What did you neglect to do for your real estate in 2011? What will that cost you in 2012?
As 2012 begins, what opportunities to accelerate appreciation have you overlooked?
§ Which simple value preservers have you ignored?
§ How many costs of ownership have you missed opportunities to reduce?
§ Which value builders have you ignored?
§ Which advantages of ownership have you neglected?
Is your home a “thing” to look after, or a financial partner in your future? Either way there is maintenance and property management to be done on many levels every season, every year. Why not make sure your care-taking activities consciously also build value?
How many of the following value-making strategies did you apply to your real estate this year to achieve cost saving and equity building?
§ The last leaves have fallen…probably into your eaves troughs. Did you have them cleaned out once the trees were barer? Depending on how many trees surround your home, you may need to clean the eaves troughs two or three times a year to keep rain water and melting snow flowing off your roof and away from outer walls and the basement of your home. Reduce the labor and cost of cleaning by installing screens across gutters that block debris accumulation. Failure to act will cause damage to the gutters, roof damage, damaging interior leaks, and a wet basement. Rotting leaf litter can also attract animals and end up smelling bad. The unsightly damage down-values curb appeal, too. What will all that cost in 2012, or later, just because eaves troughs are ignored now?
§ Snow is part of winter…causing ice dams on your roof which damage the roof and inside, too. If there is not sufficient insulation and ventilation in the attic to keep the attic and roof cold, escaping warm air will start a chain reaction that means unnecessary expense and a prematurely-aged roof. Interior heat loss (which is also financial loss) melts snow on the roof and the melt water runs down to re-freeze when it hits snow or ice in the gutters. This repeated action causes a dam of ice which pools water, so it seeps up under shingles and into the home to damage ceilings, walls, and furnishings. Eventually, rot sets in and you’ve got structural problems. Are you sure you have enough insulation in the attic and great ventilation? If insulation’s been there a while, it may have been damaged by contractors or animals. Have roof vents and exhaust vents from fans been properly installed, or are they piping warm moist air into the attic to grow mould? Government energy grants may shoulder some of the cost, but what will it cost if you ignore the threat?
§ Winter is garden planning time…How did you improve curb appeal this summer? Many homes don’t sell because buyers are not won at the street. If they won’t go in, they won’t buy. Create the most interesting, low-maintenance garden on the block and you’ll have a house that wins attention even before you decide to sell. Make that a “green” low-water landscape and you’ll save time and money in the process.
§ Spring is property tax time…Did you contest your assessment and have the assessed value of your property lowered? Keep pushing that value down and you’ll keep property taxes in check as much as possible. The more loonies you keep in your pocket, the richer you are.
§ Summer is sale time…furnace sales, that is. Make major purchases in the off season and you’ll get a great price and the full attention of the best installers. In peak months, you’re overpaying for overworked contractors who are too rushed to do a thorough job, just show up. Government grants and manufacturer specials for replacement of furnaces and heat/cooling systems are common, particularly at the beginning and end of season. Updating systems adds resale value and saves on monthly costs.
§ Holiday season is payback time…Shop locally and you enhance the value of your neighborhood, and stave off big-box and chain stores which homogenize areas. Buy your gifts from local artist studios and shops and you’ll have unique presents that keep value in the neighborhood. Too often the very shops and small food stores that first draw home buyers to an area are ignored once they’re residents in favor of cheap, high-volume national and international chains. Shop in 2011 and start 2012 by revisiting local shops and businesses so their year starts strong, and you’ll keep future home buyers envious of those who live in your neighborhood.
§ Action beats “if only I’d”…If you believe 2012 will bring a slow down or stall to your neighborhood real estate market, did you seriously consider the advantage of selling in the stronger 2011 market? You could rent for a while and then buy in the softer real estate market. Your home is only worth what someone will pay for it, not should pay in your opinion. Owners who list with prices from the last strong market, lose valuable credibility with buyers and, therefore, may net less in a sale. Investing time to crunch numbers and seriously consider all your options each year, is the best way to be sure you’re making the most of your equity. Aim to never put yourself in an “if only I’d” situation, and you’ll know real estate is your financial partner in building the future of your choice. Many real estate owners count on passive appreciation and expect their real estate to automatically increase in value. Waves of real estate booms driven by boomers moving from first house to megahome to recreational property to deluxe condo, through various stages of life, have driven real estate values to dizzying heights and made significant annual price increases seem the norm. What will drive value increases in the future? How much can owners count on passive appreciation to build future value?
Real estate will increase in value under some circumstances, but not automatic, not for every property. Sometimes values decline. In strong real estate markets and preferred locations, property values can steadily increase, but not equally for all properties in every neighborhood. When markets slow, only preferred locations may keep increasing in value, or at least hold their own. Unless owners step in and deliberately preserve equity, maintain equity, and build value by treating their real estate as a financial partner in their future, many owners may not see as dramatic appreciation in the future as they have experienced in past decades.
The future starts now for real estate. By the time future patterns become present realities, it is too late to make the most of those real estate opportunities. Look ahead with your real estate. Build value as you go to retain the flexibility to be ready to act on opportunity. Take full advantage of the investment you love to live in. Make 2012 the year you moved beyond being a caretaker. For all of your Real Estate needs at the Lake of the Ozarks, please contact the "Spouses Selling Houses" team. Ebbie :)
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