Sellers • July 31, 2024

Boost Your Home’s Appeal with These Affordable Upgrades

by Craig Melton

When it comes to selling your home, making a great first impression is crucial. But what if you don’t have the budget for a major home renovation?

Luckily, new data from Zillow and Thumbtack reveal that you don’t need to break the bank to boost your home’s appeal. “Certain low-lift projects can deliver a high payoff because they elevate a home in the mind of a buyer,” said Amanda Pendleton, Zillow’s home trends expert.

Here are the top 10 no-demo home renovation projects of 2024 that can make your home stand out in the market and attract more buyers.

#1—Window Box

Who doesn’t love a pop of color and greenery? Window boxes are a classic way to enhance your home’s curb appeal. These charming containers for flowers, plants, or herbs can be installed just below the window sill, instantly bringing new life to your home’s exterior.

Zillow stats: Homes with a window box receive 48% more saves and 52% more shares per day compared to similar homes without this feature.
Average national cost: $100 to $150 for professional installation and $15-$900 for materials

#2—Open Shelving

Open shelving has become a hot trend in home decor, with closet systems and shelving installations up 31.5% year over year according to Thumbtack. It’s a great way to display your favorite items while creating an airy and modern look. This project can be a DIY endeavor or you can hire a professional for a custom built-in.

Zillow stats: Homes with open shelving receive 37% more saves and 45% more shares per day compared to similar homes without this feature.
Average national cost: $275 for professional installation (excluding the cost of shelves)

#3—Painted Brick

If you have a brick exterior, consider giving it a fresh coat of paint. A new color can completely transform the look of your home and increase its curb appeal.

Zillow stats: Painted brick homes receive 31% more saves and 39% more shares per day compared to similar homes without fresh paint.
Average national cost: $4,600–$7,600, including labor, material and equipment

#4—Vintage Charm

Vintage elements can add a unique touch to your home. Think about incorporating vintage light fixtures, hardware, or even furniture. Not only does it add character, but it can also save you money compared to buying brand new items.

Zillow stats: Homes with vintage touches receive 28% more saves and 31% more shares per day on Zillow compared to similar homes without them.
Average national cost: Vintage decor costs vary, but you can find great pieces for less than $100. Vintage crown molding, for example, costs between $2 and $50 per linear foot and can make ceilings appear higher while adding architectural interest.

#5—Outdoor TV

An outdoor entertainment area can significantly boost your home’s value. One easy way to create this space is with an outdoor TV. Installations have risen 12.7% year over year, making it a popular addition for many homeowners.

Zillow stats: Homes with an outdoor TV get 28% more saves and 26% more shares per day than those without.
Average national cost: $175-$200 (this can increase depending on electrical capabilities and weatherproofing)

#6—Picket Fence

It may be part of “The American Dream” stereotype, but a white picket fence is a timeless feature that continues to boost curb appeal. Added bonus: it provides a fenced-in yard for pets, a feature many buyers appreciate.

Zillow stats: Homes with a picket fence receive 27% more saves and 31% more shares per day than yards without a fence.
Average national cost: $7–$45 per linear foot

#7—Pergola

As outdoor living becomes more important (and summers hotter and hotter), adding a pergola can provide much-needed shade and a stylish gathering space.

Zillow stats: Homes with a pergola get 20% more saves and 24% more shares per day than those without.
Average national cost: $3,600 for a 10-by-10-foot pergola, including labor and materials

#8—Fire Pit

A fire pit can make your backyard a cozy retreat for summer nights. This DIY-friendly project can be completed at a low cost, providing an inviting outdoor feature.

Zillow stats: Homes with fire pits see 19% more saves and 23% more shares per day than those without.
Average national cost: Under $1,000 (depending on the kit purchased)

#9—Outdoor Sound System

A sound system is another way to start (or add to) an outdoor entertainment area. A little music can help set the tone for any type of gathering. If you bundle this project with an outdoor TV, it could help you save on labor costs, as they can be set up at the same time.

Zillow stats: Homes with this feature see 18% more saves and 19% more shares per day.
Average national cost: $500-$2,000 depending on the system

#10—Smart Lighting

Upgrade your home’s lighting with smart technology. This modern feature can make your home more attractive and functional.

Zillow stats: Homes with smart lighting get 18% more saves and 23% more shares per day than those without.
Average national cost: $308 for installation

Conclusion

These projects can make a significant impact on your home’s appeal and market value. And the best part is, no reno needed!

“These features bring a wow factor to a home or they serve as a signal that a home is up-to-date, well-maintained or move-in ready,” said Pendleton. “When it’s time to sell, these features may ultimately help a home sell faster or for more money, because there will likely be more competition for that home among buyers.”

Whether you’re looking to sell soon or just want to enjoy some new features, these home renovations are worth considering. Remember, small changes can make a big difference!

Buyers • July 30, 2024

Your Guide to Mortgage Resources in Northeast Arkansas

by Craig Melton

A recent study by Fannie Mae revealed a surprising lack of confidence among consumers about the mortgage process.

There’s good reason to feel a little cautious. Here in [Market], home prices have risen [x%] since 2020, and mortgage rates have also climbed. However, homeownership remains a top priority for most, with many considering it a sound long-term investment.

All of this can lead to feeling overwhelmed and unsure of your ability to qualify for a home loan. The good news is there are options available—options you may not even be aware of.

So today, we’ll discuss some different mortgage resources available here in Jonesboro and the surrounding Northeast Arkansas area.

Challenges When Navigating the Mortgage Process

Fannie Mae’s study found that many consumers are unaware of important aspects of the mortgage process, which creates additional hurdles.

Here are the top three challenges consumers face due to knowledge gaps:

Lack of confidence: Less than half (45%) of consumers would feel confident going through the mortgage process. That number drops to 38% for those who are actively home shopping.

Overestimating minimum down payment: 90% of consumers either don’t know or overestimate the minimum down payment required for a typical mortgage.

Misestimating minimum credit score: Only 32% of consumers know the approximate minimum credit score required by mortgage lenders (the FICO minimum score required is 620). The remaining either overestimate or underestimate this number.

The study also found that just 32% are “somewhat” or “very” familiar with low down-payment programs, and 40% are aware of mortgage counseling services available.

To make sure that you have all the information you need, keep reading for mortgage resources available here in Northeast Arkansas.

Mortgage Resources in Northeast Arkansas

Low Down Payment Assistance Programs

You may know that a 20% down payment isn’t required, but how low can you go? In some cases, as low as 0-3% down. Here are some programs available in Northeast Arkansas:

Mortgage Counseling Services

Housing counseling or mortgage counseling services are also available to help you prepare your finances and get ready for the costs of home ownership.

Freddie Mac Borrower Help Centers (select your region for a list): https://myhome.freddiemac.com/resources/working-with-freddie-mac-borrower-help-centers

Search for HUD’s participating housing counseling agencies in your area here: https://answers.hud.gov/housingcounseling/s/?language=en_US

Professional Lenders

Reading about these programs and services online is one thing, but I always recommend speaking with a knowledgeable, trusted professional to gain a deeper understanding of all the resources available to you. Let me know here, if you’d like my list of vetted mortgage lenders, and I’ll send them right over.

Remember, the key to a successful home buying experience is knowledge and preparation. By getting the right support system in place, you can turn your dream of homeownership into a reality.

Buyers • Housing Market • July 19, 2024

Home Insurance on the Rise? Here’s How to Save on Rates in 2024

by Craig Melton

Now, more than ever, having the right home insurance is essential.

But with rates on the rise, how do you ensure you’re getting the best coverage without breaking the bank? Let’s explore the ins and outs of home insurance and uncover some strategies to secure the best deal for your home in Northeast Arkansas.

Understanding the Rising Costs of Home Insurance

Since 2019, home insurance rates have surged by 37.8% across the United States. Several factors contribute to this rise:

Inflation and Home Prices: As home prices increase, so does the cost to insure them. Inflation has also driven up the cost of building materials, making repairs more expensive.
Natural Disasters: Climate change has led to more frequent and severe natural disasters, resulting in higher claims and, consequently, higher premiums.
Insurance Company Costs: Insurance companies are facing higher costs to repair homes and are passing these costs on to consumers.

In Northeast Arkansas, home insurance rates are following the national trend. Arkansas has had a 34.1% increase in rates since 2019. Note: look up how much rates have increased in your state here.

While this is news no one wants to hear, there are things you can do to secure a lower rate. Let’s take a look.

How to Find the Best Home Insurance Rates

1. Shop Around and Compare Quotes

Just like you wouldn’t buy a house without looking at a few options, don’t settle for the first home insurance quote you get. Compare quotes from multiple providers to see who offers the best rates for the coverage you need. I can help connect you with vetted home insurance representatives in [Your Market].

2. Bundle Your Policies

Many insurance companies offer discounts if you bundle your home insurance with other policies, such as auto insurance. This can lead to significant savings and simplify your insurance management.

3. Improve Your Home’s Security

Insurance companies often provide discounts for homes with enhanced security features. Installing alarm systems, smoke detectors, and deadbolt locks can reduce your premium. Some insurers even offer discounts for eco-friendly home upgrades.

4. Increase Your Deductible

Opting for a higher deductible can lower your monthly premium. However, ensure you choose a deductible that you can afford in case you need to make a claim.

5. Make Strategic Home Improvements

Insurance companies look at the age and condition of your property—and pay close attention to exterior features like the roof, windows and doors. These renovations can help you lower your home insurance rates. Adding features like storm shutters or upgrading electrical systems can also make a difference.

6. Maintain a Good Credit Score

In many states, insurance companies use your credit score to determine your premium. A higher credit score can result in lower rates. Make sure to pay bills on time, reduce debt, and monitor your credit report for any errors.

7. Review Your Coverage Annually

Your insurance needs may change over time, so it’s essential to review your coverage annually. Ensure that your policy still meets your needs and that you’re not paying for unnecessary coverage.

Conclusion

Securing the best home insurance at the best price requires a bit of research and strategic planning. By understanding the factors driving up insurance costs and taking proactive steps to reduce your premium, you can protect your home without overspending. Remember to review your policy regularly and stay informed about changes in the insurance landscape. Your home is one of your most valuable assets—make sure it’s adequately protected.

If interested, check out my other blogs.

Housing Market • July 9, 2024

8 Experts Predict Home Prices for 2025

by Craig Melton

home prices, home prices in 2025, home price predictions, 2025 housing market prediction, housing market forecast, real estate trends, Jonesboro housing market, Jonesboro real estate

Lately, there’s been a lot of buzz about what’s next for home prices, especially with 2024 shifting gears in some markets. Here in Jonesboro, we saw the number home sold increase by 3.6% and the median home prices increase by 2.6% during the first six months of 2024 in comparison to the first six months of 2023.

But what about the future of the market? Listen, no one has a crystal ball, but experts have released early predictions for home prices in 2025. Let’s dive in.

The Big Picture: National Home Price Predictions for 2025

It’s hard to believe 2024 is halfway over! Looking ahead to 2025, experts predict a slowdown in the national housing market’s breakneck pace. Now, that doesn’t mean prices are plummeting. In fact, the average forecast anticipates a +2.5% increase in national home prices for 2025. That would mark the 13th consecutive year of home price growth.

Home projections vary among major groups, with predictions running from a 0.3% increase to 4.4%

Goldman Sachs: +4.4% growth in home prices in 2025
Wells Fargo: +4.3%
Mortgage Bankers Association: 3.3%
Morgan Stanley: 3.0%
Zelman & Associates: 2.3%
Fannie Mae: 1.5%
Freddie Mac: 0.5%
Moody’s Analytics: 0.3%

It’s Not a One-Size-Fits-All Picture

While national trends provide a useful overview, real estate is inherently local. Jonesboro might not follow the national average. Local factors such as the labor market, inventory levels, and specific regional economic conditions will play a significant role in shaping the housing market here.

For instance, areas with strong job growth and limited housing supply may continue to see higher price appreciation, while other regions may experience more modest gains or even slight declines.

Some of the key factors I watch every month include:

Inventory Levels
Interest Rates
Average Days on the Market
Median Sale Prices
List-to-Sale Price Ratio

If you want to be updated on the local market data, sign up for your neighborhood news here.

Navigating the real estate market in Jonesboro in 2025 requires a blend of national insights and local expertise. By understanding the broader trends and keeping an eye on local market dynamics, you can make informed decisions whether you’re buying or selling a home. Stay tuned for more updates and feel free to reach out with any questions or for personalized advice on your real estate journey.

If you don’t already follow me on social media, check out my Facebook and Instagram pages.

Source: ResiClub

Sellers • July 3, 2024

Selling a Home: More Stressful Than Saying ‘I Do’?

by Craig Melton

Selling a home is considered more stressful than planning a wedding.

Yes, you read that right! According to a recent study by Opendoor, selling a home is 35% more stressful than planning to exchange vows. And for many homeowners aged 55 and over, selling a home is often intertwined with major life transitions, adding another layer of emotional complexity.

This statistic might surprise some, but it highlights the significant emotional and logistical hurdles involved in selling a property. Whether you’re downsizing, relocating, or simply embarking on a new chapter, understanding the potential stressors and planning effectively can make a world of difference.

Why is Selling a Home So Stressful?

Among 55+ Americans, selling a home (65%) ties with starting a new job (65%) as the most stressful life events. These events are considered more stressful than buying a home (62%) and planning a wedding (48%).

Women in this age group find home real estate transactions significantly more stressful than men, with 72% of women citing selling a house as the most stressful event compared to 57% of men.

Here are just a few of the reasons selling a home can be overwhelming:

Emotional Attachment

Homes are more than just structures; they hold memories and sentimental value. Of those surveyed, 66% feel attached to their homes, and 56% have lived in their homes for 15 years or more. This makes leaving a home a bittersweet mix of emotions, making the selling process emotionally taxing.

Uncertainty and Financial Pressure

Selling a house involves many uncertainties, such as finding a buyer, negotiating prices, and dealing with market fluctuations. The financial stakes are high, and the pressure to get the best deal can add to the stress.

Coordination of Logistics

From staging and showing the home to handling paperwork and moving logistics, the process requires meticulous planning and coordination. This can be overwhelming, especially for those who are also juggling other life responsibilities.

Tips for Managing Home Selling Stress

Understand Your Selling Options

Knowing your options and planning ahead can significantly reduce the stress of selling a house. Partnering with a real estate professional allows them to handle marketing, negotiations, and paperwork—not to mention an average of $34,000 more in profit, according to a recent study. Check out my previous blog: The Costs of Selling a Home (and How to Maximize Your Profits)

Another option is iBuyers, which is when companies buy homes directly. These often offer a fast and convenient sale, though offers are typically lower than a traditional sale. Selling yourself (FSBO) requires a significant effort in marketing, negotiations, and legal aspects. This can save on agent commissions, but typically results in a lower sale price.

Set Realistic Expectations

Understanding the current market conditions and setting realistic expectations can prevent disappointments. Today’s market is not like the one in 2021-2022! If working with a professional, discuss your goals with your real estate agent and be prepared to make changes based on what’s happening locally.

Simplify the Process

Consider decluttering and staging your home early in the process. A well-presented home can attract buyers more quickly, reducing the time your home is on the market. Additionally, having all necessary documents organized and ready can expedite the closing process.

Final Thoughts

Selling a home is undoubtedly an emotional experience. However, understanding the factors that contribute to this stress and implementing strategies to manage it makes the process more manageable. By planning ahead and setting realistic expectations you can navigate the home selling journey with greater ease and confidence.

Sellers • June 30, 2024

The Costs of Selling a Home (and How to Maximize Your Profits)

by Craig Melton

selling a home, home seller costs, costs to sell a home, maximize home sale profits, avoid seller regrets, how much does it cost to sell a house, should I use a real estate agent to sell my house

Let’s face it—between repairs, closing costs and commissions, everything associated with the costs of selling a home can add up fast. Case in point: homeowners reported spending $54,616 when selling their homes, according to a recent survey from Clever Real Estate—an amount that was surprising to 42%.

Despite the costs, the majority (64%) made a profit on the sale of their home, with the median profit totaling $100,000.

With the right strategy, you can maximize your profits and minimize regrets. In fact, the study also showed that sellers who worked with a real estate agent walked away with an average of $34,000 more than those who went it alone. That’s a pretty compelling argument for having a pro in your corner!

Rather than just taking my word for it, let’s dive into:

The costs associated with selling a home
Regrets home sellers reported
How you can avoid common mistakes

The Costs of Selling a Home

Selling a home at the highest possible price involves various costs. Here’s what survey respondents said they paid for, on average:

Listing agent commission: $11,136
Buyer’s agent commission: $10,467
Repairs: $10,000
Closing costs: $8,000
Concessions: $7,200
Moving expenses: $3,250
Marketing: $2,300
Staging: $2,263

Keep in mind that every transaction is different—some of these costs are negotiable (like agent compensation), some may not be needed for every property, and some could be lower or higher based on the condition of the home or what’s happening in the local market.

Common Regrets of Home Sellers

Regret was a common sentiment among home sellers who participated in the survey, with 89% expressing some sort of regret post-sale, including 92% of those who sold without an agent.

The most common regrets about the home selling process included:

Selling too quickly (30%)
They miss their old home (29%)
Not selling for enough money (28%)
Not making enough pre-listing repairs (26%)
Making too many concessions (26%)
Failing to stage the home (25%)

Now, let’s get into something I’m really passionate about—the regrets home sellers had about their agent. Half of those surveyed say their agent “failed them” in some way. This is why who you work with matters so much.

Here’s what respondents had to say about their agent:

Agent’s advice let them down (57%)
Agent made mistakes with their listing (53%)
Agent didn’t communicate enough (50%)

So, with all these regrets floating around, how can you make sure these things don’t happen to you?

How to Maximize Your Home Sale

Making the most of your home sale starts with working with the right real estate agent (remember, agents help homeowners get an additional $34,000 for their home sales). I always encourage sellers to interview at least two agents, because when it comes to selling your biggest asset, having the right professional by your side is critical. That’s why I also recommend home buyers meet with more than one mortgage lender.

Check out this blog The Biggest Mortgage Loan Mistakes People Make

When interviewing agents, look for the following:

Find a Professional: Look for an agent with deep knowledge about the local market, strong negotiation skills and a solid marketing plan.
Check References and Reviews: Ask for references and read online reviews to ensure the agent has a history of satisfied clients.
Discuss Your Goals and Expectations: Make sure your agent understands your goals and priorities for the sale. In addition, be sure to ask about their communication plan.
Evaluate Their Marketing Plan: A good agent will have a comprehensive marketing strategy to attract potential buyers, including online listings, social media promotion, and professional photography.
Understand Commission Structure: Discuss the commission upfront to avoid any surprises later.

Once you find a real estate agent you are confident with, work with them to learn what type of repairs or staging will make a difference. They will be able to walk you through the process and provide guidance on what matters most to buyers.

The Bottom Line

Selling your home comes with a series of big decisions. A real estate agent is your partner in the process, and their expertise can mean the difference between tens of thousands of dollars in your pocket.

For a free consultation or discovery call to chat about your goals, connect with me here. MeltonVenturesLLC@gmail.com

Buyers • June 24, 2024

The Biggest Mortgage Loan Mistakes People Make

by Craig Melton

There’s nothing like the moment when you’ve found your dream home. It’s easy to get caught up in the excitement and make moves to finalize everything as quickly as possible. And while timeliness is important, it can lead to mistakes that end up costing you thousands. But what about a mortgage loan?

Here are the four biggest mortgage loan mistakes people make when securing financing.

Mistake #1—Not Shopping Around for Mortgage Offers

It’s tempting to go with the first mortgage offer you receive, especially when you’re eager to close the deal on your new home. According to a LendingTree study, the majority of people (54%) do just that—they only get one offer.

Jacob Channel, Lending Tree senior economist, explains why this is a mistake. “Different lenders can offer different rates to the exact same borrower. With that in mind, the first rate you’re offered may not be the lowest one you can get. The more offers you can look at, the better.”

Think about it: if you only go to one store to compare prices, wouldn’t you miss out on potential savings? The same goes for mortgages! Different lenders offer different rates, and even a small difference in interest rate can translate to significant savings over the life of your loan. The same LendingTree study found that 45% of those who did shop around for a mortgage ended up with a better offer. This means almost half of the buyers who took the time to compare multiple offers saved money.

Mistake #2—Relying Solely on Recommendations

It’s great to trust your real estate agent’s recommendations. After all, we work to build strong relationships with lenders and vendors to best serve our clients. However, if your agent only recommends one lender, it can limit your options. Each lender will have different options and tools for securing a mortgage.

The lenders I recommend each offer unique benefits and always work to secure the best loan possible. However, even I don’t know which one will come in with the lowest rate on any given loan! So, checking in with each one is key to getting the best deal.

Aim to get at least two different mortgage offers to compare. Diversifying your lender options can help you find competitive rates and better terms.

Mistake #3—Ignoring Different Mortgage Loan Types

Not all mortgage loans are created equal. Beyond the typical 30-year fixed-rate mortgage, there are various loan types like adjustable-rate mortgages (ARMs), FHA loans, VA loans, and USDA loans, each with its benefits and drawbacks. Ignoring these options might mean missing out on a loan that could better suit your financial situation.

This is another reason that it’s important to shop around. Each lender may have access to different types of loans. Discussing all of them will help you understand which one aligns best with your circumstances.

Mistake #4—Not Considering Future Financial Plans

When choosing a mortgage, consider your long-term financial plans. Are you planning to stay in the home for a long time, or might you move before 10 years is up? This can influence which type of mortgage loan (i.e., fixed vs. ARM) is a better option for you. Additionally, think about how your income might change over time and whether you might want to make extra payments to pay off the mortgage faster.

Aim to align your mortgage choice with your future financial goals to ensure you’re making the most strategic decision.

Conclusion

Securing a mortgage loan is a significant step in the home buying process, and avoiding these common mistakes can save you time, money, and stress. Remember—it all starts with shopping around! By doing so, you’ll be well on your way to getting the best mortgage deal possible.

Do you need some recommendations on vetted mortgage lenders in Jonesboro market? Contact me here MeltonVenturesLLC@gmail.com and I will connect you!

If you haven’t already, check out my other blogs.

Housing Market • June 24, 2024

Real Estate vs. Stocks: The Ultimate Long-Term Investment Showdown

by Craig Melton

When it comes to long-term investments, Americans have a clear favorite: real estate.

According to a recent Gallup poll, 36% of Americans believe real estate is the best long-term investment, outpacing stocks (22%), gold (18%), savings accounts (13%), bonds (4%) and cryptocurrencies (3%).

Why is that the case? Let’s dive into why so many people believe that owning property is the ultimate way to build wealth over time.

The Popularity of Real Estate as a Long-Term Investment

For 11 years running, real estate has consistently topped the list of preferred long-term investments in Gallup’s annual Economy and Personal Finance survey.

Americans’ Perceptions of the Best Long-Term Investment

This preference for real estate is driven by several factors:

Tangible Asset: Unlike stocks or bonds, real estate is a tangible asset that you can see and touch. This physical presence provides a sense of security that is hard to match.
Appreciation Over Time: Historically, real estate values have shown steady appreciation. From the 1990s to the 2020s, home prices have consistently increased, making real estate a reliable investment.
Dual Benefits: Owning a home provides not only potential financial returns but also a place to live. This dual benefit is unique to real estate and adds to its appeal.

Gallup’s poll found this preference holds true across all income levels, with 33% of lower income households stating they believe real estate is the best long-term investment, along with 36% of middle income households and 40% of upper income households.

Perceptions of the Best Investment, by Annual Household Income

Real Estate vs. Other Investments

While real estate is the top choice for many, it’s important to consider how it stacks up against other investments. Stocks, for example, have historically offered higher returns. From 1990 to April 2024, the S&P 500 surged by 1,325%, while the S&P CoreLogic Case-Shiller U.S. National Home Price Index rose by 308%.

However, stocks come with higher volatility. Real estate, on the other hand, tends to provide more stable growth. Even during economic downturns, such as the Great Financial Crisis of 2008, real estate has shown resilience and recovery.

This is highlighted when you look back at U.S. home price growth by the decade.

Statics show that home prices have risen historically ever decade since the 40's.

U.S. home price growth by decade:

1990s: +30.1%
2000s: +47.3%
2010s: +44.7%
2020-2024: +47.1%

Locally, home prices have risen 5.1% over the past year, and 32.9% since 2020.

Is Real Estate the Right Investment for You?

Real estate can be a fantastic long-term investment, especially in a growing market like Jonesboro, Arkansas. But before diving in, consider your individual situation:

Long-Term Commitment: Buying a home is a long-term play. If you plan to move in a few years, it might not be the best fit.
Financial Strength: Real estate requires a down payment, closing costs, and ongoing maintenance expenses. Make sure you have a solid financial foundation.
Investment Goals: Consider your overall investment goals. If you prioritize high returns and easy access to your money, another investment might be a better fit.

And keep in mind that diversification leads to a balanced investment strategy. Financial experts recommend spreading investments across various assets to hedge against different market forces and increase the odds of a net profit over the long term. This means integrating real estate within a broader portfolio that includes stocks, bonds, and other investment vehicles.

Bottom line: While poll results show that Americans prefer real estate as a long-term investment, there is no one-size-fits-all answer. Always consult with your financial advisor when planning to invest for your future, as the best option depends on your financial goals, risk tolerance, and investment timeline.

Investors • Sellers • June 20, 2024

The Secret to High ROI Home Remodeling in Today’s Market

by Craig Melton

What is will get you the return on investment when remodeling in today's market?

Thinking about sprucing up your home? Whether you’re planning to sell soon or just want to enhance your living space, remodeling can be a great investment. But not all projects offer the same return—especially since home repair costs have risen 40% since 2019.

I know remodeling costs today can be disheartening, but the experts at Zonda, a housing market research firm, just released their 2024 Cost vs. Value Report, and it’s packed with insights to help you maximize your return on investment (ROI).

Curb Appeal is King

When it comes to boosting your home’s value, exterior improvements are where it’s at. According to Zonda, eight out of the top ten projects with the highest ROI are exterior upgrades.

Why? Because first impressions matter. A home with great curb appeal can stand out in the market, attracting more buyers and potentially selling for a higher price.

According to Clay DeKorne, Zonda’s chief editor, exterior replacement projects continue to make the most sense when it comes to adding resale value. In today’s market, characterized by higher mortgage interest rates and homeowners with significant equity, these projects stand out for their high ROI.

Cost vs. Value: National Average for Home Remodeling Projects

Below are all of the home remodeling projects that Zonda analyzed for its report, ranked by highest return on investment.

Top 3 Projects with the Highest ROI

This year’s report shows that the hottest projects for maximizing your ROI are actually the “unsexy” ones – the things that maybe don’t grab headlines but definitely grab buyers’ attention.

Just take a look at the top three on the list, each of which has an ROI well over 100%.

Garage Door Replacement: 194% ROI. This project tops the list, almost doubling its return from last year. A new garage door can dramatically improve your home’s exterior look, making it more attractive to buyers.

Steel Entry Door Replacement: 188% ROI. Replacing your front door with a steel one doesn’t just boost security; it also enhances the overall appearance of your home. It’s a simple upgrade with a significant payoff.

Manufactured Stone Veneer: 153% ROI. Adding stone veneer to your home’s exterior can give it a luxurious and durable look. This upgrade is not only stylish but also highly valued by homebuyers.

For those looking for small projects with a big impact, doors are a great place to start.

“A new garage door or new entry door can make a pronounced difference,” says Todd Tomalak, principal of Zonda Advisory. “It could be the thing that makes one house stand out against all the others, making the home worth a higher price.”

Of course, there are other not-so-glamorous upgrades that can add value. Things like a new roof, windows replacement, and HVAC conversion also made Zonda’s list.

Key Takeaway for Remodeling

While a luxurious kitchen remodel might be your dream, the data suggests it won’t necessarily pay off as much when it comes to resale value. That doesn’t mean you can’t enjoy a new kitchen! But if you’re focused on maximizing your return on investment, target those exterior improvements and strategic interior updates first.

Ready to get started with some upgrades but don’t know where to start? I have a contact list full of trusted vendors in the area, pre-vetted for quality and affordability. These are the folks I call on myself, and I’m confident they can help you achieve your home improvement goals!

Email me at MeltonVenturesLLC@gmail.com for my top recommendations!

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Buyers • June 8, 2024

4 Financial Tips for Today’s Home Buyer to Eliminate Financial Stress

by Craig Melton

Feeling the Stress of Buying a Home - Tips to Help

Buying a home is a major milestone, but it’s not always the right time for everyone. It’s important to remember that a home purchase is a long-term investment, and making this decision without proper financial planning can lead to significant stress. For more insights on the long-term benefits of real estate investment, check out our blog from last week.

The truth is, knowing when not to buy a home is just as crucial as knowing when to buy. Whether you’re a first-time buyer or looking to move, understanding your financial situation is key to making a wise decision. Let’s start by looking at what recent home buyers are experiencing in today’s market.

Causes of Financial Stress for Today’s Home Buyers

According to a recent survey from Clever Real Estate, 43% of homeowners who bought in 2023 or 2024 have struggled to meet their monthly mortgage payments. This financial strain is due to several key factors:

37% of buyers purchased a home that exceeded their initial budget
44% of new homeowners have taken on extra debt outside of their mortgage to maintain their lifestyle
50% accepted a higher interest rate than planned (Note: This is why it’s important to base your budget on a monthly payment, not the purchase price of the house—but more on that, later.)

All of these factors lead to financial stress and regret—and that’s the last thing new homeowners need to deal with. To help avoid these pitfalls, let’s discuss some key financial tips you need to consider before taking the plunge.

4 Key Financial Tips to Consider

1. Assess and Plan Your Budget

Setting a realistic budget is the cornerstone of a successful home-buying experience. However, you can’t just think about the purchase price of the home. Factor in all potential expenses that will impact your monthly budget. Include costs such as property taxes, insurance, HOA fees, and unexpected repairs. You’ll also want to leave a little wiggle room for fluctuating mortgage rates. Knowing what you can comfortably afford in monthly payments rather than the total purchase price will set you up for success.

Additionally, don’t forget about the upfront costs associated with buying a home. These include the down payment, closing costs, home inspections, and moving expenses. Saving for these costs is crucial to avoid dipping into emergency funds or taking on extra debt. Planning ahead for these expenses ensures you can cover them without compromising your financial stability.

2. Minimize Additional Debt

Aim to avoid taking on extra debt before, during and immediately after your home purchase. Keeping your finances in check will help you manage your mortgage payments more comfortably. Once you have been making regular payments for several months, you can reassess your finances and make adjustments to your budget where needed.

3. Monitor and Improve Your Credit

In Q1 2024, the median credit scores for mortgages remained flat at 770 and auto loans were at a record high of 724, according to the New York Fed. This means banks aren’t just giving away mortgage loans like pre-2008 (which is a good thing!). It also means that maintaining good credit is essential for favorable loan terms. Regularly check your credit report and address any discrepancies.

4. Plan for the Future

Think about your long-term financial goals and how buying a home fits into them. Are you planning to stay in the home for several years, or is this a short-term move? Your plans will impact how you manage your finances—as well as your decision to buy. Ensure your home purchase aligns with your broader financial objectives to avoid future regrets.

In addition, having an emergency fund is vital for future financial stability. Ensure you have enough savings to cover at least three to six months of expenses. This safety net provides peace of mind and financial security if unexpected costs arise, helping you avoid financial stress.

Knowing When NOT to Buy

So, when should you consider holding off on buying a home? Here are some signs:

High Debt Levels: If your debt-to-income ratio is high, adding a mortgage might strain your finances.
Unstable Income: If your job situation is uncertain, it might be wise to wait until your income is more stable.
Lack of Savings: Ensure you have enough savings not just for the down payment, but also for emergencies and ongoing maintenance.
Uncertain Plans: If you may be moving in the near future, purchasing a home may not be the best option.

Recognizing these signs and being honest about your financial situation can save you from potential stress and regret. By taking the time to assess your readiness and plan carefully, you’ll be in a stronger position to make a successful and satisfying home purchase when the time is right. Remember, waiting until you’re financially prepared isn’t a setback—it’s a smart step towards a more secure and enjoyable homeownership journey.