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Whether you're looking to sell your home or just spruce it up, there are lots of ways to update your space. But which ones are worth the time and money?
Boosting curb appeal is generally a smart move because a beautiful exterior makes a good first impression on potential buyers; it's also the first thing you see when you leave and return home each day. Simple interior switch-ups (new fixtures, hardware or tile, for example) can refresh your rooms too.
To pin down some of the best projects to tackle, we tapped five pros &mdash; including a realtor, a stager and a landscape artist &mdash; to share their value-adding favorites.
<h2>Level-up the entrance</h2>
A well-cared-for path to the front door instantly elevates the look of a home, so consider putting in a new brick or stone walkway, suggests David Migdal, president of Highland Park, IL-based Garden Consultants. If that&rsquo;s not an option, you can also make this spot more welcoming by setting up a seating area with a few chairs and a small table.
And don&rsquo;t overlook the front door, says Migdal. &ldquo;You could paint it so it stands out or replace it with a glass door if the house is modern.&rdquo; To dress it up even more, add some stylish accessories; think earthy planters, an elegant new mailbox or sleek address numbers.
<h2>Focus on the foyer too</h2>
This often-underrated area sets a tone for the whole home, so if yours feels spare or uninviting, it may be worth a refresh. &ldquo;Look at ways to simply activate that space,&rdquo; says Brian Wickersham, founder of AUX Architecture in Los Angeles, CA. &ldquo;Hang fixtures, put art on the walls, have fun with paint color. It can give punch and life to that space immediately when you walk in.&rdquo;
<blockquote>
Hang fixtures, put art on the walls, have fun with paint color.
</blockquote>
<h2>Give high-traffic spots a little love&nbsp;</h2>
When it comes to improving your rooms, you can maximize your efforts and budget by putting yourself in the mindset of a potential buyer. &ldquo;Most buyers are unwilling to do the work and want to walk into a home that&rsquo;s move-in ready,&rdquo; says Brad Lippitz, president of Chicago-based Brad Lippitz Group, Compass. &ldquo;The whole idea is balancing your return with what you put out.&rdquo;
To help your home feel move-in ready, suggests Lippitz, your best bet is to concentrate on key areas like these two:
<ul type="disc">
<li>Bathrooms.&nbsp;These spaces get a lot of use, so any spruce-ups will make a noticeable difference in your daily life. Plus, run-down bathrooms can be a big turnoff. &ldquo;The worst thing for a buyer is to walk into a bathroom and feel like you&rsquo;ve walked into someone else&rsquo;s used bathroom,&rdquo; says Lippitz. Giving walls a fresh coat of paint and buffing floors so they are scratch-free can go a long way, he says. And it's a good idea to re-caulk bathtubs and showers so they look &rdquo;crisp and fresh.&rdquo;</li>
</ul>
&nbsp;
<ul type="disc">
<li>The kitchen.&nbsp;A kitchen is the hub of the home, and because the backsplash is a focal point, it warrants special attention. If yours is outdated, consider changing it out for one that's more current, Lippitz suggests. When in doubt, white subway tile is a timeless and universally appealing choice.</li>
</ul>
<blockquote>
Most buyers are unwilling to do the work and want to walk into a home that&rsquo;s move-in ready.
</blockquote>
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/easy-upgrades_body-1_1361359903.jpg" alt="white and light wood kitchen with a honeycomb pattern white tile backsplash">
<h2>Make some fast fixes</h2>
A few simple solves can help a room feel notably more polished, which is why it's important to look around your home every once in a while as though you're a visitor; otherwise, it's easy to miss details that are feeling dated or shabby. "Like any other relationship, over time you get used to it and take it for granted," says Amy Bloomer, owner of Baltimore, MD-based home organizing company Let Your Space Bloom.
It's quick and easy to change your hardware, Bloomer says, and replacing your brassy kitchen cabinet handles or old-school wooden knobs on a dresser can modernize the whole room. Look for clean-lined hardware in muted metals or an edgy matte black.
Lighting is another update that can make a dramatic difference. Consider swapping out an ornate chandelier or floor lamp with sleeker versions or plug-in sconces.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-601128064_web.jpg" alt="white walled living room with a gray couch, a low wooden table and a gray wooden cardboard deer head mount on the wall">
<h2>Streamline your spaces</h2>
When professional home stager Justin Riordan, founder of Space and Archer Design Agency in Portland, OR, and Seattle, WA, preps clients' homes for sale, he'll often take a "less is more" approach to furnishing a vacant space or reconfiguring the home and existing household items.
That can mean stripping out some decor in a family room. "We tell everyone to take down their window coverings and bring in as much light as possible," Riordan says.
Or it can be as simple as removing shelving from the walls of a basement. "Making the basement clean and empty so people can see exactly what they're getting will make for a faster sale," he notes. Another top tip: Play up the plants in your yard, Riordan suggests. "Put down mulch that's almost black to make sure your flower beds look rich."
&nbsp;
&mdash; With additional reporting from Life and Money by Citi editors

Easy Upgrades That Can Add Value to Your Home

When thinking about buying a home, one of the smartest things you can do is get your finances in order &mdash; even before you start looking at real estate.
That's because those initial steps (<a href="https://www.lifeandmoney.citi.com/lam/articles/milestones/home-buying/how-much-are-closing-costs" data-link-source="tiny">saving up for a down payment</a>, <a href="https://www.lifeandmoney.citi.com/lam/articles/money/finance-101/credit-101" data-link-source="tiny">strengthening your credit score</a>) can streamline the process and position you for homebuying success. And there's a third step that is arguably just as essential: Getting a mortgage pre-approval from a lender can give you a sense of direction in your home search and a bit of an edge when it's time to actually submit an offer.
Wondering what it takes to get one, and if it's truly worthwhile for you? Read on for a quick primer on the pre-approval.
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-1125632749_web.jpg" alt="Couple moving into apartment" />
<h2>What is a mortgage pre-approval, actually?</h2>
Essentially, a pre-approval letter is a document from a lender (a bank or financial company that lends money to borrowers when purchasing a home) stating how much money it is willing to lend to you to help pay for your home purchase.
A pre-approval isn't a hard-and-fast guarantee that you'll be granted a loan (for that, you'll need to go through the full underwriting process), "but it's enough to give you a ballpark on how much you can expect to spend," says Dustin Fox, a real estate agent with Pearson Smith Realty in Ashburn, VA. "It's similar to how a landscaper or a general contractor might give you a free estimate on their work."
In order to tell you how much you can afford to spend on a home, the lender will take a close look at the specifics of your financial situation &mdash; such as your income, assets, debt and credit history &mdash; to come up with what it considers the maximum loan amount for which you qualify.
<h2>Mortgage pre-approval vs. pre-qualification: What&rsquo;s the difference?</h2>
It&rsquo;s important to understand that a pre-approval is not the same as a pre-qualification, another type of document a lender may provide. With a pre-qualification letter, the number you&rsquo;re given is based on your own estimates of your financial capabilities. On the other hand, with a pre-approval, your financials are vetted by the lender before you&rsquo;re given a result. Since the pre-approval is based on a review of actual hard numbers, it carries more weight in a real estate transaction.
You may want to get pre-qualified as you start saving for a down payment to give yourself a target amount to set aside. Then, when you&rsquo;re ready to start shopping for homes, you can talk to a lender and get pre-approved for a home loan; this can help you understand how much you can afford to spend on a home.
<h2>Why is a pre-approval important?</h2>
Getting a realistic idea of how much you can afford to spend on a home is just one of the benefits. Securing a pre-approval also enables you to prove to a seller that you&rsquo;re financially capable of purchasing the home once you&rsquo;re ready to submit an offer. In fact, &ldquo;these days, you almost never see an offer submitted without a pre-approval attached,&rdquo; says Fox. &ldquo;If a seller is going to accept the offer and take their home off the market, they want proof that the loan will go through.&rdquo;
The dollar value of the pre-approval can also be an important part of the negotiation process, according to Fox. &ldquo;When we place an offer [on the buyer's behalf], we often call the lender and have them send over an updated pre-approval that is close to the offer price,&rdquo; he says. &ldquo;If the home is listed for $400,000 and you&rsquo;re offering $390,000, you don&rsquo;t want the seller to know that you could have gone much higher, but you chose not to.&rdquo;&nbsp;
<blockquote>
If a seller is going to accept the offer and take their home off the market, they want proof that the loan will go through.&nbsp;
</blockquote>
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/mortgage-pre-approval_body-2_1197369507 (1).jpg" alt="A couple reviews paperwork after packing up their house" />
<h2>What you'll need for a pre-approval</h2>
A lender will ask you to provide some financial documentation when you apply for a pre-approval. The array will depend on your unique financial circumstance, but many lenders typically ask for these:
<ul>
<li>Most recent pay stub with year-to-date income listed</li>
<li>Two years of W-2s or a few annual tax returns to show employment history</li>
<li>Two months of statements from any bank accounts or assets like a 401(k)</li>
<li>Any debt records like student loans or a car loan</li>
<li>ID and Social Security number for a credit check</li>
</ul>
Once you provide these, it can take anywhere from a few hours to a few business days to receive your pre-approval letter.
During that time, the lender evaluates how much income you are bringing in each month versus how much is going out in debt payments. This helps determine whether you can likely handle taking on more debt in the form of a mortgage. Additionally, by checking your credit history, a lender can see how proficient you are in paying back your current debts.
If one lender won't sign off on the amount you seek, you can consider trying other financial institutions. Alternatively, many lenders are willing to counsel you on what you can do to improve your financial picture, and once you make those improvements, you can resubmit your application.
Since it may take some time to get the result you're hoping for, the earlier you can start the pre-approval process, the better. Then, once you have it in hand, you'll be one step closer to becoming a homeowner.
&mdash; With additional reporting from Life and Money by Citi editors.

Buying a House? Why You Need a Mortgage Pre-Approval First

Strategic home improvements can make your space more comfortable or aesthetically pleasing, and on top of that, they can potentially increase its resale value.But before you price lighting fixtures or select a new paint color, you'll want to evaluate how you'll cover the costs — and if you have more extensive remodeling plans, that may mean borrowing against the value of your home instead of paying outright. Read on for a breakdown of three options to do that.<h3>Home equity loan</h3>Best suited for single projects like a room addition, this loan provides a lump sum of funding that you'll repay over five to 30 years. Repayments are monthly in addition to your first mortgage payment (if you have a first mortgage). Key considerations:<ul><li>Interest rate remains fixed over the life of the loan.</li><li>Closing costs can run 2% to 5% or more and include credit reports, title search, appraisal and attorney fees. </li></ul><img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/Woman works on remodeling her bathroom.jpg" alt="Woman works on remodeling her bathroom" class="right_image" /><h3>Home equity line of credit (HELOC)</h3>With this option, funding is readily available as needed, so it can be a fit for financial needs that are spread out over time. During the draw period, which can last up to 10 years, typically the homeowner is required to pay only the interest on the amount borrowed. During the repayment period, the balance due may be paid in a single payment (balloon payment) or in regular payments over 10 to 20 years. There may be a prepayment penalty or an early closure fee if the HELOC is closed before a designated period of time and the lender paid some or all of your closing costs. Key considerations:<ul><li>The credit line's interest rate may vary up and down — typically in step with changes to the so-called prime rate set by the Federal Reserve.</li><li><a name="_Hlk126769612">Some lenders may charge an origination fee (typically anywhere from $25 to $1,000, or a percentage of the draw amount). </a>Others may charge closing costs when establishing the HELOC. Lenders might also elect to charge a borrower a fee in the event of an early closure but not charge any closing costs.</li></ul><h3>Cash-out refinance</h3>A cash-out refi replaces an existing mortgage with a new, 15- to 30-year home loan for an amount over and above the existing mortgage balance. The amount of cash above the mortgage balance is given in one lump sum, and repayment is part of your new monthly mortgage. Depending on the term, interest and amount of the loan, the monthly payment can be higher, lower or the same as the current mortgage payment.A fixed-rate cash-out refi can be a good choice when current fixed interest rates are lower than your existing mortgage rate. In fact, even if you are not thinking about home improvements, refinancing your existing mortgage (without cashing out) may be a measure to consider if rates drop well below that of your existing loan.Key considerations:<ul><li>Interest rates can be fixed or adjustable and they're usually lower than those of home equity loans.</li><li>Closing costs are similar to those of the original mortgage — credit report, appraisal, attorney fee and origination fee.</li></ul><img src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/Father and son painting the walls in their home.jpg" alt="Father and son painting the walls in their home" class="right_image" /><h3>What if you're short on home equity?</h3>If you need funds for minor home improvements but are short on equity, consider a personal loan. In contrast to a home equity loan or a HELOC, a personal loan does not use property as collateral, so you won't risk losing your home if you default on the loan. Lenders consider your income, debt and credit reports when making the loan. Key considerations:<ul><li>The interest rate may be fixed or variable.</li><li>Typically you're charged an origination fee of 1% to 8% of the loan value, and payment penalties may apply.</li></ul><h3>Keeping the bottom line in mind</h3>Whether you choose to use your home's equity or a cash-out refi to finance your renovations or opt for a personal loan, know that home updates are more than eye candy. Think about both the current and future needs of your family, as well as features that are universally appealing to potential buyers, when picking your projects; that way, you'll not only get more out of your spaces but will also strengthen and secure your investment. — With additional reporting from Life and Money by Citi editors

3 Smart Ways to Finance Home Improvements

Buying or selling a home can take months &mdash; time spent seeking out and touring properties can seriously clog your schedule. And, if relocating to a new city, your search just became a bit trickier.
However, there is a more convenient way to find your next home: Enter virtual tours.
These 3-D tours are changing up the real estate world, allowing buyers to initially evaluate homes &mdash; and help weed out candidates &mdash; without physically visiting them, while giving sellers a leg up in marketing their property.
Yes, a virtual tour can give a peek inside a property without having to visit but, of course, it can't show you everything. Rarely does a virtual tour step inside a closet, look behind a shower curtain or walk down into a basement. And sometimes the proportions you view aren't exact.
Regardless, virtual tours can help home buyers make an initial assessment and reject properties that just don't make the cut. Following is a breakdown of the benefits and potential drawbacks of virtual tours and the tools being used to help in your home search &mdash; without ever having to leave your couch.
<h2>What&rsquo;s it like to virtually tour and purchase a home?&nbsp;</h2>
In early March, Bianca and Ryan Sasscer put their home in San Diego, CA, up for sale in anticipation of relocating to Denver, CO, for Ryan&rsquo;s job. The couple sold their California home faster than planned and needed to find something quickly in their new city.
Their Compass real estate agent in San Diego, Chris Martin, introduced the Sasscers&nbsp;to Jon Mottern, a broker associate with Compass' Basecamp Homes Team in Denver. To make the virtual search easier, Mottern set up the couple with the Compass Search Tool, which aggregates multiple listing service data as well as private listing site data into one pool of inventory.
Mottern says that this tool makes it possible for clients to view listings via email and the Compass app. &ldquo;The benefits are speed and agility," Mottern says of helping the Sasscers find their new Denver home via virtual tours. &ldquo;The ability to respond quickly and maneuver a really competitive market is the main advantage."
The Sasscers reviewed images and virtual tours, narrowing the search to homes in downtown Denver. While this technology can show a space, one thing a virtual tour can&rsquo;t offer is an emotional connection often gained when seeing a property for yourself. &ldquo;Something Ryan and I talked about is how important it is to go in person,&rdquo; Bianca says. &ldquo;The virtual tour &hellip; it&rsquo;ll never be the same as being there in person.&rdquo;
A work-around is to have someone local go into the home &mdash; whether that's your agent, a friend or relative&nbsp;&mdash; with a video-capable smart phone and show you more of the nuances a virtual tour doesn't dive into. To give a better sense of the space, Mottern did a walk-through of the home and roof deck with the couple over video chat.
&ldquo;I really like to be able to explore the neighborhood to see what&rsquo;s close by,&rdquo; Bianca says. So her brother also recorded a video tour over his cell phone of the area. &ldquo;After that virtual tour, that&rsquo;s when we decided to put in the offer.&rdquo; That final step sealed the deal in helping them settle on a historic loft building in the hot LoDo neighborhood that checked many of their boxes.
<blockquote>
The ability to respond quickly and maneuver a really competitive market is the main advantage.
</blockquote>
<img class="right_image" src="https://www.lifeandmoney.citi.com/rcs/lifeandmoney/storage/public/GettyImages-614229072_web.jpg" alt="Woman surfing a 360 degree view in her smartphone" />
<h2>Technology advancements boost virtual tours</h2>
3-D and 360&deg;-view tours have been around for many years, but they have been heating up the real estate world of late.
According to a report by Zillow, the number of 3-D home tours added to its website in March 2020 versus the previous month showed a 188% increase. Rosemont, IL-based VHT Studios, which creates virtual tours and virtual staging for real estate agents, saw a 30-fold jump in 3-D tour creation in April 2020.
"All searches start online and it makes your home searches so much easier," says Emily Santos, a senior broker with @Properties in Chicago, IL. "For the seller, it's a better way to market your home." A virtual tour provides buyers the ability to browse online, sure, but it also helps sellers get the most eyeballs to create buzz.
Real estate agents can work with professional photographers and videographers to create high-quality galleries that include 360-views. In many cases, the realistic quality of a video walk-through looks as if you're being led through a home in-person.
Compass, for example, has introduced a suite of tools for its agents called Virtual Agent Services, which includes 3-D staging, virtual open houses, interactive home tours and virtual neighborhood walks. This all helps give a more robust view to buyers, whether looking from afar or seeking to pare down their search.
Virtual tours can also help eliminate the need to schedule additional on-site tours. "A lot of buyers are looking for a specific type of property and they'll know it when they see it," Santos adds. "They've done most of their search online and have eliminated many properties. They'll see a property in person after a virtual tour and then write an offer right away."
New technologies are constantly evolving and, while 3-D walk-throughs can show more of a space, the user experience can sometimes be cumbersome. To address that challenge, Chicago-based Doola Creative Shop launched indoor drone tours in early 2020, offering the "ability to show someone a home in one click," says Zach Dulla, Doola's director of digital strategy.
They use FPV (first-person-view) drones, mini drones that allow the trained drone pilot to capture the entire home without even entering the space. That said, this pre-recorded technology is currently limited to the drone's view and doesn't allow someone to look around a room in more detail like 3-D tours.
<h2>Virtual staging can create panache for less</h2>
Santos notes that that for buyers and sellers it&rsquo;s important to properly stage a home and make it look free of clutter. This can help turn a virtual tour into an offer. Which is why Santos hires professional companies like VHT Studios and Realvision, which operates throughout the U.S. and Canada, to help showcase her clients&rsquo; properties.&nbsp;
Santos says that clients will often stage a space with physical furniture, but that can cost a few thousand dollars. Virtual staging companies can help make a room look professionally furnished through interior design software at a fraction of the cost. This is helpful if you&rsquo;re working with pre-construction properties people may be looking at virtually, but virtual staging can also transform a property into something much more marketable.
&ldquo;It [shows] the buyer the potential of the home,&rdquo; says Dennis Miller, Virtual Staging Solutions co-founder, who is based in northern New Jersey; his partner is in Austin, TX. &ldquo;We can remodel a room so people can get an idea of what it will look like.&rdquo;
Vince Collura, VHT Studios&rsquo; chief operating officer, adds that it can be challenging when a property is decorated with the current owner&rsquo;s tastes. Virtual staging, if done properly, will usually watermark photos to differentiate it from actual staging, which lends an agent more creative freedom to showcase a home.
<blockquote>
Virtual staging companies can help make a room look professionally furnished through interior design software at a fraction of the cost.
</blockquote>
<h2>Work with a trusted agent</h2>
Virtual tours are informative, but working with an experienced real estate agent familiar with a particular market will help present the full picture.
For example, Santos, a Chicago native who has worked in real estate for 15 years, has become the go-to agent for Kevin Jackson and his husband David Purpura. Santos helped them purchase two homes in Chicago and they are now looking to purchase an investment property.
Santos generally uses virtual tours, balanced with her knowledge of the market, to help the couple eliminate options. With the Santos as their guide, the couple&nbsp;have come at the process with a critical eye, knowing a virtual tour can only show so much.
&ldquo;It&rsquo;s not reality; it&rsquo;s virtual reality,&rdquo; Jackson says. &ldquo;They can be deceiving. You know the wide-angle lenses they're using to manipulate the space ... the room isn't as large [sometimes]. But the virtual staging helps to see past people's stuff, but it's photoshopping and glamour shots. As long as you know what you&rsquo;re dealing with, you can look at it from a relative perspective.&rdquo;
That&rsquo;s where having a trusted broker who can visit a property for you becomes helpful, especially if you live out of town &mdash; or in another country. Andre Teixeira, a Miami, FL-based real estate agent with London Foster Realty, works with many South American clients.
Teixeira, a skilled videographer, will often shoot his own virtual tours for his clients, where he can also capture specific things the client desires to show areas an otherwise professional 3-D tour leaves out.
He admits, however, that virtual tours generally work better than if it&rsquo;s your first home purchase. &ldquo;In the end, people want to see what they&rsquo;re buying,&rdquo; Teixeira says. &ldquo;A young couple buying their first home, they want to see the property and walk around before they make their decision.&rdquo;
&ldquo;Virtual tours and staging bring the home to life for someone who may not have otherwise had the opportunity to tour the home in person,&rdquo; says Sabrina Evans, Compass&rsquo; Houston, TX, regional marketing director. &ldquo;Virtual tours allow buyers to experience the home on their own time.&rdquo;
This is important, because when you've exhausted your search and it ends in your new home, you know you saw all the right places with the right tools.
&nbsp;

What Virtual Tours Can — and Can't — Tell You About a Home 

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