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Home Office Remodel: No Return
It is a proven fact that many home remodeling projects significantly impact the value of the home. Certain upgrades and renovations pay dividends when it comes time to sell your home, allowing you to recoup the money you’ve invested in the home improvements.
As always, there are exceptions. There is one renovation that stands head and shoulders above the rest (or should I say below) when it comes to receiving a significant return on your investment:
The Home Office
Does this surprise you? It may seem like a home office would be a boon for your home at sale time, especially considering the number of people who telecommute and work online. But the fact of the matter is, a home office seldom recoups more than 45% of the money invested in the remodel.
Why? Full-on home office renovation often takes up a bedroom, which new owners might want to be able to convert back into a bedroom. If you’ve spent the time and money having built-in furniture added, media wiring, and other “office like” details installed, it represents a cost to restore or lost-usage for the new owners.
Of course, if you need a home office and want to have the home office of your dreams, it might be worth it to you to put the return on investment aside. But if your main goal is to have a substantial return on your renovation investment, this is one project that may not pay off at the time of sale.
Renovations Buyers Like to See
Now, on the other hand, what renovations do buyers like to see? Most improvements that elevate the value of your home in the eyes of buyers without breaking your renovation budget is an excellent choice.
The National Association of Home Builders reports that these following features are on buyers’ most wanted list:
- Separate laundry room (91% preference): This is a small-scale project, expected cost $1,000 to $5,000
- Patio (87% preference): A concrete patio can run roughly $975 per 120 square feet.
- Garage storage space (85% preference): You can expect to pay $2,025 – $2,363 for 380 square feet of garage storage.
- Walk-in kitchen pantry (83% preference): Homeowners prefer walk-in pantries over the reach-in closet. Each design varies in cost, but the report says there is a distinct preference for perspective buyers.
- Walk-In Closet in Master Bedroom: Cost varies by design. These are gaining popularity with first- and second-time homebuyers.
- Eat-in kitchen: Cost $1,000 to $10,000. These are especially attractive to families with children.
Renovations are a bonus when it comes to selling a home. If you are you planning to sell your home before or after the home improvements, give me a call. I’d be happy to help you find a current value for your home and discuss if any renovations may help increase the market value.
Kim Shaw
(928) 710-9148
6 Things Buyers Forget to Check During a Home Search
Do you think you have found the perfect home? Hold on, and think again, it might not be as perfect as you think.
There are six little details which can turn an ideal house into a purchase you may regret. Before you make your offer, take into account these six small, but surprisingly important details:
#1: Check Your Cell Reception
Does your future dream home have cell reception? Check your signal when you’re on the property and see if it has dead spots, poor/limited data connections, or flat out “NO SERVICE” messages. This is especially important if you telecommute or had planned on skipping a landline entirely. While you can try and live on VoIP connections, WiFi, and other options, the hassle of a hole in cell coverage can wear on you.
#2: Calculate Your Commute
It’s a sunny Saturday afternoon, and for kicks you decide to see how long the drive is from your potential dream home to your office. Doesn’t seem too bad, does it? Now try it during rush hour on a Monday (in bad weather if you can swing it). You might be surprised how school zones, backed-up interstate ramps, new construction, and peak transit schedules extend that commute. This goes for urban commutes too, so even if you don’t drive to work, you’ll want to evaluate the commute in real-world conditions.
#3: Check the Delivery Zone
Restaurant delivery areas are often drawn like congressional districts, so if you can, check out what the local food delivery options are like ahead of time. Look up a few places, call them, and verify they deliver to your address. (Asking the average delivery time is a good idea, too.)
#4: Do a 24/7 Check
The home may be in a neighborhood that is quiet and peaceful on a Saturday afternoon, but what is it like on a Friday night? What kind of traffic is there in the mornings? There may be an excessive number of children playing in the street in the afternoons after school. It is wise to do a drive-by at various times of the day, as well as various days of the week.
#5: Give it the Sniff Test
Do you smell sewage, gas, or anything equally unpleasant? Sewage systems in older homes can sometimes get clogged or damaged by tree roots. Luckily, some sewer or plumbing companies can send a camera through the pipes to detect any breaks or blockages. How does it smell outside? There are some neighborhoods that have distinct odors from nearby farms, landfills, water treatment plants, and industrial parks. It is vital to give it the sniff test inside and out.
#6: Touch EVERYTHING
Literally, touch everything. Turn on every faucet and light switch, open every window and door, and flush the toilets. Buying a house is a big step, quite possibly one of the biggest, and you need to know how everything works firsthand. Don’t forget to taste the water. There are water treatment options, but water quality is something you will definitely want to know prior to becoming homeowners.
Markets can be super competitive, but remember that you’re planning on living in this new house for a considerable amount of time. (Most people would tell you at least 5 – 7 years.) Perhaps your priorities don’t include these six details, but they might to other buyers when you’re ready to sell.
As a realtor, I truly respect the time it takes to find the best home for the best price. I diligently do my homework for you to find what you are looking for. Contact me at (928) 710-9148, I’d be happy to show you homes for sale in the Prescott area.
Affordable Design Upgrades to Help Sell Your Home
What is it about a home that catches a buyer’s eye? What makes a home “feel right”? When two home are comparable to one another, why will one edge the other out?
The difference is in the details. Small little touches will give a home a major edge in the market. Below is a list of a few clever design upgrades that will provide your home with an overall feeling that it is of higher quality than the competition:
- Custom Home Address: A custom home address plaque is a common overlooked upgrade by homeowners. It is an affordable killer upgrade that will add curb appeal to the home. For between $50 and $100, create the plaque to include the home’s numbers and the street name spelled out. Use Pinterest to research the design that will best fit your home.
- Upgrade Light Switch Plates: Freshen up each room in the house, by splurging a few extra bucks to swap out old switch plates. Upgrading dirty, chipped, or cheap-looking switches is a fantastic way to spruce up the look in your home. In the bathroom and kitchen, match the color of your new switch plates to the tile.
- New Cabinet and Drawer Hardware: Modern drawer handles work wonders in rejuvenating tired or outdated cabinets. Concentrate first on the kitchen, because it is the central location of the home, then look for options to upgrade the bathroom as well.
- Paint the Front Door: The front door is the first thing buyers will see. Create a welcoming environment with some extra plants, and add a fresh look by painting the front door.
- Dimmers in Major Rooms: Create a bright and warm environment with lighting. Utilize natural lighting by opening your blinds and updating light fixtures. A simple solution is increasing the wattage in your lamps and fixtures. However, along with bright lighting, adding dimmer switches in major rooms creates a little sense of luxury. If your looking to install the dimmers yourself, there is a quick tutorial by Home Depot, click here to view their YouTube Video.
- Neutral Paints: Bold paint colors can through off potential buyers. Instead freshen up your homes design by sticking with light neutral wall colors. Light colors add freshness and style.
- Crown molding: Tasteful crown molding can really make a plain room feel high-quality. The key is adding molding which doesn’t seem ostentatious or inappropriate given the size and existing decor in the room. Better Homes and Gardens has a great tutorial on How To Transform a Room with Crown Molding.
You might not be able to quantify the exact return these clever upgrades will net you, but you can bet they will help your home stand out from sellers who won’t take the time to make some simple changes. Remember, success is in the details!
Kim Shaw
(928) 710-9148
Essential Tips to Make an Efficient Home and Save on Your Energy Bill
As a homeowner, it’s important to keep your home running efficiently, not only to save money, but also to help the environment thrive. It is important to pause and taking time to think about making some key upgrades that will improve the efficiency of your home. If you’re looking to sell your house, and increase the pool of potential buyers in your market, the energy upgrades below are something that you should consider.
“In the U.S., energy costs eat between 5 and 22 percent of families’ total after-tax income.”
What should you spend on utilities? (Source: Wallet Hub)
“If you’re working with a budget, and trust me, you should be, your utility costs should be no more than 8-10 percent of your monthly income.” (Source: Money Management)
How can you make your home more efficient?
Below are some handy tips that can help you improve the energy efficiency of your home, and how to make them happen:
- Make the Switch to LED
LEDs are a great example of how innovation and technology can make your life easier. They last at least 25 times longer and consume up to 90 percent less electricity than incandescent bulbs.
Tip: By switching five of your home’s most frequently used bulbs with ENERGY STAR® certified LEDs, it’s possible to save $75 on energy costs annually.
- Seal Those Leaks
On average, heating and cooling account for almost half of a home’s energy consumption. In fact, all the little leaks can be equivalent to leaving open a 3-foot-by-3-foot window.
Tip: Take simple steps like caulking windows, sealing leaks around chimneys and recessed lighting, and sliding draft guards under your doors to save up to 20% on heating costs.
- Heat and Cool Efficiently
Don’t waste money heating or cooling an empty home. Install a programmable thermostat and in colder weather schedule your home’s heat to lower when you are away or asleep and increase when you are returning home or waking-up. In warm weather, schedule the thermostat to raise the temperature when you are away or asleep, and lower it at other times.
Tip: Follow the U.S. Department of Energy recommended temperatures and be energy-efficient all year.
- Maintain Your HVAC System
Make sure to clean or change your furnace filters regularly. A dirty furnace filter will slow down air flow, making the system work harder to keep you warm (or cool) and costing you more money.
Tip: Consider getting a winter tune-up. Just as a tune-up for your car can improve your gas mileage, a semi-annual or yearly tune-up of your heating and cooling system can be vital to improve efficiency, saving you money and making your home more comfortable.
A few more tips you may want to consider when trying to conserve energy.
- Not all clothes need to be washed in warm water, if possible, wash your clothes in cold water.
- Use your microwave instead of your stove when cooking.
- Set your refrigerator temperature to the manufacturer’s recommendation to avoid excessive cooling and wasting energy.
- Turn off heated dry on your dishwasher and air dry instead.
- Turn off the lights when they’re not in use. Lighting accounts for about 12% of a typical residential utility bill.
Bottom Line
By making a few key upgrades to your home, you’ll save on your utility bills and improve the energy efficiency of your home. When you’re ready to sell your house, these key features will make it even more attractive to potential buyers. Contact me when you are ready to get together to discuss what buyers are looking for when it comes to energy efficiency options in our area. Contact me at (928) 710-9148.
Thinking of Selling Your Home? Waiting Can Be Costly.
Humans are impatient by nature, at times being patient and waiting pays off. Other times, waiting can cost you money. Surprisingly, individuals who wait too long to sell their homes can have a negative effect on the bottom line. Traditional thinking would suggest it may be best to wait to sell when there is a flood of buyers in the market, but right now may in fact be an even better time to list your home.
We can see the overall economy is good: wages are rising, there are near record-low unemployment rates, plus the mortgage interest rates are still very low. Over the past 10+ years the housing market has stabilized, so what (if anything) is the biggest challenge in the housing market today?
The answer is simple: it’s inventory.
What does this mean?
While homes are coming to the market, they aren’t coming fast enough!
According to BankRate.com, “a seller’s market is a real estate term, indicating that there are more real estate buyers in the market than there are sellers. When demand is higher than the supply, home prices increase, which benefits sellers. During a seller’s market, buyers have little room to negotiate price because demand is high. Seller’s markets usually occur when the economy is good and there is low housing inventory available in the area.”
Time to Sell
When we look at the numbers and see the challenge presented by low inventory, we can see that now is a great time to sell your house. This market provides an opportune time for sellers, who own homes in the starter and middle-level markets, to sell in a sellers’ market, before inventory catches up with demand. Serious buyers are actively in the market and ready to make a move during these situations. When inventory is limited at the lower end, like it is today, selling before more homes are listed could mean a significant seller’s advantage to those who are ready to move up. The upper level of the market has much more inventory available to move into, so it’s a win across the board.
If you’re considering selling your home, now may be a great time to make your move. Take advantage of the high housing demand and the low inventory of homes for sale at the lower end of the market and use your purchasing power while mortgage rates are low to go after the move-up home of your dreams.
Give me a call and I can help you decide if now is the right time for you. Contact me at (928) 710-9148.
Don’t Move It, Sell It!
Getting ready to move to the Prescott area? Welcome to “Everybody’s Hometown”, we are excited to have you! You have picked a gorgeous town. Prescott truly has something for everyone. There are plenty of things to do in the area, making it the perfect community for people of all ages. Prescott is often rated as one of the best places to retire, but our popular town is equally as family-friendly (and dog-friendly too!). The Prescott population is growing; however, the small town feel the city has to offer, gives residents the best of both worlds.
As your packing to move, we have a secret for you. The secret to an easy, less stressful moving process, is moving less stuff.
It’s obvious, but it’s true. You can save time, money, and the anxiety of finding the right place for extra stuff if you simply take the time before your big day to declutter. While you may have stuff that’s destined for the dump, the odds are you have a lot more stuff which could find a better home with someone else. So how do you quickly and easily declutter your home before the move?
- Start with a garage sale. The garage sale is a reliable way to offload your junk. For example, you may not want to keep your surf board when moving to Prescott, but someone may be willing to pay top dollar it. Another option is a “moving in” garage sale. Consider having a garage sale when you arrive. This can be a great way to get to know your new neighbors.
- Sell your stuff online. Facebook Marketplace, Craigslist, eBay, and Nextdoor are all good venues for finding buyers. These online marketplaces offer a fast option for a large number of people to see what you have to sell. However, remember to be safety conscious when meeting with strangers. Beware of scammers, and instead of inviting strangers into your home, if possible, meet the buyer in a grocery store parking lot, or at a gas station.
- App it up! There are multiple competing apps for selling stuff privately, including OfferUp, Gone, and LetGo. Best of all, these work directly from your smartphone, making it easy to snap pics and post ads in a hurry.
- Trade in, don’t chuck it. Many retail chain outlets will provide you with a way to trade-in items for credit, especially if the items are consumer electronics, games, or mobile devices. Even if the trade-in amount is low, it beats sending the stuff to the landfill.
- Donate it! Just because you don’t want to use it anymore doesn’t mean that someone out there can’t benefit from it. Get a tax deduction and do a good deed by dropping off unwanted possessions with Goodwill Industries, Stepping Stones, or the Salvation Army. This is also a good way to positively impact the community.
Don’t let extra clutter drag down your move. Set aside time before the big day to sell, trade, or donate. You may sell enough to earn a few extra bucks to buy pizza on your first night in your new place.
If you need help finding a place to move, I would love to help you find the perfect home! Or, if you are needing to list your home, I love listing homes and helping them sell fast. Contact me at (928) 710-9148.
Why Overpricing Hurts Sellers in the End
I would consider this a factual statement: All sellers would love their home to sell for the highest possible price. Understandable. Unfortunately, this strong desire and motivation is the reason why it’s so easy for agents to “buy” listings. If you’re not familiar with the concept, “buying” a listing is when an agent tells a client their home is worth far more than the market value in order to win the listing. This tactic is unscrupulous, but sadly it isn’t illegal.
Sellers are susceptible to this tactic because they want to believe, however irrationally, that their home is worth more than comparable homes on the market. This is usually a result of persuasive reasoning given by the agent.
Occasionally, sellers truly believe pricing your home on the high end is either an acceptable risk or even a benefit. Below are a few arguments they give to their rational, and why this line of thinking is a problem when it comes to selling a home.
- “I can always come down in price later if I have to.”
Yes, it’s possible that someone will find the house irresistible and pay the inflated price, but the odds are the house will languish on the market until the price comes down. Buyers, though, will see this from a different perspective. They’ll be thinking: What’s wrong with the property? Maybe I can get this house for significantly below market value.
- “I have to keep the price high for negotiating purposes.”
A house isn’t a used car. Don’t start far above what’s acceptable in order to pad out the negotiations. Buyers will have access to the same market data, and their agent will have a pretty good idea what the home’s true market value should be. The ruse will quickly come to pieces, so why not price right for a quick, fair sale?
- “This is the price I need to get for my house.”
If that’s true, sellers should also be prepared to stay put when the house doesn’t sell. Despite dire and important reasons why lower offers can’t be accepted, the market is indifferent to the seller’s situation. There are other homes and other sellers unencumbered by the same reasons.
- “A house just like mine sold for this price… so why not mine?”
Sellers will assume houses are identical. Odds are there are other outstanding reasons the home sold above market value, especially when it comes to interior renovations.
We truly understand there are a variety of emotions and factors involved in finding the correct selling price for your home. We can help. We have numerous tools and ways to analyze the market to help you arrive at an accurate listing price. A price that we feel will get the property sold quickly. When you are ready to talk numbers, we will be happy to give you an accurate valuation for your home. Contact me at (928) 710-9148.
Supersizing Small Living Spaces
Has your home started to feel a little small for your family? It happens to the best of us. The things we own gradually end up colonizing a lot of our free space, and the house which felt “just right” a few years ago can suddenly feel as tiny as a shoe closet.
Fortunately, there are some simple tricks you can try to supersize your small space. Most of these tricks are a matter of changing perspective rather than opening up more square footage. Before you try them, consider a real effort to declutter first. After you declutter, have fun and use the tactics listed below to maximize your living space.
- Lighten up the walls. Color can make the difference between breezy, cozy, and claustrophobic. Dark colors on walls make them seem smaller and denser, while lighter ones broaden your view and reflect more light. While white can be a bit harsh, there are other cheerful tones such as lemon, mint, and cornflower which can transform a space.
- Aim high. Many times, our gaze tends to lock onto the things in the way of our feet. If you have zones of heavy storage occupying square footage, look for ways to get those items off the ground. Corner shelves, hidden cabinets, and even hanging racks can do wonders for widening up narrow spaces. Hanging pictures higher up on walls can make rooms feel taller as well.
- Widen up the windows. Big curtain rods which extend beyond the border of the window can make a window seem larger, and making the move to keep them open (perhaps with sheer drapes for privacy) can let in crucial light. If you have a little renovation money, consider adding windows to rooms where less-than-ideal lighting conditions exist.
- Cast mirror magic. Amplifying light is a big theme here, so position large mirrors across from windows to create “windows” where no window can exist. Even if you don’t have a window handy, a large mirror can boost the feel of even the tiniest room.
- Demand double duty furniture. Hidden storage in large furniture can be a boon for making the most diminutive room more manageable. Take, for example, raised bed platforms with drawers built in the frame, a narrow cupboard with a garbage basket that tilts out, or foot stools and coffee tables that can hold your blankets and pillows. Pinterest is a fantastic source for these ideas. Simply search for “storage furniture for small spaces”. Stand back and survey your home and look for any opportunity to hide storage in existing objects.
Hopefully these five tips will make your small house more spacious. If they still don’t make enough room for peace of mind, it might be time to consider upsizing. Prescott has a variety of housing options that I will be happy to show you. I can also help you assess how much home you can afford, and help you determine the value of the house you’ve outgrown. Drop me a line if you’re ready for the big time! Contact me at (928) 710-9148.
Should I Negotiate Repairs Before Closing?
Even though I am a realtor with extensive experience in real estate, the word ‘inspection’ tends to make me, as well as many of my clients, uncomfortable. This is truly understandable. If you are the seller, you don’t want to lose the sale. If you are the buyer, you don’t want to lose buying the house of your dreams. Plus, add into the scenario, no-one wants to spend more time and money than necessary. All of that combined can make an uncomfortable situation.
Buying and Selling homes in Prescott, Arizona, is unique since the area has all types of homes. Prescott has 125 year old historic homes, senior mobile homes, new custom homes, starter homes, luxury homes, ranches, subdivision homes . . . the list can go on and on. At the time of sale, each home typically will under go an inspection. Here is a question that I receive often regarding the repairs that are pointed out during an inspection. Hopefully, this will help you when you are in a similar situation:
Q: The home inspection just completed on a home I have under contract turned up some issues. Should I insist the repairs be completed before closing?
A: It depends. Everyone wants a smooth closing and home inspection negotiations are definitely a place where a deal can fall apart. Here are some things you’ll want to consider:
- If you require the seller to make the repairs, do you think they’ll do as good of a job as you would? After all, they’re getting ready to move on to their next home. While the repairs must meet certain standards of quality, they might not measure up to your own high standards (though they technically fulfill their end of the bargain).
- Ask yourself, do the repairs matter in the grand scheme of things? Are you quibbling over some peeling linoleum in a kitchen you’re already planning to renovate from the floor up?
- The back-and-forth over repairs could delay your closing. Remember, actually getting the work done will involve selecting a contractor, scheduling the work, and final review of the work completed.
In lieu of having the repairs made before closing, you might decide to seek a cash-back credit at close of escrow. This way you can have the work done on your terms and your timeline after closing (and you might just offset some of those closing costs as well).
Negotiating cash-back at close of escrow is just one of the many reasons working with a real estate professional is to your benefit. Realtors are trained and take many – many (many) classes on how to make sure they are equipped to help buyers with the best strategies to make an equitable and smooth transaction. It is best not to navigate the process alone. You deserve a home in satisfactory shape! How it gets that way is often negotiable. I’m happy to help you with any questions you may have and make sure you get the most out of your next real estate experience! Contact me at (928) 710-9148.
How to Respond to Lowball Offers
Your agent is required to bring you any and all offers made on your home even if it is a ‘bad’ offer. Once and a while you’ll receive what’s known as a “lowball” offer. Lowball offers are buyer offers which far fall below your asking price. Sometimes they’re so low that they only serve to make you angry.
Don’t get angry! While selling your home is an emotional process, there are rational, effective strategies for dealing with the lowball offer. Sometimes the lowball offer can even turn into the right price if you handle negotiations the right way.
- Remain calm. Although your first reaction to a lowball offer may be anger or disgust, take a breath and remain calm. There is nothing to gain in making enemies.
- Understand that sometimes buyers aren’t familiar with true market value. They may be from somewhere where homes are much less expensive, or they could be first-time buyers who have been counseled by friends and family to begin with lowball offers.
- Have your agent communicate that while you’re happy to work with them as buyers, you’ll need an offer which is somewhat more competitive and at a level you could consider seriously. When responding back, remember that “you can catch more flies with sugar and honey than with vinegar.”
- Consider countering for a small amount off your asking price to signal your willingness to negotiate, but reiterate that you will need to hear something more in line with market value to continue negotiations.
- Alternately, if you really are in a hurry to sell, counter with your rock-bottom offer. This number may not be close to their lowball, but it could be substantially less than your listing price. This may make the lowball buyer suddenly reconsider their position, tempted by the opportunity to purchase the property at what they consider to be a “substantial discount.”
- Ask the buyer to justify their price. If they truly believe their offer is genuine and fair, they should be able to point to reasons why your listing price is inflated. Make them show their homework. If they haven’t done it, you’ll know soon enough.
- Don’t fall for the “but we can’t afford more” pity play. Sympathize with their financial situation, but in no way let it sway you from the true value of your home.
To steer clear of lowball offers, don’t appear desperate. In your home’s descriptions, you may have listed yourself as a “motivated” seller. This will open yourself up to buyers believing that they can get away with purchasing your home for discount.
Of course sometimes a stream of lowball offers can indicate that the home is priced too high. Occasionally agents will “buy the listing” by assuring sellers they can get the higher price, only to take a lower offer much later down the line. It’s not a sound strategy. If you’re looking for the honest market value of your home, get in touch with me today. Contact me at (928) 710-9148.
