Potentially Bad Home Investments

As a home owner, there are routine maintenance projects such repainting the exterior or replacing an old roof. However, there are some who take on projects to increase a home's value for profit. 

According to Yahoo Finance, there are six specific things that don't add value to your home.

1. Swimming Pools
From my experience dealing with various clients, there isn't a huge demand for pools. The majority of people who absolutely don't want pools are families with young kids. Many consider it dangerous unless it's gated. In-ground pools can start at $10,000 and go up, not to mention the monthly maintenance costs. In today's market, pools might add value up to 25k, but it depends on the neighborhood and size of the pool.

2. Overbuilding for the Neighborhood
Even an extensive, grand house can be a sore thumb in a mediocre neighborhood. If the surrounding one-story homes have 2-3 bedrooms, don't build a 5-6 bedroom, two-story home next door. Even though the added square footage normally adds value, most buyers won't pay more when the neighboring house is selling for $100,000 less. Overbuilding just screws up the comps in the area.

3. Extensive Landscaping
Things like dolphin-shaped bush statues or professionally maintained landscaping are great curb appeal, but they are best left to professionals. Potential home buyers might view it as a burden if they can't continue the upkeep. In this buyer's market, don't expect them to see the value when making an offer.

4. High-End Upgrades
If you're going to upgrade the kitchen to brand new stainless steel, granite counters and new hardwood floors, make sure to be consistent and modernize the rest of the home. High end features usually increase values for high end homes.

5. Wall-to-Wall Carpeting
The trend these days are leaning away from carpet. Hardwood floors, tile and stone are the leading floor covering choices. They are easier to keep clean and have a longer life span.

6. Invisible Improvements
It seems self explanatory. If the buyer doesn't see it, they won't pay extra for it. New plumbing or a new heating system makes a home more comfortable, but buyers already expect these things to be in good shape when they buy the home. This shows pride of home ownership, but don't expect to recoup your costs in added home value.

Wise investments that do add value to a home include warm and inviting decor and neutral color schemes. A tip to sellers is to walk through homes for sale in your neighborhood. Get a feel for the trends. If all the homes have granite and dual-pane windows and yours has tile counters and windows from the 80's, that's a good indicator of where to start upgrading.  

How Long Does Escrow Last?

Before you give notice to break a lease, sell a home or hire movers, make a mental note of these typical escrow time frames.

Conventional Loans: 45 days 
FHA: 50 days 
VA: 62 days
USDA: 90 days
Short Sales (after lien holder approval): 45 days*
REO/Foreclosure: 47 days

Remember these are just the current average time frames. Your Realtor and lender will give you updates along the way to give you a good idea when you can close escrow.

*Short sales can take around 6 months to become approved for sale by the bank. After lien holder approval, escrow can officially open.

Home Prices Slashed

Home prices are plummeting in the Greater Seattle area. This clip from KOMO News gives a good idea how much your home might have dipped.
 Zip Realty on KOMO News

Also check out Zip Realty's "Sale Rack" to see where you can get a good deal!
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