You want to sell your house and buy another. You’re making more money, you’ve acquired kids somehow, you’ve outgrown the space or you want something new. However, selling isn’t so easy anymore.  

Unless your house is only 2-3 years old, paint won’t do it. Competition is fierce. Earlier, I posted the Florida buyers/sellers survey for 2007 from the National Association of Realtors. That will be some help.  Here’s more, based on my experience. Pick and choose, based on what you have to spend. 

1)       Curb appeal. Florida homebuyers want the house to look nice more than ever. I hate it when it happens, but I’ve taken buyers to a house to show it, and they won’t even get out of the car. You should have grass with no bald patches and a good compliment of shrubbery. Invest in a sprinkler system to keep it all healthy. Palm trees are assets. No peeling paint or stucco. No signs of mildew on the house or roof.

2)       Roofs and air conditioners. Buyers from $100,000 to a million ask about the age of the roof and the HVAC systems. They are big investments, and no buyer wants to replace them right after buying. If your regular shingle roof or your HVAC system is over 10 years old, your selling price will take a hit. Roof replacement is pretty reasonable right now; there are roofers looking for work. Upgrading your HVAC system will be problematic because the new 13 SEER air conditioners are required. If you can, replace the system. If you can’t, improve a part of it such as the air handler or ductwork.

3)       Update. Yes, there are still houses out there with shag carpet or harvest gold and avocado green appliances.  I’ve seen those white kitchen and bath cabinets with the antique gold edges. Wow. Unlike antiques, appliances don’t go up in value with age. Appliances are on their last legs after 10 years, either in efficiency or cosmetics. Get new ones that match – fridge, flattop stove, microwave over the stove, dishwasher, washer and dryer. Stainless is still hot in the kitchen, but a matching set in a color other than white also will go the distance. You’ll enjoy using them and they save money on electricity, as they are more efficient. Kitchen cabinets are the biggest expense in a home’s interior. If you can’t afford them, look into upgrading the doors and/or hardware. Be careful with painting cabinets; it looks too DIY (do-it-yourself). Baths are next with new vanities and sinks a big asset. Just updating the faucets or light fixtures throughout your house will help.

4)       Remodeling. Traditionally, kitchen and bath updates bring the most value to a home, but don’t expect a dollar-for-dollar repayment. Updating is considered regular maintenance to retain value. Want to make big changes that appeal to today’s homebuyers? Last year, the National Association of Realtors surveyed buyers who purchased homes in 2006 and reported what features gained in importance since the last survey in 2004. Tops was garages with two or more spaces. Next was air-conditioning (this was a national survey; air-conditioning is a given in FL). A walk-in closet in the master bedroom saw the next biggest gain. Hardwood floors and granite countertops were next in gains on a homebuyers “features preferences” list. The news release on the survey is at the end of today’s blog.

5)       Hurricane-preparedness. Updating the garage door, especially if it faces south, hurricane shutters and roof stabilization are some quick improvements that become assets when selling, and there are grant funds available and some tax rebates for the upgrades.

6)       Paint and flooring. Stars on the ceiling were a nice touch for your little girl, but a homebuyer who wants to use it for visiting relatives might not appreciate it as much. Get rid of that wallpaper and those borders. DIY paint decorating is not the way to prepare your house to sell. Hire a professional. Neutral colors are still the best to sell the home because, if the buyer wants a change, it’s easy to make. Red walls are tough to paint over. The standard floor covering today is tile in all the wet places and carpet in the bedrooms. The rest is up to you, but keep it the same; don’t go room to room with different tile or different carpet because it cuts up the house. Again, go neutral. You want the buyer to be able to imagine their stuff in your house.

A great way to evaluate potential improvements in your house is to put yourself in your buyer’s sandals. What basics would you look for in a house? That list is a good place to start. Funny, but improving your house to a standard where you don’t want to sell it will probably get it sold in the fastest manner!

NAR: Buyers want big garages, granite countertops and hardwood floors

WASHINGTON – Aug. 7, 2007 – Homebuyers in increasing numbers want garages with two or more spaces in their homes, according to the 2007 Profile of Buyers’ Home Feature Preferences, released today by the National Association of Realtors® (NAR).

Since the last survey in 2004, oversize garages saw the biggest growth in terms of what recent buyers considered very important in a home, gaining 16 percentage points to 57 percent. Among buyers who purchased homes without this feature, 56 percent of them said they would have paid more for an oversize garage, compared to only 6 percent in the 2004 survey.

Other priorities for today’s homebuyers include air conditioning, with three out of every four respondents ranking this as “very important,” and a walk-in closet in the master bedroom, which was very important to 53 percent of respondents. Hardwood floors and granite countertops each gained 7 percentage points from the 2004 survey, with 28 percent and 23 percent, respectively, of buyers viewing these features as “very important.” Gaining 6 percentage points was cable/satellite TV-ready, at 46 percent.

The survey reports responses from buyers who purchased homes in 2006. Homebuyers were asked about 75 features and room types to assess the importance of each.

“Realtors see hundreds, if not thousands, of houses with their buyer clients every year and know exactly what buyers are looking for in a home,” says NAR President Pat V. Combs. “This insight is one more way Realtors add value to the real estate transaction and why nearly eight out of 10 recent buyers used a real estate professional when buying their home.”

According to the survey, nearly six out of 10 recent homebuyers took on remodeling or home improvement projects within three months of their purchase. Close to half of homebuyers who remodeled or made improvements updated their kitchen, and nearly half remodeled or improved their bathroom. New homeowners spent a median of $4,350 on home improvement or remodeling projects undertaken within three months of purchase.

More than half of homebuyers believe their home has high investment potential, and another four out of 10 believe it has moderate investment potential. Only 3 percent felt their home’s investment potential was low.

“The fact that a majority of homebuyers quickly remodel key areas of their homes ties into the fact that their home is a good, long-term investment,” says Paul Bishop, NAR manager of real estate research. “Regardless of market conditions in the short term, when purchased for the long term, housing is one of the safest investments consumers can make.”

Energy efficiency was more important to new-home buyers than buyers of existing homes, with 65 percent of new-home buyers saying it was very important compared to 39 percent for buyers of existing homes. Older buyers placed a higher priority on energy efficiency than did younger buyers – 63 percent of buyers 75 and older said it was very important, but only 32 percent of buyers who were 18-24 agreed.

The survey identified some regional preferences in home features. For homebuyers in the South and Midwest, central air conditioning was a priority, with 91 percent and 81 percent, respectively, saying this feature was very important. Sixty-six percent of buyers in the South thought a walk-in closet in the master bedroom was very important, while 61 percent of Midwesterners valued an oversized garage. In the Northeast, the highest percentage of buyers placed a premium on a backyard or play area (53 percent), followed by central air conditioning at 41 percent. Two-thirds of buyers in the West want oversized garages (66 percent), followed by central air conditioning at 59 percent.

Age was the biggest differentiation in what buyers were looking for in a home. Buyers 75 years old and older wanted a single-level home (74 percent) that was less than 10 years old (43 percent) with a walk-in closet in the master bedroom (74 percent). Most buyers between the ages of 25-34 wanted a backyard or play area (60 percent). More than half of buyers over 65 wanted a separate shower enclosure in the master bathroom, compared to only one-fourth of buyers ages 25-34.

For those who purchased a home without it, 65 percent of buyers said they would be willing to pay a median $1,880 extra for central air conditioning. One out of four buyers was willing to pay a median of $4,760 more for waterfront property.

Homes are getting bigger, but have fewer bedrooms. From 2004 to 2006, the size of the typical home purchased increased by about 100 square feet to 1,840 square feet, while the median number of bedrooms dropped from four to three during the same period. The median home age reported in the current survey is 12 years, down from 15 years in 2004.

The report costs $50 for members and $125 for non-members; to order, go to www.realtor.org/research and click on “Latest Research Products” or call 800/874-6500.

© 2007 FLORIDA ASSOCIATION OF REALTORS

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