Preferred Properties of Texas

The Preferred way to buy & sell property for over 25 years

Fixer Upper vs. Move-In Ready: Which One Is Right For You?

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When it comes to buying real estate, you want to make sure the property you purchase is the right fit for your needs. For some buyers, purchasing a home that needs some work is the ideal situation. For others, getting a turnkey home that’s move-in ready is the only option they’ll consider. And for still others, both seem like reasonable options.

The question is: which is for you? There are pros and cons to both fixer uppers and move-in ready homes. The important thing is to recognize which is the best fit for you, your budget, and what you want out of a home.

Let’s take a look at the pros and cons of fixer uppers and move-in ready homes to help you determine which is the better fit for you:

Fixer uppers

Fixer uppers are, as the name implies, homes that need a bit of TLC – or fixing up – upon move in.

Pros

Discounted price

The major draw of fixer uppers is the price. Since they need work, you can typically get a fixer upper at a fraction of the cost of a move-in ready home of a similar size or in a similar location. So if you’re on the hunt for a bargain or you have a tight budget, a fixer upper is definitely going to be the least expensive home-buying option.

You can make the house your own

Since a fixer upper will need work and renovations, it does offer the opportunity to put your own stamp on the design and layout and really make the house your own. With a move-in ready home, the work has already been done and the home already designed. With a fixer upper, you get the opportunity to build your home from the ground up with everything from flooring and cabinetry to landscaping and windows.

It’s a project

For people who are interested in home renovation, there’s nothing better than a fixer upper. Taking on the challenge of completely transforming a home is a really exciting prospect for a lot of people, and if you’re in that camp, a fixer upper is a great opportunity to take on a worthwhile project.

Cons

It can get expensive

Even though the purchase price of a fixer upper is typically low, if there is a significant amount of problems with the property or changes that need to be made, it can definitely get expensive. Things like repairing electric, adding a new roof, tearing up and installing new flooring, and redoing a kitchen can get pricey, and if you’re not careful, you can find yourself way over budget, swimming in contractor bills with no end to your renovations in sight.

It takes time

Even if you’re a person who loves renovating homes, there’s no escaping the fact that it takes time. If you need to move into your home quickly, a fixer upper isn’t going to be the right fit.

Move-in ready

Move-in ready homes are recently built, updated, or remodeled homes that need next to nothing in terms of renovations or improvements. You can comfortably move in without making a single change.

Pros

It’s convenient

In terms of convenience, you can’t beat a move-in ready home. Moving can be a stressful process, and for many new homeowners, the last thing they want to do upon moving into their new home is start managing a bunch of renovations. With a move-in ready home, once you move in, you’re done. While you may want to make some cosmetic changes down the road (like painting the walls or changing the flooring), there’s nothing that needs to get done after you move.

Better energy efficiency

Newer, move-in ready homes tend to be more energy efficient, which is not only better for the environment, but also better for your utility costs. Energy efficient homes require less energy to heat the home during the winter and cool the home during the summer, which can end up saving you a significant amount of money in the long run.

Cons

Home prices are higher

When you buy a move-in ready home, you’re paying for the convenience. Move-in ready homes will always be significantly more expensive than fixer uppers in the same neighborhood and of the same size. If you have a tight budget, you might have to make some sacrifices to purchases a move-in ready home, like buying a smaller house or buying in a less popular neighborhood.

The “cookie cutter” effect

When you buy a move-in ready home, everything has already been done for you. Which is certainly convenient, but it can lack originality, charm, and the architectural and decor details you might want in a home. Newer homes sometimes feel more generic and “cookie cutter” than their older counterparts, so if charm and individuality are important for you, a move-in ready home might not feel like the best fit.

Fixer uppers and move-in ready homes both have unique benefits and challenges. Ultimately, you have to go with the choice that best aligns with your budget, your needs, and your long-term goals for your home.

Building On Your Land – What You Need to Know

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The land we own can serve many purposes. Some buy land as a place to hunt or fish, while others plan to grow crops or start a farm. For others, it’s a place to build your dream home or vacation getaway. Regardless of your reason, if you’re planning to build a home, cabin or outbuilding on your land, there are a few things you need to know first.

Zoning

Before building any structure on your land, you need to determine whether it’s actually legal to do so. Zoning restrictions and topography may dictate that a home or structure may not legally be built, or it will be required to be in a certain area of the property. Be sure to check with an experienced local builder to help you navigate any potential issues.

Finding a Lender

Once you have any zoning issues sorted out, your next step should be to meet with a lender that’s experienced in construction loans so that you can be pre-approved for a loan based on your financial needs. In general, a build-on-your-lot or custom home will require a down payment of 20% to 25% of the entire cost of building the home, including permits and site preparations. Most lenders are willing to finance construction for a year. When the home or building is complete they will require you to refinance into a permanent loan for the property.

Building a Home

There are three primary options for having a home built on your land. Choose the one that fits your needs and budget best:

Build-On-Your-Lot Builder – Most of these builders will have a variety of pre-designed floor plans for you to choose from. Oftentimes they can offer you a choice of specific fixtures and appliances for your home. This can save you money, but make sure these products match what you’re looking for.

Design-Build – These firms work with you to plan your new home from the ground up. It’s a similar process to working with a build-on-your-lot builder, except your home will be a custom design. These firms usually have in-house architects or a contract with an architect who will work with the construction company.

Architect – Of course, you can always hire your own architect to build your new home or building. The architect can create the exact home you’re envisioning using your ideas and their expertise. If you choose to hire your own architect, be sure that the architect and builder are willing to work together and can confidently meet your budget.

Feel free to contact our office, we are happy to answer any questions.

The Realtors at Preferred Properties of Texas in Stephenville are here to help you buy and sell real estate for over 25 years!

 

7 Reasons Why You Should Have An Outdoor Kitchen

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Outdoor Kitchens

Outdoor Kitchen

In the Mediterranean, it is very common to see families cooking outdoors. Today, this style of outdoor cooking has become a popular trend in the United States. Homeowners are learning about the joys of using an outdoor kitchen in their own backyards. Have you considered the benefits of adding a patio kitchen to your home? Whether you’re building a new house, or simply making better use of the space you have, creating a place to cook outdoors could be a good investment to make. Here are seven advantages of outdoor kitchens to consider:

1. Good for Entertaining

A top benefit of having an outdoor kitchen is that they’re perfect spaces for entertaining. When food is grilled out on the patio, guests can gather around the BBQ grill and socialize as dinner is being prepared. It might get crowded in an indoor kitchen when everyone hangs out with the cook, but outside there’s much more space. You can increase the comfort for your party guests by adding patio heaters, outdoor furnishings, strings of lights, and some mood music.

2. Increases Value of Your Home

Because of the popularity of this home improvement, remodelers earn a high rate of return on their financial investment. Most of today’s BBQ grills and other patio appliances are made from stainless steel, which makes them able to handle the changing temperatures with the seasons. Stainless steel is also desirable because it is easy to clean. When you have a functional outdoor kitchen, you have an investment you can use and enjoy for many years to come.

3. Saves on Utility Bills

When you’re grilling outside during the summer, your air conditioner won’t have to work overtime to keep your house cool. When you bake, fry, roast, and broil foods in your inside-kitchen, the temperature in your house elevates several degrees, which kicks the AC into overdrive. When you cook outdoors, you will save on energy consumption.

4. Keeps Smells Outside

Some foods smell delicious while they’re cooking, while others are less desirable. When you cook especially odiferous foods such as fish or deep-fried items, those aromas can linger for days. When you prepare the same menu items outside, your house stays fresh smelling.

5. Expands Your Living Space

No need to add on a room with walls and a roof; simply incorporate the space you already have on your back porch. If you have a covered patio, you’re all set to bring in appliances and have the outdoor kitchen of your dreams. In your outdoor cooking area, you and your family members can celebrate birthdays, holidays, or just enjoy the great outdoors.

6. Improve the Taste of Healthier Food

Not only does grilling enhance the taste of food, this cooking technique is better for your waistline, as well. Because fat drips off of meats when they’re grilled, the end result will be healthier and contain few calories from fat.

7. Save Money on Restaurant Meals

When you have your own little patio cooking and dining area in your backyard, why would you want to go out to a restaurant to eat? Eating out at restaurants can drain your bank account pretty quickly, especially if you go out to eat on a regular basis. Every time you opt to dine at home rather than go out for a night on the town, you keep dollars in your wallet.

What You Need

Now that you have seven good reasons to add an outdoor kitchen to your home, you’ll need to make a few plans to get started. First, here’s a list of possibilities to think about including:

Design Considerations

You’ll need to give some thought to the design of your outdoor kitchen. For example, ventilation is important, so pay attention to the space above and below your grill. You want the smoke to blow away from your cooking area. Make sure to sketch out the dimensions of your kitchen layout before buying your appliances and accessories. Some additions to contemplate when planning your design are:

  • Built-in or Portable Grill:

    Decide how large of a grill you need or want, and whether you want one that’s permanently positioned or mobile. If you plan to cook for large crowds, you’ll need a larger size, but if you’ll just cook for your family, invest in a smaller BBQ.

  • Countertops:

    How much preparation space will you need in your outdoor kitchen? Plan your countertop space accordingly. Also, make sure you select a product that can withstand changes in weather.

  • Built-in Cabinets:

    You might need some help designing the layout of your patio cabinets. Don’t underestimate the need for cupboards outdoors, or you will be running back and forth between your indoor and outdoor kitchen, which will put a crimp in the convenience factor.

  • Lighting:

    Since you will probably be doing much of your meal preparation during the evening hours, you’ll need to have adequate lighting on your patio. You definitely don’t want to be chopping and slicing in the dark. Plus, you need to be able to see your grilled items clearly to make sure they’re rare, medium, or well done.

  • Sink:

    Having a sink with running water is essential to convenient meal preparation. Install yours near your prep station for ease in clean up and adding liquid to recipes.

  • Refrigerator:

    You might decide to have a small fridge or a full-sized one. It all depends on how much you plan to store outdoors.

  • Flooring:

    Concrete, natural stone, brick, and tile are good options for outdoor flooring. You don’t want a high-maintenance product outside, but you do want it to be stylish and weather-resistant.

Grill Aids and Dining Accessories

You’ll need aids and accessories to complete your outdoor kitchen, including:

  • Outdoor cups, plates, and utensils
  • Tongs
  • Serving spoons
  • Knives
  • Meat thermometer
  • Serving dishes
  • Griddle
  • Outdoor ice machine
  • Baskets for grilling vegetables and fish
  • Shish-kabob skewers

Once you have your outdoor kitchen up and running, you’ll wonder how you ever managed without it. If you ever decide to sell your home and move to a new location, your outdoor cooking space will be a sought-after selling feature. Now that you’ve experienced creating this extra space in your abode, you’ll be able to set up a new one wherever you move.

 

The Realtors at Preferred Properties of Texas in Stephenville in Erath county in the Cross Timbers area of North Central Texas are here to help you buy and sell real estate for over 25 years!

Common Repairs Needed After a Home Inspection: What Must Sellers Fix?

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Home Inspection Household Repairs

By  | Oct 16, 2019

repairs-after-inspection

If you’re selling your home, you might wonder if there are common repairs needed after a home inspection. Most buyers, after all, won’t commit to purchasing a place until there’s been a thorough inspection by a home inspector—and rest assured, if there are problems, this professional will find them!

So if your home inspection turns up flaws that your home buyer wants fixed, what then? To be sure, repair requests after an inspection are a hassle, and liable to cut into your profits. So for starters, make sure to read your inspection contract carefully to make sure you don’t get locked into mending something you don’t want to fix.

“As a seller, you should never sign an inspection contract until you fully understand its obligations, particularly where it concerns your responsibility for fixing things,” says Michele Lerner, author of “Homebuying: Tough Times, First Time, Any Time: Smart Ways to Make a Sound Investment.”

And rest assured, there’s no need for you to fix everything a home inspector thinks could stand for improvement; a home inspection report is not a to-do list. Basically inspection repairs fall into three categories: ones that are pretty much required, according to the inspector; ones that typically aren’t required; and ones that are up for debate. Here’s how to know which is which.

Common repairs required after a home inspection

There are some fixes that will be required by lenders before they will release funds to finance a buyer’s home purchase. Typically these address costly structural defects, building code violations, or safety issues, sometimes in the attic, crawl spaces, and basement, and those related to the chimney or furnace.

An inspector will also check whether your septic system and heater are in good condition and verify whether there’s a possible radon leak or the presence of termites (homeowners tend to have many questions on these topics). Other conditions of the home that an inspector may report on include those related to the roof, electrical systems, and plumbing lines and the condition of your HVAC system.

If a home inspection reveals such problems, odds are you’re responsible for fixing them. Start by getting some bids from contractors to see how much the work will cost. From there, you can fix these problems or—the more expedient route—offer the buyers a credit so they can pay for the fixes themselves. This might be preferable since you won’t have to oversee the process; you can move out and move on with your life.

Home inspection repairs that aren’t required

Cosmetic issues and normal wear and tear that’s found by the inspector usually don’t have to be fixed.

“Some inspection contracts will expressly state that the buyers cannot request any cosmetic fixes to be made and can only ask that structural defects, building code violations, or safety issues be addressed,” says Lerner. Furthermore, “state laws may also impact your liability as a seller for any issues uncovered during an inspection.”

Be sure to check your local ordinances to know which fix-its that are found during an inspection legally fall in your realm of responsibility.

Home inspection repairs that are negotiable

Between fixes that are typically required and those that aren’t is a gray area that’s up for grabs. How you handle those depends in part on the market you’re in. If you’re in a hot seller’s market, you have more power to call the shots.

“While buyers are always advised to have a home inspection so they know what they are buying, when there are a limited number of homes for sale and buyers need to compete for homes, they are more likely to waive their inspection right to ask a seller to make repairs,” says Lerner.

In fact, “the best contract for a seller would be for the buyer to agree to purchase your home as is or to request an ‘information only’ home inspection, thus absolving you of any need to pay for any fixes found by the inspector,” she adds.

However, in a normal market, you won’t be able to draw such a hard and fast line related to an inspection.

Work with your real estate agent to understand what items you should inspect and then tackle—and where you might want to push back. Don’t have an agent yet? Here’s how to find a real estate agent in your area.

Just remember: you’ll want to be reasonable when it comes to repairs because you may have already put a lot of time into the selling process, and it’s likely in your best interest to accommodate some fixes rather than allowing the buyer to walk away. Also, depending on the magnitude of the requested fix, it’s not likely to go away. Now that it’s been uncovered by the home inspector, you’ll need to disclose the issue to the next buyer.

How to negotiate home fixes

Here are two sneaky but totally effective ways to handle this home hurdle that’s been uncovered by your inspector:

  • Offer a home warranty. “I sometimes keep a $500 one-year home warranty in my back pocket as a token to ease concerns found during a home inspection,” says Kyle Springer, a Realtor® with Coldwell Banker in Bowling Green, KY. That can come in handy if there is an element that doesn’t truly need fixing but is still worrying the buyers, such as an aging HVAC unit.
  • Barter for something of value to the buyer. Often sellers will suggest their real estate agent ask the buyer’s agent if the buyers want appliances or furniture if they have no plans to move them. Springer advises sellers to wait to make that offer until after they get the list from the inspector, because they may be able to beg off certain fixes in exchange for items such as the washer and dryer.

A home inspection can turn up all kinds of issues, but nearly all can be addressed quickly, pleasing buyers and sellers alike.

 

 

3 tips for sellers considering costly driveway repair

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REThink Real Estate
BY TARA-NICHOLLE NELSON

1. Get local, expert input on how buyers will view the cracks. If homes move quickly in your market due to high demand and premium location, it’s entirely possible that your driveway’s cosmetic cracks — assuming they truly are cosmetic, and the driveway is sound — might have little or no impact on getting it sold. However, it’s also possible that a buyer might see very major or deep cracks and assume they are more than cosmetic, making someone who would otherwise make an offer hesitate and/or guess at repair or replacement costs and factor that into his offer price.

Also, a local broker or agent can give you their opinion on whether the cracks are so severe that a buyer’s appraiser is likely to call them out as a health and safety hazard (some concrete cracks in areas of high foot traffic can be deemed a “trip” hazard).

Look around at the other homes on the market in your area and the state of their driveways to get a sense for how yours will come off to a prospective buyer. I would urge you to contact several listing agents in your area and ask them for their input; they know what buyers in your area care about, and can also just take a look at your driveway and see how “noticeable” the cracks will be to a prospective buyer.

2. Don’t expect a huge ROI — or any at all. That said, if you do end up deciding to replace the driveway, don’t expect to get some weighty return on your investment (ROI), like that your home will sell for $10,000 more than the neighbor’s. For the most part, these sorts of things are considered more maintenance than home improvement. For your purposes, that doesn’t mean you shouldn’t do it, it simply means that if you do it, consider what you spend an investment in getting the place sold — period.

3. Rethink your inputs and assumptions. Will it really cost $10,000 to fix your driveway? Consider getting some actual contractor bids. And are you sure that it’s beyond being professionally resurfaced, as opposed to entirely replaced? I understand that there may be epoxies and overlays that may cost less than a total replacement.

Overall, as you take on the project of preparing your home for resale, I would strongly encourage you to get friends and family members to refer you to a

Also, a local broker or agent can give you their opinion on whether the cracks are so severe that a buyer’s appraiser is likely to call them out as a health and safety hazard (some concrete cracks in areas of high foot traffic can be deemed a “trip” hazard).

Look around at the other homes on the market in your area and the state of their driveways to get a sense for how yours will come off to a prospective buyer. I would urge you to contact several listing agents in your area and ask them for their input; they know what buyers in your area care about, and can also just take a look at your driveway and see how “noticeable” the cracks will be to a prospective buyer.

2. Don’t expect a huge ROI — or any at all. That said, if you do end up deciding to replace the driveway, don’t expect to get some weighty return on your investment (ROI), like that your home will sell for $10,000 more than the neighbor’s. For the most part, these sorts of things are considered more maintenance than home improvement. For your purposes, that doesn’t mean you shouldn’t do it, it simply means that if you do it, consider what you spend an investment in getting the place sold — period.

If every other home in the area has a crack-free driveway and yours appears to be crumbling to pieces, whatever you do to repair or replace it will simply bring your home up to the standard of the competition; in fact, if you decide against repairing it, you should not be surprised to see buyers look for a discount based on the condition (again, assuming these cracks really are that noticeable).

3. Rethink your inputs and assumptions. Will it really cost $10,000 to fix your driveway? Consider getting some actual contractor bids. And are you sure that it’s beyond being professionally resurfaced, as opposed to entirely replaced? I understand that there may be epoxies and overlays that may cost less than a total replacement.

Overall, as you take on the project of preparing your home for resale, I would strongly encourage you to get friends and family members to refer you to a local agent you can trust, and meet with a couple of these experts for their recommendations and advice on which things do and do not belong on your to-do list. Also, local brokers and agents can be great sources for contractors they work with on a repeat basis to get homes ready for resale.

 

 

Preferred Properties of Texas

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