updating your home Archives - Real Estate News and Commentary

October 12, 2022October 12, 2022

Limit the trendy

Limit the trendy updates when renovating your home. If you’re renovating your home to prepare for a home sale, or for your living pleasure, there’s an overwhelming sense of excitement and creativity focused on the finished product. You may already have a vision of the design for the room and fixtures. Or you may decide to hire an interior designer (or certified home stager) to assist you with the project. Regardless of the route you take, take heed to design trends, as some are more fleeting and personal than others and could hinder your home sale.

One definition of “trend” is current style. Meaning that although a design or style is hot and desirable today, it won’t be in the near future. If you’re updating the home to live in a few years then sell a few years down the road, consider that any update you make today could seem outdated to home buyers in the future. Knowing this could help reign in your current budget, and budget for additional updates down the road.

If you’re renovating to sell, be careful to cross over the line of over-personalization. Over-personalized spaces/rooms/homes can turn off home buyers. Home buyers get distracted from the space of the home when they see updates, designs, and/or fixtures that they don’t like. “Look what they did here…” seems to be an automatic response I hear when viewing homes with clients who get distracted. Of course, distracted and otherwise turned off home buyers typically won’t pursue that home.

If you’re enticed to design by the latest and greatest trend, keep in mind that most home buyers are more interested in homes they can picture living in. A January 17th article from the NAR blog (“The Most-Hyped Home Design Trends for 2022; Home design is reflecting much more personality, from black accents to textures galore, by Krisztina Bell, No Vacancy Home Staging Inc.) has a comment about “maximalism design: “Maximalism is back, if the 2022 fashion shows are any indication. More people are seeking to surround themselves with objects that reflect their personality. We’re seeing expressionistic lighting—like geo-shaped groupings and swirls—as well as an explosion of colorful rugs. It’s popular to mix vintage pieces with contemporary furniture and colorful glass. Put a disco ball in the basement and add tinsel curtains for even more sparkle. That’s just how bold decor is getting. But don’t go overboard with ’70s decor! A few playful and unexpected pieces is all you need for this trend.”

Ms. Bell’s words of wisdom “don’t go overboard”and limit the trendy should be the rule when renovating.

By Dan Krell
Copyright © 2022

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Disclaimer. This article is not intended to provide nor should it be relied upon for legal and financial advice. Readers should not rely solely on the information contained herein, as it does not purport to be comprehensive or render specific advice. Readers should consult with an attorney regarding local real estate laws and customs as they vary by state and jurisdiction. Using this article without permission is a violation of copyright laws.

January 31, 2020January 31, 2020

New Years Resolution

It’s a new year, and there are numerous media pieces giving you the same old and trite New Years resolution. Here are three New Years resolutions that may have meaning for you this year.

Selling a home this year? Your New Years resolution is to not overpay on real estate commissions. Although I have written a lot about real estate commissions this year, it’s a topic I have addressed through the many years of this column. 2019 is was the year when consumers finally became aware that they have control in how much they pay when selling a home. Although home sellers have always been able to negotiate with real estate agents, agents are increasingly transparent about costs giving sellers more clout in deciding what’s fair compensation. There are a number of ways of selling a home today. Besides negotiating real estate commissions with a traditional real estate agent, consider all your options and do your due diligence.

Have you been putting off repairs? Make home maintenance your New Years resolution. If you’re thinking of deferring maintenance projects another year, ask yourself “What’s the cost of doing nothing?” Putting off those small projects can be costly. Deferring home maintenance is cumulative over time. What may seem to be localized areas or systems that need attention, could spread to other areas and systems over time.

Although average home prices have steadily increased since the end of the Great Recession, many home sellers have found that years of deferred maintenance, and lack of have been an impediment to selling their homes. Homes for sale that are in need of repair typically take longer to sell and will sell for less than their updated and well-maintained counterparts.

Because many home buyers want turn-key home, many home owners and real estate agents believe that years of deferred maintenance can be overcome with addressing some of the home’s issues. Making a few updates and minor repairs can improve the appeal of a home. But unless the all deferred maintenance issues (and updates) are addressed, the home sale price may still be less than what is expected.

Thinking of making updating your home? Make a resolution for a healthy home. A 2017 exposé revealed that green designed and energy efficient homes can be bad for your health. To explain the potential hazard, Marisa Mendez uses the analogy of opening up the air-tight sealed bag of clothes from last summer and getting a whiff of the stale, plastic air (Breathing Easy: An Introduction to Healthy Homes; remodeling.hw.com; June 22, 2017). But the green and efficient building trend has moved to make homes healthy environments with an emphasis on good indoor air quality. Mendez stated that the good indoor air quality can be achieved by continuously exchanging the indoor air with conditioned outdoor air. There are physical and environmental benefits of a healthy home, which include increased emotional wellbeing and reduced respiratory distress.

Bill Hayward of Hayward Healthy Home has been a leading voice of the healthy home movement. In a 2016 Builder Magazine interview, he discussed how his own experience transformed his life (Advocating for Fresh Air in Homes; builderonline.com; September 29, 2016). He started Hayward Healthy Homes after he realized his home made his family ill. Hayward stated “After my family got sick inside our home, I started researching. Thirty percent of the population has allergies and is physically affected by the indoor air quality. The worst air that Americans breath right now is the air within their house.” For more info on a creating a healthy home, visit Hayward Healthy Home (haywardhealthyhome.com).

Original article is published at https://dankrell.com/blog/2020/01/31/new-years-resolution/

By Dan Krell
Copyright© 2020

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September 28, 2019November 23, 2021

Renovate Your Home

Once thought of as a supporting actor in the housing industry, home remodeling is poised to take the spotlight. The growing fascination with home remodeling is generating new renovation trends and research. It’s time to renovate your home! If you aren’t yet thinking of remodeling your home, chances are that you will be planning a home improvement project in the next five years.

Plaut & Plaut’s conclusion to their study (Decisions to Renovate and to Move; Journal of Real Estate Research; 2010; vol. 32; p.461-484) states, “Housing renovation is an important component of housing supply, yet one often ignored both in empirical analysis and in policy discussions about housing.” They point out that that renovating a home was becoming a “substitute for moving.” A possible cause for the trend in 2010 was twofold. First, many homes fell into disrepair during and after the Great Recession. During that time, many home owners could not keep up with regular maintenance, let alone emergency repairs. And second, there was a lack of quality homes for sale immediately after the Great Recession. As foreclosure and REO home sales subsided, many homes for sale showed signs of neglect through deferred maintenance.

Renovate your home.

Fast forward to 2019, home sale inventory continues to be a major problem for the industry (and will likely continue into the next decade). But home remodeling is picking up the slack to improve the nation’s home stock, as well as help increase quality home sale inventory. However, industry experts are learning there are other reasons that home owners are remodeling instead of moving. Trends that have been identified include seniors who are “aging in place,” and multigenerational homes.

Although a recent Freddie Mac study identified seniors who are “aging in place” as a cause of the ongoing home sale inventory shortage, aging in place is also stimulating home remodeling! Homeownership rates for seniors are much higher today than in past generations. Instead of moving to retirement communities or stereotypical senior housing, older home owners are staying put and renovating their homes for comfort and style.

Multigenerational homes became popular again after the recession, when grandparents, parents and adult children pulled resources to live in one home. The trend continues as aging parents are moving in with their children, and young adults are moving back into their parent’s homes. Remodeling a home to accommodate several generations may require turning a basement into an apartment, adding a main level bedroom and bathroom, or possibly building an addition to the existing home.

Even home owners who decide to move are remodeling their homes. According to NAR’s Remodeling Impact Report (nar.realtor), functionality and livability are the top reasons to renovate for a home sale. Most home buyers want a turnkey home that is functional, comfortable and energy efficient. Home sellers who improve their homes before selling typically sell faster and for more than those who sell their home “as-is.”

While “going green” has become a standard in home improvement, a Joint Center for Housing Studies of Harvard University (jchs.harvard.edu) publication “Healthy Home Remodeling: Consumer Trends and Contractor Preparedness” identifies healthy home remodeling as a growing trend. Healthy home building practices are intended on maintaining the physical and emotional wellbeing of the home’s occupants by using healthier building materials, such as “low-VOC paints and formaldehyde-free woods.”

When planning to renovate your home, home improvement experts recommend: create a budget and stick to it; only hire licensed contractors; and make sure your improvements have permits.

Original article is located at https://dankrell.com/blog/2019/09/28/renovate-your-home

By Dan Krell
Copyright© 2019

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April 27, 2019December 13, 2022

Home buyer preferences

Homes can vary along a spectrum of many factors. Size, style, location, are just the basic differences and are generally used by home buyers in their home search. However, even similar homes in the same neighborhood can differ depending on the homes’ features. Home buyer preferences and trends toward home features is usually the reason for price differences on similar neighborhood homes. This truth was validated by a study conducted by the National Association of Home Builders (How Features of a Home Impact Its Price; nahb.org; November 30, 2004). If you’re selling this spring, consider home buyers preferences and current home buyer trends.

In past columns, I talked about how most home buyers in the current housing market want a turn-key home. And that still holds true. Home buyers still prefer to buy a new home. However, buying a recently updated/renovated home is the next best thing. Generally, homes with new kitchens, bathrooms, and flooring get multiple offers and sell very quickly. Alas, updating and renovating a home takes time and money. Discuss with your listing agent how making (or not making) updates and renovations affect your sale price. You may have to adjust your pricing expectations accordingly.

So, what tops the list of home buyer preferences? The National Association of Home Builders latest “Trends in Home Buyer Preferences” (nahb.org) indicates that the kitchen is a prime area of focus. Current kitchen trends include a strong preference to either “traditional” or contemporary style cabinets. The styling would depend on the kitchen overall (consulting with a design center would be helpful). Additionally, water filtration has also become a desirable feature. If not already installed, water filtration can be added when replacing a refrigerator, as it is now a common function of modern refrigerators.

In today’s growing awareness of environment and sustainability, it’s a given that home buyer preferences show a strong preference toward energy efficiency. When updating, consider Energy Star (energystar.gov) certified appliances. Energy Star appliances typically use 50 percent less energy than standard models. Additionally, consider having an energy audit prior to listing your home. The energy audit will reveal the home’s energy efficiency. It will also highlight where improvements are recommended. The report itself is useful to the home buyer, even if you don’t follow all the recommendations.

New flooring is also important to home buyers. The preference towards wood flooring has always been strong. However, be aware that there are differences in quality of flooring products, as well as workmanship of installers. Even if you purchase top quality hardwood, poor installation can actually negatively impact the sale price. If you’re installing wood, tile or similar flooring, hire an MHIC licensed flooring contractor. Your flooring contractor can also help with trendy flooring options.

As a home seller, you certainly consider your home as being special. And you probably spent a good amount of money on customizing your home over the years. However, a problem many home sellers encounter is that over customization and personalization can negatively affect the home sale price. The truth is that home buyers have preferences too, and their preferences may not reflect yours.

Home buyer preferences and trends are constantly changing. Your listing agent should be able to help understand how current home buyer preferences and trends impact your home sale. Additionally, consulting with a home staging or interior design professional can assist you with deciding on making relevant updates to your home.

Original published at https://dankrell.com/blog/2019/04/27/home-buyer-preferences

By Dan Krell
Copyright © 2019.

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September 5, 2014November 23, 2021

Resurgence of solar power

Once considered too costly, solar is getting hot (pun intended). Many factors are making it easier for consumers to choose solar; including lower installation costs and tax credits. Solar energy has also become a selling point for some home builders in sunny states such as California; where builders have offered the option of solar panel installation during construction.

Solar technology has come a long way. Manufacturing advances have not only made the technology more affordable, it has paved the way to new applications as well. Besides the panels with which we have become accustomed, photovoltaic (PV) technology is now available as roof shingles and windows; and some companies that can even apply the PV to other exterior home surfaces.

Is the investment worth it? A recent Washington Post piece (March 26, 2014; Real Estate Matters: Are solar panels worth the investment?) explores the value of installing solar panels – and concludes that it depends on your individual costs and savings. Authors Glink and Tamkin take into account the installation costs, tax credits and a monthly power bill of $120. Assuming that their system would supply all of their electricity needs, they applied the $120/month savings to repay the loan taken to cover the solar panel installation; and based on their calculations – there would be no savings for the first ten years.

However, your actual utility savings can vary on a number of factors, including (but not limited to): the amount of solar power produced; system size and placement; and available sun energy. Additionally, the cost of maintaining your solar panel system can vary; regular maintenance is required to ensure your system is producing power efficiently. Maintaining your system typically entails cleaning the panels (debris, dust, bird droppings can collect on surfaces) and testing other components. Furthermore, because the average life expectancy of a solar panel is about 30 years (depending in manufacturer), you should consider the time you intend to live in your home and resale. Home buyer attitudes on existing systems and possible replacement costs is not entirely clear.

If you’re considering a PV system, Energy.gov offers these tips: measure the amount of sun available; calculate the size of the system to meet your needs; predetermine the best location for the system, as well as making sure it will fit; decide if the system is a standalone or connected to the power grid; and how will the safety needs be met (energy.gov/energysaver/articles/planning-home-solar-electric-system).

Before choosing a contractor, energy.gov recommends due diligence. Ask about the company’s time in business and experience installing the type of system you have chosen (technical differences can exist). Check the contractor/company for complaints, judgments or liens. And, of course, make sure the contractor has appropriate valid licenses; according to the Maryland Department of Labor Licensing and Regulation website, “a home improvement contractor or subcontractor license is required to install solar panels for a homeowner, regardless of whether the panels will be installed on the home or an outbuilding adjacent to a residence, or will be attached to the land next to the residence. A licensed master electrician is required to hook the panels to the electric system.”

Finally, energy.gov also recommends getting multiple installation quotes because panel efficiency can vary depending on the manufacturer. The estimates should include the total cost of getting the PV system up and running, including hardware, installation, connection to the grid, permitting, sales tax, and warranty.