New homebuyers know what they want–family togetherness, casual living and flexible spaces, said Carol Lavender at the recent International Builders Show in Las Vegas. Buyers also want cost-effective features and reject things that don’t have lasting value.
And what are the hottest must-haves now? Avid Ratings identified these buyer preferences:
Large kitchens with islands
Energy efficiency, including energy-efficient appliances, super insulation and high- efficiency windows
Main floor master suite
Soaking tub in the master suite plus an oversized shower with seating area
Home offices
Outdoor living space
Two-car garages, but three-car is even better
Brick and stone exteriors instead of stucco or vinyl
Community walking paths and playgrounds
Ceiling fans
Potential buyers will have the opportunity to see these features at two upcoming home shows. The St. Louis Home Show is set for February 25-28 at the America’s Center and Edward Jones Dome. More than 600 exhibitors will be happy to show off their products and services. Plus, the event includes a garden and spa show, just in time to get homeowners excited about sprucing up curb appeal. Discount coupons are available at Schnucks.
The 2010 Builders St. Charles Home Show will happen April 23-25 at the St. Charles Convention Center. Admission is free. Celebrity speakers and interactive events make this show a positive experience. More about this show in April.
Earth friendly flooring, wallboard, insulation and roofs can bring in more potential buyers and do some good for the earth we live on.
As the selling season comes into sight, plans should be underway to spruce up your home with some remodeling projects. Last time we talked about small projects that have the best return dollar-for-dollar, such as changing out the tile in the kitchen and bath, re-facing cabinets and installing energy efficient appliances.
Making those improvements with earth-friendly materials will take your results to a higher level. Green materials have both financial and safety advantages.
Insulation is a must and most homes are under insulated. Natural based insulation is very popular now, such as recycled newspaper or cotton fiber, including recycled denim pieces. This insulation is soft, easy to handle and is treated to be fire resistant. There is no formaldehyde or other chemicals added to the product.
Wallboard can be a mold magnet, but by using gypsum, which has a moisture-resistant core, mold is no longer a problem. And, gypsum wallboard helps to maintain healthy air inside.
Heat rises–to the roof. In addition to quality insulation on the inside, a cool metal roof on the outside can save up to 30 percent on cooling bills. The metal roof lasts twice as long a conventional roof, and is resistant to fire, wind and hail.
Going green with flooring is another important factor in home remodeling. Linoleum is an excellent choice now. Yes, linoleum, but this product is far different than the linos in the 1950s kitchens of the past. The new linoleum is made from linseed oil, rosin, wood flour cork flour and limestone, all renewable resources and by-products of other manufacturing processes. This flooring is beautiful, designer-friendly and requires no major cleaning techniques.
To learn more about ways to live a greener life, check out the EarthWays Living the Green Life at the Missouri Botanical Garden. This interactive exhibit, which runs through March 14, is included in the Garden admission.
Whether you’re moving on or staying put, minor face-lifts will freshen a home.
Here’s a true story. Our friend Dan was getting his house ready to sell. The screen in the front door had a hole for, oh, three years running. He took the screen to the hardware store, had it fixed and reinstalled it that afternoon. Looking at his new screen door, Dan wondered why he didn’t do this easy fix three years ago.
Most of us have those little, nagging projects that we’ll take care of next weekend, but the weekends fly away and all of a sudden, if you decide to sell your house, they add up. Even if you’ll stay put for a while, projects big and small will have a financial impact for eventual resale.
Kitchen and bath upgrades still have good returns, according to Remodeling magazine’s latest cost vs. value analysis. A kitchen remodel has the potential to recoup 78.3 percent on the initial remodel investment. However, this return is based on minor upgrades, not a total kitchen renovation. Upgrades include energy efficient appliances, cabinet re-facing, new countertops, resilient flooring and a quality sink and faucet. These types of changes present the kitchen as fresh and well cared for.
Bathrooms also bring a good 71 percent return. Again, it’s freshening up what you already have, not necessarily going the addition route. Buyers like jetted tubs, stylish countertops with upgraded sinks and faucets, and new tile. Even re-grouting, sealing and caulking the existing tile will go a long way to impress a potential buyer.
Some of these projects might fall under the do-it-yourself category, but hiring a contractor to do the work efficiently and according to code is a smart idea. So, where to start? Personal references are very reliable and you can see the final work. Check with the local professional homeowners and builders associations, plus the Better Business Bureau for any complaints.
When you have selected a contractor, ask for documentation that the contractor has the required licenses, insurance, lien protection and workers’ compensation. You also want to know who will do the work and if the contractor is subcontracting some of the project.
Whether you are considering selling or staying, do the projects for yourself so that you may enjoy your home’s fresh new look.
Next time we’ll explore ways to go green for the face-lift project. Green makes sense and cost-effective now and in the future.
Exterior remodeling projects under $14,000 have the best return on investment
First impressions count. Increasing your home’s curb appeal outside bring potential buyers inside.
Preparing your home for sale in 2010 means planning ahead now. The good news is selecting the best improvement projects to increase your resale value and return on investment can be some of the least expensive. The most recent findings in the 2009 Remodeling Cost vs. Value report that eight of the top 10 projects in terms of costs recouped were exterior jobs that came in under $14,000. The report is published in the January 2010 issue of REALTOR® Magazine.
The least expensive but biggest on return is a new front door, which proves once again that first impressions are vitally important. A mid-range entry door replacement can garner a 128.9 percent return on investment, based on a national survey of 80 U.S. cities, and will welcome potential buyers into your home. Other exterior projects with a high return are certain types of window and siding replacements and adding a wood deck. The least profitable projects are home office remodels and sunroom additions.
Overall, a sensible and pragmatic approach to improvements is the way to go. Ultra-expensive remodels and exotic additions just won’t make a good return and will deflect buyers who are looking for value in today’s markets.
That said, there is one exception. Increasing living space is a good bargain and the addition of an attic bedroom, which can cost up to $50,000 on a national average, could be a good move. The rate of return on that project is better than 100 percent.
Here are more ideas for low cost improvements that will increase your home’s salability.
Increasing living space gives the buyer a sense of more value. Instead of putting a lot of effort into a home office, show your buyer that the space can be a bedroom. More bedrooms increase the sale price. Open floors plans are big now. Consider removing a non-weight bearing wall to open up the space between a kitchen and family room.
Kitchen and bathroom upgrades are well worth the effort. Replacing backsplashes and tile is an economical way to refresh either room. If you want to go granite for your countertops, consider granite tile instead of slab. Using tiles can be a $300 material cost instead of $5,000.
New or replacement cabinet fronts will impress potential buyers. Install rollout trays in the kitchen for better organization and give the buyer a sense of more space. A new medicine cabinet in the bathroom, plus light fixtures, an inexpensive vanity and faucets will make your bathroom new again.
Putting thought and coordination into your remodeling plans now will reap huge rewards in the spring.
View before and after photos of readers' room transformations to get ideas for your listings.
By Melissa Dittmann Tracey
A home has only one chance to make a first impression on potential buyers, and a poorly designed room can be a quick turnoff. REALTOR® magazine asked readers to send in stories of how they took action against their listings’ trouble spots.
Problem: "The furniture was misplaced in the area, there was a cluttered bookcase, insufficient lighting, plants were too scattered, and the window seat, built-in bookcases, and the view were not being highlighted."
Solution: "I re-arranged the furniture, bringing in furniture and lamps from other rooms in the house—such as a coffee table, stacked suitcases, and baskets. I re-hung the artwork; grouped plants in one area; and de-cluttered the bookcase, arranging items in groups, such as by same color accessories, fewer books, random baskets, etc. I also added colorful decorative pillows to highlight the window seat and to make the couch 'pop,' with an added a touch of red to bring the room together."
Cost: $50—the only purchase for this room was a few decorative pillows
Result: The number of Web hits on the listing and showings increased after it was staged and an offer quickly came but ultimately fell through. The price of the home is $329,000.
Problem: "It was dated and there was too much personality."
Solution: "I replaced the striped blue walls with warm, sandy-tone walls that highlighted the white trim and fixtures. I then changed out the busy toile shower curtain to a textured, clean white curtain. With the addition of calming spa accessories, the bathroom now serves as a clean, modern bath retreat and all for a very low-budget makeover."
Cost: Less than $200 for the paint, shower curtain, vanity accessories, and towel.
Result: The property updates put the home in a better competitive position against the other listings in the condo development. The condo is listed at $99,900.
Problem: "It was empty, so potential buyers were being fooled by how they perceived the size of the space. In this particular room, the space seemed small."
Solution: "As tricks of the trade, stagers sometimes use air mattresses to complete a master bedroom look. We also added inexpensive side tables and lamps, a side chair and simple jute boxes from Ikea. We also added inexpensive draperies from Wal-Mart and attached them with nails and hooks—no drapery hardware was needed. We already had the bedding and furnishings from previous staging. This look showed potential home buyers how much space this room really had."
Cost: Almost $200, including approximately $60 in an air mattress, $80 in bedside tables and lamps, and the rest in inventory.
Result: After the rehab, this property originally was going to be listed at $220,000. After the staging, it was listed at $244,900, and the house sold in two weeks with a sales price of $243,000.
Problem: "This master bedroom's main problems were the strong colors, the floral pattern of the ruffled curtains and bedskirt, and the unnecessary furniture and TV."
Solution: "I simply removed the busy curtains to show off the room's bay window. I also removed the wall pictures because they were too small. Overall, these small changes drastically improved the room and made it much more current."
Cost: $0
Result: The property was listed for $164,900 for four months with no offers in its "unstaged" condition. Once it was staged and again listed for the same price, the property had an accepted contract within nine days. It closed in a total of 24 days from listing to closing date.
Problem: "The room was painted in an Adobe, orange color motif, which many buyers found too loud for their tastes. It was hurting the sale of the home."
Solution: "The seller originally gave me resistance about changing the color, but after reading the feedback I was sending him from buyers, he finally realized the room needed to be re-painted. I suggested an off-white, neutral color. The paint job made a world of difference. Up until that point, I was having nightmares about this room!"
Cost: The cost in supplies and paint was under $200. The seller did the painting.
Result: The work was completed the first week of October 2008 and the property went under contract on Dec. 30, 2008, selling for $335,000 on Feb. 2, 2009.
Problem: "About 30 years of collecting 'stuff' finally caught up with the home owners in this room. There was too much furniture, the built-ins were filled to the max and camouflaged. There was not a blank space on the walls, and the beautiful hardwood flooring was not even visible."
Solution: "I removed excess furniture pieces, rearranged furniture to optimize space, removed clutter from the built-ins and arranged themes (such as a music theme with the guitar behind the piano), while still leaving a good amount of space. I removed wall hangings and pictures, and I removed the area rug to expose the gorgeous hardwood floors, which also gave the room a more spacious feel. "
Cost: Free—Boglioli did all the work herself and used furniture and accessories the owner already had in other areas of the home.
Result: An accepted offer was received on the home within a week after the staging for 90 percent of the list price.
Problem: "The couple's two-year-old daughter and large Labrador had taken over the space. What was meant to be a place for adults to entertain and relax had turned into a play room filled with toys. Poor lighting and clutter compounded the problem. The sofa was oversized and worn. The wall art was out of scale and the room lacked style."
Solution: "First, I moved the child's items to her room and had the owners remove and store the leather sofa and gold carpet. I rearranged the remaining furniture and art, using a smaller love seat, a rug, and a club chair to establish a cozy conversational grouping and highlight the oak floors. Borrowing furniture from other rooms in the house, I added end tables, lamps, and a writing table and chair to direct the eye toward the beautiful bay window. Finally, I enlisted the aid of my favorite staging company to provide a coffee table and plants, which brought attention to the room's high ceilings, crown molding, and period chandelier."
Cost: About $350; the costs mostly stemmed from using small items from the staging company and getting the house professionally cleaned.
Result: The house received three offers in two weeks and sold on March 24, 2009, for $583,000.
Problem: "The carpet was old, worn, and stained. The walls were stained by cigarette smoke. The light fixtures were very dated, with a dingy brass finish. There was no drama in the room—it was empty, uninviting, and cold. What's worse is that it was the first room that buyers saw when walking in the house, giving them little desire to continue with the showing."
Solution: "We removed the carpet to expose the hardwood floor, which was in pretty good condition. The walls were repainted in a neutral light sand tone, but we used a darker tan color on the largest wall to highlight the cathedral ceiling and architectural beams. We added furniture, anchored by a black rug, to create a warm, homey feel in the living room area. Two tall, thin portraits were placed on the focal wall, adding a variety of colors that played off the other accessories. We defined the dining room space with the table and chairs and spray-painted the fixtures black. Finally, we added a mirror to reflect the sunlight from the large windows."
Cost: $480 for labor and materials
Result: Six showings in eight days, with two offers. The home sold in February 2009.
Problem: "The kitchen was very outdated with wood paneling, old countertops, and worn, vinyl flooring."
Solution: "I added new cabinet door fronts and hardware, painted, and installed new tan laminated countertops. I also added stainless steel appliances and new vinyl tile flooring to give the kitchen a more modern look."
Cost: $4,000, with nearly half of the expense going toward to new appliances.
Result: Renovations were just recently completed, but buyer traffic to the listing had dramatically increased, Franks reports.
Environmental psychologist Toby Israel, author of a new book, Some Place Like Home: Using Design Psychology to Create Ideal Place, says people’s childhood homes have a profound effect on what kinds of homes they like best.
Before anyone buys, builds, rents or remodels, Israel believes they should consider what kinds of living spaces satisfy them, she says.
One exercise she recommends for anyone searching for a home is to draw a timeline of all the places they've lived for six months or more and circle those that they liked the best, then describe why. She calls the result a "design psychology blueprint" that can help a real estate professional identify what a client really wants.
Name: Cheryl Oliveri-Daly
Name: Julie Kern
Name: Marilyn Gibson
Name: John Badalamenti
Name: Celeste Boglioli
Name: Valerie M. Blake, associate broker
Name: Tim Franks
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