In the
doldrums of the Winter is the time to begin to think of those projects that
will get you the best bang for the buck when you want to sell your home. I
found this article from Consumer Reports this month and thought it was
definitely worth sharing.
1: The
Kitchen Is Still King
Buyers of all kinds have long focused on the kitchen,
but it holds particular sway over the newest wave of first-time homeowners. A
“modern/updated kitchen” topped the list of ideal home features in our survey of
millennials, registering as most important to more than a third of respondents.
If you plan to sell, don’t rip your kitchen down to the studs; a smaller
investment can have serious impact. For as little as $5,000, you should be able
to add a new suite of appliances, as well as a new countertop and flooring,
resulting in a fresh, coordinated look. Applying a fresh coat of paint to the
walls or cabinets, and updating the hardware, can also breathe new life into
the space.
Value-Added Buzzwords
Stainless steel. Though
it has been around for decades, this appliance finish conveys clean,
contemporary design, so it will signal “updated” in the mind of the buyer. For
the latest spin on stainless, look for new versions of black stainless steel
from KitchenAid, LG, and Samsung, each with a softer, less reflective finish
but the same cachet as the original.
Quartz countertops. Engineered
from stone chips, resins, and pigments, quartz has started to challenge granite
and marble as the go-to material in higher-end kitchens. It shrugged off heat,
scratches, cuts, and stains in our tests, and it requires none of the upkeep of
comparably priced natural stones. Expect to spend $40 to $100 per square foot,
installed.
Potential bump in sale price: 3 to 7 percent
2: Make
Floor Plans Work Harder
Bigger isn’t necessarily better in today’s market, but
strategically increasing the amount of living space is sure to boost home
value. An “open floor plan with flexible living space” was second only to an
updated kitchen on millennials’ list of most desired features.
Value-Added Buzzwords
Flex rooms. Also known as double-duty rooms, you’ll see flex rooms
advertised as an additional living area that can serve a variety of purposes,
from a guest bedroom to a game room to an exercise room to a study room for the
kids.
Mother-in-law apartment. These
spaces go by many names, including “granny flats,” “casitas,” and the technical
sounding “accessory dwelling unit,” or ADU. They can house an additional family
member or provide rental income—allowing baby boomers to afford their house
once they retire or helping millennials pay the mortgage. More municipalities,
particularly in Western cities, are amending zoning laws to allow for ADUs.
Upstairs laundry rooms. Younger
buyers in particular say they want a dedicated laundry room, perhaps off the kitchen
or even near second-floor bedrooms.
Potential bump: 4 to 6 percent
3: Don’t
Let Your Home Be an Energy Hog
Lowering your home’s energy costs will save you money for as long as you
live there and is expected to be a major selling point down the line. Indeed,
“energy-efficient” was second only to “safe community” on the list of
attributes that would most influence a purchase decision, according to a 2015
survey by the National Association of Home Builders.
Older homeowners who have felt the sting of escalating
energy costs tend to be driving the interest. But there are some early adopters
among younger buyers, too, especially in regions of the country with more
extreme weather. “My millennial buyers usually ask for two years’ worth of
utility payments,” says Joe Rivellino, a real estate professional in the
Buffalo, N.Y., area. “They want to know the R-Value on the insulation and
whether the windows have low-E coatings,” he says, referring to two important
efficiency measures.
And don’t forget about water
heating, which accounts for 16 percent of energy costs in the typical home.
Spending $1,800 to $2,400 on a new unit is another way to impress
efficiency-minded buyers.
Value-Added Buzzwords
High-efficiency windows. Energy Star certified windows can lower your
home’s energy bills by 7 to 15 percent.
That will be a selling point with buyers, though
replacing every window in a home costs anywhere from $8,000 to $24,000, so you
probably won’t recoup the entire investment if you plan to sell right away.
LED lights. Some listings emphasize their “green” credentials
by mentioning the presence of LED lighting.
Potential bump: 1 to 3 percent
4: Keep It
Simple and Stress-Free
Stain-prone stone countertops,
grime-collecting ornate cabinets, and dust-catching wall-to-wall carpet used
to be symbols of luxury, but today’s homebuyers are more likely to equate them
with extra work. “We call it stress-free living,” says Miguel Berger, a real
estate professional in Albany, N.Y. “The younger generation in particular would
much rather spend their time entertaining at home than fussing over it.” It’s
safe to assume boomers feel the same.
Beyond a home’s cosmetic finishes, it’s important to
keep the major mechanical systems in working order. Many first-time buyers will
have used up much of their savings on the down payment, so they want to know
that the heating system, plumbing, and electricity have been recently updated.
Central air conditioning is also in demand because it eliminates the need to
switch window units in and out.
Value-Added Buzzwords
Updated systems. In addition to including the age of the system, it
helps if you can also point to its reliability. For example, Consumer Reports
surveys have found American Standard and Trane to be among the least
repair-prone manufacturers of gas furnaces.
New roof. This will help assuage fears of water damage, ice dams,
squirrel infestation, and other home disasters that can result from an old,
shoddy roof.
Hardwood floors. More carpets are being
replaced with long-wearing hardwood flooring with a durable factory finish.
Engineered wood flooring, which uses a thin veneer of real wood or bamboo over
structural plywood, tends not to wear as well as the solid stuff, though it has
the same look and tends to cost less, making it a good choice if you plan to
sell soon.
Potential bump: 3 to 5 percent
5: Build a
Home for ‘the Ages’
By 2040, there are expected to be almost 80 million
seniors accounting for 21 percent of the population. The existing housing stock
isn’t equipped to safely accommodate that many older people—too many steep
staircases, narrow walker-unfriendly doorways, and slippery step-in bathtubs
and showers. Forward-thinking homeowners are making necessary improvements to
their home now—and those changes will benefit people of all ages, not just
seniors. According to a 2015 survey by HomeAdvisor, 56 percent of homeowners
who hired a pro for aging-related projects were younger than 65, and 10 percent
were younger than 50.
Value-Added Buzzwords
Walk-in shower. “People in the 50-plus age range don’t want to step over
the tub to take a shower,” Pekel says. Curbless showers eliminate the threshold
between the shower and surrounding bathroom, making them wheelchair accessible,
not to mention sleek and streamlined.
Master on main. A floor plan in which
the master bedroom is on the first floor reduces the need to climb stairs.
“It’s probably the most desired feature among boomers,” says JP Endres, a real
estate professional based in Westchester county, north of New York City.
Comfort-height toilets. These toilets are a few inches taller, which makes
getting on and off easier.
Potential bump: 1 to 2 percent
6: Paint Is
Still a Potent Upgrade
Paint keeps your home looking its best while also defending its surfaces from
wear, tear, and the elements. If you’re getting ready to sell, don’t blow
thousands having every square inch repainted. Instead, focus on high-traffic
areas, including the kitchen and bathrooms. “Your home has to look better on
the day of the open house than it’s ever looked before,” says Steve Clark, a
real estate professional in Los Angeles. “If the back door is covered in
scratch marks from the dog, you have to fix that.”
Value-Added Buzzwords
Neutral color scheme. Whites and off-whites remain the top-selling
interior colors and will appeal to most homebuyers, allowing them to envision
the space as their own. Neutrals appeal to all generations of buyers, according
to Jule Eller, trend and style director at Lowe’s.
High-quality paints.
Potential bump: 1 to 2 percent
7: Remember
the Great Outdoors
Your home’s property is another opportunity to expand
its living space. Adding a deck or patio, with room for seating and a built-in
or freestanding grill, is a way to create a defined space for outdoor living on
a large or small scale.
But remember the rule of low upkeep, especially if your
future buyer is likely to be a millennial. “They love outdoor spaces, but
whereas prior generations might have gone for the pool, Gen Yers recognize the
maintenance costs associated with it,” Berger says. “They’d much rather see an
outdoor fire pit surrounded by a simple seating arrangement.” Don’t go for
overly lush landscapes, especially in drought-stricken regions with high water
costs.
Value-Added Buzzwords
Curb appeal. Trimming
overgrown shrubs and making minor repairs to the façade, including painting the front door, can
deliver quick results.
Water-smart yard. Replacing
a section of turfgrass with native ground covers or pea gravel will reduce the
maintenance costs while adding visual interest.
Potential bump: 3 to 5 percent
8: Make
Sure Your New Technology Is Smart
High-tech features offer notoriously bad returns on
investment because technologies tend to evolve quickly. “One of the biggest
losers in recent years is the fully wired audiovisual system,” says Duo
Dickinson, an architect based in the New Haven, Conn., area. “They’ve probably
lost 80 percent of their value since everything went wireless.”
But certain smart
devices add to home value and interest, including programmable
thermostats. “I’ll often install a Nest thermostat in a home that doesn’t have
one because it creates the impression that this is a high-tech home,” Berger
says.
We’re seeing the same benefit with a range of products,
such as lights, door locks, and security systems. Those smart features have
broad appeal with millennials, “who grew up on smartphones, so they’re used to
being able to control things at their fingertips,” Endres says. “And they’ll
pay 3 to 5 percent more for a home with the right amenities.”
Value-Added Buzzwords
Programmable thermostat. The
Nest is widely recognized.
Whole-house generator. Power
failures are a reality for more homeowners. Stationary generators can usually
power the entire property.
Potential bump: 3 to 5 percent
-Kris
