Home equity loans

[NoBanStan]

The wife and I are going to put our house on the market soon. Its our first home and now with kids, we're outgrowing it. We've lived there for about 10 years so there's some updates we feel need to be done before we put it on the market. Carpet, painting, landscaping.. the obvious stuff. All in all I think it's around $5,400 for materials and labor.. i'm not a handyman so i'm going to contract it out.

 

I'm not a fan of loans, but I've heard this is a good option if you're looking to sell and expect to get your money's worth. Houses in our neighborhood with the same amount of land and floor plan have been selling for about 25-35k above what I paid for mine.... so it seems even with the money I put into it, I would make it back and then some. The iron is hot, these houses are selling before they hit market or within two days of listing. I would like to get in on that before the market craps out.

 

Just looking for some advice. I trust the TGO opinions way more than just some random banker.

 

Is the loan a good idea? Are the updates even a good idea? Thoughts? Mount Juliet btw.

 

Thanks

[viscero]

We are house shopping right now and the market is CRAZY hot from the seller's side.  From all that we have been looking at I'd say your estimate is pretty close for those items.  Honestly, most of the homes we have seen have not had much work put into them; some have been downright filthy in regards to carpet and overall cleanliness.  Ask your realtor for their opinion but I would probably hold off on doing the work unless the condition of the carpet, walls, and yard are so offputting that it won't show well.  Instead I would offer to pay some closing costs as an allowance for the buyer to get done what they want to get done.  You never know the buyer might be a DIY'er and could get the stuff done a lot cheaper than you subbing it out.  Also, two people rarely agree on style so a particular carpet that you choose may really turn off a potential buyer, etc.

[surfabilly]

i am no fan of debt either. i also am no financial guru, but see no problem with a home equity loan in your situation. the amount is small enough that murphy won't hurt you too bad if he comes for a visit.

you may also talk to your realtor about your situation. with the market as you describe, the updates may be unnecessary.

[10-Ring]

I've flipped a couple of houses and done well with them. I'm also familiar with the housing market in Mt. Juliet. It all boils down to will you recover the investment in the upgrades and then some? Normally I'd spruce the place up with fresh paint and light fixtures but in the market you are in you will have ten people fighting to give you your asking price and they will pay closing costs. What exactly are the improvements that toy want to make? I can also recommend a couple of excellent real estate agents if you do not already have one.

[NoBanStan]

We are house shopping right now and the market is CRAZY hot from the seller's side.  From all that we have been looking at I'd say your estimate is pretty close for those items.  Honestly, most of the homes we have seen have not had much work put into them; some have been downright filthy in regards to carpet and overall cleanliness.  Ask your realtor for their opinion but I would probably hold off on doing the work unless the condition of the carpet, walls, and yard are so offputting that it won't show well.  Instead I would offer to pay some closing costs as an allowance for the buyer to get done what they want to get done.  You never know the buyer might be a DIY'er and could get the stuff done a lot cheaper than you subbing it out.  Also, two people rarely agree on style so a particular carpet that you choose may really turn off a potential buyer, etc.

 

I don't actually have a realtor yet. With the market like it is, I haven't sought one out because I don't want to start getting the "pressure of sale" yet, if that makes sense.

 

Our place isn't bad, it's just lived in. The carpet has been through a dog and my two kids, still clean but old like carpet gets. There's a few weak spots under it that I need to take care of. It was built in the 90's so its likely just all the years of traffic on the plywood. besides that it's just paint and some yardwork in all honesty.

[10-Ring]

Sorry I reread you're post and saw what you wanted to do with the money. Personally I don't think I would mess with it in the current market.

[MacGyver]

I used a home equity loan to finance about $9500 worth of updates to our house before we sold it a few years ago - wood floors, new carpet in bedrooms, updating a bathroom.  I'm certain that those improvements made our house sell for about $30k more than it would have otherwise at the time.  The market was just starting to turn, and our improvements ensured that the buyer would simply be able to move in. We paid it off in full at closing.

 

I'd do it again.

[NoBanStan]

I've flipped a couple of houses and done well with them. I'm also familiar with the housing market in Mt. Juliet. It all boils down to will you recover the investment in the upgrades and then some? Normally I'd spruce the place up with fresh paint and light fixtures but in the market you are in you will have ten people fighting to give you your asking price and they will pay closing costs. What exactly are the improvements that toy want to make? I can also recommend a couple of excellent real estate agents if you do not already have one.

 

 

Yeah the bid war is kinda what we're expecting/hoping for. They're just not building houses in this price range in MJ..everything is 250k+

 

Carpet

Exterior panting

Interior painting

refinish deck

(dunno the term for this) recoat foundation - the builder did some concrete coating over the foundation and it looks kinda haggard

I mounted a tv on a wall, need to take that down and refix the wall.

Landscaping (tree trimming, shurbs, etc.)

I have a big hill out back so I may put in a french drain just to help move water. I don't have flooding or moisture issues, but i'd rather remove all doubt.

[10-Ring]

Have a good realtor look at it. They can best tell you if the repairs are worth the money. Sometimes you can spend $5k and sell the house for $25k more than you would have.

[bud]

. Edited August 8, 2015 by bud

[rmiddle]

Yeah the bid war is kinda what we're expecting/hoping for. They're just not building houses in this price range in MJ..everything is 250k+

 

Carpet

Exterior panting

Interior painting

refinish deck

(dunno the term for this) recoat foundation - the builder did some concrete coating over the foundation and it looks kinda haggard

I mounted a tv on a wall, need to take that down and refix the wall.

Landscaping (tree trimming, shurbs, etc.)

I have a big hill out back so I may put in a french drain just to help move water. I don't have flooding or moisture issues, but i'd rather remove all doubt.

 

As someone who just bought a house here is what I have to say on the issue.

 

1) Are you looking to get the high end, middle, or low end of your market.  High the house needs to look really good.  Middle it needs to look well maintained.  Low it just needs to look like it isn't going to be a money pit.

 

2) Anything that prevents the house from being move in ready will likely be an issue.  If you have done any question DIY projects have someone inspect it as it will likely come out in inspection and then you don't have the time to go price hunting to fix it.

 

3) Yard work is more important then many people think.  It doesn't have to look perfect it needs to look good enough that no one thinks about it.  Because it is a win / lose kinda of thing.  Guys are thinking about grass that needs cutting and the women start thinking about how much they hate XYZ in the yard.  You want your yard to be background noise.

 

4) Unless there is something growing on the walls new paint might actually be more a turn off as you are wondering what they are hiding and brings doubt to the question on how well maintained it was.

 

5) Again you might be better to offer closing help or a little cash for new carpets then replace them.  More and more people are moving to hardware floors now a days and there is a 50/50 change they could tear the carpet right out after they move in.

 

6) If you Yard drains well you likely wont need to do anything with water management.

 

7) Your Realtor can really make a difference.  The house we bought we almost didn't look at because there was only 1 really old picture of it and it took a while for this house to sell.  Even after the work we are putting into it I still think we got a decent deal for the place.  I suggest you take some nice digital photo's of you place and give them to your realtor on a USB drive they can keep.  If you are not sure what to shot take a look at realtor.com and see what is common in your area.  A set of good pictures can really make a difference on how well your house will sell and most picture you see are taken by the realtors cell phone well they are out there signing the paper and suck.

[MacGyver]

A good realtor is worth their money.  Note that "a good realtor" is likely different than your friend from church or family member who is a realtor.  

[NoBanStan]

Newly installed french drain will only serve to add doubt, not remove it. If there's honestly no water issues then skip it.

 

Yeah I've thought about this too.

[NoBanStan]

A good realtor is worth their money.  Note that "a good realtor" is likely different than your friend from church or family member who is a realtor.  

 

Yeah I understand that fully. I've had a few people approach me that live in the neighborhood. Not to be mean, but getting a realtor who lives in the same builder community that i'm trying to move away from seems as fruitful as getting shooting advice from a terrible shot.

[seez52]

being a Realtor in Mt. Juliet I can tell you the house is going to sell so be prepared to move. With the market here elbow grease and a little paint is your friend. Appearance items are the most important, I'm not saying cover anything up mind you, but it's got to look good. Let the buyer's inspector drive anything more than cosmetic, unless its a turn off type of repair item. Clean and what won't clean paint, and de-clutter, you're gonna be moving go ahead and pack up anything you don't need right now. Make the closets look roomy. Remove extra furniture if the rooms are tight.  It's a great market to sell, kinda tough if you're planning to buy.

[NoBanStan]

being a Realtor in Mt. Juliet I can tell you the house is going to sell so be prepared to move. With the market here elbow grease and a little paint is your friend. Appearance items are the most important, I'm not saying cover anything up mind you, but it's got to look good. Let the buyer's inspector drive anything more than cosmetic, unless its a turn off type of repair item. Clean and what won't clean paint, and de-clutter, you're gonna be moving go ahead and pack up anything you don't need right now. Make the closets look roomy. Remove extra furniture if the rooms are tight.  It's a great market to sell, kinda tough if you're planning to buy.

 

Yeah this were my minds at. We're wall to wall stuff in this place. Looking to move into something around the $250k range....there's plenty to look at in the area. My goal is fix the obvious and wait on an inspector to find whatever else.

[MacGyver]

A storage unit is going to be your friend.  Get as much as your stuff out of there as you can.  People want to picture themselves in your house - not themselves and all of their stuff packed wall to wall.

[seez52]

Yeah this were my minds at. We're wall to wall stuff in this place. Looking to move into something around the $250k range....there's plenty to look at in the area. My goal is fix the obvious and wait on an inspector to find whatever else.

There may be less to look at than you think. If I were to do a search for homes in the $250K range in Mt. Juliet two thirds of them would already be under contract, yet if you look at them on realtor.com they show as still available. It's a quirk of this market and they way agents note contracts in the MLS database.

[NoBanStan]

There may be less to look at than you think. If I were to do a search for homes in the $250K range in Mt. Juliet two thirds of them would already be under contract, yet if you look at them on realtor.com they show as still available. It's a quirk of this market and they way agents note contracts in the MLS database.

 

I was looking realtracs and zillow mostly, seemed to be several. I'm not opposed to renting for a bit to find the right house. Not preferred mind you. 

 

Like everyone else, I would like to transition right into my new place if at all possible. I'm also not opposed to moving outside of MJ for the right house and school district. My kids are young enough to not be heart broken about it but i worry more about the quality of schools in the area. Mount Juliet seems to be the anomaly in a sea of bad education.

[MrsMonkeyMan2500]

When Monkey and I sold our home in Crieve Hall we knew we had some things to fix. We used Kyle Felts. His whole team is amazing. They actually sent someone to our home and told us what to bother with and what not to bother with.

We ended up spending a little over 7,000 to get it ready for market. In the photographs it looks so empty because we had to move so much stuff. Our house had 2 offers from a Sunday open house. It sold in a day. If you don't have a realtor, I'd HIGHLY recommend Kyle.

Also, we had a HELOC from our kitchen remodel a few years before. We recouped everything we put in. When the monies are changing hands, the lawyers pay everything owed to everyone. We never even missed the money. It worked great for us.

[seez52]

I was looking realtracs and zillow mostly, seemed to be several. I'm not opposed to renting for a bit to find the right house. Not preferred mind you. 

 

Like everyone else, I would like to transition right into my new place if at all possible. I'm also not opposed to moving outside of MJ for the right house and school district. My kids are young enough to not be heart broken about it but i worry more about the quality of schools in the area. Mount Juliet seems to be the anomaly in a sea of bad education.

moving directly from one home to another with both in Mt. Juliet is a tough order to fill in this market. Not saying it can't be done, but it's not as easy as it used to be. 

 

I'd skip zillow altogether. They dropped their agreement to carry the local MLS listings directly so their database is short a quarter to a third of all listings in the Middle TN area. Realtracs is your best source. It's based off the same database we use. It still does not differentiate between active listings available for sale and those that are showing active but with contracts pending inspection or financing contingencies. It's not uncommon for a client to send me a list of homes they want to see only to discover most of them are under contract, it can be discouraging. A lot of times in Mt. Juliet we end up looking at homes one at a time rather than 5 or 6 in a trip. It's the new normal.

[Erik88]

Just be careful when figuring out what your house is going to sell for. We are in the process of selling our house in FL and we lost $13,000 at appraisal. 

 

We listed for $158K. A buyer offered $160K. The appraiser said the house is only worth $147K.

 

We got royally boned. The appraisal made no sense and her comps were ridiculous. Our realtor tried everything she could to reason with the lady but she wouldn't budge.

 

We will barely get back the money we sunk into the house. 

[10-Ring]

I was looking realtracs and zillow mostly, seemed to be several. I'm not opposed to renting for a bit to find the right house. Not preferred mind you. 
 
Like everyone else, I would like to transition right into my new place if at all possible. I'm also not opposed to moving outside of MJ for the right house and school district. My kids are young enough to not be heart broken about it but i worry more about the quality of schools in the area. Mount Juliet seems to be the anomaly in a sea of bad education.

We decided to rent for a year before we buy another house because we haven't sold our old one yet. Took me forever to find a suitable house to rent in Mt.Juliet.

[bud]

. Edited August 8, 2015 by bud

[Sam1]

The wife and I are going to put our house on the market soon. Its our first home and now with kids, we're outgrowing it. We've lived there for about 10 years so there's some updates we feel need to be done before we put it on the market. Carpet, painting, landscaping.. the obvious stuff. All in all I think it's around $5,400 for materials and labor.. i'm not a handyman so i'm going to contract it out.

 

I'm not a fan of loans, but I've heard this is a good option if you're looking to sell and expect to get your money's worth. Houses in our neighborhood with the same amount of land and floor plan have been selling for about 25-35k above what I paid for mine.... so it seems even with the money I put into it, I would make it back and then some. The iron is hot, these houses are selling before they hit market or within two days of listing. I would like to get in on that before the market craps out.

 

Just looking for some advice. I trust the TGO opinions way more than just some random banker.

 

Is the loan a good idea? Are the updates even a good idea? Thoughts? Mount Juliet btw.

 

Thanks

 

pay a few hundred and get an appraiser to come out and have them legitimately evaluate your situation.  They get paid for appraising not for selling you new sinks, a fresh landscaping job and some new rugs.  Of course anyone selling something is going to tell you the stuff adds value, but an appraiser will shoot it to you straight.

 

You may be better off not touching anything, or you could spend that money one one item and raise the value a lot.  let an appraiser sort it out for you (get one that will sit down and discuss 'what if's' with you)

Edited July 17, 2015 by Sam1