Are you planning to buy or sell a home in 2022? Whether you are looking to buy or sell a home in the San Gabriel Valley, Inland Empire, Riverside County, Orange County or LA Basin, our gift to you this year is help you keep your 2022 New Year’s Real Estate Resolutions.
If you’re a seller, the list will help you get started on home improvement projects so you can prepare your house for today’s competitive housing market. For buyers, it may be tough to find just the right place unless your agent helps you map out a strategy before you even get started. Whether you plan on securing a mortgage or if you plan to pay cash for your luxury SoCal locale, our 2022 Real Estate Resolutions will help you make your move.
Real Estate New Year’s Real Estate Resolutions:
Check your entire house, top-to-bottom
Although you’ve seen the house time and again, you need to take time to look at it from a buyer’s perspective. But whatever the tour reveals, don’t think you have to every room at once. Start at the front door. Then, go room-by-room, pretending you are seeing it for the first time. Be honest and critical. And use the information to make a list of areas that need attention. Your real estate agent will be able to help you identify potential projects and even make recommendations about reputable service professionals who can tackle the jobs.
As you go through your home, organize the paper trail by creating piles in each room. Stow the paper. Then, sort items to keep, give to family or friends, donate to charity and sell at a garage sale or online. Put away everything that won’t help you sell. This includes personal mementos and family photographs. You will want buyers to picture their own family living in the space.
Spruce up the kitchen
Kitchens and bathrooms sell homes. So, make sure yours are spotless. Create an organized area for loose items like keys and mail, which often end up on countertops. Store small appliances out of sight instead of on the counter. And make sure absolutely everything is immaculate.
Bolster the bathroom as one of your real estate resolutions
Clean grout, tiles, shower door and vanity, all of which can make a huge difference in the bathroom. Clear out the medicine cabinet. Throw away melted bar of soap, hang a new, crisp white shower curtain and replace worn towels with high quality white or other neutral towels.
All too often, closets become graveyards for belongings that homeowners don’t know where to stash. Interested buyers will likely open your closets. Make sure they aren’t stacked to full capacity, because that communicates a lack of adequate storage space. Spacious closets are a coveted feature among buyers. To make yours appear larger, keep it clutter-free and well organized. If you haven’t hired a professional closet organizer, now may be the time to do so.
If you love holding on to paperbacks after you’ve read them, move them out of sight. Replace them with a few decorator items for visual interest. When in doubt, follow the “rule of three,” a practice of home stagers, by clustering items into groups of threes to create visual appeal. If you want to appeal to high-end buyers, you may want to hire a professional home stager, whose skills will help you get the best possible offer.
Purge basements, attics, and garages. Separate items to be stored in clear plastic bins, to reveal their contents. Do so by categories, such as holiday decorations. And be sure each one is clearly labeled. Also, make sure lids fit tightly, to keep pests out.
If you can afford to avoid interest rates, work with your accountant to determine a working budget. The most obvious benefit to paying cash for a home is that it eliminates the need to pay interest on the loan and cuts many closing costs. As noted in Money, one of the best benefits of paying upfront is that you may qualify for a “liquidity” discount.
Writing an offer for cash will also give you an edge in a competitive market. If a house gets multiple offers, yours will stand out. As Investopedia notes, “a cash buyer’s home is not leveraged, which allows a homeowner to sell the house more easily – even at a loss – regardless of market conditions.”
Despite the above, a home without a mortgage is a house without a major tax write-off. So, this may be your number one reason to finance. However, if you still can’t decide whether to pay cash, evaluate your circumstances. And make sure you have enough cash reserves to cover these possibilities, including funds set aside for retirement, at least six months of emergency funds in a savings account and sufficient health, life, and disability insurance.
It just may make more sense to use your cash to pay off non-deductible credit obligations than to put cash into a home. If you’ve decided against paying cash, figure out financing. As we have discussed before, it will be well worth your time to get pre-approved. Speak to a licensed mortgage professional like Jorge Abich of SoCal Platinum Properties, Inc. before you start looking at homes. An experienced real estate agent will be able to connect you to a reputable loan officer, who will check your credit and pre-qualify you for a mortgage. It’s vital to take this step before your house-hunt because it’s possible your credit report has errors. These should be addressed before you apply for credit, to ensue you get a favorable interest rate. Also, consider these benefits to financing a home:
- When it comes to buying a vacation home, one of the most obvious benefits to securing a mortgage is the tax write-off. This applies not only to interest and taxes but also to points and closing costs.
- Losing the mortgage interest deduction may make a cash purchase unappealing, until you realize this deduction may not be as valuable as it seems. Check with your accountant.
- The key investment issue may be whether you could earn more by investing the cash in another way. The “return” on cash put into the home equals the mortgage rate you’d pay if you borrowed instead, since it relieves you of that interest cost. Paying cash today, for example, would save you the interest you’d pay on the average mortgage.
- You may improve the location and/or condition of your second home by securing financing for it instead of relying solely on cash reserves.
The best advice is to opt for whichever choice gives you more bang for the buck. Also, ask yourself which option provides the greater return on your investment. Whether you are buying a first or second home or investing, real estate can be tricky—whether you are buying your first home, purchasing a vacation home, or upgrading from a starter. If you are interested in buying or selling property in Los Angeles, San Bernardino, Riverside or Orange Counties, give us a call (213) 709-5178.
About SoCal Platinum Properties, Inc.
Real estate can be tricky—whether you are buying your first home, purchasing a vacation home, or upgrading from a starter. If you are interested in buying or selling property in or around San Dimas, California, and the surrounding area, don’t get caught in a Catch 22 — owning two homes or nothing at all. We list properties and advertise them to guarantee a swift sale for maximum profit. What’s more, we assist home buyers as they hunt for, make competitive offers, and purchase residential property. Realize your dream of homeownership, reduce your house payments to free up funds for whatever purpose you see fit. We offer the following refinance options: We offer the following Refinancing Programs: FHA Streamline, FHA Cash Out, FHA 203k, VA Streamline, VA Cash Out, Conventional, Commercial and Jumbo loans. Lock in your low rate today (213) 709-5178.