment. Perhaps most significantly, almost 80% of all millennials are confident they will become homeowners in the future.”
