Fixing Up Your House to Sell – Session 2 (703) 589- 3848 Mike Ford Licensed Home Improvements Contractor Licensed Real Estate Salesperson
Sep 10, 2014
Fixing Up Your House to Sell – Session 2
(703) 589-3848
Mike FordLicensed Home Improvements Contractor
Licensed Real Estate Salesperson
Highlights from the NATIONAL ASSOCIATION OF REALTORS® 2007 Profile of Buyers' Home Features Preferences
What Buyers Want
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1. What single home feature do buyers say they want most in a new home?
a) Walk-in closet in master bedroom
b) Central air conditioning
c) Backyard
d) Fully finished basement
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2. What’s the median size of homes purchased between late 2005 and early 2007?
a) 2,230 square feet
b) 1,840 square feet
c) 1,450 square feet
d) 1,000 square feet
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3. Repeat buyers tend to be choosier than first-time buyers. In particular, repeat buyers place much more emphasis on these home features:
a) Fireplaces and air filtration systemsb) Bay windows and finished basementsc) Oversized garages and master bedroom
walk-in closetsd) Backyards and proximity to entertainment
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4. Within three months after buying a home, nearly half of all buyers remodeled or made improvements to which part of the house?
a) Master Bathroom
b) Backyard
c) Kitchen
d) Home office
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5. Which home feature saw the biggest jump in buyer popularity since 2004, when NAR conducted its previous buyer preference survey?
a) High-speed Internet accessb) Media roomc) Eat-in kitchend) Oversized garage
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6. What three features did buyers say they’d be most willing to pay extra for in a home?
a) Proximity to work, a wooded lot, and a backyard or play area
b) Whirlpool baths, proximity to schools, and a deck
c) A corner lot, a lawn sprinkler system, and high-end kitchen appliances
d) Central air conditioning, walk-in closets, and hardwood floors
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7. A home’s energy efficiency is most important to which segment of buyers?
a) Repeat buyers
b) Second-home buyers
c) New-home buyers
d) First-time buyers
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8. Where do first-time home buyers tend to purchase a home?
a) Rural area
b) City or urban area
c) Suburb or subdivision
d) Small town
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9. What’s the most common type of home purchased?
a) Single level
b) Split level
c) Two levels
d) Three levels
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10. What did new-home buyers most wish their home had more of?
a) Storage
b) Bedrooms
c) Kitchen space
d) Bathrooms
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What single home feature do buyers say they want most in a new home?
a) Walk-in closet in master bedroom
b) Central air conditioningc) Backyard
d) Fully finished basement
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What’s the median size of homes purchased between late 2005 and early 2007?
a) 2,230 square feet
b) 1,840 square feetc) 1,450 square feet
d) 1,000 square feet
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Repeat buyers tend to be choosier than first-time buyers. In particular, repeat buyers place much more emphasis on these home features:
a) Fireplaces and air filtration systemsb) Bay windows and finished basements
c) Oversized garages and master bedroom walk-in closets
d) Backyards and proximity to entertainment
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Within three months after buying a home, nearly half of all buyers remodeled or made improvements to which part of the house?
a) Master Bathroom
b) Backyard
c) Kitchend) Home office
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Which home feature saw the biggest jump in buyer popularity since 2004, when NAR conducted its previous buyer preference survey?
a) High-speed Internet access
b) Media room
c) Eat-in kitchen
d) Oversized garage
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What three features did buyers say they’d be most willing to pay extra for in a home?
a) Proximity to work, a wooded lot, and a backyard or play area
b) Whirlpool baths, proximity to schools, and a deckc) A corner lot, a lawn sprinkler system, and high-end
kitchen appliances
d) Central air conditioning, walk-in closets, and hardwood floors
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A home’s energy efficiency is most important to which segment of buyers?
a) Repeat buyers
b) Second-home buyers
c) New-home buyersd) First-time buyers
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Where do first-time home buyers tend to purchase a home?
a) Rural area
b) City or urban area
c) Suburb or subdivisiond) Small town
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What’s the most common type of home purchased?
a) Single levelb) Split level
c) Two levels
d) Three levels
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What did new-home buyers most wish their home had more of?
a) Storageb) Bedroomsc) Kitchen space
d) Bathrooms
Highlights from the NATIONAL ASSOCIATION OF REALTORS® 2007 Profile of Buyers' Home Features Preferences
What Buyers Want
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National Association of Realtors Survey• Home buyers were asked about 75 features and room types
to assess the importance of each• Buyers who didn’t get a feature they desired in the home
they purchased, were asked how much extra they would have been willing to pay to get it
• The survey examined home improvement or remodeling projects undertaken by recent buyers
• The survey is based on 2,530 responses from buyers who purchased a home in between late 2006 and early 2007
• The sample was obtained from Experian, a firm that maintains an extensive database of recent home buyers derived from county records
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What was Important while searching for a home?
74%
57%
53%
50%
46%
40%
Central air conditioning
Garage with 2 or more spaces
Walk-in closet in master bedroom
Backyard or play area
Cable/Satellite TV-ready
High-speed Internet access
It was “very important” to find a home with:
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Oversized Garages are The New Big Thing With Buyers• The most significant
change between the previous & current survey in what buyers consider very important is oversized garages (up 16 points)
• Hardwood floors, granite countertops, and cable-readiness follow
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Change in Preferences in Time
74%
57%
53%
50%
46%
46%
40%
28%
23%
73%
41%
51%
42%
40%
21%
17%
Central air conditioning
Garage with 2 or more spaces
Walk-in closet in master bedroom
Backyard or play area
Bedroom on main level
Cable/Satellite TV-ready
High-speed Internet access
Hardwood floors
Granite (or similar) countertops2007 survey
2004 survey
It was “very important” to find a home with:
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Age Makes the Biggest Difference in What Buyers Want
Back yards for younger buyers
Walk-in closets for older buyers
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Separate shower enclosure in master bath
20%26%
38% 37%
47%
59%55%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
Eat-in kitchen
12%
24%
33% 35% 35%
44% 43%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
The 2007 NAR Profile of Buyers' Home Features Preferences
Walk-in closet in master bedroom
35%
44%
57%53%
62%58%
71%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
Backyard or play area
53%60% 59%
45%
35%
14% 17%
18-24 25-34 35-44 45-54 55-64 65-74 75 orolder
Examples of Differences in Desired Features by Age of the Buyers
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Energy Efficiency is Most Important to New-Home Buyers
As buyers age, this becomes more important
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31The 2007 NAR Profile of Buyers' Home Features Preferences
46%
41%
50%
65%
39%
32%
38%
42%
55%
57%
56%
63%
46%
49%
44%
31%
52%
48%
53%
51%
41%
39%
37%
31%
8%
10%
6%
4%
9%
20%
10%
7%
5%
3%
7%
6%
ALL BUYERS
First-time buyers
Repeat buyers
Buyers of new homes
Buyers of existing homes
18-24
25-34
35-44
45-54
55-64
65-74
75 or older
Very important Somewhat important Not important
Age of Home Buyer:
How Important was a Home’s Energy Efficiency When Searching for a Home?
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From 2004 to 2007, the size of the typical home purchased increased by about 100 square feet
The median age of homes purchased decreased from 15 to 12 years
Bigger and Younger
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2007 2004
Medians
Size of home 1,840 sq. ft. 1,730 sq. ft.
Age of home 12 years 15 years
Number of levels 2 1
Number of bedrooms 3 4
Number of full bathrooms 2 2
Number of fireplaces 1 1
Central air conditioning 83% 83%
Garage 82% N/A
Basement 41% N/A
Previously owned 71% 71%
Purchase price (median) $205,000 N/A
The 2007 NAR Profile of Buyers' Home Features Preferences
Characteristics of Homes Purchased
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Over four-fifths of homes purchased are detached single-family homes
More than half are located in the suburbs
Detached and Suburban
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82%
7%
5%
5%
Detached single-familyhome
Townhouse/row house
Apartment/condo in 5 ormore unit building
Duplex/apartment/condoin 2 to 4 unit building
The 2007 NAR Profile of Buyers' Home Features Preferences
Small town, 20%
Urban/ Central city,
15%
Rural area, 10%
Resort/ Recreation
area, 1%
Suburb/ Subdivision,
53%
Type and Location of Homes Purchased
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Sixty percent of buyers undertook home improvement projects immediately after the home purchase
Median amount spent on home improvement or remodeling projects undertaken within three months of the purchase was $4,350
From the Closing Table to the Home Improvement Store
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37The 2007 NAR Profile of Buyers' Home Features Preferences
59%
57%
59%
42%
65%
42%
50%
57%
64%
71%
72%
73%
ALL BUYERS
First-time buyers
Repeat buyers
Buyers of new homes
Buyers of existing homes
One year or less
2 to 5 years
6 to 10 years
11 to 20 years
21 to 30 years
31 to 50 years
51 or more years
Buyers who purchased homes aged:
Who Did Home Improvement Projects Within Three Months of Purchase?
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38The 2007 NAR Profile of Buyers' Home Features Preferences
47%
45%
43%
31%
22%
18%
14%
39%
39%
36%
35%
15%
12%
12%
Kitchen
Bathroom(s)
Bedroom(s)
Living room
Family room
Garage
Home office
Appliances
Lighting
Floor coverings
Landscaping
Additional storage
Windows
Fencing
Features added or replaced:
Rooms where improvements were undertaken:
Which Home Improvement or Remodeling Projects?
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Very Important Home Features on the Rise
0
10
20
30
40
50
60
Granite Hardwood Cable Whirlpoolbath
closet/master
2007 2004
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Where Buyers will Pay for Key Features
0
10
20
30
40
50
60
Hardwood Floors Granite Countertops Oversize Garage
2007 2004
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Improvement Justification
When you consider its value at resale, a home improvement project costs only 20 cents to 25 cents on the dollar.
The other 75 cents to 80 cents spent on a project goes directly back into the home through increased value — not to mention increased owner enjoyment.
Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University.
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What to Expect to Pay for the Improvements
• Kitchens• Countertops• Bathrooms• Flooring• Painting• Decks• Landscaping• Maintenance
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Kitchens
• Paint the walls and update the floor if necessary.
• Replace old cabinet hardware — a low-cost improvement that makes a big difference in appearance.
• Be sure to go with a classic design and, if possible, use high quality materials. Replace dingy-looking or dated cabinets.
Basic improvements to your kitchen could be the key to getting your house sold. For most buyers, the kitchen is the heart of the house.
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Kitchen Cabinet Refacing
Expect to pay $130 to $150 per opening. This means every single opening in your kitchen... doors, drawer fronts and false fronts. Each door is an opening. The average price for materials and labor, runs anywhere from $4,000 to $8,000 depending on door style, wood species, stain choice, and decorative trims.
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The Downside to Cabinet Refacing1. Limited to existing layout2. Materials limitations - There generally
are three finish options: plastic laminates, rigid thermofoils (RTF) and wood veneer.
3. Other conditions that rule out refacing include existing cabinets that are beginning to fall apart or aren't well built to begin with; metal cabinets that are rusting; and larger structural issues, like floors that have settled and left cabinets out of kilter.
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Kitchen – Midrange Major Remodel
The average amount spent on a midrange update in the U.S. is $58,897.00.
Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
Resale Value - $43,456
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Kitchen – Midrange Major Remodel• Update 200-square-foot kitchen• 30 linear feet of semi-custom wood cabinets• 3-by-5-foot island• Laminate countertops• Standard double-tub stainless-steel sink with standard
single-lever faucet• Energy efficient wall oven, cooktop, ventilation system,
built-in microwave, dishwasher, garbage disposal• Custom lighting• Resilient flooring• Painted walls, trim, and ceiling.
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Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
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Kitchen – Upscale Major Remodel
The average amount spent on a major kitchen-remodeling job in the U.S. is $115,436.
Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
Resale Value - $69,048
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Kitchen – Upscale Major Remodel• Update outmoded 200-square-foot kitchen• 30 linear feet of top-of-the-line custom cherry cabinets with
built-in sliding shelves and other interior accessories• Stone countertops• Imported ceramic- or glass tile backsplash• Built-in refrigerator, cooktop, and 36-inch commercial grade
range and vent hood; built-in warming drawer, trash compactor, and built-in combination microwave and convection oven
• High-end undermount sink with designer faucets• Built-in water filtration system• General and task lighting including low-voltage undercabinet
lights• Cork flooring, cherry trim.
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Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
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Countertop Types
Granite $49.00 to $100.00 +
Corian® $40.00 to $85.00
Laminates $15.00 to $30.00
Engineered Stone (Silestone®) $70.00 to $120.00
Marble $69.00 to $79.00
Limestone Approximately $100.00
Soapstone $55.00
Polished Concrete, Glass (Icestone)
Approximately $80.00
Volcanic Lavastone Starts at $250.00
Type Price Per Square Foot
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Countertop TypesGranite The most popular choice. Durable and lots of
color choices
Corian® Not too popular in the Northern Virginia market. Has a “plastic look”
Laminates Low end countertop
Engineered Stone (Silestone®)
Gaining popularity! More color choices than in the past
Marble Italians have been using it for years. Not as durable as granite
Limestone Looks great, but not very durable
Soapstone Looks Great – Scratches easily
Polished Concrete, Glass (Icestone)
Glass (Icestone) – Requires more maintenance
Volcanic Lavastone Very Expensive
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Bathroom – Midrange Major Remodel
A midrange full-bath remodeling job in the U.S. has an average price tag of $17,167.
Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
Resale Value - $12,052
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Bathroom – Midrange Major Remodel• Update an existing 5-by-7-foot bathroom• Replace all fixtures• 30-by-60 inch porcelain-on-steel tub• 4-by-4-inch ceramic tile surround• Single-lever temperature and pressure-balanced
shower control• Standard white toilet• Solid-surface vanity counter with integral sink• Recessed medicine cabinet with light• Ceramic tile floor
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Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
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Bathroom – Upscale Major Remodel
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The average amount spent on a major upscale bathroom remodeling job in the U.S. is $55,398.
Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
Resale Value - $32,547
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Bathroom – Upscale Major Remodel• Expand an existing 35-square-foot bathroom to 100 square feet within existing house footprint. Relocate
all fixtures• 42-by-42-inch neo-angle shower • Ceramic tile walls with accent strip• Recessed shower caddy• Body-spray fixtures• Frameless glass enclosure• Customized whirlpool tub• Stone countertop with two sinks; two mirrored medicine cabinets with lighting• Compartmentalized commode area with one-piece toilet• Humidistat controlled exhaust fan• Color fixtures• Larger matching ceramic tiles on the floor, laid on the diagonal with ceramic tile base molding• General and spot lighting including waterproof shower fixture• Custom drawer base and wall cabinets for a built-in look• Extend HVAC system• Electric in-floor heating and heated towel bars.
Source: Remodeling 2010–11 Cost vs. Value Report (www.costvsvalue.com)
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FlooringHardwood Floors $7.00 to $12.00 per
square foot
Ceramic Tile Floors
$6.00 to $10.00 per square foot
Carpet $18.00 to $30.00 per yard
Laminate Floors $6.00 to $12.00 per square foot
Vinyl Floors $18.00 to $30.00 per yard
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Paint
For most exterior paint jobs, labor makes up about 75-85% of the cost of painting your house, while actual paint and supplies makes up only 15-25%.
Do not skimp on paint quality when choosing your paint. Paying a few extra bucks per gallon might add $200 to the total job, but if your paint lasts for 8 years instead of 4 years, that is a pretty minor expense to incur.
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Paint
Costs typically average $1,500-$3,000 for an average single-story, three-bedroom home, but easily run $3,000-$5,500 or more for a multi-story or multi-level larger house.
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Inexpensive Tip #6
• Adding crown molding, wainscoting and coffered ceilings can have an immediate impact on your home.
• Replacing baseboard, casing and chair rail can have a dramatic effect as well.
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Decks
Installing a deck may be the most cost-efficient way to add square footage to your house, and of all the outdoor home improvements except painting, it may be the most reliable value. Deck additions average $14,728
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New Space
As a rule, improvements that increase the functional space of a home hold their value longer than ones that just make a house look better. It's also significantly cheaper than adding an addition to your home.
Converting an attic into a bedroom, for example, usually costs about $35,960
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Basement
Turning your basement into a room for socializing will set you back, on average, $56,724
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Landscaping
Fancy gardens — which will require time and money to tend — usually won't add to the offering price.
• In general, landscaping is for your own enjoyment. It may be a $40,000 investment, but it will not add $40,000 to the value of your house.
• The same goes for expensive fences and stone walls. They look nice, but buyers don't pay up for them.
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Home Maintenance
It may not be all that enjoyable, but it's the basic improvements that may have the greatest return on your home's value. "You could have a beautiful new kitchen, but if your roof is leaking, you have a real problem. So if you're thinking of putting your house on the market in the next year or so, be sure to tackle any problems with the home's structure or mechanical systems before you, say, install that hot tub you've always dreamed of.