Are you looking to increase the value of your home, but not break the bank? Well, then this blog is written just for you!

There are so many updates you can do yourself that can increase your home value! Check them out!

Deck Lighting

It is amazing how much of a difference lighting can make in any space, especially outside. Keep it simple and add some low-voltage lighting to hang around your deck. This not only adds extra character but also makes your deck a great place to host or hang out, even at night. You can either choose string lighting to border your deck or just add a few individual lights.

Kitchen Backsplash

It is no secret that a kitchen backsplash can add a TON of visual appeal to your kitchen, but what most people don’t know is that it is actually quite easy to install yourself. Putting in a backsplash is not only easy but also can be completed in just a weekend. You can lay your backsplash on a Saturday and grout on a Sunday. It is that easy!

And remember, backsplash tile is as trendy as jewelry. If you have backsplash tile that’s 10-15 years old, it’s time for an update.

Fresh Coats of Paint

This renovation is by far the biggest bang for your buck. Changing the color of a room or even just a wall within a room can instantly transform your space. When repainting rooms, look to add bright colors to enhance the natural light in the home and make your space seem bigger and brighter. Adding an accent wall can also bring variety and individuality to a room. Which room are you painting first?

Installing Crown Molding

The next renovation may be one of the most effective at adding value. Installing crown molding might take a few woodworking skills, but is very inexpensive to do yourself. Adding crown molding can add more visual interest to your home and make even the most ordinary rooms extravagant and inviting. 

Upgrade Kitchen Lighting

It is amazing what difference light fixtures can make in a space. If you want to increase your kitchen value without an expensive remodel, consider switching out your lighting to more modern, trending light fixtures. These updates can change the whole mood of your kitchen and can all be done without changing any wiring. In order for any room to have a great lighting concept, aim to have 3 different levels of lighting, or lighting from three different heights. This recipe is most soothing to the eye!

The most common comment that we as Realtors hear when helping clients get ready to sell is, “We wish we would’ve done this sooner!” So don’t wait! Don’t put off replacing flooring or updating your landscaping until the week before the Realtor comes - we want you to love where you live (the whole time!).

When buying a home there are many things to consider, including the best way to submit an offer that will make the process as easy and stress-free as possible. Including a contingency clause, which can be beneficial to either buyers or sellers and there are many different types to consider when offering or accepting a purchase agreement.

What is a Contingency Clause?

 A real estate contingency is an additional term to be met included in a purchase agreement. Essentially, these clauses give either the buyer or seller the right to cancel a contract before closing, under certain circumstances. 

Types of Contingencies

Home Inspection Contingency

This is a clause that benefits the buyer and states that the buyer can cancel the contract if, within the given time period, they perform a home inspection and something of concern is found and a resolution between buyer and seller cannot be reached.

Property Sale Contingency

This clause states that the offer for purchase of the new property will only continue if the buyer is able to sell their current home in a certain time frame. This contingency makes it difficult to “win” in a multiple offer scenario. Sellers may accept backup offers while their home is contingent upon property sale, but their marketability is reduced under the Contingent upon Property Sale status in the MLS.

Financing Contingency

This is often also referred to as a Mortgage Contingency and it is put in place to protect the buyer. In this case, the buyer must obtain financing to secure the new home.  If they are unable to, they can either terminate the contract or they can request more time. Any requests for extensions must be agreed upon in writing by both buyers and sellers. 

Escalation Clause

This clause is used when there is a multiple offer situation on a property and a buyer wants their offer to be competitive. The buyer includes language saying that they’ll increase their offer by a certain amount over a higher bid, up to a certain dollar amount. This clause is only used in a seller’s market with very limited inventories.

Reverse Contingency

This contingency benefits the seller. This clause states that the sale of a seller’s home is contingent upon the seller finding suitable housing. If the seller is able to find a home that suits his/her needs then the contingency is removed and the purchase agreement will be fully accepted and move towards closing. If the seller is not able to find a home in the time stated on the contingency, then both parties will sign a cancellation of the purchase agreement or negotiate longer timelines.

Risks of Contingencies

Some of the biggest risks of contingency amongst buyers (other than a reverse contingency) are that they make an offer less competitive in a market where there are multiple offers. When working in a highly competitive market, removing contingencies from an offer might be more beneficial, if the buyer is comfortable proceeding without them.

When looking at a reverse contingency it also has some risks, but for the sellers. In a market similar to the current market, where there is very little inventory to choose from, if the seller is unable to find another home to purchase or rent in time, the seller may lose that buyer. This would result in the seller having to put their home back on the market and start the selling process again. 

The Bottom Line: Experience Matters

No matter the contingency, each one has its own benefits and risks. Each one of our JBeal Realtors is well-versed in drafting contracts and remaining competitive while protecting your interests. We have 20 years of experience as a brokerage and thousands of transactions and satisfied clients.

In this highly competitive market, it’s so important to use top-notch professionals when making such a large investment. The last thing you want to do is make an impulse purchase and end up in a negative equity situation.

We are experts in guiding sellers through multiple offer situations and choosing the right offer for them. It’s not always the highest price that wins when there are so many other factors that come into play. Experience Matters. Make sure you’re working with one of our real estate pros at JBeal real estate group!

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