townhouse

5 Home Renovations That Add Home Value

Not all home projects are created equal, and some add more value to your home than others. Here are the top value adding home renovations to pay for upfront, for more payoff down the line. 

Kitchen Renovations

According to the National Association of REALTORS® (NAR) Remodeling Impact Survey, not only are kitchen remodels the most appealing projects to buyers, but they are also the most likely to add value to the home for resale.

In fact, this report states there is a 59% ROI on this project.

Basement Updates

Are you looking to gain more functionality for your home and family? Renovating your basement into a living area may be the best option for you. This project will improve your joy while you live in the home, and will have pay off when you sell it.

This may be a more costly renovation according to NAR’s Remodeling Impact Survey. The report states there is a 64% ROI on this project.

Wood Flooring 

The flooring may be one surface that gets worn out the fastest from foot traffic, dirt, scratching and more. It may also be one of the best features to upgrade in your home, as it tends to pay for itself! 

According to NAR’s Remodeling Impact Survey, 106% of the value of this project is recovered when the home is sold. Even if you’re not looking to fully replace your flooring, the report states this project will provide a 100% ROI to your bottom line. It’s a win-win! 

Bathroom 

If you have a two to three-bedroom home and only two bathrooms, adding an additional half bathroom is great to consider. Going from two bedrooms to two and a half bathrooms will add 10.5% in value to your home. 

While you’re living in your home, adding an extra bathroom may add peace of mind that surpasses the money you’ll spend on the bathroom itself by avoiding arguments and stress caused by sharing bathroom time. 

New Roofing 

Putting a new roof on your home is a money saver in multiple ways. Not only is the ROI high on this project, up to 109%, but you will also save on your energy bill too. A new roof will reduce cooling costs, add curb appeal, protect again home damage like water and much more!

5 Financial Questions To Ask Yourself Before Buying A Home in Chicago

Finances are typically the most intimidating part of the homebuying process. So, here are five financial questions to ask yourself so you feel as empowered as possible.

#1: How Are Your 4 C’s?

Let’s look at loan eligibility or “buying power.” Most lenders evaluate a person’s buying power based on four elements called “the four C’s.” They are capacity, capital, collateral and credit.

Before you buy a home, make sure you are well-versed on the status of or know where and how to check on these.

  • Capacity: This is your ability to take on a mortgage or pay back a loan. Income, savings and monthly debt payments are some of the factors that affect capacity.
  • Capital: This is the amount of money or savings you have readily available. Think of it as your personal reserves that are not tied to income. Closings cost funds and your down payment funds are types of capital!
  • Collateral: When you take out a loan, this is the monetary value of the property you’re securing against it.
  • Credit: This is based on your credit score and history. A lender wants to know if you have a history of paying other debts on time and in full.

#2: Who’s On Your Team?

When you’re ready to buy a home or begin planning for a purchase in the future, assemble a team of professionals who will have your back and provide expert counsel. They include:

  • A Lender
  • A Real Estate Attorney
  • An Inspector
  • A REALTOR®

#3: What’s Important To You In Your Home and Neighborhood?

Begin creating a list of home and neighborhood features you consider non-negotiables.

For your neighborhood, rank access to public transportation, parking, green space, retail and restaurant density and proximity to schools or hospitals. Depending on what you prefer, this will narrow down building types located in neighborhoods that include your must-haves.

For example, several neighborhoods in Chicago are known for specific architectural eras. Bungalows, two-flats, greystones and courtyard buildings all require different financial considerations when it comes to maintenance.

For your property, consider cost-associated expenses like central AC, laundry, elevators, private outdoor space like porches or backyards and parking garages. It’s easy to just think of the desired number of bedrooms or bathrooms, but these aren’t the only features that will influence the cost of the properties that will fit your needs!

Once you have your ideal neighborhood and home in mind, you can begin to get an idea of home prices in those areas.

#4: What if…?

Look at your financial ability to handle emergencies, life changes and other “what if” situations. Build an untouchable emergency fund with at least three to six months of monthly expenses shored up.

Not only will this give you a peace of mind when you buy your home, it will also boost your capital and likely positively influence your buying power.

Don’t wait to ask yourself what if! Take charge of your finances with these hypotheticals.

#5: Where Do You See Yourself Five Years From Now?

Take a zoomed out look at your professional and personal goals, then apply your housing needs to these milestones. Do you see career changes or promotions in the future?

It may be to your benefit to consider a property with more space than you presently need, because you anticipate having children or getting married. Does the neighborhood you like now sound like it will still be enjoyable to live in or fit your lifestyle growth?

It may also be to your financial benefit to wait at least five years for your home value to increase or for you to build equity or ROI on your investment. When in doubt, ask your REALTOR® what kinds of life milestones in their experience influence home purchase decisions.

smoke detector

16 Helpful Inspection Report Questions For Buyers

Congratulations, your offer has been accepted! You now have entered the attorney review period. Typically, a home inspection is scheduled within five days of the accepted offer. An inspection report is an inspector’s documented recommendations and observations of the property’s potential need for repairs. Remember, your inspector’s job is to find any reasonably discoverable issues in your home.

While inspections are not mandatory, we highly recommend utilizing this affordable resource so you can continue through the buying process as informed as possible. The inspection report can be intimidating! We put together prompts to help you feel empowered to ask everyone on your “team” actionable questions.

Questions you should ask your REALTOR®:

  1. Do you have any reputable inspectors you would recommend?
  2. What are three things you advise I look out for in particular?
  3. Will you be able to attend the inspection with me?
  4. What are common issues or challenges to see in this property type?
  5. In your opinion, what are the most important repairs I should focus on or prioritize?
  6. [in the case of a short-sale] When should we schedule the appraisal?

Questions you should ask your inspector:

  1. What do you check and what don’t you check?
  2. How soon after the inspection will I receive the inspection report?
  3. Are you available for follow-up calls if I have questions about the report?
  4. Are there any issues of note on the seller’s property disclosure statement?

Questions you should ask your attorney:

  1. From the seller’s perspective, what requests are they likely to push back on and what are they likely to consider?
  2. How many requests is too many?
  3. Should I ask for a credit or should I ask for a warranty?

Questions you should ask yourself:

  1. How much repair am I comfortable taking on myself?
  2. What are my priorities?
  3. What items am I willing to give up on during the negotiation?

In the end, the inspection report is another tool in your homebuying toolbelt. If you’re feeling anxious, your REALTOR® is always available to provide perspective and experience.