Trend or Fad? Knowing the Difference Could Save You Money & Credit Inquiries and Home Loans
When updating your home (especially to put on the market), It's a good idea to incorporate current trends into your renovations. There's a fine line between trends and fads however, and the difference can affect your buyer pool.
Fads are characterized by an intense and widely shared enthusiasm for something, but they tend to fade in popularity quickly, and have little basis in practicality.
Trends have longer lifespans and are more sustainable as a market force. Trends indicate the general direction that something is developing over time. Often times, design trends can be predictable because they have a basis in practicality that justifies their popularity.
Fads can occasionally turn into trends, but it's hard to know in which cases that will happen. If your goal is to attract a wide range of buyers to your home and sell quickly, it's best to steer clear of design choices that are too new, too edgy, and too pricey. Let's break down a few current fads for consideration.
"Thanks to Instagram and Pinterest, busy, bold wallpaper is back in a big way," says HomeLight. "Online searches for 'bold print wallpaper' have increased by 401% in the past year." While wallpaper can be great for adding a splash of individuality to your space, it's just that — individual. To some, wallpaper adds visual clutter, and if buyers can't picture themselves in that space, they're going to be more focused on the potential headache of taking all of that wallpaper down. Neutral paint tones, on the other hand, tend to have widespread appeal and can be easily changed by potential buyers.
Watch HGTV for more than a few minutes these days and you'll probably see some fancy gold or brass finishes in the kitchen or bathrooms. We're filing this under "fad." Even though this type of finish has grown in popularity, you're still unlikely to find them in the majority of homes—especially in more suburban areas. If you live in a hip city with a large, design-savvy millennial buyer base, choosing these trendy finishes could pay off. For everyone else, sticking to finishes with more widespread appeal is a smarter move.
In recent years, open kitchen shelving has become quite popular on design shows. When staged properly and done right, open shelving can look great, but in the frenzy of everyday life it lacks function and looks cluttered and unorganized.
Outside of finishes, it's important to consider the main features of your bathroom. Large walk-in showers have become more popular, but they often require ditching the bathtub. Consider your potential buyer before making such a drastic change. While you personally might not take many baths, a tub is often a must for young families with small children.
Since a minimum credit score is required for most loan programs, the first thing a lender will do is check to see if your score measures up – this is known as a "credit inquiry." There are two primary types of inquiries, a hard and a soft inquiry. A hard inquiry will have a direct and almost immediate impact on credit scores whereas a soft inquiry will not.A hard inquiry is one where the individual has made a direct request for new credit.The request can be for a new automobile loan, installment loan or a credit card. In these cases, a single, somewhat isolated request for new credit will have a marginal impact on credit scores.
Multiple requests for credit during a compressed period of time, however, will eventually harm scores. The logic is that several quick requests for new credit could indicate an individual is on the cusp of financial hardship, and the new credit accounts are intended as a budgetary life-preserver. These varied, numerous requests can keep companies from issuing new credit.
A soft inquiry is relatively benign and won't affect scores at all.A soft inquiry is when someone requests their own credit report for a review.Soft inquiries are often made by employers or landlords, and won't hurt your score.
When it comes to applying for a home loan, it's important to understand the details. Let's say you've applied for a mortgage loan, but you haven't heard anything back from the loan officer. After two weeks you want to apply for a mortgage at another lender, but you're concerned that another hard inquiry will ding your credit score. While this is a valid concern, the guidelines set forth by the Consumer Financial Protection Bureau have ruled thatmultiple requests for the same type of account within a 45 day period count as just one inquiry. Therefore, there is no harm in shopping around when it comes to finding the right home loan.