Today I want to talk to you a little bit about a question I’ve been hearing a lot lately, which is: “What kind of return do I get on my home improvement investments?”Actually, the answer has two parts: the statistics and the truth. First, I’m going to start off with the more boring part: the statistics. Any time you do a major remodel such as a kitchen or a bathroom, you’re going to get about a 92% return on your investment. This means that if you spend $15,000 on a kitchen, you’re going to get $14,000 back. Now this may be what statistics say will happen, but the truth is that you really can’t predict your exact returns. Until you put your house on the market and see how market conditions affect it, there’s no telling what will actually happen. With that being said, there are certain factors that will boost the value of your home updates. If you and your neighbor are both selling your homes but only you have made any updates, your house is going to be more desirable. “There’s no way to exactly predict what your returns will be like.” Nevertheless, people tend to forget about the important things. When making repairs and updates to a home, there are a lot of “non-sexy” fixes that can’t be overlooked. Things like leaky faucets and peeling paint need to be taken care of before you can focus on more exciting updates. You’ll also want to make all necessary repairs or updates to your AC, furnace, or siding. These all yield about an 80% return and will be important to the buyer. Although we all like fixes and updates to things like kitchens or bathrooms, there are a lot of smaller items that are equally, if not more, important. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

PalmerHouse Properties Real Estate Podcast with Kyle Fernandez

Which Home Repairs Will Actually Bring You the Best Returns?

Today I want to take a departure from our usual subject of real estate to talk about something a little different. The St. Jude’s Children’s Research Hospital is hosting a marathon. To help out with what we believe is a very worthy cause, Kyle and I have committed to running in this event. Kyle will be running a full marathon and I will be running a half, and we need your help. We have a goal of raising $5,000 total, or $2,500 a piece, to go towards helping children in need. For those of you who may not know, St. Jude’s helps children with serious illnesses like cancer. “This is an incredibly important cause, and we want to do our part to help.” The St. Jude Memphis Marathon will be taking place on the weekend of December 1st through the 3rd. This is an incredibly important cause, and we want to do our part to help. We hope that you’ll be able to help us do so. Any amount is appreciated—all donations make a difference. To find more information, simply visit this page. You can donate to our team here. If you have any other questions or would like more information, feel free to give me a call or send me an email. I look forward to hearing from you soon.

Why We're Running in the Upcoming St. Jude Memphis Marathon

Home remodeling is hotter than ever. According to researchers at Harvard University, remodeling investment is up 6% over last year, and now makes up a $324 billion market. According to a survey of remodelers and real estate professionals, there are five remodeling projects that offer the best returns: 1. Your kitchen. Kitchen remodeling can be as simple or as elaborate as you like. However, to maximize your return, keep your investment to under 20% of the value of your home—as is recommended by surveyed real estate professionals. The outcome? A whopping 85% return on your investment. 2. Your bathroom. A thorough bath remodeling project can cost up to $20,000. However, not only will it pay for itself, it should give you an added 80% return. 3. Your deck. Replacing your deck can cost you anywhere from a few thousand dollars to tens of thousands of dollars, depending on the size. The expected benefit will be similar to a bathroom remodeling project—around an 80% return for a fresh, new deck. “Some will make more sense for your home than others.” 4. Your siding. Fading or worn-out siding can turn off potential buyers before they even step foot in your home. Replacing old siding will make it much easier to sell your home, and in addition, it should give you an 80% return on an investment of around $10,000. 5. Your windows. New windows can mean greater energy efficiency, increased thermal and acoustic comfort, and a more modern look.Homebuyers are well aware of this, and they are willing to pay accordingly. That’s why a typical window replacement should yield at least a 70% return on your investment. Clearly, some of them will make more sense for your home than others. If you’re considering selling your home, then just one of these projects could add tens of thousands of dollars to the price you’ll be able to get. If you have any questions or want additional advice about which remodeling projects make sense for you, give me a call or send me an email. We can discuss all the details and I can give you an accurate estimate of what these projects could be worth. I look forward to hearing from you!

5 Remodeling Projects With the Best Return

I recently made the switch to Palmer House Properties and wanted to briefly discuss why. Palmer House Properties is new to St. Louis, but we have more than 1,500 agents in four states and we’re one of the fastest-growing real estate companies in the nation. They let agents be entrepreneurs and set their own commissions; it’s truly your business.We’re a transaction fee-based brokerage, so you really are the boss.  “They let agents be entrepreneurs and set their own commissions.” There are plenty of perks, too, like free signs and free supra boxes, as well as free errors and omissions insurance for the first year. After the first year, it’s just $45 annually. If you want to learn more about this opportunity, we’d love to meet with you to talk about switching to Palmer House Properties and everything we have to offer. We hope to hear from you soon!

Why You Should Consider Moving to Palmer House Properties

There are many opportunities to invest in real estate, and flipping houses has become very popular thanks to lovely reality TV. However, let me tell you that there’s nothing real about house flipping reality TV shows. In reality, 12% of all flips actually lose money and 30% make less than 20% profit—which is just a fancy way of saying they break even. That’s six months of headaches just to break even! Every investor has their own secret sauce, but here’s my cost formula: Your purchase price plus 30% plus remodeling costs plus expenses. Expenses is a keyword as it will cost you money to sell the house, and you’ll also have carrying costs. You’ll have financing costs, too. For example, say you buy a $120,000 house and have $25,000 in repairs plus $25,000 in expenses. You’ll need to sell that house for $200,000 in order to make $30,000 profit. “12% of flips lose money and another 30% only break even.” Before you get there though, there are few things you need to figure out first. It starts with financing; how will you pay for it all? There are all sorts of options from hard money loans to private investors and many more. Secondly, you’ll have to find the deal itself. Since everybody is a flipper these days, it’s hard to find a deal. Then, you need to know the true cost of the repairs and expenses. Finally, you need to know and stick to a time frame. If you think you’re a handyman and can pull it off yourself, you’ll lose because it will take too long and your carrying costs will be too high. It’s important to know your exit strategy. In my next video, we’ll focus on my passion: real estate investment. In the meantime, give me a call or send me an email if you have any questions. I’m here to help!

The Reality of House Flipping That You Won't See on TV

When you buy a home, a letter of pre-approval from your mortgage lender is a key tool you want to have. I’m joined today by Jeff Peer of Fidelity Mortgage to help me explain why. As Jeff points out, the pre-approval process takes just a couple minutes and is very easy. All you need is a couple pieces of information and Jeff will take a look at your credit and run the numbers. There’s no cost involved for you. Getting pre-approved for a mortgage will be the first step any real estate agent will want you to go through.If 2017 is anything like last year, this step will be important so you can get a jump on a house when you’re ready to make an offer. Homes will probably be flying off the shelves like they did in 2016. “The pre-approval is the first step any agent wants you to go through.” At Fidelity Mortgage, Jeff has access to every program out there, from FHA loans to USDA to VA and beyond. The credit score you need to qualify ranges from 580 to 800, and if you have any issues with your credit, he can help you through them as well. As Jeff says, it’s essentially a free mortgage analysis. If you’d like to get a hold of Jeff with any questions, email him at jpeer@bosmtg.com or give him a call at 314-651-2558. If you have any questions about our market or you’re looking to buy a home, give me a call or send me an email soon. I’d be happy to help you.

The Importance of a Pre-Approval Letter When Buying a Home

I am absolutely amazed when I see photos of homes on the MLS that are either upside down, out of focus, or taken by a camera phone. Photography is not something you want to skimp on if you’re selling your home. Listings that use professional photography to showcase their home online sell 50% faster and 39% closer to their original list price than homes that don’t. Is that a gamble you are willing to take? You shouldn’t. “I can’t stress enough how important professional photography is.” Another interesting study by a New Orleans based real estate agency shows that listings using professional photography get viewed 118% more than other listings. I can’t stress enough how important this is. If you have any questions for us or want some professional photos taken of the home you’re thinking of selling, I would love to help. Give me a call or send me an email today.

Professional Photography Is Essential to Home Selling

Choosing a Realtor is not an easy task. Recently, I learned that there are 40,000 Realtors in the state of Missouri. That is a crazy number! I have two suggestions to help you pick the right Realtor: 1. Just because they were recommended by a friend or family member does not mean they are the right Realtor for you. Meet up with the Realtor first and make sure that you like them. Buying or selling a home should be a fun experience, and it won’t be if you can’t stand your Realtor. Make sure you like the person you are working with. 2. Make sure your Realtor knows what they’re doing. Hire an experienced Realtor who knows what they’re doing, not just a paper pusher. “Hire a Realtor that you like, not just someone who was recommended to you.” Remember, this is the biggest investment of your life. Hiring the right Realtor is an incredibly important part of achieving your real estate goals. If you have any other questions about hiring a Realtor or about real estate in general, just give me a call or send me an email. I would be happy to help you!

2 Key Tips for Choosing a Realtor

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PalmerHouse Properties Real Estate Podcast with Kyle Fernand...

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