Why Are You Buying A Home?

There are two main reasons a person may buy a home, as an investment and as a shelter.  Having the right mindset of whether the home is an investment decision, or a housing decision can be a HUGE help when submitting your offer in a competitive bid situation as could be the case throughout 2022.

The red-hot real estate market of 2021 is cooling down a bit but is still simmering with most homes entering a multiple offer situation with some still seeing double-digit offers.  With many factors of 2021 still in play in 2022, a home buyer cannot expect a dip in prices where you can jump in a score a “deal”.  The facts are clear:

  • Baby boomers are staying in their houses longer
  • Millennials who are entering the housing market are a relatively large population
  • Although interest rates are higher than a year ago, they are still at historic lows
  • Home construction is still slowed as the shortage of some building materials continues

If it is an investment decision, over-bidding for a property may not be the right move.  If it is a quick flip situation, even over-bidding by a slight amount could tank your ROI after your improvements are made and the home is sold again.

For example, 123 Main Street is on the market for $400,000.  An investor sees the property and thinks if he could buy it for $400,000, put $100,000 of upgrades into it in the next 3 months, he could put it back on the market for $575,000.  The investor would make a profit of $75,000 or 15%.

The investor submits his offer of $400,000 and the home enters a competitive bid situation due to the nice neighborhood it is in.  The investor increases his offer to $450,000 to secure the property.  He upgrades the home the following three months at the projected cost of $100,000 and is able to sell the house for $575,000.  The investor’s profit is now $25,000 or 4%.  Not a very good investment decision.

Let’s change the scenario to a newly married family with a couple of small kids.  They look at this $400,000 house as a great place to raise their family.  It is towards the high price of their budget, but they feel they can put some sweat equity into the property as they plan on staying there for 5+ years.

During the competitive bid situation, this couple stretches their budget and increases their offer to $450,000 so they can secure the home.  Their plan was a good one.  They viewed this as a housing decision.  They loved the home and were in a position to be able to over-bid for it and still feel comfortable with the monthly mortgage payment.

The future is unpredictable, but home prices increase about 4% on average per year.  If this couple stays in this home for 5+ years and puts in the sweat equity like they planned, when the time comes to sell, they will see a very healthy return on their original $450,000 purchase.  Check out this site that tracks medium home sale prices from 1953 to the present. Historical Median Home Prices

If a buyer can change their mindset on purchasing a new home to a housing decision and not an investment decision, they will have a much easier time getting their offer accepted because they know that even if they have to increase their offer on any given home, in the long run, the asset will appreciate, and that good housing decision will eventually turn into a great investment decision.

Unicorn Property! 🦄 How important is curb appeal to the sale of your home?! 

One of our latest sold properties, 14 Amherst Street #WilmingtonMA is a good indication. Covelle & Company successfully marketed and sold this beauty for 20% over the highest sold home to date in Wilmington!!!

Curb appeal is more than just how a house looks; it’s also a clever marketing tactic. What is curb appeal if not a type of marketing that aims to sell a home from the outside in? Expectations are set by curb appeal. If a prospective buyer likes what they see on the outside, they are more likely to look inside. When it comes to selling a home, first impressions matter. While improving a property’s outside may not be as thrilling as deciding what to do with the kitchen, it is more crucial in many respects. You want your property to have a “wow” factor at first glimpse. It shouldn’t, at the very least, turn off the vast majority of purchasers. The home’s curb appeal, on the other hand, should inspire consumers to investigate further.

When most agents shy away because there is no real comparable property to justify that dollar amount. Covelle & Co is there to recognize the unicorn 🦄 and accept the challenge!!! 💪🏻✨

The Unicorn Property: A golden opportunity to set a new record high for a town, paving the way for higher price points to fold into the market and boosting property value all around! 

Almost 90% of home buyers start their search for a new house on the internet. Having said that, if you want to spark potential buyers’ interest, you’ll need eye-catching photos that highlight your home’s curb appeal. Take many photos of your home at different times of the day for the greatest lighting and without any extra clutter like cars, bikes, toys, and so on. You want to present your home in the best possible light.

Improving a home’s exterior appeal will increase its value and speed up its sale. Homes are often valued based on the quality and amenities of the interior, making it difficult for financial institutions to determine how much curb appeal adds to the worth of a home. Properties with well-kept lawns and excellent landscaping, on the other hand, sell for 7% more than similar homes with exterior flaws or ugly front yards.

Have you been thinking of selling your home, want an agent who’s going to provide good direction so that you can obtain the highest possible return on your long-term investment? Covelle & Co. is here for you locally, nationally, and globally.. with connections and relationships with agents all over the world! 

The Best Ways To Boost Your House’s Curb Appeal

The lovely thing about curb appeal is that it’s simple to achieve with a few small changes. Here are six strategies to boost your home’s curb appeal:

 

Trees, Grass, and Landscaping

It’s pointless to devote your entire budget to the interior of your property if the exterior is a disaster. The quality of the lawn, landscaping and any other greenery near the front of the property should be your first priority.

 

The House’s Roof

In addition to beautifying the landscaping, you should assess the physical condition of your property, particularly the roof. Few aspects will either turn away or entice prospective buyers more than a home’s roof, despite the fact that it is not often viewed as the most beautiful component of a property. If the roof is old and just has a few years remaining on it, replacing it and trying to sell the house for a better price will provide you a positive return on your investment. Unless they are receiving a terrific deal, buyers will not want to pay out of pocket for a new roof after purchasing a home.

 

The Property’s Exterior

In addition to the roof, you should inspect the siding and exterior of the building. The presence of a filthy exterior should not be overlooked. Power washing a deck or your home’s siding won’t take long but will make a great difference.

 

Parking lot

The driveway is another outside feature that is sometimes disregarded. Your driveway doesn’t need to be replaced or resealed, but it shouldn’t be in bad shape either.

 

Front Door

What is the one thing you can’t seem to avoid seeing every time you go into your house? Your front door is the answer. Rather than replacing the door totally, investigate if a fresh coat of paint will suffice to bring it up to date. A front door in black or charcoal raises the value of a home by $6271.

Designer insta-worthy Condo | 16-18 Dover Street, Unit 18 Cambridge, MA

This might be our favorite #DesignsByErica projects yet! 16-18 Dover Street, Unit 18 has everything you’ve been ogling over on your current Pinterest boards. This insta-worthy condo offers 4 levels of living with incredible walkability to Davis Square, amazing restaurants, and your favorite specialty shop!

Designer: @erica_covelle @covelle_company
Photos: @a_louisjean_media
Staging: @ls.home.staging

Good agents know good agents✨

Interested in finding a home like this for yourself? Covelle & Co. is here for you locally, nationally and globally.. with connections and relationships with agents all over the world!
Connect with us today!!

. 617.962.1591
. info@covelleco.com
. covelleco.com

Prepare your home for the FALL market!

 

With the weather getting cooler and the leaves beginning to change, read below to learn how to prepare your home to sell in the fall! 

 

Analyze the Market and Price Your Home Right 

 

Decide if this is the right time to sell your home! Check with your local real estate experts for advice and help! 

 

Perform Inspections and Cleanings 

 

Check to make sure that applications like your HVAC system and furnace are properly working and ready for a potential buyer to move in!

 

Decorate For The Fall Season 

 

Interior/exterior decorating for fall, can go a long way in helping the potential buyer envision themselves living in your home. Buy some pumpkins or even a cute door decoration for your home, while avoiding things like blood and gore! 

 

Clean Up The Exterior

 

This can be as simple as raking leaves, weeding flower beds or cutting the lawn. Enhancing curb appeal, can show potential buyers that you care about the small details of your home! 

 

Prepare Your Home For Showings 

 

Embrace the fall season by burning a fall scented candle or even having pumpkin coffee brewing in your home. Make your home smell good with these fall scents!

What To Know as a First-Time Homebuyer

Buying a home for the first time is so exciting but can also be intimidating and stressful at the same time. There are so many things we feel we need to learn about becoming a homeowner before making one of the biggest financial investments of our lives. It turns out there are actually a lot of wonderful benefits that come with buying a home. We wanted to share some helpful things to know when considering buying your very first home based on frequently asked questions from actual first-time homebuyers.

 

Determining if You’re Ready

The first thing first-time homebuyers consider when thinking about buying a home is if they are really ready for this next step in life. In order to determine if you’re ready to become a homeowner you must consider the following: Have you been saving? Are you ready to settle down in a specific location? How is your credit score? Are you ready to keep-up with a home? Is your job secure? What are you looking for in a home? If you are considering these questions, then it is likely you are ready to purchase your first home. Having a savings and a secure job is incredibly important in order to come-up with a down payment on a home and be able to fulfill this long-term commitment. And, having good credit is important in order to get pre-approved for a mortgage. Not only do you need to be financially ready, but you also need to be emotionally ready. Buying your first home is a big change and responsibility. The process can be overwhelming which is why being emotionally prepared is so important.

 

Buying vs. Renting

One of the most frequently asked questions by first-time homebuyers is the difference between buying and renting. Well, there is a big difference, and there are many benefits that come along with buying and owning a home rather than renting. The first being that buying a home is a long-term investment. When you buy a home with a 30-year mortgage, you are making monthly payments to eventually own a home. Since most mortgage rates are fixed, that means you are paying the same amount monthly and ultimately avoiding the increasing costs of monthly rent payments. As time goes on, the value of the property increases and the homeowner builds equity. Those are just a few of the many benefits of buying your first home.

 

Getting Pre-Approved

Before even looking at homes, it is important to get pre-approved for a loan in order to know exactly what you can afford. This pre-approval can keep you on the right track while looking for homes and also avoid the possibility of looking at homes that are simply outside your price point. Pre-approved is based on financial information such as income, assets, proof of employment, and credit score. Homebuyers with higher credit scores get lower interest rates, and homebuyers with lower credit scores get higher interest rates. Overall, getting pre-approved before looking for a home will relieve stress for first-time homebuyers, creating a more seamless experience.

 

Mortgage Options

Did you know that 9 out of 10 home buyers choose a 30-year fixed-rate mortgage? Although there are so many financing options out there when it comes to buying a home, the 30-year fixed-rate mortgage is great for first-time buyers. Not only does it give you 30-years to pay off your mortgage, but the payments actually end up being lower. This allows more people to qualify for this loan. It also offers predictability since the payments are fixed meaning they will not change. Although the 30-year fixed-rate mortgage tends to be more popular among home buyers, the 15-year also has many benefits. The first being, you will be a homeowner in 15 years rather than 30. This means less time spent with monthly mortgage payments, less interest, and the ability to build home equity faster. Both the 30-year and 15-year mortgages are great options, but it all comes down to how much you can afford for monthly payments, as a 15-year fixed-rate mortgage requires higher monthly payments. When looking for the financing option for you, it is important to do your homework and be aware of how much you can afford before making a decision.

 

Finding a Realtor

Many first-time home buyers wonder if getting a realtor is really necessary when buying a home. The answer is, YES! Although you technically can buy a home without a realtor, having a realtor makes the experience so much easier for you as a buyer. First, realtors have the experience that you as a buyer do not. They know the ins and outs of the business and ultimately how to negotiate the best deals. Rather than playing a guessing game causing additional stress as a buyer, having a realtor gives you someone to lean on and trust through the process. Realtors have a lot of connections, as well as expertise in all areas such as properties, locations, negotiation, and the language of real estate. Realtors will not just help you find your first home, they will guide you and support you through the entirety of the process.

 

So, if the time is right, buying your first home could be the right move for you! There is so much to take into consideration when making this huge decision. It is important to do your homework when thinking about buying your very first home. Collecting as much knowledge as possible before diving into the process will only help to create a more seamless experience for yourself.  Hopefully, these tips helped you jumpstart the process of finding your dream home.