Survey Shows How Sellers Spend Their Money in the Huntington Beach Real Estate
May was National Remodeling Month, so it seems appropriate and timely that we check into this year's home improvement trends. For that, we turn to a study funded by the National Hardware Show and conducted in March by the Home Improvement Research Institute of Tampa, Florida. The study, which involved 1,200 new and existing homebuyers, and was released last month at the Hardware Show in Las Vegas, found that almost 50 percent of those selling houses work on projects to get them ready for sale. This jibes with findings of a study conducted by the institute two years ago, according to its managing director, Fred Miller. The vast majority of work -- 61 percent of it -- is being done before the property goes on the market, and an increasing amount of it in the 30 days before it is listed. Still, 12 percent of the work is being done after an offer has been made, twice that of the 2004 survey and probably reflecting the slowing market and the accommodations real estate agents suggest sellers should make to buyers. Almost 25 percent of this work involves replacing flooring, although Miller said the data don't suggest the reasoning -- whether more upscale hardwoods or ceramic or quarry tile are replacing vinyl. Painting accounts for 22 percent of the work done to get the house ready for market. Most real estate agents suggest painting as a relatively inexpensive way to freshen up rooms. Electrical work and landscaping are each at 9 percent, and exterior structural changes -- windows and siding -- accounted for 12 percent. "Most people who responded to the survey said these projects improve the value of their houses," Miller said. Why spend the money at the last minute? Almost one-third of those responding to the survey replied, "To make a good impression." Curb appeal sells almost 50 percent of houses generally, according to survey after survey by the National Association of Realtors, but in a slowing market, your house has to look better than the five others for sale on your street to get someone out of the car and up to your front door.
The renewed importance of curb appeal likely accounts for the increase in landscaping work (5 percent in 2004), since, together with painting, it's a relatively inexpensive way to spruce up a home's exterior. Most suggestions for change came from real estate agents (78 percent), although Miller emphasized that data for this category came from "a small base." Almost 15 percent of the sample said that the work was recommended in the home inspection report. Fewer sellers in 2006 than 2004 made the changes "to make the houses look more modern," perhaps an indication that a lot of existing-home buyers either like original touches or prefer making changes themselves. About the same percentage (22 in 2006 versus 24 in 2004) spent money to repair unsightly areas, while 17 percent did it to "fix something not working," 8 percent to pass inspection and 7 percent to neutralize decor. In a slowing market in which people are concerned about selling quickly with a chance of selling for more, fixing things and passing inspection are becoming more important considerations. While the male head of the household leads in initiating projects for getting the house ready for sale, Miller said that there has been an increase in joint decisions on these projects since 2004. Miller said there had been a slight shift from sellers doing the work themselves to using a professional between 2004 and 2006. He said the possible reason for the shift has less to do with the unwillingness of homeowners to do their own work and more with getting it done quickly so the house can get on the market faster and ahead of the competition. Only 53 percent of sellers were doing the work themselves in 2006, compared with 59 percent in 2004, according to the study. Use of professionals increased to 43 percent in 2006 from 37 percent in 2004. A small percentage (3 percent in 2006, 4 percent in 2004) did these projects jointly. The 2006 study was conducted between Feb. 28 and April 2, and the sample was doubled from the one in 2004, with 597 respondents buying new houses and 600 buying existing ones, Miller said. By Al Heavens
Practical Things to Remember When Home Shopping
Most folks are always looking for the ever-elusive "dream home." Not too long after settling into a new dwelling, some residents begin to pick apart the house they just bought. For example, someone who really likes the idea of a laundry chute (great, no more walking the dirty clothes to the laundry room), rethinks that idea when they now have to climb up two flights of steps to put away the clothes. Here are some practical things to think about when you're looking through your pool of homes that you're hoping to buy. Measure your furniture. When shopping for a home, don't forget the measurements of your large furniture: couches, big screen TVs, mattresses, pianos, dinning tables, etc. You don't want to be surprised that your favorite piece of furniture will not fit where you had planned for it to go. Why is that conveying? Okay, so it sounds great that the pool table (or 2 sleeper sofas) conveys. Be sure to ask yourself - Why? Why would the owner part with this piece of furniture, extra refrigerator, etc.? Play a quick game of pool, see if the refrigerator really freezes and cools, and why would they let go of these two perfectly good sleepers? Sometimes, it may be they just won't have room in the next house for them or no longer need them. Meanwhile, they may be handing over a white elephant to the next owners. Sounds great. What if it breaks? So the hot tub stays? The refrigerator? Great. What if it breaks down? Again, is this really a benefit to the house or is it something that has cost the previous owner hundreds or thousands of dollars a year to maintain? Find out if a large piece of equipment, appliance, etc., has had any repair problems. What about conveniences? Sure, the house is located deep into the community on a cul-de-sac, but
what does that mean when you need a bag of sugar or flour? Is the shopping just a few minutes down the road or does it mean a 15-minute jaunt down Hwy. 1? If it's a newer development, how long before they will be constructing the business section of the development? What kind of wiring? This analysis has become more important as homeowners look more toward broadband, high-speed Internet access for work and pleasure. When walking through an older home, be sure to really understand what all the coaxial connections really attach to: antenna, cable, digital cable, satellite. In addition, if you're accustom to other type connections, such as DSL or Fiber Optics, at least find out if these services are available if the house doesn't have them connected already. Planes, trains and automobiles. If you're looking for a quiet neighborhood, don't forget to come by and check out the community during rush hour. It may be convenient to the main thoroughfares, but are those roadways so close that you can hear the traffic (or see it) before tuning to Traffic on the Nines? How about the sounds from above? I've talked with many owners who, aware that the community was near the airport, had no idea they would have to straighten up their pictures on the walls after each airplane flew over. HOA Documents. Don't just thumb through the homeowners association documents. Be sure to really understand your limits under these binding documents. In a community near Washington, D.C., for instance, no residents can park a pickup truck on their property. Imagine the surprise to a new homeowner who just didn't happen to read about that limitation in the docs. More detail is better than the big picture when it comes to selecting your next property. Research, drive by and really get to know your target property before making a final decision. Happy home shopping. By M. Anthony Carr