Ashley Nicole Blog

One of the more nerve-wracking parts of even thinking about buying a house for many potential buyers is the concern that their credit score isn't good enough. It's no surprise, because you hear plenty of things about how important a strong credit score is when it comes time to buy a house.

Unfortunately, when you hear that term thrown around, it might sound like you need a perfect credit score

The truth is, putting a price tag on how much a specific improvement will boost your home's value is tricky and inexact at best. So while the idea of a project paying for itself may sound great, it's often more a sales tactic than solid math.

If you're being sold on the value-boosting benefits of a home upgrade, pause before you sign on the dotted line. Here are six things worth keeping in mind before you assume it's going to pay off in the end:

1) But 15% of What, Exactly?

Those improvement calculators might be fun to play with, but they're only as accurate as the data you feed them. That "15% increase" might sound impressive—until you try to pin down what your home is actually worth.

Market value isn't fixed; it's shaped by what buyers are willing to pay in your specific market. So the only way to truly test and prove how much you'd be improving the value is by actually selling it. And if you're calculating a 15% increase based on a number pulled from an online estimate or a hopeful hunch, you might be stacking ROI on top of wishful thinking; those sites aren't exactly known for their pinpoint accuracy.

2) ROI Rarely Means a Profit.

Sure, whatever the home improvement contractor is selling you might increase the value…but there's a good chance it won't improve the value as much as the project cost you.

There are studies done annually on which home improvements produce the greatest return on investment, and they reveal a surprising truth: the vast majority of them don't even return 100% of the cost, let alone a profit. Even the ones you'd think would increase the value more than they cost to do (like kitchen and bathroom updates) usually fall short.

3) Don't Expect Windows to Wow.

New windows might help your home sell faster—or keep a picky buyer from nitpicking—but they're rarely the type of feature that gets hearts racing. Most buyers assume the basics (windows, roof, HVAC) are in good shape. So while replacing foggy panes or putting on a new roof might be necessary or make sense, it's not likely to drive your price through the roof.

4) It Could Be an Over-Improvement…

It's tempting to go all-out on luxury finishes, but if you're in a modest neighborhood, buyers might not pay extra for that imported tile or full brick exterior. Your home still has to appraise, and buyers are comparing it to the house next door with vinyl siding and a fresh coat of paint. Upgrades that outpace the market can leave you holding the (very expensive) bag.

5) Some "Upgrades" Can Scare Buyers Off.

Take solar panels for instance… You might love the savings, but some buyers worry about aesthetics, maintenance, or being stuck in a long-term lease with the solar company. Instead of seeing added value, they may just see added complications. And if they're turned off enough to walk away, your pool of potential buyers shrinks.

6) Your Real Estate Agent Is Your Reality Check.

Before you spend five figures based on a promise of future value, talk to your agent. They can tell you what's worth it in your market—and what's just marketing fluff. A good agent knows what today's buyers actually want and what they're willing to pay for. Trust them to separate the wise investments from the wallet drainers.

By all means, improve your home! Make it comfier, greener, or more beautiful. But if you're doing it for value, make sure that "value" isn't just marketing spin. Bring in your agent early, ask tough questions, and think twice before believing the hype.

When most people think about buying a home, they focus on the big checks they have to write, like down payments, closing costs, and inspections. But there are also some sneaky little expenses that sneak up on you when you're in the midst of house-hunting chaos!

Don't worry, they aren't going to impact your mortgage pre-approval like buying a new car or paying for a vacation on your credit card would. (And they would…so don't!) They're just some little extra costs that add up more than you might think they will!

Here are 6 hidden expenses you might want to throw a few bucks at when budgeting for your home search:

1) Coffee

The quest for the perfect home is a marathon, not a sprint. You need fuel—and by "fuel," we mean lattes, mochas, and the occasional 20-ounce iced coffee just to get you through the endless stream of showings, open houses, and car rides through neighborhoods you wish you could afford.

2) New Socks

It's easy to live with scuzzy socks and even ignore the occasional toe peeking through. But that changes the moment you're asked to take your shoes off at a showing. Suddenly, every hole and stretched-out heel becomes glaringly obvious.

3) Fast Food

You might plan on making a healthy dinner… but then the home of your dreams hits the market at 10AM and offers are due by 8PM. (Yeah, houses can sell that fast…) Sometimes you gotta do what you gotta do to cram some food down without having to cook it.

4) Impulse HomeGoods Purchases

You told yourself you'd wait until you actually owned a home before buying any décor. And yet… here you are, walking out of HomeGoods with a cart full of "neutral but cozy" throw pillows, a trendy vase you swear will go somewhere.

5) Gas

It's not just the fuel you'll burn speeding to see a new listing before another buyer beats you to it. It's the spontaneous detours you take to check out a yard sign you spot on a side street, only to find out it's a campaign sign for a local politician—not a new listing.

It's the dozens of drive-bys past a house you've made an offer on, and are now emotionally stalking while waiting for the seller to respond. And of course the neighborhood reconnaissance missions, complete with unplanned routes, U-turns, and "just one more loop around the block" moments.

While your agent is surely right there with you and chiming in with their take on the house, they're also likely sizing up the situation in entirely different ways you might not even realize. Agents are often looking for certain clues that could make or break the deal if you decide to make an offer.

Here are five things real estate agents take note of while showing a house, just in case their client is interested in making an offer on it:

1) How Many Business Cards Were Left by Other Buyer's Agents

Buyer's agents often leave their business card behind to let the owner and the listing agent know that they were there. You might not notice them, but your agent is likely checking out how many business cards were left by other agents to gauge how many showings there have been, and how much potential competition you might be facing.

2) Which Agents Left Their Card

They may even take a closer peek at the business cards to see which agents have shown the property so they know who they're up against in the negotiation ring if there are multiple offers.

3) Subtle Signs of Packing

Boxes tucked away in the garage, half-empty closets, or some missing furniture that they saw in the listing photos are all things your agent may notice, which could be subtle signs that the sellers are already packing up. It may just be that they're getting a head start on their inevitable move, but it could also be a sign that they're highly motivated, which is good to know when negotiating.

4) Signs That Someone Has Already Packed

If it looks like one family member's clothes are conspicuously missing from the closet, or there's only one toothbrush in the en suite bathroom, yet the tax records indicate two people own the home, that will be something an agent picks up on. It could just be that one of them has already moved due to a job relocation and their significant other will move once the house is sold… but it could also be a sign that they're splitting up. Either way, it gives your agent insight into the seller's situation and could be a sign that they're motivated to make a deal.

5) Any Indication About the Seller's Occupation

Seeing signs of a seller's occupation—whether it's a home office that looks like it belongs to a sales person, or a degree on the wall that indicates they're a doctor, lawyer, or a teacher—can be more than just a fun fact. Your agent can use this info to get a feel for who they're dealing with, and tailor how they present your offer and handle negotiations.