How Home Improvement Financing Can Sell Your Home

Friday, February 25, 2011

By Tom Millner


Today's below average prices means that a lot of home sellers aren't getting as much profit as they'd like out of the sale of their current home and it means they won't have as much to spend on a new home. The recent housing slump means that a lot of people are having a tough time trying to sell their house right now. It's a buyer's market when it comes to house sales right now, which means home prices are below average and there are lots of homes that are currently for sale.

As a home seller you are basically in competition with the other home sellers in your area for the attention from a small collection of house buyers. One way to make your home more likely to be sold is to spruce it up with some modern home improvements. In order to sell your home you're going to have to get creative and try to set your house apart from the others that are being sold near your own home.

The best way to bring a lot of potential buyers into your house is to take out a loan for some small home improvements knowing that you will most likely make a profit when you actually sell your house. Home improvement loans can range from a couple hundred dollars to thousands of dollars, and different financing amounts will give you the ability to commit to different kinds of projects. If you're relatively handy you might want to use some borrowed money and learn how to do your own home improvements. Here are a few home improvement suggestions in different cost ranges:

$1,000 - $6,000: Home projects in this range include updating interior rooms with new paint, installing new crown molding and maybe even replacing some interior doors. Projects in this lower price range should be aimed at updating a fairly new home that doesn't need much work. Smaller home upgrade projects in this range can sometimes be paid for with home improvement store credit cards or person loans.

For $9,000 - $10,000: Committing to house renovations in this range will definitely get the attention of prospective home buyers, especially if the other homes in your area don't include some of these improvements. There are many home equity loans that are specifically created for home improvements. If you're going to take out a loan for house improvement projects in this range you may want to look at a home equity loan. Major house upgrade projects like this could include putting in some new carpet, having a front yard professional landscaped or installing new doors and windows.

Certain house updates like the ones mentioned above will almost surely help sell your home quickly. It's imperative to adjust your home's selling price to reflect the recent upgrades. Your selling price should be moved higher but should most likely not be designed to cover the full cost of your house improvement loan. Most home improvements do not actually pay for themselves when you sell your house.




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