CHM Blog

Outdoor spaces can determine a home's selling price

Even if you recently remodeled your kitchen or opened up a wall to create an open floor plan, don’t discount the appeal of your backyard to potential buyers. HomeLight's Jedda Fernandez says it just might be the secret weapon to your home's resale value arsenal. Her research shows that professional landscaping can boost home values by 15 to 20 percent, according to the American Society of Landscape Architects.

She cites top producing Cleveland agent Michael Azzam, who emphasizes that outdoor entertaining spaces add tangible value from both buyer and appraiser perspectives. “Smart investments include patios with 60 to 70 percent cost recovery, composite decks that recoup 68 percent of their cost, and privacy fences that can add $5,000 in appraised value,” he says. Interestingly enough, he adds that wood deck additions costing $17,600 recoup 83 percent of their cost, while composite versions at $24,200 return only 68 percent. Despite that, buyers love the idea of anything that is both beautiful as well as maintenance-free, so the composite decking may make your home sell faster.

Outdoor kitchens are still dreamy to many buyers, recouping anywhere from 55 to 200 percent of costs according to HGTV. Zillow found that outdoor features like kitchens, showers, or TVs help homes sell for more than 3% above expected prices. Low-maintenance irrigation systems boast 83 percent cost recovery according to the National Association of Realtors. Perfect for busy homeowners wanting lush landscapes without constant watering.

Not all is perfection, however. Some backyard features can backfire spectacularly, such as above-ground pools on smaller lots, eclectic landscaping like Japanese rock gardens, or massive backyard beehives where buyers fear to tread. DIY projects can look unprofessional and create safety concerns, requiring licensed contractors for major improvements like fire pits. Artificial turf may look picture perfect, but it can get scorching hot underfoot for both you and your pets and can present drainage issues. Cracked concrete patios can detract value, especially if they’re weedy, though pressure washing, cleaning, and sealing can revive them.

Simple improvements deliver big impact without breaking the bank, such as bistro lights or fresh mulch in edged flower beds that can add more than $9,000 in perceived value. Fire pit seating areas highlight backyard potential when staged with chairs facing each other. While clean, well-maintained lawns make dramatic differences, overgrown grass is a detractor. So try hard to look at your backyard with objective eyes.

HomeLight, TBWS

How Rates Move:

Conventional and Government (FHA and VA) lenders set their rates based on the pricing of Mortgage-Backed Securities (MBS) which are traded in real time, all day in the bond market. This means rates or loan fees (mortgage pricing) moves throughout the day, being affected by a variety of economic or political events. When MBS pricing goes up, mortgage rates or pricing generally goes down. When they fall, mortgage pricing goes up. Tracking these securities real-time is critical. For more information about the rate market, contact me directly. I'm among few mortgage professionals who have access to live trading screens during market hours.

Rates Currently Trending: Neutral

Mortgage rates are moving sideways today. The MBS market worsened by -10 bps last week. This was not enough to increase mortgage rates or fees. The market experienced high volatility last week.

This Week's Rate Forecast: Neutral

Three Things: These are the three areas that have the greatest ability to impact rates this week. 1) Inflation, 2) The Fed and 3) Geopolitical.

1) Inflation: We will get the Fed's official measure of inflation, PCE on Friday. The bond market will be very sensitive to both the headline and core readings on a MOM basis versus the consensus estimates.

2) The Fed: Fresh off of last week's FOMC rate cut, we have deluge of Fed Speak this week, including Fed Chair Powell.

09/22 Williams, Musalem, Hammack, Barkin and Miran

09/23 Bostic and Powell

09/24 Schmid, Williams, Bowman, Bar and Daly

09/25 Barkin and Bowman

3) Geopolitical: September 30th and a potential U.S. Government Shutdown is fast approaching.

Treasury Auction: We have a round of shorter term debt hitting the marketplace this week.

09/23 2 year note

09/24 5 year note

09/25 7 year note

This Week's Potential Volatility: High

This morning markets have started with rather muted trading. Volatility has started at low levels but will become high later in the week when we get inflation data.

Bottom Line:

If you are looking for the risks and benefits of locking your interest rate in today or floating your loan rate, contact your mortgage professional to discuss it with them.

Richard Sardella has been actively managing and providing services in the mortgage industry for over 30 years. Richard serves on the board of directors as President of Colorado Home Mortgages Inc.

All information furnished has been forwarded to you and is provided by thetbwsgroup only for informational purposes. Forecasting shall be considered as events which may be expected but not guaranteed. Neither the forwarding party and/or company nor thetbwsgroup assume any responsibility to any person who relies on information or forecasting contained in this report and disclaims all liability in respect to decisions or actions, or lack thereof based on any or all of the contents of this report.

MLO of record MLO.100007700 / NMLS#233568 / CHM NMLS#127716.