Fixing up Your House to Sell - Session 2

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

www.themodelhomelook.com(703) 589-3848

3

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

http://www.themodelhomelook.com/


4

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



5

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



6

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



7

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



8

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



9

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



10

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



11

9. What’s the most common type of home purchased?

a) Single level

b) Split level

c) Two levels

d) Three levels



12

10. What did new-home buyers most wish their home had more of?

a) Storage

b) Bedrooms

c) Kitchen space

d) Bathrooms



13

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



14

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



15

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



16

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



04/07/2023Mike Ford(703) 589-3848

17

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



04/07/2023Mike Ford(703) 589-3848

18

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



04/07/2023Mike Ford(703) 589-3848

19

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



04/07/2023Mike Ford(703) 589-3848

20

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



04/07/2023Mike Ford(703) 589-3848

21

What’s the most common type of home purchased?

a) Single levelb) Split level

c) Two levels

d) Three levels



04/07/2023Mike Ford(703) 589-3848

22

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


04/07/2023Mike Ford(703) 589-3848

24

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



04/07/2023Mike Ford(703) 589-3848

25

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:



04/07/2023Mike Ford(703) 589-3848

26

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



04/07/2023Mike Ford(703) 589-3848

27

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



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:



04/07/2023Mike Ford(703) 589-3848

28

Age Makes the Biggest Difference in What Buyers Want

Back yards for younger buyers

Walk-in closets for older buyers


04/07/2023Mike Ford(703) 589-3848

29

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


35%

44%

57%53%

62%58%

71%

18-24 25-34 35-44 45-54 55-64 65-74 75 orolder


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


04/07/2023Mike Ford(703) 589-3848

30

Energy Efficiency is Most Important to New-Home Buyers

As buyers age, this becomes more important



04/07/2023Mike Ford(703) 589-3848

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?



04/07/2023Mike Ford(703) 589-3848

32

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



04/07/2023Mike Ford(703) 589-3848

33

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


Characteristics of Homes Purchased



04/07/2023Mike Ford(703) 589-3848

34

Over four-fifths of homes purchased are detached single-family homes

More than half are located in the suburbs

Detached and Suburban



04/07/2023Mike Ford(703) 589-3848

35

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


Small town, 20%

Urban/ Central city,

15%

Rural area, 10%

Resort/ Recreation

area, 1%

Suburb/ Subdivision,

53%

Type and Location of Homes Purchased



04/07/2023Mike Ford(703) 589-3848

36

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



04/07/2023Mike Ford(703) 589-3848


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?



04/07/2023Mike Ford(703) 589-3848


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?



04/07/2023Mike Ford(703) 589-3848

39

Very Important Home Features on the Rise

0

10

20

30

40

50

60

Granite Hardwood Cable Whirlpoolbath

closet/master

2007 2004



04/07/2023Mike Ford(703) 589-3848

40

Where Buyers will Pay for Key Features

0

10

20

30

40

50

60

Hardwood Floors Granite Countertops Oversize Garage

2007 2004



04/07/2023Mike Ford(703) 589-3848

41

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.



04/07/2023Mike Ford(703) 589-3848

42

What to Expect to Pay for the Improvements

• Kitchens• Countertops• Bathrooms• Flooring• Painting• Decks• Landscaping• Maintenance



04/07/2023Mike Ford(703) 589-3848

43

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.



44

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.



45

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.



46

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



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.

47




48

Kitchen – Upscale Major Remodel

The average amount spent on a major kitchen-remodeling job in the U.S. is $115,436.





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.

49




04/07/2023Mike Ford(703) 589-3848

50

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



04/07/2023Mike Ford(703) 589-3848

51

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



52

Bathroom – Midrange Major Remodel

A midrange full-bath remodeling job in the U.S. has an average price tag of $17,167.





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

53




Bathroom – Upscale Major Remodel

54

The average amount spent on a major upscale bathroom remodeling job in the U.S. is $55,398.





55

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.




04/07/2023Mike Ford(703) 589-3848

56

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



04/07/2023Mike Ford(703) 589-3848

57

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.



04/07/2023Mike Ford(703) 589-3848

58

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.



04/07/2023Mike Ford(703) 589-3848

59

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.



04/07/2023Mike Ford(703) 589-3848

60

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



04/07/2023Mike Ford(703) 589-3848

61

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



04/07/2023Mike Ford(703) 589-3848

62

Basement

Turning your basement into a room for socializing will set you back, on average, $56,724



04/07/2023Mike Ford(703) 589-3848

63

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.



04/07/2023Mike Ford(703) 589-3848

64

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.


Business

Fixing up Your House to Sell - Session 2