You may ask yourself: how could that be?
It must be understood that the price and value of a home are two entirely different entities. The price of a home may be based on its features, amenities, location and square footage, while the value of a home is something is based on the home’s overall impression. It is the feeling that buyers get the moment they walk through the door of a home. The Houston home that was sold very quickly probably had an excellent, perceived value. This may mean that the home may feel larger or more spacious. It may mean that the rooms seem more bright and airy; that they look fresh, updated and attractive.

The following tips can help you increase your home’s value in the Houston real estate market – without breaking the bank!

- Spaces automatically look larger when there is limited furniture and clutter. Consider clearing out all unnecessary furniture before you list your home for sale. If buyers feel like the rooms of your home are larger – even if they’re not – your home will instantly have more value than a similar home down the street. Rent a storage unit or have a garage sale to cut down on all of the excess in your home.

- Allow buyers to imagine themselves in your home. You can accomplish this by de-personalizing your home; remove personal trinkets, family photographs and taste-specific decorative items. In other words, create a clean slate that will allow buyers to focus their attention on your home’s details; not your high school diploma hanging on the wall.

- You can instantly increase your home’s value simply by paying attention to cosmetics. In other words, scrub your carpets, thoroughly clean all your appliances, inside and out, and clean off your kitchen countertops. You don’t always have to make purchases; often times, you can achieve greater value by simply making what you already have sparkle.

- The value of your home can instantly plummet if you fail to tend to broken or unsightly household items. In other words, buyers don’t want to see a leaky bathroom faucet, dirty and nail-hole ridden walls, and stains on the carpet. All of these things may not decrease the price of your home, but they will certainly decrease your home’s perceived value. In other words, don’t ever underestimate the power of tending to the small details. After all, the smallest details often make the biggest difference!

- Take care of your home’s landscape. An unkempt landscape can turn potential buyers off, even before they walk through the door. So grab your gardening gloves and make sure the outside of your home looks as good as the inside.

Bad Credit Home Equity Loans

If you use the equity you?ve built on your home in order to get finance, you can obtain a substantial amount at a very reasonable rate regardless of your credit score or history. Equity is the difference between your home value and the debt that is currently secured with your home (mortgage). This exceeding value can secure another loan; this loan is called home equity loan or second mortgage.

Moreover, since the money obtained from the loan will be used to improve the property securing the loan, as long as the improvements raise the value of the property, your home equity will raise too. This is the main reason why lenders do not have tough requirements for home equity loan approvals and bad credit applicants can also obtain them. By lending money, the lender is helping raise the value of the property that is guaranteeing the loan. Thus, the lender contributes to reducing the risk of the financial transaction.

Interest Rate

The interest rate on bad credit loans tends to be high. However, since bad credit home equity loans are secured loans, the risk is greatly reduced. The property guarantees repayment and in the event of default, the lender can always claim his money by the legal action of repossession.

Home equity loans have probably the lowest interest rate along with home loans. Bad credit only adds up a few percentage points to home equity loan?s APR. The slight difference is due to the higher risk involved for the lender. Home equity loans that are specially meant for home improvements sometimes come with even lower interest rates, so don?t forget to mention the purpose to the lender.

Loan Amount

The amount of money you can obtain from these loans depends solely on the equity you?ve got on your home. If you have bad credit you probably won?t be able to obtain more than 90% financing of your property?s value. Say for example your property is worth $100000, you won?t be able to get more than $90000. However, since you probably have a mortgage on your home (otherwise you wouldn?t request a home equity loan but a home loan), you have to subtract the remaining of your home loan debt to that number. If the remaining amount of your mortgage is $50000, then you?ll be able to obtain up to $40000 on a home equity loan if you have bad credit.

Writen By : Kate Ross