They’re outbidding other buyers by paying in cash, and some are buying houses before they’ve even been put on the public market.
It’s tough competition for millennials, who already struggle with buying their first home because of high housing prices and a shortage of starter homes.
That spells bad news for millennials — who are already financially behind because of a higher cost of living, student loan debt, and a fallout from the recession — looking to buy their first home. And real-estate investors are only making the problem worse.
In 2018, investors bought roughly 20% of US starter homes (homes priced in the bottom third of the local market) — twice that of 20 years ago, Casselman and Dougherty wrote, citing real-estate data provider CoreLogic. In the most popular markets, they bought nearly 50% of the most affordable homes and 25% of all single-family homes.
Some investors flip the houses, others rent the houses out, and some resell the houses when they appreciate, which could take weeks or years, they reported. A growing number of hard-money lenders are helping their endeavors, and “in some cases, wholesalers make unsolicited offers on properties, then flip them to investors without putting them on the public market,” Casselman and Dougherty wrote.
Millennials face another challenge on the track to homeownership
The investors are tough competition for millennials, who are losing territory in the battleground of starter homes that they already can’t afford.
Millennials buying their first home today will pay 39% more today than they would have nearly 40 years ago, according to Student Loan Hero. A report by SmartAsset found that in some cities, the median home outweighed the median income by so much that it could take nearly a decade to save for a 20% down payment.
And some of those who have saved enough to buy are forced to wait — and up their budgets — as they continuously lose out on potential homes to the cash-paying investors.
Fatou Ceesay, age 38, told Casselman and Dougherty she’s spent two years losing bids to cash buyers. Some sellers are requiring cash, while some listings quickly disappear only to pop up again several weeks later at a higher price, she said. She’s since increased her budget from $300,000 to $350,000.
Millennials’ inability to get their hands on their first home in the face of tough economic conditions and a cutthroat market is creating new trends.
These Are the Hottest Paint Colors Right Now, According to Google
Summer painting projects have never looked better. By Lauren Phillips Updated: June 04, 2019
GETTY IMAGES
Picking paint colors is a little like picking a car, or a new couch: Everyone will have his or her own opinion, and no matter what you finally pick, another type or model will be popular within a matter of months. Fortunately, perusing paint brands and comparing blue paint colors for the living room is a little more low-stakes (and affordable) than buying a car or another big-ticket item. If you hate the color, you can always repaint, and often with minimal fuss.
Beyond avoiding lead paint at all costs, figuring out what is chalk paint, and making sure neutral paint colors aren’t too blah, picking paint colors is relatively straight-forward, though it does take a good bit of research. You can always go to your local paint or hardware store to ask for a little guidance, or you can take the easiest route (a.k.a. the one that doesn’t require leaving the house) and turn to Google,like many, many other people do.
People with all sorts of design and decorating experience (or inexperience) turn to Google for inspiration, ideas, shopping info, and more, so it’s no surprise that the world’s biggest search engine also has a slew of info on what types of décor and home trends people are gravitating toward.
Google’s list of the Hottest Home Trends of the Summer breaks down everything from types of furniture to architecture trends to predict what’s going to be everywhere in the coming months. The trend report uses year-over-year Google Images and Google Search data to see what has exploded in popularity since the beginning of last summer. These paint colors may not be the most popular right now, but they’re the colors that people are flocking to as the weather heats up. Anyone searching for some wall colors that are popular but not so popular that everyone has them may just fall for one of these trending paint colors.
It’s no surprise that Behr’s Paint Color of the Year for 2019 made the list. This cool blue paint color works as a statement color, an accent, or a full wall—the possibilities are endless.
There doesn’t seem to be an exact match for Liquid Kitty on the internet, but this gray-green shade from Benjamin Moore seems like a great choice for trim, doors, kitchen cabinets, and more.
Benjamin Moore’s Color of the Year is, ultimately, a stylish greige—one with endless possibilities for making any space feel a little more sophisticated.
This Sherwin-Williams paint color is just a splash of color away from pure white: Just enough to be interesting, but not so much that matching it to furnishings, window treatments, and more will be difficult.
Reminiscent of sandstone and khaki, this Benjamin Moore paint color might be a little more challenging to use well than more neutral shades, but the payoff is a room unlike anyone else’s.
There are quite a few varieties of almond-colored paint out there, so anyone seeking a not-white (but still neutral) paint color will be sure to find the perfect shade.
Light, airy, and a little galactic, this crisp gray paint color is super versatile—try it in kitchens and bathrooms for an elegant look, or on trim and interior doors for an unexpected one.
Capturing that subtle glint of rose gold may be a little tricky with a paint color, but this Joanna Gaines paint color comes pretty close. The cheery, grown-up pink may be enough to prove that pink does belong in every room of the house.
A little sweet, a little salty, and just right for a room that gets plenty of natural light, this paint color is another neutral that anyone can bring home with relative ease.
Denver’s real estate market continues to cool—relatively speaking—with the average days a residential listing spends on the market up 26 percent over the last month, and now at an average of 24 days across Denver’s 11 metro-area counties, according to the latest report from the Denver Metro Association of Realtors. That means the real estate market is still highly competitive overall and favors sellers, but thanks to a growing supply of listings, buyers have more choices than they did last month or this time last year (and thus, are taking their time to buy).
But real estate agents caution buyers and sellers from reading too much into the latest report’s findings. Depending on where in the Denver metro area you want to buy or sell, the “micro market” could be a world unto itself.
In Denver’s urban core, like Washington Park, for example, supply is low and demand is high—and so are prices. Listings move quickly and get top dollar. Suburban homes, meanwhile, are not moving as quickly—especially if their floor plans are dated or they haven’t been remodeled in the last 15 or so years . Listings are also moving more slowly in areas with less walkability (like golf course communities) or where the supply is mainly two-story homes that are 15 or more years old. “Certain neighborhoods are so hot, and other neighborhoods may not be,” Schafer says. “We really feel completely different markets [across the metro area].”
Highlands Ranch, Schafer says, is an example of a less competitive market in the Denver metro area, because the homes are generally older and larger than modern Colorado buyers prefer.
“A lot of the stock has a formal living room, formal dining rooms, and those just aren’t the way people are living today,” Schafer says. “A lot of people are opting for smaller footprints but more open and much higher-end finishes.” They also like floor plans that prioritize livability, Schafer says, features like walk-in master closets and mudrooms help move properties faster—nice, but practically useless, sitting rooms at the front of the house do not.
Buyers are also not willing (or able) to invest in fixer-uppers. With the median single-family home price now at $555,000, up 3.35 percent from last year, buyers want a livable space that doesn’t need any more work. “People are paying a lot to get into these homes. They don’t often have a lot left over to do updates,” Schafer says.
To snag the best deal or sell at the best price, Schafer recommends finding an agent who knows your particular neighborhood well. After all, it could be a world apart from a few blocks over.
Buyers, take a breath. A small one. And make it quick, because you still can’t afford to take your sweet time deliberating over whether to stretch your budget to get that extra bathroom—even as the market will likely affect a slightly more leisurely vibe in 2019. Littleton-based Development Research Partners is forecasting a six-year low for existing home sales closed over the entire year (see graph). Multiple bids will continue to be the norm; however, come July and August, Heather Heuer, senior vice president of sales operations for Liv Sotheby’s, expects higher inventory to allow buyers a little more time for deliberation. That could be enough to temporarily slow the feeding frenzy around new listings. Recent buyers and would-be sellers can still enjoy nice, deep, self-assured inhales, though, because our economy is now diversified enough (thanks tech, health care, and marijuana booms) to maintain its robustness. Says Heuer: “The bottom dropping out isn’t going to happen.”
Prediction 2
Interest rates will remain stable in the near term.
The average interest rate for a 30-year fixed mortgage at press time (early April): ~4%. That’s almost a half percent down from where rates were in early 2019, which may sound like good news for home shoppers—but the tantalizing rates could encourage more buyers to jump into the market, increasing competition. Regardless, experts expect rates to stay in the low fours this year.
Prediction 3
Millennials and baby boomers will flood the market, in some cases competing for the same properties.
Intergenerational competition.
At about a quarter of our population, millennials are the largest generation in the Centennial State, on track to account for 45 percent of mortgages in 2019, according to realtor.com. Plus, the largest cohort of millennials is approaching 30, an age at which that demographic, broadly speaking, is transitioning to a more stable lifestyle—and, perhaps, finally able to scrape together a down payment. “They don’t necessarily need the square footage,” says Libby Levinson, a broker associate at Kentwood Real Estate. “They want the lifestyle; they want to be living their best lives on Instagram and have access to things that let them do that.”
Then there’s the baby boomers—many in or nearing retirement—who make up 22 percent of Colorado’s population. They’re often still active and healthy but, if they can afford it, are looking to trade five-bedroom homes outside the city for smaller floor plans in walkable neighborhoods. “Boomers don’t want to have to maintain empty space,” says Liv Sotheby’s Heather Heuer.
What all that means is a two-bedroom bungalow in Highland or a condo in Cherry Creek may pull in offers from both demographics. Who will win out? Who knows? But this (highly generalized) breakdown of where their dream homes intersect and diverge could help buyers in both categories target properties that are less attractive to the other generation—aka the competition.
Prediction 4
The slot home slap-down will continue to change how developers look at infilling burgeoning areas.
Photo credit: Helen H. Richardson/the Denver Post via Getty Images
It’s difficult to create a neighborly, wave-from-the-front-porch feel in a community when homes don’t have front porches—or even true front doors. That was the concern of residents in neighborhoods like Jefferson Park and Highland, where “slot home” designs (those boxy multifamily housing units perpendicular to the street, sometimes facing each other with a space between) have recently proliferated. Denver’s City Council responded to the vocal opposition by unanimously passing an amendment a year ago that essentially banned the design in certain zoning districts, to great fanfare from local city planners and architecture buffs. The news wasn’t as happily received by developers, though: Lots that could’ve held more dwellings via slot home designs will see a 30 percent reduction in unit density, according to Ben Gearhart, co-owner of Modus Real Estate, which develops and sells property primarily in northwest Denver. To manage costs and keep prices attainable for buyers who find modern rowhome-style living in dense, walkable areas attractive—including millennials who are priced out of the stand-alone bungalows and Denver Squares in popular urban areas—some developers are becoming more creative with designs and floor plans. Others have redirected operations to areas where they can still build slot homes. Says Gearhart: “There was a lag time [in new units] while we worked out the kinks.”
Prediction 5
Prospective new-build buyers will need to look closely for quality issues.
There’s something exciting about a never-been-lived-in home: the shiny appliances, the unmarked walls, the scuff-free floors. This is especially true considering the painful asking prices for some of central Denver’s older homes, many of which straddle the line between “historic charm” and “gut it to the studs.” But don’t let the clean lines and airy floor plans of those three-story, new-build townhomes in Jefferson Park or Five Points lure you in without doing your due diligence on the craftsmanship.
I’m not saying don’t buy new construction,” says Kentwood Real Estate’s Libby Levinson. “I’m just saying keep your eyes peeled. Many builders offer a one-year bumper-to-bumper warranty, but I suggest addressing as many issues prior to closing as possible.” In particular, pay attention to the following seemingly minor details—some of which can be surface-level red flags for deeper shortcomings in the construction process—before signing on the dotted line:
Check the trim on doors and baseboards. Nail holes or open seams may mean the builders skipped solid wood in favor of another product or rushed the finishing stage.
Look for cracked and uneven grout lines or split caulking in tiled areas, like between the kitchen counter and the backsplash. These issues could signal movement in the house.
If you see dings or marks on the cabinets or notice a door that catches when it opens, ask that it be fixed before move-in. It can be a hassle to repair a single cabinet after you close.
Prediction 6
Savvy buyers will take chances on Denver’s next-big-thing neighborhoods—and cash in, if they choose correctly.
Forget Wash Park and Highland. And honestly, Sloan’s Lake, Baker, and Berkeley aren’t really up-and-coming anymore either. (Pssst: They’ve already arrived.) That doesn’t mean, however, that the next “it” Denver ’hood isn’t out there. We polled nearly a dozen real estate experts to find out where they’d consider taking calculated risks—and why.
Photo courtesy of Will Strathman.
Neighborhood: West Colfax Current vibe: Centered on its namesake artery, West Colfax is bustling but dated in a rundown-motel kind of way, with pockets of artistic revitalization. Transformative factors:
Community investment in projects like a redesign of the dangerous interchange at West Colfax Avenue and Federal Boulevard
Spillover development from the amenity boom in adjacent Sloan’s Lake (Alamo Drafthouse Cinema and Tap & Burger Sloan’s Lake, for example)
Look for: Recently constructed townhomes starting in the $400,000s Caveat: Thanks to an amendment that restricted slot home designs (see Prediction 4), inventory may dip while developers literally go back to their drawing boards.
Neighborhood: Sun Valley Current vibe: Industrial lots coexist with mainly public housing, and the area is isolated from most city amenities by waterways and poorly planned thoroughfares. Transformative factors:
A $376 million public housing redevelopment plan that will raze 333 subsidized housing units and replace them with 750 new mixed-income units, including moderate-income and market-rate homes, by the end of 2024
A master plan to overhaul the parking lots surrounding Broncos Stadium at Mile High into a walkable urban entertainment district
The ambitious, estimated 20-year RiverMile project that would create a bustling waterfront enclave along the South Platte River
Look for: New-build multifamily residences (prices are TBD as Sun Valley is an untested market for new construction) Caveat: Construction chaos will play out in this historically low-income neighborhood for years, as will passionate debates about the ramifications of resident displacement.
Neighborhood: Elyria-Swansea Current vibe: Factories, rail yards, and the interstate serve as less than desirable backdrops for single-family homes. Transformative factors:
The $1 billion National Western Stock Show Complex overhaul, projected to draw more than two million visitors annually after construction is completed in 2024
The $1.2 billion Central 70 Project (reconstruction and expansion of I-70 between Brighton Boulevard and Chambers Road over the next three to four years, including a four-acre park that will be built over the newly lowered stretch of interstate)
Look for: Condos and townhomes in the $400,000 to $450,000 range, with improved roads and a cleaned-up South Platte River zone Caveat: On top of gentrification concerns, the widespread construction isn’t helping chronic pollution issues in the area.
Photo credit: Judy Sedbrook.
Neighborhood: Athmar Park Current vibe: Older homes that have retained their character but may need face-lifts populate this undiscovered, modest area, the gem of which is Huston Lake Park. Transformative factors:
Developers pulling permits for projects on West Alameda Avenue, west of South Santa Fe Drive
Two recent grants from Kaiser Permanente that helped the area’s already strong neighborhood association form an Active Living Coalition to address transportation and mobility issues in the neighborhood, including bike and pedestrian access, streetscaping, and traffic safety
Look for: English Tudors and ranches that, in the high $300,000s to mid-$400,000s, are still within reach of some first-time buyers Caveat: These are likely dated homes that need work. The money you spend on remodeling should ultimately be a win—but you have to invest without proof the area will turn around.
Prediction 7
Buyers will work the calendar to their advantage in 2019.
Fueled by low inventory levels between 2013 and 2018, the Mile High City became one of the nation’s hottest seller’s markets. That won’t change dramatically this year. But it might be “a less good seller’s market, for lack of a better way to put it,” says Megan Aller, an account executive at First American Title Insurance Company. Buyers should capitalize on more favorable timing by using our adaptation of Aller’s 2019 strategy sheet of projections for detached single-family homes—essentially a horoscope for real estate in the Denver metro area.
Sources: Megan Aller, real estate agent licensed by SkyLightPark LLC. Data from REcolorado. Projections based on values from 2013 to 2018 for Adams, Arapahoe, Broomfield, Denver, Douglas, Elbert, and Jefferson counties.
Active Listings Buyers beware: When fewer homes are for sale, competition increases, which drives prices up.
Homes Sold More successful closings (these homes likely went under contract 30 days prior) is a sign of higher buyer activity, thus more competition, which is an advantage for sellers.
Percent of Asking Price Received by Seller Numbers over 100 percent in this row mean multiple offers are likely, due to fewer listings and more buyer activity. In April, May, and June, homes have closed, on average, above asking price for the past seven years—i.e., be prepared for bidding wars.
Change in Average Sale Price from Previous Month Rising demand and short supply nudge prices up in late winter and early spring, but come midsummer, house-hunting fatigue sets in. Inventory goes up, giving buyers more negotiating power and (gasp!) perhaps even forcing price cuts.
Average Days on Market Homes listed in March, April, and May (with probable closings, then, around April, May, and June) are likely to sell faster than those at any other time of year—meaning the market was good for sellers who got their homes ready in time for the beginning of real estate season.
Months of Inventory A six-month supply of housing is where the stars align for a balanced market, in which neither party has a distinct advantage. Metro Denver’s consistently low inventory still favors the seller, but looking ahead in 2019, August, September, and October look to be the most auspicious months for buyers.
Photo by Ann Elliott Cutting.
Prediction 8
Granny flats—also called mother-in-law suites or accessory apartments—will become more popular, as long as local municipalities ease up on regulations.
Less than four months ago, Denver City Council approved zoning changes in Elyria-Swansea that gave a few residents the go-ahead to build accessory dwelling units (ADUs) on the same properties as larger homes. The special dispensation was OK’d in an attempt to restore housing density to an area blighted by the I-70 expansion. But for many, the idea has merit as more than just a concession for razed homes. A studio over the garage, for example, could allow more members of a family to live on the same plot of land, potentially defraying mortgage costs. Or a small cottage or carriage house in the backyard could generate rental income.
Despite what seem to be the many upsides of ADUs, they are verboten in much of the city, partially because residents fear they could encourage overcrowding. Only after the zoning code was replaced in 2010 were they allowed in certain neighborhoods that advocated for them, like Curtis Park; since then, more than 200 ADUs have been built citywide. However, that all may change with the next iteration of Blueprint Denver, the city’s 20-year land use and transportation plan. (At press time, it was headed to a City Council public hearing and vote on April 22.) The new plan recommends allowing ADUs in all residential neighborhoods and eases previously restrictive construction regulations. “There is a huge demand,” says Kassidy Benson, managing broker and owner of Living Room Real Estate in Denver. “A lot of people I’m talking with are getting ready to have kids, and they want this type of housing literally for a mother-in-law, or for a nanny; or they have kids graduating from college who don’t want to live with them but need to.”
Even if the red tape is cleared away, ADUs face another hurdle: expense. According to Benson, the projects rarely cost less than $200,000—a prohibitive upfront figure for many families who might be dreaming of adding a rental unit for extra cash. Still, she likes to imagine the potential positive impacts to the city’s neighborhoods: “As ADUs start to come in, alleys will become more like streets,” Benson says. “They’ll become activated, versus the way it is now, with trash cans and cars coming in and out of garages.” Inspired by her utopian vision? Living Room’s website maintains a searchable database of current ADU-zoned properties for sale in Denver—and that could mean good news for Granny.
Prediction 9
First-time home shoppers will learn to love Denver’s increasingly urban suburbs.
Courtesy of Olde Town Arvada Business Improvement District.
On a recent sunny Saturday afternoon, my husband and I walked a little more than a mile from our 2,300-square-foot, recently renovated four-bedroom house—which we purchased in July 2017 for $405,000—to Denver Beer Co. The brewery was buzzing but not overcrowded; we easily found seats on the patio at which to sip our Incredible Pedal IPAs in the light of the fading sun and, later, under the glow of the twinkly cafe strands strung above us. To anyone who’s shopped for houses within strolling distance of Denver Beer Co.’s LoHi taproom, this probably sounds like a dream sequence. But as thirtysomething first-time homebuyers, it’s our reality—in Arvada, that is, where the popular beer-maker has a second location.
The decision to leave the Mile High City wasn’t easy. Three years in a 500-square-foot Baker rowhouse, however, had us craving more space—for our 60-pound husky, for dinner party guests, and for the family we hoped to grow. When we started comparing costs (today, prices in the downtown Arvada area average $381,000, versus $585,000 in Highland), our attachment to a Denver zip code quickly waned. Plus, Arvada feels decidedly urban in many ways. The northwest suburb’s Olde Town area boasts three breweries; a winery; more than a dozen nonchain restaurants and cafes; shops that range from a fly-fishing store to a hipster haven called Vouna complete with beard oils, air plants, and a live-in rabbit named Emma; a seasonal Sunday morning farmers’ market; and a stop on the G Line (set to open on April 26, as of press time) to Union Station.
Of course, Arvada isn’t the only neighboring city urbanizing business districts to entice residents. Englewood, for example, hired its first chief redevelopment officer in 2018 to shepherd the rebirth of key areas like the South Broadway corridor and CityCenter, a 55-acre, transit-oriented development site at South Santa Fe Drive and Hampden Avenue. With Denver claiming the title of the 13th most expensive housing market among metropolitan areas in the country and wages generally failing to keep pace, more would-be homeowners will inevitably expand their search parameters to include the ’burbs. My message to them? Come on in. The water—and the beer—is better than fine. —Jessica LaRusso
Prediction 10
Artificial intelligence will replace both the MLS and human real estate agents.
We kid, we kid…kind of. REX, a Los Angeles–based real estate tech startup that expanded to Denver in 2018, has already taken the first step by offering clients a flat two percent fee (versus the typical five or six percent) to list their properties. Then, REX’s software pushes the listing out to likely homebuyers via digital channels like Zillow and Facebook. “REX looks at consumer search patterns, purchasing habits, life-event patterns like having a child, and census data and triangulates that info with the house that’s for sale,” says Jonathan Friedland, REX’s head of policy and communications. Until the machines fully take over, what are the benefits and drawbacks of using REX?
Pros
Since REX doesn’t list on MLS, sellers don’t pay a buyer’s agent commission. So on, say, a $750,000 home, the model could save you $30K.
Instead of waiting for the perfect buyer, REX proactively markets your listing to people its algorithms have identified as strong candidates.
REX claims it streamlines what can be a complex transactional process, eliminating paperwork and lengthy contracts.
Cons
Serious buyers are still attached to the MLS, where most homes are listed.
Because the model is built on the assumption that the buyer is not using an agent either, shoppers who insist on working with their own agents but end up purchasing homes listed on REX may need to cover their agents’ fees.
Algorithms and bots still can’t grasp those critical yet intangible factors, like emotional attachment to certain areas or the nuances of taste.
Prediction 11
Developers will continue to favor apartment construction over building condominiums.
Photo credit: Tetra Images/Alamy Stock Photo.
The cranes dotting Denver’s skyline make it clear that multi-unit, mixed-use construction is afoot. But will those eventual dwellings be for lease or purchase? Metro-area renters may well be hoping for more entry-level condos where they could maintain their urban lifestyles and build equity for the same or even less monthly output. We asked Steve Ferris—a city planner who founded the Denver-based Real Estate Garage to help developers and landowners usher such complex projects through approval, zoning, and government negotiation processes—to explain why condo proliferation isn’t likely to happen.
5280: Labor and land shortages are issues for both types of buildings—so what’s driving the continued apartment boom? Steve Ferris: People are dissatisfied with their real estate options, and they’re more transient with their lifestyles. Plus, an apartment isn’t a bad return for a private equity firm; it’s one of the safest investments anyone can make, so the capital is there.
Aren’t there more hoops to jump through when you’re building condos, too? Yes. Apartments are easier to get done. Apartment developers can put land under contract in 120 days. Condo developers have to ask the owner to hold the land while they work on getting enough presales to get financing.
Does that mean there’s an oversupply of apartments? There will be an oversupply, but supply and demand will even out in two to three years, assuming economic conditions stay positive and jobs keep showing up.
Could current apartment buildings ever be converted to condos? Possibly, but apartments are built differently. For example, most aren’t individually metered for heating and cooling, and the sound-protection barriers between units typically aren’t built [to the standard of] condos.
When coming up with money for a down payment, getting enough together can be easier said than done. But with MegaStar’s exclusive Fund My Friend program, the process just get a whole lot better!
The Fund My Friend program works by way of crowd sourcing. It opens up your ability to receive funds from anyone in your social circle, such as family, friends, the local community…
This way, Your lender can help to make sure all the funds received this way are qualified for use in a down payment!
The catch with other forms of crowd sourcing is that your lender must know where the funds came from. Without the proper documentation of each donation, you wouldn’t be able to use it because it doesn’t meet all of the guidelines.
So even though you’d have the money, it would be useless for what you need to accomplish.
When it comes to this program, your lender can know where each donation comes from and make sure all required documentation is covered!
Plus, we won’t charge you a fee for processing, holding, or sending the money. With an allowance of up to $500 per gift, you get 100% of the donated funds!
In a ranking of home remodeling costs, kitchen remodels tend to come in at the top. These home updates—which often include large appliances, large-scale flooring revamps, new countertops, and more—rack up high costs in almost all cases. A good rule for estimating a kitchen remodel cost is to pick a budget based off the value of the home—but even a small kitchen remodel can cost thousands of dollars.
To demystify kitchen remodel costs, home improvement site Houzz asked 146,000 homeowners in the U.S. about their kitchen updates. The results, published in the 2018 Houzz & Home Study, make it very clear that anyone looking to incorporate some fresh kitchen island ideas or trendy kitchen backsplash ideas in their home can expect to put a large chunk of cash toward their kitchen remodel.
According to Houzz, the median spend on kitchen remodels in 2017 was $11,000; half of remodeling projects cost less than that, and half cost more. This median spend was up year-over-year, too, demonstrating that people are willing to spend more and more on their kitchen remodels.
For major kitchen remodels, the cost was even higher, likely because many kitchen remodels include refinishing kitchen cabinets, versus replacing them, or changing out kitchen color schemes for a fresh look, rather than taking on a costlier, more intensive update. A major remodel, according to Houzz’s categorization, entails replacing all cabinets and appliances, at minimum. Major kitchen remodel costs were around $20,000 for smaller kitchens (less than 200 square feet) and $33,000 for larger kitchens (200 square feet or larger).
Even a full-scale renovation in a small kitchen can’t get away from a cost in the thousands. Certain decisions, like choosing to drop the fantasy of new cabinets in favor of refinishing kitchen cabinets, can save huge amounts of money, and mid-range home remodeling projects can offer more return on investment, anyway.
These kitchen remodel costs shouldn’t dissuade anyone from creating their dream farmhouse kitchen or saving up for that kitchen remodel. Kitchens may not always offer the return on investment one would hope for (research from home search site Zillow says kitchens typically offer home sellers about 50 cents for every dollar spent on the remodel in added home value), but an updated kitchen can be key to selling a home quickly when the time comes. Regardless, the increased satisfaction a kitchen update can bring is hard to beat.
Whether a town’s market is hot or not, certain homes seem to effortlessly attract packed open houses and multiple bids. What’s the secret behind these brisk and brilliant sales? From pricing to staging, here are a dozen proven strategies for winning at the real estate game.
When a home sells quickly, a top-notch real estate agent might just be the hidden ingredient. Savvy sellers shop around for an agent who knows the local market inside and out and understands exactly how to position the house for potential buyers.
Price It Right
2/12
Every homeowner thinks his or her humble abode is worth a whopping price, but it’s not always the best tactic to charge top dollar. To prevent your home from sitting on the market too long, hit the perfect price point by carefully studying the local comparables and following the advice of that well-chosen real estate agent.
First Impressions Count
3/12
Drive-by browsers often turn into open-house attendees. That’s why smart homeowners focus on maximizing their home’s curb appeal. It pays to freshen up landscaping with mulch and annuals, trim overgrown shrubs, repaint the front door, and install attractive new entry lighting.
Update Kitchens and Bathrooms (Cautiously)
4/12
A tired kitchen or bath will scare away scads of prospective buyers. The best strategy is to make judicious upgrades: Consider painting cabinets, swapping out faucet hardware, or replacing the oldest of the appliances.
Deep Clean
5/12
Homes that move quickly tend to be clean and tidy. Though it’s a ton of work, clued-in sellers invest the time and elbow grease needed to scrub the house from top to bottom. And because they know that home buyers love to poke their noses into every nook and cranny, smart sellers don’t neglect closets and basements.
Fix Potential Inspection Snafus
6/12
While it doesn’t make sense to invest in huge renovations before a sale, it’s wise to address any major problems that might crop up during inspections—roof leaks, sticking windows, outdated wiring—as they can torpedo a deal at the last minute.
Send Pets on Vacation
7/12
Resident dogs or cats aren’t a selling point—even if open-house attendees happen to be animal lovers. Pet owners who are serious about nailing a sale bundle their furry pals off to a friend or relative’s place or their favorite pet-boarding locale, then hide away toys and bowls and thoroughly air out the premises.
Hire Professionals
8/12
The most successful sellers understand that certain up-front expenses can really pay off, so they hire floor refinishers, painters, and landscapers to make their place shine. After that’s all done, they hire pro real estate photographers to show off their spiffed-up home in the best light possible.
Have Great Timing
9/12
Spring is the optimal time to enter the real estate market, and that’s when the savviest homeowners take the leap. By putting a place up for sale from March through May, you’ll attract more potential buyers, your home’s curb appeal will be at its peak, and you’ll have more to choose from when it’s time to find your next address.
Refresh Your Home
10/12
In a crowded market, canny sellers know that a few spruce-ups can turn a ho-hum house into a standout. Newly painted walls in warm neutral shades, stylish furnishings brightened with brand-new textiles (remember, you can take them with you when you go!), and decluttered shelves, cabinets, and closets will help a home sell quickly.
Talk It Up Everywhere
11/12
A real estate agent will usually take care of the major marketing outlets, including online listings on Zillow and Trulia as well as in local newspapers. Still, word of mouth can be an extremely effective tool, so shrewd homeowners also post about their place on Facebook and spread the news everywhere they can, from the dentist’s office to the local playground.
Always Be Ready to Show It Off
12/12
It’s hard to think of crowds of strangers trooping through your private space, but astute sellers understand that the more shoppers they get, the greater their chances of snagging a buyer. To make sure that their home can be shown at a moment’s notice, wise sellers set up a key box (or have their agent do it) and they keep the place neat as a pin—all the way down to fresh flowers on the dining table and fluffed-up pillows on the bed.
Your home isn’t just a house—it’s where you unwind, work, play, and spend time with those you love. So, every remodel or renovation you tackle should take into account how you live in and use your space. There is, however, another side to home renovation—and …
Backyard Deck: In warm weather, backyard decks function as open-air rooms—and that additional square footage makes it an attractive feature for buyers. Wood decks cost less to install, but if you opt for composite materials like Trex, EverGrain, or TimberTech, you’ll save time on maintenance—and be able to add a bit more to the asking price come sale time.
Finished Attic: A common rule of architecture is that if you can’t build out, build up. Homeowners can capitalize on this principle by adding an attic bedroom, growing skyward to make the most of their living space. Just be sure to add insulation to keep the room cozy in all weather and install proper flooring material to deaden the sound between floors. Related: Under the Eaves—10 Arresting Attic Rooms
Kitchen Remodel: Ask a realtor—beautiful kitchens sell homes. Because modern, functional kitchens are a top priority for home buyers, make sure your remodel focuses on sure-to-please components like strategic storage, new cabinetry, state-of-the-art appliances, and durable, easy-to-clean countertops. If you can’t afford to go all out, even a minor kitchen renovation will help boost your home value. Related: 7 Ways to Skimp on a Kitchen Remodel
Bathroom Addition: Having too few bathrooms in a house spells trouble for even the closest, most companionable families. Maybe that’s why home buyers look more favorably on listings that have a roughly equal number of bedrooms and bathrooms. So, if you can swing it, plan for a full bathroom or half-bath addition. If there’s no space to add a bathroom, renovating an existing bath is a close runner-up in terms of adding home value. Related: 7 Ways to Skimp on a Bathroom Renovation
Basement Overhaul: When considering possible renovations, don’t forget what’s right underfoot: your basement. A basement has virtually unlimited potential—you can transform a musty, unfinished space into a home theater, workout space, or rec room, complete with pool table and wet bar. Whatever you decide, a finished basement will command a higher asking price when it’s time to put your house on the market. Related: Life Underground—10 Beautiful Basement Makeovers
Home Office Space: A home office may not be a necessity for every home buyer, but this small amenity can boost your home value—even if you simply end up remodeling a closet to squeeze an office into your house. When planning your home office, pay attention to lighting, storage space—and security. Related: 10 Space-Smart Ways to Squeeze In a Home Office
Vinyl Siding Replacement: What homeowner doesn’t want easy maintenance? For that, you can’t beat vinyl siding, which offers significant benefits in cost, value, protection, and durability. Today’s vinyl siding is available in myriad designs, textures, and colors. You can even find vinyl siding that simulates the appearance of wood or shake siding—so you get the look without the upkeep.
See the House of the WeekDiscover and admire beautiful and innovative home architecture, from grand Victorians to quaint cabins and all the styles in between. Take a look at the latest images and inspiration!
First-time home buyers, beware! By Caylin Harris Updated March 07, 2019
The more experience you have with buying real estate, the more you’ll learn about the complicated process. Between the confusing terminology and the logistics of buying a house, it’s all-too-easy to make the wrong move or wind up in an unwise investment. If you’re a first-time home buyer, skip the buyer’s remorse by learning about some of the most common pitfalls and how to avoid them. To find out what not to do, we reached out to Tracie Rigione and Vicki Ihlefeld, Vice Presidents of Sales at Al Filippone Associates/William Raveis Real Estate in Fairfield, Connecticut, to get their best advice.
1 Not Getting Pre-Approved Before You Shop
The last thing you want to do is fall in love with a house you can’t afford!To prevent that, one of the first things you should do is get pre-approved for a mortgage. “You need to know what you can afford and what the monthly payments look like,” says Ihlefeld. “A good mortgage broker will figure this out for you. And while a bank will usually pre-approve you for a higher amount, you don’t want to overextend yourself. Be realistic about what you can actually afford.” When you go to make an offer on a house, you’ll also be a stronger buyer because you’re pre-approved.
Miguel Navarro/Getty Images
2 Not Seeking Advice From an Experienced Professional
Even though there is so much information available online, you should still seek the advice of an experienced professional early on in the home-buying process. “Realtors educate people about the process, who they need to consult, if they need an attorney, when they’ll have to have their down payment ready. And we can give valuable insights into the neighborhoods you’re looking at,” says Rigione. An added bonus: sometimes real estate agents have access to a property before it even goes on the market.
Finding a real estate agent to work with is important, but take your time finding someone who’s a good match for your personality and preferences. As Rigione points out: “You’re going to be spending a lot of time together throughout the process!”
3 Not Making an Informed Offer
A common home-buying mistake is letting your emotions dictate the offer. Instead, only make an offer if you’re really serious about buying a property and make sure it’s based on comparable sales, rather than just how much you like the house. “Ultimately the price should reflect the market value of the home. The ideal negotiation is when the buyer and seller both feel like they’ve won,” says Rigione. “The negotiations between your opening offer and your ideal number is where working with a real estate pro really comes in handy.”
4 Not Being Able to See the House Past Its Appearances
This is potentially a two-pronged issue and both can be problematic. This first scenario is finding a house that is updated with beautiful finishes, fixtures, and is decorated beautifully. “We call it eye candy,” explains Ihlefeld. “People get so busy looking at superficial details and forget about things that they can’t change about the house like the location, the yard, or that it’s on a busy road.”
It can also go the opposite way: Shoppers may overlook a home that needs some paint and cosmetic updates, but that has great bones and a good location. When shopping for a house, keep in mind both cosmetic details that can be altered, as well as those that are expensive or impossible to fix.
5 Making Buying a House an Emotional Rather Than a Business Decision
You never want to fall so in love with a house that you’re emotionally invested in the purchase. “If you love it so much that you feel like you’ll do anything to get a property, you can end up overpaying for the home,” warns Rigione. “That can lead to buyer’s remorse and feeling like you didn’t get the best deal. The buying process is emotional enough, and that’s why you want someone on your side that can keep your emotions in check through the close. We’ve seen deals fall apart from something as small as a missing light fixture!” Stay levelheaded and remember that this is a serious commitment that you’ll have to live with for years to come.
6 Only Looking at Mortgage Rates From One Lender
Make sure you’re doing your due diligence when it comes to your mortgage. You need to speak to an experienced loan officerwho will look for the best rates and mortgage products.“Talk to your loan officer about your personal needs so they can help steer you towards the best mortgage for you and your family,” says Ihlefeld. You can save a lot of money that way, especially if you’re a first-time home buyer.”
7 Applying for Lines of Credit or Making Large Credit Purchases.
Buying a house is a big enough purchase, so just focus on that.You shouldn’t be shopping for a car, buying furniture, or opening a new credit card. “Your credit score gets dinged when you open a new line of credit. It can impact your pre-approval, mortgage approval, and create a big mess for the underwriter. It can even delay your closing. Once you’ve closed on the house, then make your next buying decision,” says Rigione.
With your home being the single most expensive thing any of us will probably ever purchase, making changes, improvements or renovations to it can be a scary proposal. What if it goes wrong, What if we make the wrong choices, This article will help you wade through the rights and wrongs with some great tips and ideas for your home improvement projects.
If you’re tired of running out of hot water, consider getting a tankless water heater. Tankless heaters give you hot water only as you need it, without having to have a holding tank. By only heating the water you’ll immediately use, you can also save money on energy. They also take up much less room than traditional tank heaters.
When it comes to home improvement, go with your gut feeling about the contractor as long as everything else matches up. Do not even consider someone that you do not fully trust, as you probably have that feeling for a reason. If you have a hint of mistrust toward the contractor that you meet with, it may only lead to anger and mistrust on an exponential level if things do not go according to plan.
When it comes to home improvement, be sure to do your background work and ensure that the contractor is bonded. This is important because a way to assure that the job you intended to be completed will be completed per the stated terms. Also, the bond provider will cover any damage or theft that occurs.
Before you begin your next home improvement project, make sure to secure any permits that you might need. Anything dealing with electricity, plumbing or structural work will require a permit. If you aren’t sure how to get the proper paperwork, it may be helpful to hire a general contractor to assist you.
Consider hiring a professional to do the electrical work for your home improvement project. It may seem easy to change out an outlet from two prongs to three, but if you are unfamiliar with electrical work, the safest thing to do is to have an electrician take care of the rewiring for you.
If you’re one of the many people who are suffering from lack of space in their closets, have no fear. You can easily build simple shelving inside of your closet to create more space for your clothing and accessories. Hang your purses on pegs and put your shoes in small plastic boxes to be able to later stack them on the bottom of your closet. Whatever you’re not using and is out of season, consider moving them to storage or storing them under your bed.
Don’t forget to improve your outdoor living space. The living space of your home can be extended into your backyard. It is the perfect area for barbecuing or simply relaxing after a long day at work.
If you have a lot of cords hanging out of your entertainment stands then you know what a pain and unsightly view cords can be. You can easily clean up your mess by using Velcro tape, which is widely available, at most stores for about $5. Roll up the unused portions of your cord and hold them together with the Velcro tape for a clean and tidy look.
Hopefully the information that you have just read will help you realize that home improvement isn’t as scary as it can seem. There are wrong choices that can be made, but if you stick to these tips, you will have the information you need to make good choices and have a great and valuable home.
