5 Staging Props You Need to Stop Using … Now!

Posted on January 27, 2017 by Debbie Prosser

By Justin M. Riordan, Spade and Archer Design Agency

There is good staging. There is bad staging. I mean, like really bad staging. In an industry with no regulations, no standardized accreditation system, and tons of “hobbyist professionals”, one gets what one pays for. The problem here is not if that inexperienced or bargain basement stager will do a good job, rather if they’ll actually stop your house from selling, dead in its tracks.

It’s true; good, thoughtful staging can most certainly help a house sell for more money and in less time. Bad staging can bring the selling momentum of a great house to a screeching halt. The absolute best way for bad staging to kibosh your sale is to have it offend potential buyers.

Here are five potentially offensive staging props that could threaten your sale:

J_alcohol1. Alcohol. Alcohol is a common thing found in many homes. It can raise both positive and negative emotions in buyers. We aren’t too worried about the positive emotions on this one as nobody is going to walk into your house and say, “They drink Chablis, I drink Chablis, let’s buy this house!” That being said, a potential buyer may very well be uncomfortable or even offended by alcohol for various reasons.  They could be in recovery or alcohol could be prohibited by their religion. For any reason, a buyer could be offended by alcohol sitting in the living room, on the counter, or next to the bathtub (tacky) in what could potentially be their new home. Even worse is staging with two-buck-chuck and offending the connoisseurs.

J_tipi22. The tipi (also spelled teepee or tepee). Cultural appropriation is a hot button topic these days. I’ve noticed a good number of home stagers using tipis in kids rooms and play areas.  I spoke to a friend who happens to be a Plains Native American to help me understand why the use of a tipi in home staging could be offensive. He explained that the tipi is a very sacred structure used for ceremonies and rites of passage and to use that sacred piece of somebody else’s culture to sell a house is less than thoughtful. It would be like using the pages of a King James Bible to wallpaper a bathroom, pretty but disrespectful. Whether you agree that using tipis is offensive or not, it’s important to understand that it may raise questions and emotions that are not related to “buy this house”.

J_animalparts23. Dead animal parts. These items are going-to-town, off-the-charts popular. Walking into staged homes all over the county is not unlike walking into an animal autopsy. There are pieces of the beast strewn on the table, tossed over the chair, laid out on the floor and even hung on the wall. Whether it is antlers, hide rugs, fur throws or pillows, these are all clearly recognizable parts of animals that were once alive and are now dead.  Don’t get me wrong, I love me some creepy dead animal decoration, but I know that I am not in the majority. Truly, it’s a very popular trend right now, but many of us are offended by it. A potential buyer might be vegetarian or vegan, an animal rights activist, or even just have a weak stomach. Needless to say, if your potential buyers are any one of these things and need to walk over the ripped-off epidermis of a recently murdered bovine, they might think twice about buying the house they actually love but can’t stomach the though of purchasing.

J_blowup4. Blow-up mattresses. Did you hear that? It was the sound of a blow-up mattress deflating. Or perhaps it was the sound of somebody crashing to the ground after sitting on a blow-up mattress, which was in-turn sitting on top of four 5-gallon buckets. It sounds an awful lot like a lawsuit, doesn’t it? Not only do blow-up mattress look like blow-up mattress (i.e. horrendous), they are unpredictable at best and dangerous at worst.  It’s a stager’s responsibility to demonstrate that a real mattress and box spring can get up the staircase and into that perfect bedroom your buyer had in mind.

J_woodart25. Word art. Do you really need a 3-foot tall E-A-T sign to get a buyer to understand that this room is the dining room? Shouldn’t the dining table surrounded by eight chairs tell that story that this is, in fact a dining room, designed for the specific purpose of E-A-T-I-N-G? Word art is fun, isn’t it? I always love to add one extra word or phrase to each one I see like “Life, Love, Family… Barf”. Ultimately, the staging should tell the story of how happy, successful, and fulfilled one could be if they bought the house. Word art is simply a lazy way to ineffectively send your message. (P.S. My favorite one so far? A big pink canvas that said “Dream Big” next to at toilet, with the lid up nonetheless. Ugh.)

When it comes to home staging, we all make choices. You can choose to simply pick the latest trends that you love and take the chance offending your potentially buyer. Or, you can make thoughtful selections that keep your buyer paying attention to the house and not the staging. Choices, darling… choices.

This post was contributed exclusively for REALTOR® Magazine.

“Copyright National Association of REALTORS®. Reprinted with permission.”

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5 Home Design Needs for Your Boomer Clients

Posted on January 25, 2017 by Debbie Prosser

Daily Real Estate News | Wednesday, January 11, 2017

The number of home buyers ages 55 and older is expected to grow over the next decade, and builders across the country are ramping up to serve them. At the International Builders’ Show in Orlando, Fla., this week, the National Association of Home Builders is educating attendees about how to support the industry’s efforts to cater to this segment of the market.

In one session, Deryl Patterson, president of Housing Design Matters in Jacksonville, Fla., offered ideas of how to design, remodel, and market spaces so that they’ll be more appealing to older home buyers. She says one important element is to avoid treating baby boomer clients as if they’ve suddenly developed a whole new set of living preferences. Patterson told attendees it makes more sense to think of boomers as “mature” in the sense that they are experienced buyers who know what they want. She described their mindset about their home purchase as: “I’m going to do it right this time, finally.”

Here are some home features you can be on the lookout for when working with buyers in the 55-and-over age group, or items you can emphasize if you’re trying to ensure your listing appeals to them.

  1. Rethink the laundry room. After the kids move out, many home owners spend less time in the laundry room, but that doesn’t mean they want to ditch it entirely. As the house becomes less chore-centric, Patterson says, home owners are more prone to focus on fun. Try carving out a space for crafts or pet care if a huge laundry room feels like a waste of space to buyers.
  2. Boost the light. Patterson noted that as people age, the lens of the eye thickens and lets in less light. This means a 60-year-old needs six times as much light as a 20-year-old. Look for inexpensive ways to add light in unexpected places, such as inside drawers and cabinets.
  3. Be subtle about accessible features. Everyone wants to be able to age in place, but few want to think of a time when they’ll be physically limited. Thankfully, many features that make a home more navigable and safer for those with mobility issues aren’t very obvious, such as even, level surfaces that make it easier for those using wheelchairs, canes, or walkers. Patterson also noted that many bathroom product manufacturers are now making grab bars that look more like shelves and towel racks than institutional-style safety features.
  4. Point out low-maintenance features. Patterson said one of the first things that comes to mind when people are looking for a low-maintenance home is the size of the lawn, but she noted that there’s much more to taking care of a home than that. “I want you to think beyond yard maintenance,” she told attendees. She noted that stain-resistant quartz countertops and roofs that don’t have nooks where leaves can collect can be important qualities of a listing.
  5. Examine where the stairs lead. Steps can be problematic for those with mobility issues, but they aren’t an automatic no-no for communities targeted at older buyers. It just depends on what’s at the top of the staircase. A bunk room for the grandkids or an exercise room is a much better use for second- and third-floor space than a master bedroom or another place the primary resident might have to visit frequently. Also, landings and railings are both safety musts, Patterson says. “Stairs are the number one reason people go to the emergency room, and not just those over 55.”

—Meg White, REALTOR® Magazine

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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2017 Home Design Trends

Posted on January 23, 2017 by Debbie Prosser

December 2016 | By Barbara Ballinger

Housing styles emerge slowly and typically appeal first to cutting-edge architects, builders, and interior designers. As a trend spreads and gains wider interest, it may go mainstream, become almost ubiquitous, and eventually lose its star power. Just look at once-favored granite, which now has been replaced by the equally durable and attractive options of quartz and quartzite.

The economy, environment, and demographics always play a big role in trend spotting. But this year there are two additional triggers: a desire for greater healthfulness and a yearning for a sense of community.

1. Community Gathering Spaces

Why it’s happening: The combination of more time spent on social media and at work and the fact that fewer people live near their family members has caused many to feel isolated and crave face-to-face interactions.

How it will impact you as a real estate pro: Multifamily buildings and even single-family residential developments are rushing to offer an array of amenity spaces to serve this need. Some popular options include clubhouses with spiffy kitchens, outdoor decks with pools and movie screens, fitness centers with group classes, and drive-up areas for food-truck socials. At its Main+Stone building in Greenville, S.C., The Beach Co. began hosting free monthly events such as its “Bingo & Brews.” Make sure you know which buildings, communities, and neighborhoods offer these sought-after social events and gathering spaces so you can help clients connect.

2. Taupe Is the New Gray

Why it’s happening: White remains the top paint color choice due to its flexibility and the fact that it comes in so many variations (PPG Paints has 80 in its inventory, according to Dee Schlotter, senior color expert). Though white has been upstaged by gray in recent years, this year many will be searching for a warmer neutral, which is why paint manufacturer Sherwin-Williams named “Poised Taupe” as its 2017 Color of the Year. “Poised Taupe celebrates everything people love about cool gray as a neutral, and also brings in the warmth of a weathered, woodsy neutral and a sense of coziness and harmony that people seek,” says Sue Wadden, the company’s director of color marketing.

How it will impact you: Dallas-based designer Barbara Gilbert considers taupe a smart alternative since it still performs as a neutral with other colors, cool or warm. She expects to see taupe on more exteriors — blending well with roofs, doors, window frames, and surrounding landscape — but it also will turn up indoors on walls, ceilings, kitchen cabinets, furnishings, and molding. It might even work to help update a listing clad in gray, she says, as the two colors work well together.

3. More Playful Homes

Why it’s happening: Americans work harder now than ever, with many delaying retirement or starting second careers, so they want their homes to be a refuge and a place to unwind.

How it will impact you: Be sure you’re asking buyers how they like to spend their free time. Spaces that encourage play are trending higher on their wish lists, whether it’s a backyard bocce court (the latest outdoor amenity to show up in residential backyards) or a putting green. And sports don’t have to be relegated to the outdoors. says Gilbert; technological advances have allowed for rapid improvement in indoor golf simulators, for example. While some of her clients have installed modest models, she’s working on a dedicated golf room with software that gives homeowners virtual access to any golf course in the world. Though landscape architect Steve Chepurny of Beechwood Landscape Architecture in Southampton, N.J., designs putting greens with synthetic grass that range from $12,000 to $30,000, he also notes he’s seeing more playfulness outdoors in the form of non-sports amenities, such as pizza ovens.

4. Naturally Renewable, Warmer Surfaces

Why it’s happening: The pervasiveness of technology throughout homes has resulted in a corresponding yearning for more tactile surfaces and materials that convey warmth. Natural cork is a perfect expression of these needs, with the bonus of being low-maintenance.

How it will impact you: In recent years, cork, a renewable material harvested from the bark of cork oak trees, has resurfaced as a favorite for myriad uses, and for good reason. Some credit designer Ilse Crawford’s introduction of cool, edgy cork pieces in her “Sinnerlig” collection for IKEA for the resurgence. Aside from aesthetics, the material is appealing since it’s resistant to mold, mildew, water, termites, fire, cracking, and abrasions. Moreover, cork can be stained and finished with acrylic- or water-based polyurethane. Chicago designer Jessica Lagrange likes to incorporate cork to clad walls and floors. “It’s an especially effective and forgiving choice since dents bounce back and floors retain heat,” she says.

5. Surface-Deep Energy Conservation

Why it’s happening: As energy costs continue to increase, the search is on for ways to save. Incentives to do so only increase as states and municipalities enact new, stricter energy codes. While energy-wise appliances and more efficient HVAC systems are still appealing to homeowners looking to save on their utility bills, less costly surface upgrades are gaining in popularity.

How it will impact you: After New Jersey increased its requirements for insulation, architect Jason Kliwinski, principal at Designs for Life and current chair of New Jersey’s AIA Committee on the Environment, went looking for new options. He found new low-E window film that can double the performance of glass at one-fifth the cost of a full window replacement. Several options for this film are on the market now, and Kliwinski says manufacturers such as EnerLogic are producing versions that are invisible when installed. Other surface-change artists that lower energy use and that are cost-effective and relatively easy to apply include a ceramic insulating paint coating for walls and a thermal energy shield for attic interiors. Tesla, the innovative manufacturer of electric cars, is just debuting solar glass tiles that resemble traditional roof materials such as slate and terracotta, but provide passive heat gain.

6. More Authentic, Personalized Use of Space

Why it’s happening: As home prices escalate — up 5.5 percent, according to CoreLogic Case-Shiller — and baby boomers downsize to retire or cut costs, every inch of available space counts more than ever. To make the best use of space for each resident, design professionals are zeroing in on how clients want to live rather than thinking about how people use space generically. “One size doesn’t fit all any longer,” says Mary Cook, whose eponymous Chicago-based design firm specializes in amenities, public spaces, and model home interiors.

How it will impact you: You and your clients are likely to see a greater variety in terms of layouts, building materials, home systems, color palettes, and furnishing choices, both in model homes and in houses staged for sale. Listing agents can take the cue from this trend by helping sellers highlight the flexibility of their spaces when putting a home on the market. Buyers’ reps should similarly showcase a range of living options in each home-shopping session.

7. The Walkable Suburb

Why it’s happening: Urban centers have long been a magnet for residents wanting to walk rather than drive to work, shopping, and entertainment. But the trend is now spreading to the suburbs where being close to a town center — and public transit into a larger city — offers similar appeal.

How it will impact you: A high walk score has become a recognized real estate marketing tool. Real estate salesperson Stephanie Mallios of Coldwell Banker Residential Brokerage in Short Hills, N.J., has seen a huge uptick in interest and value in single-family homes and townhouses close to town centers, especially those near a train station if residents commute to a large metropolitan area. “Most homes for sale in my area list the number of blocks and steps to public transit in their marketing materials. Homes far from everything have become less valuable,” Mallios says. The most appealing towns also incorporate individually owned shops rather than chain stores.

8. Healthier Homes

Why it’s happening: Consumers have been increasingly aware of hazardous indoor environments over the last few years, but news of the lead-tainted water crisis in Flint, Mich., raised awareness to a nationwide level in 2016. Homeowners are actively seeking out healthy water supplies, purifiers, and HVAC systems, along with nontoxic paints and adhesives. A newer element to this trend in 2017 will include enhanced environmental testing.

How it will impact you: A growing number of builders, remodelers, architects, and interior designers expect health to influence their business decisions due to consumer demand, according to studies from both the Urban Land Institute and McGraw-Hill Construction. You should expect to see more buyers hiring health experts to examine listings and requiring in-home contaminant removal prior to a sale. Your clients will also have greater access to additional home products that promote healthy sleep patterns, such as those featuring UV and LED circadian lighting.

9. Shifting Hearths

Why it’s happening: The traditional log-burning fireplace has lost some appeal as homeowners realize it’s less energy-efficient and can send more particulates into the air. But there are a number of replacement options waiting in the wings.

How it will impact you: Homeowners have been switching out their log-burning fireplaces with new gas models for many years. Newer on the market are the ventless alcohol-burning fireplaces that can be placed almost anywhere and without costly construction, says Los Angeles–based designer Sarah Barnard. Another increasingly popular solution is to build a fireplace outdoors, according to landscape architect Chepurny.

10. Counter Options

Why it’s happening: Much like granite did, quartz and quartzite are predicted to be kitchen favorites until another material comes along. But other green laminate options are gaining in popularity, and they’re no longer just for the budget-minded consumer.

How it will impact you: A new countertop can make a big difference in the appeal of a room. Sally Chavez, senior product designer at Wilsonart in Temple, Texas, which manufactures engineered surfaces, says laminate options that mimic stone, wood, distressed metal, and concrete are gaining in popularity. But she recommends avoiding designs that include the “spots and dots” or speckled patterns from decades past. Some newer countertop options offer an additional perk: They lessen the time and cost of installation and also eliminate the need to discard the old countertop. Trend Transformations, an Italian manufacturer with a U.S. manufacturing facility, incorporates recycled granite, glass, and even seashells in its surfaces, which are installed over an existing countertop. Installation can be finished within a day, and prices are competitive with quartz and quartzite. Because these countertops are less porous than traditional stone, they’re also more resistant to stains and scratches.

11. The Transforming Office

Why it’s happening: Regular work-from-home time among the non–self-employed population has grown by 103 percent since 2005, according to Kate Lister, president of Global Workplace Analytics, a San Diego–based research and consulting group focused on workplace change. Her organization estimates that number will continue to grow at between 10 percent and 20 percent a year.

How it will impact you: More of your clients are likely to need a work-from-home space, but due to the diminished size and highly transient nature of technology tools, there’s less need for a dedicated, separate office. Brad Hunter, HomeAdvisor’s chief economist, says almost any area of a house can become a workplace, but the most functional ones incorporate built-ins and furnishings that serve a dual purpose. That same desire for flexibility may someday translate to layouts that can easily change to a homeowner’s whim, such as the KB Home ProjeKt movable wall concept in its “Home of 2050” at the Greenbuild Conference and Expo this past October.

Barbara Ballinger, REALTOR® Magazine Online

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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The Big Challenges Home Buyers Face in 2017

Posted on January 20, 2017 by Debbie Prosser

Daily Real Estate News | Friday, January 20, 2017

What are the top challenges your home buyers face this year? A recent survey from realtor.com® reveals the following:

1. Low inventories: There aren’t enough homes for sale and inventory woes are expected to worsen this year. Active inventory in December 2016 on realtor.com® dropped 11 percent compared to a year ago. “As a result, the year has started with the lowest inventory of homes for sale at least since the recession, and possibly in decades,” realtor.com® notes. “Inventory was a challenge all year but a stronger offseason in the fall depleted the available homes for sale even more than is typical.”

2. Prices move to record highs: Typically, asking prices decrease in the fall. However, this year, the median list price in December was the same as it was in July — $250,000. That is a record high for December. It’s also a year-over-year increase of 9 percent.

3. Rising mortgage rates: For experienced buyers, rising mortgage rates has prompted an urgency for them to buy before any further increases. Average listing views on realtor.com® surged 40 to 80 percent in the last three weeks of December 2016 compared to December 2015. “Rising rates have made demand even more intense,” realtor.com® notes. However, the demand mostly seems to be coming on stronger from repeat buyers. For first-time buyers, rising mortgage rates are having an opposite effect and they’re showing signs of beginning to shy away from the market.

4. First-Timers Are Worried; Repeat Buyers Are in a Rush: The number of first-time buyers planning to purchase this spring has dropped sharply and the rise in mortgage rates over the past few weeks may be to blame for their retreat, according to realtor.com® study. Repeat buyers, on the other hand, want to lock in rates right away.

Forty-four percent of active home buyers who plan to buy a home this spring are first-time home buyers, down from 55 percent last fall who said they were planning to buy in the spring. So what’s spooking them?

The average 30-year fixed-rate mortgage has gone up to more than 4.2 percent by the end of December 2016, realtor.com® notes. It was averaging 3.4 percent for most of September 2016. Average rates today are about a half percentage point higher than they were in 2016. That means a median-priced home financed with a 20 percent down would cost an extra $720 per year in added interest, realtor.com®’s study notes.

“Last fall, we saw a large jump in the number of first timers planning home purchases, which was very encouraging because their market share is still well below pre-recession levels,” says Jonathan Smoke, chief economist for realtor.com®. “But, as evidenced by their decline in share, first-time buyers are really dependent on financing and affordability is one of their largest barriers to home ownership. This number could continue to decline with anticipated increases in interest rates and home prices.”

First-time buyers are nearly five times more likely than repeat buyers to say they are facing challenges qualifying for a mortgage. Affordability topped first-time buyer concerns.

In November, first-time buyers made up 32 percent of all buyers, according to the National Association of REALTORS®.

“The rise in rates is associated with an anticipation of stronger economic and wage growth, both of which favor buyers,” added Smoke. “At the same time, higher rates make qualifying for a mortgage and finding affordable inventory more challenging. The decline in the share of first-time buyers since October suggests that the move up in rates is discouraging new home buyers already.”

On the other hand, repeat home buyers realize mortgage rates – while moving higher overall – are still at historical lows. Before rates jump more, these buyers are in a rush to close before rates increase further, according to realtor.com®’s study.

Source: Move.com

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Open Floor Plan Still Popular

Posted on January 18, 2017 by Debbie Prosser

Daily Real Estate News | Wednesday, January 18, 2017

Open floor plans continue to reign. Eighty-four percent of builders say that in the typical single-family home they build, the kitchen and family room arrangement is at least partially open. Fifty-four percent say it’s completely open, according to responses from a September 2016 National Association of Home Builders/Wells Fargo Housing Market Index.

“Completely open” essentially means the two areas are combined into the same room. Partially open signifies areas separated by a partial wall, arch, counter, or something less than a full wall.

Seventy percent of recent and prospective home buyers say they prefer a home with either a completely or partially open kitchen-family room arrangement; 32 percent say they prefer the arrangement completely open, according to an NAHB survey.

Only 16 percent of buyers say they want the kitchen and family rooms in separate areas of the house.

As demand continues to increase for open floor plans, homeowners of existing-homes are also looking to open up their kitchen and family room areas. Professional remodelers report that 40 percent of their projects involved making the floor plan more open by removing interior walls, pillars, arches, etc., according to first quarter of 2016 data in the Remodeling Market Index.

Source: “Builders Satisfy Demand for Open Floor Plans,” National Association of Home Builders’ Eye on Housing blog (Jan. 11, 2017)

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Borrowing Costs Move Lower This Week

Posted on January 16, 2017 by Debbie Prosser

Daily Real Estate News | Friday, January 13, 2017

Mortgage rates edged down for the second consecutive week, a temporary reprieve from what had been weeks of rising rates.

“After absorbing a mixed December jobs report; the 10-year Treasury yield fell 8 basis points,” says Sean Becketti, Freddie Mac’s chief economist. “The 30-year mortgage rate moved in tandem with Treasury yields falling 8 basis points to 4.12 percent, the second decline since the presidential election. The December jobs report showed 156,000 jobs added, barely meeting many experts’ expectations, while wage growth was at the high end of expectations at 0.4 percent. If strong wage gains persist, they may push inflation and interest rates higher.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 12:

  • 30-year fixed-rate mortgages: averaged 4.12 percent, with an average 0.5 point, dropping from last week’s 4.20 percent average. Last year at this time, 30-year rates averaged 3.92 percent.
  • 15-year fixed-rate mortgages: averaged 3.37 percent, with an average 0.5 point, falling from last week’s 3.44 percent average. A year ago, 15-year rates averaged 3.19 percent.
  • 5-year hybrid adjustable-rate mortgages: averaged 3.23 percent, with an average 0.5 point, falling from last week’s 3.33 percent average. A year ago, 5-year ARMs averaged 3.01 percent.

Source: Freddie Mac

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Lenders Aim for 21-Day Closing Window

Posted on January 13, 2017 by Debbie Prosser

Daily Real Estate News | Friday, January 13, 2017

In an era of bloated closing times, some lenders are looking to quicken the pace it takes to get a buyer to the settlement table. Some lenders are retooling operations and aiming to close a loan within 21 days.

For example, national retail lender CrossCountry Mortgage Inc. in Brecksville, Ohio, is committing its staff to aim to close a purchase loan from application to funding within 21 days.

“When you look at contracts, they are typically written for 30 days,” says Chief Operating Officer Jodi Hall. “Many of them have gone out to 45 and 60 day contracts because of the long turn times that have occurred within the industry. If you can deliver well ahead of a 30 day contract it’s very attractive to our REALTOR® partners and customers. That is the best practice.”

In 2016, closing times for purchase loans averaged 47 days, according to Ellie Mae, an information origination system provider.

CrossCountry tries to get its borrowers to commit to a timeline upfront.

“One of the first things that we coach our loan officers on, in terms of their engagement with the borrower, is to explain our loan process and turn times,” Hall says. “If the borrower commits, we can often close their loan in 21 days or less.”

In 2014, one wholesaler vowed to be “ready to close” qualifying loans within 15 business days of appraisal receipt. If they were unable to meet that goal, the lender would even apply a $500 closing cost credit to the loan at closing.

Today’s 21-day-close goal doesn’t include any such promises from lenders, however.

“We don’t guarantee the 21-day turn time because there are so many things that play into a guarantee,” Hall said.

Delays can happen, most notably from appraisals. A growing appraiser shortage threatens to lengthen timelines, says William Fall, chief executive officer of appraisal management company Valuation Partners. Appraisals are “much less predictable than title, credit or other parts of the process,” he says.

Lenders who adopt more technology may help to decrease time spent on certain steps like asset verification, says Jonathan Corr, president and chief executive officer of Ellie Mae.

“Lenders could eventually bring their closing times down under 30 days if they embrace technology and do everything perfectly,” says Corr. “Maybe you could even get it down to a couple of weeks.”

Source: “Why Lenders Are Shooting for a 21-Day Turn Time,” National Mortgage News (Jan. 9, 2017)

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Millennial Buyers: We’ll Compromise

Posted on January 12, 2017 by Debbie Prosser

Daily Real Estate News | Thursday, January 12, 2017

Millennial first-time homeowners are showing more willingness than previous generations to complete do-it-yourself projects around the house or wait until they can afford to make the improvements they desire, a new survey by Better Homes & Gardens magazine shows. Fifty percent of those surveyed say that at move-in, their current home’s conditions require some degree of repair or remodeling.

They’re showing some compromise in their first home. Only 50 percent of first-time millennial homeowners say they are willing to spend top dollar to get exactly the features and quality they want in a home, the survey showed.

“These first-time millennial homeowners are focused on building equity, not debt,” says Jill Waage, editorial director of Digital Content and Products at Better Homes & Gardens. “They are strong believers in being able to afford their dreams as they achieve them and not over-stretch themselves.”

Eighty-five percent of first-time millennial homeowners say they view homeownership as a sound investment.

Their housing wish-list is for a mid-sized home (about 2,000 square feet) with a renovated kitchen and bathroom as well as a deck or patio space.

The DIY projects that landed the highest on their to-do lists are installing light fixtures and tile and painting walls, the survey showed.

“Millennials and millennial ‘firsts’ [first-time homeowners] are paving their own paths in homeownership based on their own budgets, timeline and needs,” Waage says. “These ‘firsts’ are replacing big-budget homes and expensive renovations with patience, frugalness and practicality.”

Source: “Millennials Patient, Thrifty When It Comes to Homeownership,” RISMedia (Jan. 11, 2017)

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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Which Is Cheaper: To Buy or Build New?

Posted on January 9, 2017 by Debbie Prosser

Daily Real Estate News | Monday, January 09, 2017

On the surface, buying an existing home seems like the most affordable route to go. After all, the median cost of an existing single-family home is $223,000. On the other hand, the average cost for building new construction averages $289,415.

Obviously, there is quite a bit of variations in sorting out those costs. Plus, the price you pay upfront is only part of the equation when deciding to buy an existing home or build a new one.

A recent article at realtor.com® laid out some of the pros and cons financially of buying a new versus an existing home. Make some of these considerations when weighing the best financial decision:

Square footage: New-homes tend to be more spacious than existing ones at a median size of 2,467 square feet. As such, when you take the average cost of a new build, it breaks down nationally to about $103 per square foot, which is actually lower than the cost of existing homes.

Finishes: With an existing home you inherit all the features and finishes, even if you don’t want them. That may mean you need to budget in some renovations if you’d like to redo anything. With a new home, you’ll be able to choose all the features and finishes yourself and have it set in the price from the get-go.

Maintenance: Older homes tend to require more maintenance. The cost of upkeep can be pricey too, depending on what needs to be done. For example, the average furnace tends to last about 20 years. When it needs replacement, expect to pay about $4,000. Not to mention, that shingled roof will likely need replacement after about 25 years at a cost of at least $5,000. On the other hand, newer homes tend to need less maintenance because all of the major appliances are brand new and under warranty.

Energy efficiency: Older homes tend to have dated windows and appliances, which can result in less energy efficiency and pricier energy bills. New construction tends to nearly always trump older homes in energy efficiency, according to Kyle Alfriend with the Alfriend Real Group RE/MAX in Ohio. Indeed, homes built post-2000 consume 21 percent less energy for heating than older homes.

Landscaping: Older homes tend to have mature landscaping already in place. And that landscaping can up a person’s property value by thousands. Further, those trees can save an estimated 56 percent on your annual air conditioning bill, according to the U.S. Forest Service. With newer homes, you’ll have to likely pay thousands to install landscaping and may have to wait years to get it to the point you desire.

Appreciation: With an older home, you can see the trajectory of prices based on previous sales prices and of comps nearby. New homes can be a gamble since they do not come with a proven track record of plentiful comps that have been tested over time.

Source: “Is it Cheaper to Buy or Build a House? Compare the Pros and Cons,” realtor.com® (Jan. 5, 2017)

“Copyright National Association of REALTORS®. Reprinted with permission.”

 

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