Homeowners Speak: What Motivates A Renter To Buy A Home
The National Association of the Remodeling Industry’s Remodeling Impact Report shows which home improvement projects are most likely to help you sell your house, at the maximum available price; an update on current mortgage rates and a look at the 5-day trend for interest rates; and, the National Association of REALTORS® reveals the real reasons why buyers decide to buy homes.
Kitchen Renovations Help With Home Sales
Home improvement project return-on-investment varies by project.
According to the National Association of the Remodeling Industry (NARI), U.S. homeowners spend more than $340 billion each year on home improvement projects.
Some home improvement projects are small, such as painting rooms, upgrading doors, or fixing up a fireplace. Other projects are substantial, including roof replacements, room additions, and complete garage overhauls.
All projects cost money, however, and in its latest Remodeling Impact Report, issued in collaboration with National Association of REALTORS®, the remodeling industry trade group identifies which home improvement projects return the highest value to homeowners over time.
The report uses two methods to evaluate return-on-investment.
The first method uses “Appeal to Buyers”; how much do home buyers care about the improvements that you’re making. The second method quantifies “joy”; how much happier are homeowners after their projects are complete.
The Remodeling Impact Report’s top-three ranked projects are kitchen remodels, bathroom renovations, and master bedroom improvements.
At the bottom of the list are closet work and home insulation which, although practical, do little to boost the value of a home.
If you’re planning a home improvement project, talk to a local real estate agent first about your ideas. Professionals who tour homes for sale daily can help you focus your renovation dollars on the project that will yield the maximum ROI.
And for cash to pay for your work, take a look cash-out home improvement mortgages.
Today’s Mortgage Rates & Interest Rate Trends
Interest rates are on the rise today.
After dropping Thursday, mortgage pricing is worse into the weekend. Rates deteriorated through most of the week, erasing refinance opportunities for homeowners on the fringe, and lowering maximum purchase prices for today’s active buyers.
Here is a look at today’s action:
- Conforming mortgages: Higher
- FHA mortgages: Higher
- VA mortgages: Higher
- USDA mortgages: Higher
- Jumbo mortgages: Higher
Mortgage rates are based on more than a dozen factors including loan size, credit score, and the state in which you’re borrowing so don’t expect the same mortgage rate as your neighbor.
Also, you can lower your mortgage loan costs by comparing two or more lenders and their costs so make time to comparison shop.
You could save $2,000 by spending an extra 15 minutes on your mortgage.
Get Today’s Mortgage Rates
NAR Survey: Buyers Listen To Their Hearts, Not The News
What makes a renter want to stop renting and buy a home? A recent survey from the National Association of REALTORS® may hold the answer.
In the group’s most recent Home Buyers and Sellers Generational Trends Report, an annual survey sent to more than 145,000 recent buyers, the real estate trade group asked the question: “What was your primary reason for buying a home when you did?”
The majority of buyers said: “It was just the right time.”
Responses like this support what most real estate and mortgage professionals already know; that buying a home is an emotional choice as much as a financial one, and people need to feel comfortable and ready for it.
It’s noteworthy that just 14 percent of buyers said current mortgage rates or mortgage loans affected the time of their purchase; and, that just ten percent said the number of homes for sale played a role.
Home buyers follow their instincts.
If your plans for the future include buying a home, it’s never too soon to get with a real estate agent. Professionals can help you sort through ideas and emotions, and move you closer to your goal of owning a home someday.