Hot or Not?
Reprinted from HGTVpro.com
There's not a builder in the country who isn't trying out how to sell more houses. A big part of any sale, of course, is offering what the buyers want. Real-estate expert and author Mark Nash has released his 2008 take on trends that are hot, those that are not, and those that are cooling off. Take a serious look at them, and figure out how you can make sure your homes are hitting the sweet spot with potential buyers.
What's in
Home buyers. What goes around comes around. Relegated during the boom years to bidding wars, over-full-price offers and new-construction lotteries, buyers rule in 2008 — and they know it. With swelling inventories in the housing market, they are looking for newly updated kitchens and baths, pristine condition and a perception of value.
Destination bathrooms. The master bath has evolved into the home getaway with multiple task areas: freestanding or "throne" bathtubs in the center of a soaking room, multiple flat screens TVs and wireless Internet so you don't miss anything as you move from bathing to grooming to lounging. If the bathroom is outfitted for serving bars, wine coolers, espresso machines and grazing snacks, all the better. And there is a burgeoning need for in-home hair salons.
Short sales. Home owners who have overextended themselves financially are increasingly looking to their mortgage holders to accept less than is owed on their property. Some mortgagees will accept less than is owed through a short sale instead of foreclosing: The house is listed, ideally with an agent who agrees to a lower commission, and the seller is off the hook for the balance of the mortgage — or at least some of it.
Pet showers. The kitchen or work sink is out for the dog bath. Dedicated dog showers are an emerging trend. Be it in a mud or utility room, garage corner or basement, dog lovers want a place to clean their pooches after a visit to the neighborhood dog park. Common dog showers feature a 3' x 3' shower base, surrounded by ceramic tile 4 feet up the wall. Pet showers are all about convenience: Fido can step in, eliminating the master's need to lift.
Home elevators. The boomers want their vertical palaces with elegant min-elevators. No more unsightly and very 1970s chair-on-the-rail-system for these financially flush, forward-thinking home buyers.
Outdoor living spaces that look interior. Massive, soaring "statement" fireplaces of cut stone, heated (think bathroom floors) flooring and walkways, entertaining-sized custom kitchens and indoor-looking artwork, fabric, and finishes that can stand up to the elements.
Down payments. Sexy home mortgages are out. Those who underwrite home loans are looking for substance from potential home buyers. Substance equates into disciplined savings and credit scores.
A home's carbon footprint. Manufactured homes, reused construction materials and energy-friendly mechanical systems and appliances all reduce the need for fossil fuels. Home buyers are asking about how their potential new home can save the planet. It's more than a trend; it's a convenient truth.
Monitoring and controlling with hand-held devices. Forgot to turn off the coffee maker, close or open the blinds, turn the heat down or the air conditioning up? The latest technology lets hand-held devices open or close the blinds, turn lights on or off, or let Fido out the electronic pet door. The home owner can be around the corner or across the country and still determine what's going on at home.
Floating homes. If your 'hood has calm, protected waters, you'll soon have floating homes that look like conventional, soil-situated structures. From Louisiana to Vancouver, floating homes are at the top of must-have lists for those looking for a lifestyle-oriented primary home. Plus, watching sunsets are a more enjoyable and greener alternative to lawn mowing.
Concealed appliances. Buyers bypass matching cabinet panels that are used to disguise the ubiquitous refrigerator and dishwasher. Hinged and pocket doors are the latest way to integrate visually those boxy necessities and make the kitchen more non-traditional and less functional-looking.
Non-smoking homeowners associations. Who knew that some homeowner associations are rewriting by-laws and declarations to include those unit owners are not allowed to smoke inside their homes? Smoke-free common areas, in addition to building-code-required ventilation systems and fresh-smelling hallways, have taken precedence over individuals' rights to light up in their recliners.
Off-grid homes. Solar panels, windmills and inverters are here to stay in a big way. With brown-outs and power line-damaging storms on the increase, buyers in 2008 will look for hybrid home-energy options. Even being partially off-grid beats getting expensive power from coal-fired utilities to these eco-energy users.
What's out
Unrealistic home sellers. These relics of another time and market missed the cocktail party chat and water cooler angst by the transitional sellers of 2007. Cautions included pricing their homes right, considering home-sale contingencies, and offering closing-cost givebacks. Hear-no-evil sellers were overlooked by buyers who pined for reality-minded ones. If sellers were flexible with buyers' needs, buyers bought.
Living rooms. The great room has replaced the living room in American residential culture. Informal lifestyles with combined eating, cooking and living spaces let family members and visiting friends congregate for various activities makes much more sense to buyers than the forced museum. In viewing homes with buyers, I see the ex-museum used as work-out spaces, home offices, craft or hobby places. More than once, I've seen the formerly coveted living room with nothing more than a pool table as its solitary focus.
Empty homes for sale. Buyers thought people "lived" in houses, but after seeing one-quarter of the homes they viewed empty, they wondered. Even though staging was the buzzword, getting that right is prickly in 2007. Those leftover silk flowers, the left behind mismatched furniture, and the one-off design-show decorating scheme were buyer no-nos. Neutral palettes, personal objects, thoughtful furniture rental, and something in the refrigerator says to buyers, maybe a person lives here.
Double-digit home-value appreciation. For now, the home as get-rich-quick investment is over. We're back to the pre-boom norm of housing as shelter. Expect flat or low single-digit appreciation in most markets in 2008.
"Order-taking" real estate agents. The hive during the boom years was real estate, and multitudes of the dot-com-busted became the worker-bees of real estate sales. Everyone and anyone got licensed and into the frenzy. Little did they know that seasoned (pre-boom), full-time, professional agents had ready, willing and able buyers; knew how to sooth seller's anxieties; and produced the fifth-highest year in real estate sales in 2007.
McMansions. Size doesn't matter if it's not well-finished. A voluminous home whose best attribute is the square footage is losing its appeal. Home buyers are looking for quality in 2008. After all, who has the money to replace the faux-hardwood floors, builder-grade carpet and fiberglass bathtubs?
Obese ceiling heights. It's cheaper to go up than out. At least that's been the thinking in residential design of late. Buyers have finally said enough; they prefer ceilings between nine and eleven feet. Anything more, especially in a smallish (under 10' x 12') room is waste. If you can't add a loft in a soaring room, "downsize me" height-wise, buyers say.
Pioneering locations. Buyers have moved away from take-a-chance neighborhoods. Pioneering or off-the-beaten-path areas were once the hot bed of potential appreciation. However, buyers in 2008 are returning to the tried-and-true address, keeping resale desirability firmly in mind when making a purchase.
Balconies as a marketing gimmick. Functional outdoor space, not the anorexic appendage hanging off the building, is what buyers crave in outdoor space for 2008. Real balconies have room for a grill and a comfortable table and chairs. People love the outdoors and want to use it, but not as a solo experience.
Option ARMs (adjustable rate mortgages). Buyers have heard that these loans usually have only one option: foreclosure. Originally used by the rich for short-term financing, they were re-packaged for buyers who wanted to qualify for the highest loan amount. Negative amortization is the harsh reality of option ARMS. Home buyers should run, not walk, if these words are proposed as a financing option.
Pre-construction pricing on new construction. Builders who are plunging ahead with new projects in 2008 will be better off with one pricing model from beginning to end. They are eliminating their "everything's an upgrade" mentality.
On the way out
Mosaic tile. Once deemed the ultimate in tile, now considered a very personal design commitment by the previous owner. The cost and waste to remove intricate mosaic is over-whelming to buyers, especially if it is has been recently installed. Even the most expensive but not agreeable tile could kill an otherwise acceptable property.
Retro-1970's chic. Trend-obsolescence by buyers in 2007 was rampant. Loving the retro-'70s was easy, but horror stories from would-be sellers about the market's hesitance to buy a design white-elephant made more mainstream kitchens and baths a sensible decision. As one Gen X buyer told me, "I love the dark espresso-colored shag carpeting, but I know my decorating needs will change. I want an interior that will transcend trends." I replied, "You're looking for a 'transcenditional' look." Her response: "Exactly."
Learn more about Fredericksburg Texas Real Estate
There's not a builder in the country who isn't trying out how to sell more houses. A big part of any sale, of course, is offering what the buyers want. Real-estate expert and author Mark Nash has released his 2008 take on trends that are hot, those that are not, and those that are cooling off. Take a serious look at them, and figure out how you can make sure your homes are hitting the sweet spot with potential buyers.
What's in
Home buyers. What goes around comes around. Relegated during the boom years to bidding wars, over-full-price offers and new-construction lotteries, buyers rule in 2008 — and they know it. With swelling inventories in the housing market, they are looking for newly updated kitchens and baths, pristine condition and a perception of value.
Destination bathrooms. The master bath has evolved into the home getaway with multiple task areas: freestanding or "throne" bathtubs in the center of a soaking room, multiple flat screens TVs and wireless Internet so you don't miss anything as you move from bathing to grooming to lounging. If the bathroom is outfitted for serving bars, wine coolers, espresso machines and grazing snacks, all the better. And there is a burgeoning need for in-home hair salons.
Short sales. Home owners who have overextended themselves financially are increasingly looking to their mortgage holders to accept less than is owed on their property. Some mortgagees will accept less than is owed through a short sale instead of foreclosing: The house is listed, ideally with an agent who agrees to a lower commission, and the seller is off the hook for the balance of the mortgage — or at least some of it.
Pet showers. The kitchen or work sink is out for the dog bath. Dedicated dog showers are an emerging trend. Be it in a mud or utility room, garage corner or basement, dog lovers want a place to clean their pooches after a visit to the neighborhood dog park. Common dog showers feature a 3' x 3' shower base, surrounded by ceramic tile 4 feet up the wall. Pet showers are all about convenience: Fido can step in, eliminating the master's need to lift.
Home elevators. The boomers want their vertical palaces with elegant min-elevators. No more unsightly and very 1970s chair-on-the-rail-system for these financially flush, forward-thinking home buyers.
Outdoor living spaces that look interior. Massive, soaring "statement" fireplaces of cut stone, heated (think bathroom floors) flooring and walkways, entertaining-sized custom kitchens and indoor-looking artwork, fabric, and finishes that can stand up to the elements.
Down payments. Sexy home mortgages are out. Those who underwrite home loans are looking for substance from potential home buyers. Substance equates into disciplined savings and credit scores.
A home's carbon footprint. Manufactured homes, reused construction materials and energy-friendly mechanical systems and appliances all reduce the need for fossil fuels. Home buyers are asking about how their potential new home can save the planet. It's more than a trend; it's a convenient truth.
Monitoring and controlling with hand-held devices. Forgot to turn off the coffee maker, close or open the blinds, turn the heat down or the air conditioning up? The latest technology lets hand-held devices open or close the blinds, turn lights on or off, or let Fido out the electronic pet door. The home owner can be around the corner or across the country and still determine what's going on at home.
Floating homes. If your 'hood has calm, protected waters, you'll soon have floating homes that look like conventional, soil-situated structures. From Louisiana to Vancouver, floating homes are at the top of must-have lists for those looking for a lifestyle-oriented primary home. Plus, watching sunsets are a more enjoyable and greener alternative to lawn mowing.
Concealed appliances. Buyers bypass matching cabinet panels that are used to disguise the ubiquitous refrigerator and dishwasher. Hinged and pocket doors are the latest way to integrate visually those boxy necessities and make the kitchen more non-traditional and less functional-looking.
Non-smoking homeowners associations. Who knew that some homeowner associations are rewriting by-laws and declarations to include those unit owners are not allowed to smoke inside their homes? Smoke-free common areas, in addition to building-code-required ventilation systems and fresh-smelling hallways, have taken precedence over individuals' rights to light up in their recliners.
Off-grid homes. Solar panels, windmills and inverters are here to stay in a big way. With brown-outs and power line-damaging storms on the increase, buyers in 2008 will look for hybrid home-energy options. Even being partially off-grid beats getting expensive power from coal-fired utilities to these eco-energy users.
What's out
Unrealistic home sellers. These relics of another time and market missed the cocktail party chat and water cooler angst by the transitional sellers of 2007. Cautions included pricing their homes right, considering home-sale contingencies, and offering closing-cost givebacks. Hear-no-evil sellers were overlooked by buyers who pined for reality-minded ones. If sellers were flexible with buyers' needs, buyers bought.
Living rooms. The great room has replaced the living room in American residential culture. Informal lifestyles with combined eating, cooking and living spaces let family members and visiting friends congregate for various activities makes much more sense to buyers than the forced museum. In viewing homes with buyers, I see the ex-museum used as work-out spaces, home offices, craft or hobby places. More than once, I've seen the formerly coveted living room with nothing more than a pool table as its solitary focus.
Empty homes for sale. Buyers thought people "lived" in houses, but after seeing one-quarter of the homes they viewed empty, they wondered. Even though staging was the buzzword, getting that right is prickly in 2007. Those leftover silk flowers, the left behind mismatched furniture, and the one-off design-show decorating scheme were buyer no-nos. Neutral palettes, personal objects, thoughtful furniture rental, and something in the refrigerator says to buyers, maybe a person lives here.
Double-digit home-value appreciation. For now, the home as get-rich-quick investment is over. We're back to the pre-boom norm of housing as shelter. Expect flat or low single-digit appreciation in most markets in 2008.
"Order-taking" real estate agents. The hive during the boom years was real estate, and multitudes of the dot-com-busted became the worker-bees of real estate sales. Everyone and anyone got licensed and into the frenzy. Little did they know that seasoned (pre-boom), full-time, professional agents had ready, willing and able buyers; knew how to sooth seller's anxieties; and produced the fifth-highest year in real estate sales in 2007.
McMansions. Size doesn't matter if it's not well-finished. A voluminous home whose best attribute is the square footage is losing its appeal. Home buyers are looking for quality in 2008. After all, who has the money to replace the faux-hardwood floors, builder-grade carpet and fiberglass bathtubs?
Obese ceiling heights. It's cheaper to go up than out. At least that's been the thinking in residential design of late. Buyers have finally said enough; they prefer ceilings between nine and eleven feet. Anything more, especially in a smallish (under 10' x 12') room is waste. If you can't add a loft in a soaring room, "downsize me" height-wise, buyers say.
Pioneering locations. Buyers have moved away from take-a-chance neighborhoods. Pioneering or off-the-beaten-path areas were once the hot bed of potential appreciation. However, buyers in 2008 are returning to the tried-and-true address, keeping resale desirability firmly in mind when making a purchase.
Balconies as a marketing gimmick. Functional outdoor space, not the anorexic appendage hanging off the building, is what buyers crave in outdoor space for 2008. Real balconies have room for a grill and a comfortable table and chairs. People love the outdoors and want to use it, but not as a solo experience.
Option ARMs (adjustable rate mortgages). Buyers have heard that these loans usually have only one option: foreclosure. Originally used by the rich for short-term financing, they were re-packaged for buyers who wanted to qualify for the highest loan amount. Negative amortization is the harsh reality of option ARMS. Home buyers should run, not walk, if these words are proposed as a financing option.
Pre-construction pricing on new construction. Builders who are plunging ahead with new projects in 2008 will be better off with one pricing model from beginning to end. They are eliminating their "everything's an upgrade" mentality.
On the way out
Mosaic tile. Once deemed the ultimate in tile, now considered a very personal design commitment by the previous owner. The cost and waste to remove intricate mosaic is over-whelming to buyers, especially if it is has been recently installed. Even the most expensive but not agreeable tile could kill an otherwise acceptable property.
Retro-1970's chic. Trend-obsolescence by buyers in 2007 was rampant. Loving the retro-'70s was easy, but horror stories from would-be sellers about the market's hesitance to buy a design white-elephant made more mainstream kitchens and baths a sensible decision. As one Gen X buyer told me, "I love the dark espresso-colored shag carpeting, but I know my decorating needs will change. I want an interior that will transcend trends." I replied, "You're looking for a 'transcenditional' look." Her response: "Exactly."
Learn more about Fredericksburg Texas Real Estate
