RISMEDIA, March 15, 2010—(MCT)—Instead of playing the trade-up game, more homeowners are staying in their homes, upgrading kitchens and baths and building additions to accommodate their needs instead of moving into a bigger house, but there are also some early signs of an improving real estate market, according to a new survey of architecture firms.
More architects say they're seeing demand for and inquiries about home-remodeling projects, including kitchen and bath upgrades and home additions. And an increasing percentage of architects say business conditions in the first-time buyer and affordable home market also improved in the fourth quarter of 2009, compared with the fourth quarter a year earlier, according to the American Institute of Architects' Home Design Trends Survey. The survey of 500 residential architecture firms is conducted each quarter.
A net 28% of architects responding to the survey said they're seeing greater interest among homeowners for kitchen and bath remodels, up from -16% a year ago, and a net 21% said demand for additions and alterations is improving, versus -14% a year ago. The survey figures are computed as the percentage of respondents reporting an improvement in business conditions minus those reporting a decrease.
Meanwhile, a net -4% of the architects surveyed said the market for homes for first-time buyers is improving, up from -65% a year earlier. A net -31% said the market for move-up homes is improving, compared with -71% a year ago.
"It's still too early to think the residential market has fully recovered, but there are two encouraging signs—overall business conditions are far better than they were a year ago at this time, and we are seeing improvement in those housing sectors that need to lead a broader improvement in the housing market: remodeling and alterations of existing homes, and at the entry-level of the new construction market," said Kermit Baker, chief economist of the American Institute of Architects.
Baker said homeowners are making improvements thoughtfully, not banking on recouping the entire cost at resale or over-improving with upscale features as they might have several years ago. And projects are typically smaller in scope these days. "The mentality is evolving that bigger isn't better for my home, from an investment perspective," Baker said.
As for first-time home buyers, Baker said that conditions are likely improving due to the first-time home buyer tax credit, low mortgage rates and the ability of these first-timers to buy a home without having to sell an existing home first.
For the most part, kitchens are being upgraded with practical improvements and features to make the space more usable. "A lot of the upscale stuff, like double appliances—two dishwashers or two refrigerators—or over-the-top appliances seem to have disappeared," Baker said.
The five most popular kitchen products and features, according to the survey include:
-Recycling center, a designated place to put cans, papers, etc., which could be in the form of a nook or even part of the lower cabinetry
-Larger pantry space
-Renewable flooring materials
-Renewable countertop materials
-Computer area/recharging stations, dedicated to such tasks as recharging laptops, cell phones and PDAs.
The same desire for practicality and less glitz can be found in the bathroom. People are moving away from steam showers and towel-warming drawers and racks, and instead focusing on features that will help them better control their utility costs, Baker said.
The five most popular bathroom products and features include:
-Water-saving toilets
-Radiant heated floors
-Accessibility/universal design, or features that are adaptable and allow homeowners to age in place
-LED lighting
-Doorless showers.
(c) 2010, MarketWatch.com Inc.
Distributed by McClatchy-Tribune Information Services.
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RISMEDIA, January 9, 2010—(MCT)—If you look at the trends among home buyers in the Philadelphia market, the Dolans appear to be a bit out of step:
Daniel Dolan, a chemical engineer and wife Shaliz, an ob-gyn physician at Temple University Hospital, have just remodeled the kitchen in the townhouse they bought last summer.
Instead of the "perfection" real estate experts say today's buyers crave, the Dolans chose a house that needed work—a "fixer-upper," for want of a better description. "It let us buy more house," Daniel Dolan said, and, just as important, "lets us put our personal stamp on it."
Fix-up buyers are largely rare birds in a market with a huge supply of houses for sale and a continuing shortage of takers—tax credit notwithstanding. In some markets that have seen huge price declines, "flippers"—those who buy cheap, renovate quickly, and turn houses around for profitable sale—are at work again.
Trends are tougher to nail down with any accuracy in the local market, where prices have dropped only about 11% since the housing downturn began, according to data from Philadelphia economist Kevin Gillen. Flipping opportunities, though rare here, "are really the earmark of a stabilized market, where developers and rehabbers have come to the conclusion that the market has indeed bottomed out," said real estate agent Mark Wade. In this market, flippers are looking at the limited supply of foreclosures, short sales (in which the lender agrees to accept less than what is owed on the mortgage), and corporate relocations, seeking what Wade calls a "wholesale" price level.
But for the most part, observers say, house hunters know a buyer's market when they see one and want perfection without working for it.
Ruth Feldman, of Weichert Realtors' Mount Airy, Pa., office described what the Dolans bought as an "in-between"- a four-story townhouse that had been for sale for seven months. About $445,000, "it is priced $100,000 below the very same style house next door, which sold for $549,000," Feldman said. Yet "every buyer who looks at it says it's priced too high and needs too much work." These days, she said, buyers "want the totally redone, tasteful decor, granite-and-stainless-steel kitchens and fancy tile baths—which are everywhere, even in much-lower-priced rehabs."
Patrick Campbell has an unusual perspective because he sells real estate and recently chose to buy a fixer-upper as his primary residence. What sold him was the house's location and price, said Campbell, who paid $370,000—$20,000 over list price to outmaneuver two other prospective buyers. He considered the block, especially its proximity to Rittenhouse Square, "perfect." But the house was "falling apart," he said. The ensuing months have been spent tearing out drywall to create an open floor plan; refinishing the hardwood floors; redoing both bathrooms, the kitchen, and the basement; and upgrading the electrical work.
Flippers in this market focus on properties they can buy for $150,000 and resell for $300,000—in limited supply in most of the desirable suburbs, Campbell said.
Because of the tax credits for qualified first-time and move-up buyers, the market's sweet spot remains $350,000 and below, while $850,000 houses just aren't selling.
Campbell learned his lesson as an investor in Northern Liberties, where he and a business partner did a project and lost money on it. "Real estate remains about location and price," he said.
(c) 2009, The Philadelphia Inquirer.
Distributed by McClatchy-Tribune Information Services.
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Despite a slow market and a slight decrease in the resale value of most remodeling projects, REALTORS® report that the smartest home improvement investments may also be some of the least expensive. Results from the 2009 Remodeling Cost vs. Value Report show that small-scale exterior projects are the most profitable at resale, according to estimates by REALTORS® who completed a recent survey.
On a national level, eight out of the top 10 projects in terms of costs recouped were exterior replacement projects that cost less than $14,000. Certain types of door and siding replacements, as well as wood deck additions all returned more than 80 percent of project costs upon resale. A steel entry door replacement – a new addition to this year's list – recouped 128.9 percent of costs, followed by upscale fiber-cement sliding replacements at 83.6 percent. Wood deck additions recouped 80.6 percent of costs.
"Once again, this year's Remodeling Cost vs. Value Report highlights the importance of a home's first impression," said NAR President Vicki Cox Golder, owner of Vicki L. Cox&Associates in Tucson, Ariz. "With exterior projects returning a high percent of project costs upon resale, Realtors® can help give your home curb appeal while adding value to the real estate transaction.
The 2009 Remodeling Cost vs. Value Report compares construction costs with resale values for 33 midrange and upscale remodeling projects comprising additions, remodels and replacements in 80 markets across the country. Data are grouped in nine U.S. regions, following the divisions established by the U.S. Census Bureau. This is the twelfth consecutive year that the report, which is produced by Hanley Wood, LLC, was completed in cooperation with REALTOR® Magazine, as REALTORS® provided their insight into local markets and buyer home preferences within those markets.
On a national level, the project with the biggest improvement from 2008 was the attic bedroom addition, recouping 83.1 percent of remodeling costs compared to 73.8 percent in 2008. The only other interior project that landed in the top 10 was a minor kitchen remodel with 78.3 percent costs recouped.
Other exterior projects in the top 10 include midrange vinyl and upscale foam-backed vinyl sliding replacements, which returned more than 79 percent of costs. In addition, several types of window replacements – midrange wood, midrange vinyl, and upscale vinyl – all returned more than 76 percent of costs upon sale.
Similar to last year's report, the least profitable remodeling projects in terms of resale value were home office remodels and sunroom additions, returning only 48.1 percent and 50.7 percent of project costs.
Regionally, cities in the Pacific states of Alaska, California, Hawaii, Oregon and Washington once again outperformed the rest of the nation in terms of remodeling costs recouped upon resale. The West South Central region of Arkansas, Louisiana, Oklahoma, and Texas; the East South Central region of Alabama, Kentucky, Mississippi and Tennessee; and the South Atlantic region of the District of Columbia, Florida, Georgia, Maryland, North Carolina, South Carolina, Virginia and West Virginia also performed relatively well.
The regions that generally returned the lowest percentage of costs were New England (Connecticut, Massachusetts, Maine, New Hampshire, Rhode Island and Vermont), East North Central (Illinois, Indiana, Michigan, Ohio and Wisconsin), West North Central (Iowa, Kansas, Minnesota, Missouri, Nebraska, North Dakota and South Dakota), and the Middle Atlantic (New York and Pennsylvania).
Golder commented that remodeling projects are just one of many factors that contribute to a home's overall resale value. "As the first, best source for real estate information, REALTORS® are experts in providing insight into what projects and investments will make a difference in your house. It's important to consult with a REALTOR® who can explain the variety of factors that affect a home's value, such as location, condition of surrounding properties and the regional economic climate," she said.
Results of the report are summarized in the January issue of REALTOR® Magazine. To read the full project descriptions, access national and regional project data, and download a free PDF containing data for any of the 80 cities covered by the report, visit www.costvsvalue.com. "Cost vs. Value" is a registered trademark of Hanley Wood, LLC.
Source: NAR
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Remodeling and decorating trends in 2010 are likely to reflect the fact that many home owners are settling in for the long haul.
Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:
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By Barbara Ballinger, Architecture Coach columnist and guest blogger
Design glitches draw attention away from a home's best features. Don't let out-of-date fixtures and unappealing decor cost you a sale. While some buyers may actually appreciate "vintage" features, home and design experts say these 20 features almost always serve as a turnoff.
1. Dated and excessively bold or dark paint and tile colors, such as "Pepto Bismol" pink, avocado green, deep plum, or jet black. "Dark can be cool, but it has to be a color that's popular today," says sales associate Jennifer Ames, crs, of Coldwell Banker Residential Brokerage in Chicago.
2. Lacquered or high-gloss painted walls that are expensive to repaint and show all defects. Likewise, faux- and sponge-painted walls can be so passe.
3. Painted trim that's very dark-and costly to remove.
4. Wallpaper, which is a lot of work (and potentially expensive) to remove. Most disliked: Dated flowered or striped patterns.
5. Kitchens that lack any dining space. Also, outdated, small-scale, and dirty kitchen appliances that look like they won't perform.
6. Worn, cracked laminate countertops, and backsplashes or plastic cultured marble.
7. Outdated bathrooms with small sinks, short toilets, squatty bathtubs, and tight showers-all of which aren't conducive to unwinding after a long day's work, says Ames.
8. Lack of ample closet space in bedrooms, or no closet at all and no place to build one or add an armoire.
9. Dens, libraries, and family rooms without built-in bookcases or a space to include shelves.
10. Stained and worn wall-to-wall carpet in rooms or on stairs. Worst choice: shag. Also, worn linoleum that suggests a house was never updated.
11. Poorly built additions that don't blend with a home's architecture, such as a sunroom with tinted glass.
12. Shortage of windows or very small windows, which makes a home feels dark and gloomy.
13. Ceilings with so many recessed lighting spots that they resemble Swiss cheese and are expensive to remove. Worst offenders: big 6-inch diameter lights.
14. Too many rooms outside the kitchen and bathroom that have cold ceramic tiled floors.
15. Children's bedrooms with a theme that runs through the carpeting, wallpaper, murals, ceilings, light fixtures, curtains, and furnishings.
16. Homes without a foyer or garage.
17. Too many mirrored walls, ceilings, doors, and backsplashes in a single room. The effect is dizzying, Ames says. One mirror magnifies, but many cheapen the look.
18. Skimpy molding and trim, such as 1-inch baseboards.
19. Noisy, grinding fan in a bathroom that's attached to a light switch so it can't be turned off.
20. Inexpensive gold-colored light fixtures in any room. Also, Hollywood-style lighting with huge bulbs in a bathroom is also out of date, design experts say.
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Not so long ago, choosing a kitchen floor was as simple as deciding between tile and linoleum. While both of these traditional flooring favorites continue to have their fans, there are now more choices than ever before. So before you settle on one of the "classics," be sure to consider your kitchen-flooring options.
Many homeowners remodeling their kitchens today are turning to an old flooring standby: wood. Wood flooring has made a major comeback as builders and homeowners look to increase the charm, value and comfort in new and remodeled homes.
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Dive into our list of facts and tips for quick ideas on filling a bath with comfort and convenience.
By Amanda Fier
1. Low-flow toilets do not have to mean low-performance toilets. To alleviate low-flow woes, select a toilet with a glazed trapway that measures 2 1/4 inches or larger. Keep in mind that a good toilet may cost $150 or more.
2. Soaking tubs -- often sized to accommodate two people -- are the focal point of many rejuvenated baths. To ensure plenty of hot water, the National Kitchen&Bath; Association recommends a water heater with at least two-thirds your tub's capacity.
3. Locating a dressing room and short hallway between the master bath and bedroom lets an early riser shower and get dressed without disturbing a later sleeper.
4. Instead of tearing out an old tub, you can reface it in a day with an acrylic liner. At $850-$1,000 for an average tub, refacing costs less than full-blown remodeling jobs that disturb plumbing, tile, and flooring.
5. Shower benches and shelves don't have to be elaborate or require a large shower. A piece of tile cut into a triangle and mounted a few feet off the floor in a corner can store shower supplies or give you a leg up when shaving.
6. Faucet choice is more than simply a function of styling. Finish quality, valve quality, and warranty length should factor into your purchase decision. Solid-brass fixtures, such as the chrome-plated Soho Manor faucet, cost more but last the longest. Zinc is durable and less expensive but will corrode when the plating wears off and water reaches the zinc. Plastic-bodied faucets are the cheapest and least-durable option. Lifetime finishes, such as Delta's Brilliance, Moen's LifeShine, and Jado's Diamond, that rebuff oxidation are most likely to stay shiny over time. Kohler has a handful of Vibrant finishes designed to fend off scratches, corrosion, and tarnishing.
7. If you dream of a makeup area in your remodeled bath but can't find the space, sacrificing a double vanity in favor of a single sink with a separate makeup area is a trade-off many people have no trouble living with.
8. Artificial lighting from above often casts shadows that make shaving and applying makeup a challenge. If your light fixture must dangle over the mirror, choose a small track system that diffuses light uniformly across the mirror and throughout the space. Mirror-flanking swing-arm lamps also cast light conducive to grooming.
9. Wall-mount faucets are gaining popularity both as a stylistic complement to minimalist design and above-counter basins and as a way to free countertop space for personal items.
10. Even in showers shared by multiple users, everyone can enjoy a customized spray. Many high-end shower systems offer a single-control, programmable, push-button module for selecting water temperature and specifying the operation of showerheads, body sprays, and pulsation intervals. For more affordable customization, try handheld showers and slide bars that make shower height optimal for every user.
11. Partial walls offer a way to create seat seclusion in baths too small to allow a dedicated water closet.
12. Many homeowners are choosing luxury showers over whirlpool tubs because the showers take up less space, don't waste time filling up, and provide multiple types of water massage.
13. When choosing paint for a bath, remember that latex paints are easy to use, quick-drying, and durable. However, oil paints are sometimes preferred because of their superior adhesion and stain resistance.
14. Above-counter basins and vessels are today's hot choice for adding elegance to otherwise ordinary vanities. These sinks work equally well in baths with contemporary, traditional, Asian, and eclectic personalities. Note that vessel sinks require higher backsplashes and taller or wall-mount faucets.
15. The flexible design options of open showers continue to inspire homeowners. If you choose this kind of shower, plan abundant ventilation at the shower entry to prevent humidity from afflicting bathroom surfaces such as the vanity.
16. Squeezing laundry features into a bath lets you wash clothes right in the room where they tend to pile up. A stacked washer and dryer unit is a space-savvy way to make a bath double as a laundry room; these units require a space about 27 inches wide and 27 inches deep.
17. Some whirlpool tubs and power showers require a plumbing upgrade. Designer or European fixtures often require 3/4-inch pipes instead of the standard 1/2-inch. If you buy a luxury shower, which can use 9 gallons of water per minute, you may need to buy a second water heater as well.
18. Flooring options. In a recent National Association of Home Builders survey of customer preferences, prospective homeowners ranked the following materials as their top choices for bathroom flooring: 53 percent ceramic tile, 31 percent vinyl, 7 percent carpet.
19. Wood can work in bathrooms. Wood tubs and sinks are possible thanks to special stabilizing and polishing processes, epoxy resins, and the use of water-resistant woods such as teak. Check each product's fabrication process and warranty. Wood is also a flooring option, but you'll need to prevent puddles and expect some shifting of planks.
20. Wall color plays a vital role in determining whether your bath lives large or small. Soft, airy hues open up a room significantly, while flashier, rich tones are a sure way to shrink a space.
21. The design concept of work zones is as practical in baths as it is in kitchens. Thinking of bath space in terms of a toilet area, bathing area, and sink area leads to plans that let multiple users use different parts of the bath concurrently.
22. Elongated toilets are considered more comfortable than round ones, but they occupy more space.
23. Claim adjacent space. If you're looking to grow your master bath, you might not have to look far. Designers often turn to seldom-used closets and bedrooms when seeking space for a bath expansion.
24. An easy way to add luxury to a bath is by installing a radiant floor heating system, which costs $4-$6 per square foot. Adding a timer lets you set the heater to provide a warm surface for the first footsteps of the morning.
25. If you're adding the relaxing power of a steam shower to your bath, the key is finding a place for the steam generator, which requires its own cold water and electrical supplies and drain. The generator must be within 50 feet of the shower but can be located in a closet, vanity, basement, or heated attic. Costs vary based on installation and shower features, but Dan Reinert, vice president of sales and marketing for the Sussman Corp., which manufactures MrSteam and MrSauna, recommends allocating an additional $2,500 to a bath project that will include a steam shower.
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RISMEDIA, Oct. 23, 2008-Homeowners play an important part not only in how their home is perceived by prospective buyers, but also its actual appraised value. To help sellers better maximize their profit potential, Robert Jenson, CEO of luxury Las Vegas realty The Jenson Group at RE/MAX CENTRAL, offers 10 tips for readily increasing a home's worth:
1. Paint the exterior - A fresh coat of paint can give even a relatively new home a much needed facelift, and can often be done for as low as a few thousand dollars. Select a neutral tone that is consistent with other residences in the neighborhood. Also be sure to pay close attention to eaves, gutters and drains that may also need painting.
2. Complete all needed repairs - To maximize a home's worth, it should be in good condition both inside and out. Don't wait until there is an offer on the home. Hire an inspector now, and fix any and all problems, such as roof deficiencies, leaky plumbing and electrical concerns.
3. Purchase a home warranty - Establish peace of mind that comes with knowing a home and its contents are adequately covered in the event of a loss. A transferrable home warranty protection plan can provide added security to the home owner – and buyer – in this regard.
4. Furnish the home to sell - Appeal to the buyer's emotion. Furnishing a home can go a long ways to getting your home sold, actually increasing the odds of it selling. Give buyers the option to procure the property with or without furnishings, and have a pre-established sale price set for either scenario.
5. Upgrade front yard landscaping - Curb appeal plays a big role more so than people realize. Potential buyers driving the neighborhood may never call on the For Sale sign, if your home doesn't look appealing from the outside. As well, buyers waiting for their Realtor to show up will often spend a good amount of time critiquing the landscaping while waiting. In addition to purposeful foliage, add landscape lighting and a weather and soil moisture-based landscape irrigation scheduling device to boost value even more.
6. Create a quick kitchen makeover - Kitchens are one of the number one room in the home where you'll get the most bang for your remodeling buck. Countertops and appliances are the quickest fix, as are faucets, fixtures, door knobs and other easily changed items that can have a large impact on the space.
7. Think spa, not bathroom - The master bath is an important a factor in a home's worth. Think spa, or private sanctuary, where the master bath is concerned. A space meant to be relaxing, rejuvenating and more. Give buyers something to be excited about with upgraded faucets, fixtures, lighting, cabinetry, mirrors and the like. Then dress it up with plants, candles and other inexpensive, high impact décor.
8. Install soft and hard window treatments - There's nothing more boring than a plain window. Take advantage of this easy opportunity to give the home's interior design more impact, while also increasing the home's actual worth. In addition to "hard" treatments such as blinds and shutters that offer privacy, also add soft treatments hung from decorative fixtures, which can alter the appeal of a room entirely. Look to a professional to ensure the best outcome.
9. Replace carpet rather than just cleaning - Rather than simply steam cleaning old, used carpet, replace it with fresh, neutral-toned carpet with an upgraded pad for an extra luxurious feel. Spending the extra money on new carpet will really make your home stand out from the crowd, in sight, feel and even smell.
10. Don't overlook your closets - The better organized a closet, the larger it appears and the better it reflects on a home overall. Now is the time to box up those unwanted clothes and shoes and donate them to charity. Then, invest in a closet organization system – either by a professional or self-installed – which will positively impact an appraisal.
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