Sunrise Homes & Renovations, Inc.

Is a Swimming Pool a Good Investment for Your Home?

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Imagine relaxing by your own pool on a warm day, drink in hand, and a book by your side while the kids enjoy their favorite pool floats. Adding a pool to your property can feel like the ultimate luxury, but does it enhance your home’s value, or could it complicate resale?

If you’re considering an in-ground pool, here’s what you need to know about its potential impact on your property’s worth.

Does a Pool Add Value to Your Home?

According to the National Association of REALTORS® Remodeling Impact Report: Outdoor Features for 2023, adding an in-ground pool offers an average 56% return on investment. However, it typically boosts a home’s value by only about 7%, depending on several factors:

  • Neighborhood Norms: In upscale communities where pools are standard, not having one may make your home less desirable.

  • Climate: In warm regions, pools are often essential, while in cooler climates, they’re seen as a seasonal perk.

  • Pool Condition: A well-maintained, visually appealing pool with additional features like landscaping or a patio can add significant value. Conversely, a neglected or outdated pool can detract from your property.

  • Yard Space: A pool can limit other outdoor activities if it takes up too much of your yard, reducing appeal for buyers looking for open spaces.

How Much Does a Pool Cost?

The price of adding a pool depends on its size, materials, and extras like lighting or heating.

  • Installation: Building a standard 18×36-foot in-ground pool costs $25,000 to $100,000, with high-end pools running even higher.

  • Safety Features: Many areas require fences or covers, adding $5,000 to $15,000 to the budget.

  • Monthly Maintenance: Cleaning, testing, and seasonal prep can cost $80 to $150 per month.

  • Energy Use: Running a pool pump costs about $300 annually, while heating can add another $500 to $800 per year.

Other Considerations

  • Insurance and Liability: Pools can increase homeowners insurance premiums. Check with your provider to ensure adequate liability coverage and compliance with safety requirements.

  • Property Taxes: A pool may increase your property taxes without a matching rise in resale value.

  • Resale Challenges: While some buyers see a pool as a must-have, others may view it as a safety risk or high-maintenance expense.

Lifestyle Benefits of a Pool

For many homeowners, a pool offers more than monetary value—it enhances quality of life. According to the NAR Remodeling Impact Report, adding a pool gave homeowners a “joy score” of 10 out of 10. Over 90% of pool owners reported an increased sense of enjoyment and accomplishment after completing the project.

Adding a pool is a personal decision. If you have the budget, plan to stay long-term, and want a space for relaxation and family fun, a pool can be a worthwhile addition to your home. Just make sure to weigh the costs and benefits carefully before diving in!

Weighing the Pros and Cons of Living Near a School

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When house-hunting, the location of your potential home is as important as the home itself. One factor you may encounter is proximity to a school. Whether or not you have children, living near a school can significantly impact your daily life. With schools in session for most of the year, it’s essential to consider both the benefits and drawbacks before making a decision.

Advantages of Living Near a School

1. Convenience for Families
For families with school-age children, living close to a school simplifies daily routines. Morning drop-offs and afternoon pick-ups become faster and less stressful when the school is just a short walk away. Walking instead of driving not only saves time but also adds physical activity to your day.

2. Increased Safety
Schools often have heightened security measures, and neighborhoods near schools tend to have a visible police or local law enforcement presence. While this doesn’t guarantee absolute safety, it can create a sense of security for residents. Be sure to research crime statistics in the area to confirm its overall safety.

3. Access to Recreational Facilities
Many schools provide access to tracks, playgrounds, and sports fields after hours. Families can take advantage of these spaces for outdoor activities and exercise. However, some larger school districts restrict public access, so verify whether these facilities will be available in your chosen neighborhood.

4. Strong Sense of Community
Schools often act as community hubs, hosting events like craft fairs, sports games, and adult education classes. These gatherings can provide opportunities to meet neighbors and become involved in local activities, fostering a tight-knit community spirit.

5. Higher Resale Value
Homes located near reputable schools or within sought-after school districts typically hold their value well and may even appreciate more quickly. Proximity to a desirable school can make your property more appealing to future buyers, especially families.

Disadvantages of Living Near a School

1. Limited Parking
Street parking can become a challenge near schools, particularly during school hours or special events. Staff, parents, and students may fill the streets, leaving little space for residents. Homes with private driveways or ample off-street parking are better suited for these neighborhoods.

2. Noise Levels
Living near a school means dealing with noise from various activities, such as sports practices, PA announcements, or band rehearsals. Depending on your proximity to the school, this could become a nuisance, especially during weekends or evenings when you’re looking for peace and quiet.

3. Traffic Congestion
Traffic near schools can be heavy during drop-off and pick-up times. Special events like plays or games can also lead to road congestion. If you’re considering a home near a school, plan to observe the area during peak traffic times to understand how it might affect your routine.

4. Increased Foot Traffic
Schools bring a higher volume of children and teens into the neighborhood, especially during after-school hours. While this fosters a lively atmosphere, it may also lead to occasional loitering or trespassing on private property.

Living near a school has its advantages, from added convenience for families to stronger community ties. However, challenges such as parking issues, noise, and traffic should not be overlooked. Before making a decision, consider:

  • Can you handle the noise and congestion?

  • Does the safety and community vibe outweigh the inconveniences?

  • Is the potential increase in property value worth the trade-offs?

By carefully weighing the pros and cons, you can determine whether living near a school aligns with your lifestyle and priorities.

Difference Between a Home Inspection and a Home Appraisal

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When buying or selling a home, you’ll likely encounter both a home inspection and a home appraisal. While these processes are essential for ensuring a smooth real estate transaction, they serve different purposes and involve unique evaluations. Understanding the differences between a home inspection and a home appraisal can help you navigate the home-buying or selling process more confidently.

What Is a Home Inspection?

A home inspection is an in-depth evaluation of a property’s condition. It is typically ordered by the buyer and conducted by a licensed home inspector. The goal is to identify any current or potential issues with the property that could affect its safety, functionality, or value.

What Does It Include?

A home inspector examines various aspects of the home, including:

  • Structural elements (foundation, walls, roof)

  • Electrical systems

  • Plumbing systems

  • HVAC systems (heating, ventilation, and air conditioning)

  • Appliances

  • Interior and exterior features

The inspector provides a detailed report of their findings, which the buyer can use to negotiate repairs, request credits, or reconsider the purchase.

Who Benefits?

The primary beneficiary of a home inspection is the buyer. It provides a clear understanding of the property’s condition, helping them make an informed decision.

What Is a Home Appraisal?

A home appraisal is an evaluation of a property’s market value, typically ordered by the buyer’s lender. It is conducted by a licensed appraiser who assesses the property’s worth based on factors like its size, location, condition, and comparable sales in the area.

What Does It Include?

An appraisal focuses more on value than condition. The appraiser will:

  • Assess the property’s overall condition and curb appeal.

  • Compare it to recently sold homes in the area with similar features (comparables or “comps”).

  • Factor in local real estate trends.

The appraiser’s report determines the home’s fair market value, which the lender uses to ensure the loan amount is appropriate for the property’s worth.

Who Benefits?

The primary beneficiary of a home appraisal is the lender. It protects their investment by ensuring the home is worth the loan amount. Buyers also benefit by confirming that they are not overpaying for the property.

Key Differences:

Home Inspection
Purpose: To evaluate property condition
Ordered By: Buyer
Conducted By: Licensed home inspector

Focus: Structural integrity, safety, and repairs
Who Benefits? Buyer

Home Appraisal
Purpose: To determine property market value
Ordered By: Lender
Conducted By: Licensed home appraiser

Focus: Market value and comparable properties
Who Benefits? Lender and buyer

Why Both Are Important

Both a home inspection and a home appraisal play crucial roles in the real estate process:

  • For Buyers: A home inspection ensures the property is in good condition, while an appraisal ensures the price is fair.

  • For Sellers: Addressing inspection issues in advance can make the home more attractive to buyers. An appraisal helps set a realistic price for the market.

  • For Lenders: An appraisal ensures the loan amount matches the property’s value, reducing financial risk.

Understanding the difference between a home inspection and a home appraisal is key to navigating the home-buying or selling journey. Both processes provide essential information, but they serve distinct purposes. A home inspection ensures you’re aware of any potential issues, while a home appraisal confirms you’re paying (or receiving) a fair price for the property.

By being informed and prepared, you can ensure a smoother transaction and greater peace of mind in one of life’s most significant investments.

 

What’s Ahead For Mortgage Rates This Week – January 27th, 2025

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With the holiday of the previous week in addition to an extremely light release week, only the Consumer Sentiment report is weighing in on the lending markets. With both the inflation reports showing inflation cooling off, there is still some optimism about where the Federal Reserve will take things. This optimism is only cooled by the uncertainty the new presidency will bring. Many markets have responded in kind, with lending partners showing a trend of increasing rates and other markets preparing for uncertainty. Within the next few months, we will see how the new administration intends to handle monetary policy. This will have a greater impact than the Federal Reserve on the direction things will be headed in the future. Next week will be the first FOMC Rate Decision of the year, with many being optimistic about a potential rate cut with the recent inflation data.

Consumer Sentiment (Univ. of Michigan)

Consumer sentiment fell for the first time in six months, edging down 4% from December. While assessments of personal finances inched up for the fifth consecutive month, all other index components pulled back. Indeed, sentiment declines were broad-based and seen across incomes, wealth, and age groups. Buying conditions for durables softened but remained about 30% better than six months ago amid persistent views that purchasing now would avoid future price increases. 

Despite reporting stronger incomes this month, concerns about unemployment rose; about 47% of consumers expect unemployment to rise in the year ahead, the highest since the pandemic recession. January’s data closed on Inauguration Day, and consumers of all political leanings will continue to refine their views as Trump’s policies are clarified and implemented.

Primary Mortgage Market Survey Index

• 15-Yr FRM rates saw a decrease of -0.11% with the current rate at 6.16%
• 30-Yr FRM rates saw a decrease of -0.08% with the current rate at 6.96%

MND Rate Index

• 30-Yr FHA rates saw an increase of 0.07% for this week. Current rates at 6.54%
• 30-Yr VA rates saw an increase of 0.07% for this week. Current rates at 6.55%

Jobless Claims

Initial Claims were reported to be 223,000 compared to the expected claims of 221,000. The prior week landed at 217,000.

What’s Ahead

The FOMC rate decision is scheduled for next week, while the Federal Reserve’s preferred inflation measure, the PCE Index, will be released at the end of the week. Additionally, the Personal Income and Spending report, a key forward indicator of future economic trends, is also set to be released. Finally, the Chicago Manufacturing PMI data is expected to be published.

What to Expect When Preparing for Your First Open House

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As a real estate agent, one of the most exciting and important steps in selling a home is preparing for your first open house. This is an excellent opportunity to show off your property to a wide range of potential buyers. While it may feel overwhelming at first, I’m here to guide you through the process to ensure everything goes smoothly and that you maximize your chances of selling.

1. Setting the Stage: Preparing the Home

The first and most crucial step is preparing the home for visitors. A clean, clutter-free, and well-maintained home will make a much stronger impression than one that’s messy or in need of repairs. Start by deep-cleaning every room, organizing spaces, and removing personal items like family photos. You want potential buyers to be able to imagine themselves in the space.

Consider small updates like fresh paint, new lighting, or fixing any minor repairs. If your budget allows, staging the home can make a big difference. It helps to highlight the home’s strengths and shows buyers how they can use the space.

2. Promoting Your Open House

Once the home is ready, it’s time to get the word out. As your real estate agent, I will help create a marketing plan to attract as many buyers as possible. This might include online listings, social media posts, and email campaigns. We will also create flyers and signage to direct potential buyers to the open house.

The more visibility we can get for the event, the better. We will schedule the open house at a time that maximizes traffic—typically during the weekend or in the early evening, when people are free from work.

3. What to Expect When Buyers Arrive

When buyers show up at the open house, I will be there to greet them, show them around, and answer any questions they may have. You’ll also likely be asked to sign in as a formality—this helps me track who attended and follow up with those who showed interest.

During the tour, I will guide the visitors through the home, pointing out key features and answering any questions they have about the property. I encourage you to let me handle the showings, so you can avoid distractions and focus on making sure the home looks inviting.

4. Answering Questions from Buyers

Visitors may ask questions about the home, the neighborhood, or the property’s history. As the seller, your insight is invaluable. You’ll want to be ready to discuss things like recent renovations, your experience living in the area, or any unique features of the property that stand out. Don’t worry, I’ll help you with the talking points, but your personal touch makes all the difference.

If you’re unsure about any specific questions, feel free to let me know, and I’ll follow up with more information after the event.

5. Creating a Welcoming Environment

The atmosphere at the open house should be as welcoming and neutral as possible. Make sure the home is well-lit, free of strong odors, and at a comfortable temperature. Consider offering refreshments like water or coffee to help buyers feel at ease.

If you’re hosting the open house during colder months, ensure the home is warm, and if it’s summer, keep the house cool. Small touches like fresh flowers or a bowl of candy can go a long way in creating a pleasant environment for visitors.

6. Follow Up After the Open House

After the open house, I will reach out to everyone who attended to gauge their interest. I’ll gather feedback, answer any lingering questions, and see if they’d like to schedule a private tour or make an offer. Your feedback is also crucial—if anything stood out to you about the event or specific visitors, please let me know!

Following up after the open house is key to converting interest into an offer.

Your first open house is a significant moment in your home-selling journey, and with the right preparation, it can lead to a successful sale. By setting the right expectations, creating a welcoming environment, and allowing me to handle the details, we’ll work together to make the process as smooth and effective as possible.

Let’s get started! We are here every step of the way to ensure you achieve the best possible outcome!

Making the Right Decision for Your Lifestyle and Finances

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Deciding whether to rent or buy a home is one of the most significant financial decisions you’ll ever make. Both options come with their own set of advantages and challenges, so it’s essential to weigh them carefully. Your choice will depend on various factors, including your lifestyle, long-term goals, and financial situation. 

1. Your Lifestyle and Flexibility

When it comes to lifestyle, renting typically offers more flexibility. Renters often have the ability to move more easily, whether for work, school, or personal reasons. If you enjoy flexibility and may not want to commit to a single location for the long term, renting could be the ideal option. You can sign a one- or two-year lease, and when that’s up, you can choose to move without the responsibility of selling a home.

On the other hand, buying a home is a long-term commitment. If you’re ready to settle down and put down roots in a specific area, owning a home provides stability and the opportunity to personalize your living space. Homeownership can also create a sense of belonging to a community, and it allows you to make your home truly yours without asking for permission to renovate or paint.

2. Financial Considerations

One of the most significant differences between renting and buying is the financial commitment. When you rent, your monthly rent payment typically covers only the cost of living in the property—there’s no equity or long-term investment involved.

However, homeownership allows you to build equity over time, which can provide a solid financial foundation for your future. Your mortgage payments go toward both principal and interest, and as your home value appreciates, you can increase your net worth. 

3. Maintenance and Responsibility

Renting typically means less responsibility when it comes to property maintenance. If something breaks in a rental home, the landlord or property management is usually responsible for fixing it. 

However, homeownership comes with more responsibility. As a homeowner, you’re responsible for repairs and maintenance, from replacing a broken appliance to handling lawn care. While this can be costly, it also gives you the opportunity to upgrade and improve your home, increasing its value and making it your ideal space.

4. Long-Term Financial Goals

If building wealth is one of your financial goals, homeownership might be the better choice in the long run. Real estate is historically an appreciating asset, and over time, as you pay off your mortgage, your equity will grow. Additionally, mortgage interest is often tax-deductible, offering potential financial benefits.

However, renting can be a smart option for individuals who want to save for other goals, such as starting a business or investing in other assets. 

5. Market Conditions

The decision to rent or buy can also depend on current market conditions. In some markets, home prices may be high, making it difficult for first-time buyers to afford a home. In such cases, renting might be the best option until prices become more favorable or your financial situation improves. Alternatively, if mortgage rates are low, buying a home may be an attractive opportunity.

Renting and buying each have their unique benefits, and the decision should be based on your personal and financial situation. Renting offers flexibility, fewer upfront costs, and less maintenance, while buying provides long-term investment opportunities and the ability to build equity. Carefully evaluate your lifestyle, finances, and long-term goals to determine the best option for you. Still have questions? Give us a call, we are happy to help!