Fixing up and Staging  Your House to Sell    Mike Ford    Licensed Home Improvements Contractor    Licensed Real Estate Sa...
Course Outline – 1st Session •   Introduction •   Reasons for Improving •   Improvement Options •   Buyer Expectations •  ...
Who is Mike Ford Northern Virginia Native Bachelor of Sciences degree in Business Administration from Old Dominion Univers...
The Evolution to Non-RealEstate Clients We don’t want to sell our house, but would like   it to look like a Model Home. Ca...
A New ApproachHome Improvements& Real Estate SalesWe offer our real estate clients the opportunity to  make improvements t...
The Model Home Look – RealEstate Knowledge is KeyOur clients have been particularly pleased with  our knowledge of real es...
Understanding HomeValues – Trade License                www.themodelhomelook.comWe help all of our clients identify the ho...
The Importance ofProject ManagementMany of our clients believe Project Management isone of the most valuable services that...
Student Expectations             www.themodelhomelook.com                   (703) 589-3848       9
Course ObjectiveIn this course, we’ll discuss the  importance of making cost effective  improvements to improve chances  o...
Reasons for ImprovingYour Home• Pure Enjoyment• Maintenance - Small problems often  lead to large expenses• Increase proba...
Avoid Costly Mistakes• Missing out on big money by not  making the proper upgrades.• Ignoring simple repairs often lead to...
Improvement Discussion     •   Kitchens     •   Baths     •   Paint     •   Flooring     •   Exterior & Landscaping     • ...
Minimum Expectations ofToday’s Homebuyers     Reoccurring Buzz Words in Real     Estate Advertisements •    Updated Kitche...
Minimum Expectations ofTodays Homebuyers     What Sellers Can Control •   Keep a very clean house •   Eliminate pet or foo...
Did you you Know?Within 15 seconds a buyer hasdeveloped an opinion of theproperty they visit. Buyers must say ―Wow‖ when t...
Public fascination withInterior Design!The world is fascinated with interior design. If youhave any doubt, you need only t...
KitchenWhen remodeling your kitchen for resale, steer clear of highly personalized looks and outrageous color schemes.    ...
BathroomA bath remodel maybe a sure-fireinvestment, oftenreturning the highestpercent of the cost.• Must be clean, with no...
TipTub & Tile Re-GlazingA fairly inexpensive way to update a bathroom is to re-glaze the tub and wall tiles.Re-glazing a t...
PaintBuyers spend more timethan you would thinkstaring at ceilings. They are looking for signs of a leaky roof, but what y...
Paint Its the most cost effective improvement you can make! • Fix nail pops & cracks • 3-color with neutral paint color Hi...
WallpaperIts not that all buyers hatewallpaper. They hate your wallpaper- because its your personal choice,not theirs. And...
Wood PanelingEven if your wood panelingis not real wood butcomposite, you can paint it.Dated paneling must go. Older wood ...
Textured CeilingsOlder popcorn ceilings with the "sparkles"often contain asbestos and if disturbed arehealth hazards. Say ...
Hardwood Flooring &CarpetingHardwood FloorsIf your home has hardwood floors, thats whatbuyers want, and it would pay to ha...
Tile – Ceramic & PorcelainThe options are truly endless with respectto color, texture and style of ceramic andporcelain ti...
Roof & ExteriorIf your home needs a new roof, bite the bulletand do it. Even though most roofing tear-off jobstake one to ...
LandscapingIf people drive by your home and are notimpressed they’re not going to walk inside.    •   It’s all about curb ...
Tip  Mulch Dye  Applying mulch dye, which can be   purchased from a specialty landscape   supplier, is a low cost way of m...
TipYour home must be clean!To achieve this level is usually only  feasible by hiring a cleaning crew. In  fact, having a c...
Tip Eliminate ClutterClutter makes homes seem smaller and  disorganized.Have you ever noticed that the really expensive  s...
Tip De-Personalize Remove objects that your potential buyers wont be able to   identify with. For example, political and r...
Staging Staging is what you do after youve   cleaned, de-cluttered, painted, made   repairs; its all about dressing the   ...
Basement Makeover           www.themodelhomelook.com                 (703) 589-3848       35
New Countertops & Wall Tile             www.themodelhomelook.com                   (703) 589-3848       36
Granite Countertops            www.themodelhomelook.com                  (703) 589-3848       37
Countertop & Paint   © 2005 Interior Makeovers                                         © 2005 Interior Makeovers          ...
Basement Improvement © 2005 Interior Makeovers                             © 2005 Interior Makeovers                      ...
Formal Living Room            www.themodelhomelook.com                  (703) 589-3848       40
Home Office              www.themodelhomelook.com                    (703) 589-3848       41
Hardwood Floors           www.themodelhomelook.com                 (703) 589-3848       42
Kitchen Makeover           www.themodelhomelook.com                 (703) 589-3848       43
Kitchen Cabinets            www.themodelhomelook.com                  (703) 589-3848       44
Kitchen Makeover           www.themodelhomelook.com                 (703) 589-3848       45
Kitchen Makeover           www.themodelhomelook.com                 (703) 589-3848       46
Kitchen Makeover           www.themodelhomelook.com                 (703) 589-3848       47
Kitchen Makeover           www.themodelhomelook.com                 (703) 589-3848       48
Kitchen Makeover           www.themodelhomelook.com                 (703) 589-3848       49
Kitchen Makeover           www.themodelhomelook.com                 (703) 589-3848       50
Bathroom           www.themodelhomelook.com                 (703) 589-3848       51
Bathroom Improvement52                www.themodelhomelook.com                      (703) 589-3848
Bathroom           www.themodelhomelook.com                 (703) 589-3848       53
Builders have MODELHOMES – Why?TO CREATE SALESThey understand that buyers want ahome in near-perfect ―model home‖move-in c...
Reasons HomeownersDo Not Invest to Selltheir Home?• Don’t have the time• Think it is too costly• Unsure of which improveme...
Fixing Up Your House  to Sell – Session 2                 Mike Ford                 Licensed Home Improvements            ...
What Buyers WantHighlights from theNATIONAL ASSOCIATIONOF REALTORS®2007 Profile of BuyersHome Features Preferences
1. What single home   feature do buyers say   they want most in a   new home? a)   Walk-in closet in master bedroom b)   C...
2. What’s the median size   of homes purchased   between late 2005 and   early 2007?   a)   2,230 square feet   b)   1,840...
3. Repeat buyers tend to be   choosier than first-time   buyers. In particular, repeat   buyers place much more   emphasis...
4. Within three months after   buying a home, nearly half   of all buyers remodeled or   made improvements to   which part...
5. Which home feature saw   the biggest jump in buyer   popularity since 2004, when   NAR conducted its   previous buyer p...
6. What three features did   buyers say they’d be most   willing to pay extra for in a   home? a)   Proximity to work, a w...
7. A home’s energy   efficiency is most   important to which   segment of buyers?  a)   Repeat buyers  b)   Second-home bu...
8. Where do first-time   home buyers tend to   purchase a home?  a)   Rural area  b)   City or urban area  c)   Suburb or ...
9. What’s the most   common type of home   purchased?   a)   Single level   b)   Split level   c)   Two levels   d)   Thre...
10. What did new-home    buyers most wish their    home had more of?   a)   Storage   b)   Bedrooms   c)   Kitchen space  ...
What single home featuredo buyers say they wantmost in a new home? a)   Walk-in closet in master bedroom b) Central air co...
What’s the median size ofhomes purchased betweenlate 2005 and early 2007? a) 2,230 square feet b) 1,840 square feet c) 1,4...
Repeat buyers tend to be choosierthan first-time buyers. Inparticular, repeat buyers placemuch more emphasis on thesehome ...
Within three months afterbuying a home, nearly half ofall buyers remodeled or madeimprovements to which partof the house? ...
Which home feature saw the                 biggest jump in buyer                 popularity since 2004, when              ...
What three features did                 buyers say they’d be most                 willing to pay extra for in a           ...
A home’s energy efficiency                 is most important to which                 segment of buyers?                  ...
Where do first-time home                 buyers tend to purchase a                 home?                 a) Rural area    ...
What’s the most common                 type of home purchased?                    a) Single level                    b)   ...
What did new-home buyers                 most wish their home had                 more of?                     a) Storage ...
What Buyers WantHighlights from theNATIONAL ASSOCIATIONOF REALTORS®2007 Profile of BuyersHome Features Preferences
National Association of                 Realtors Survey                 • Home buyers were asked about 75 features and roo...
What was Important while                     searching for a home?                   It was “very important” to find a hom...
Oversized Garages are                 The New Big Thing With                 Buyers                 • The most significant...
Change in Preferences                 in Time                            It was “very important” to find a home with:     ...
Age Makes the Biggest                 Difference in What Buyers                 Want                                      ...
Examples of Differences in Desired                  Features by Age of the Buyers                    Separate shower enclo...
Energy Efficiency is Most                 Important to New-Home Buyers                     As buyers age, this becomes mor...
How Important was a Home’s Energy                                Efficiency When Searching for a Home?                    ...
Bigger and Younger                 From 2004 to 2007, the                 size of the typical home                 purchas...
Characteristics of Homes Purchased                                                      2007                2004          ...
Detached and Suburban                   Over four-fifths of homes purchased are                   detached single-family h...
Type and Location of Homes Purchased                              Detached single-family                                  ...
From the Closing Table to the Home                 Improvement Store                 Sixty percent of buyers              ...
Who Did Home Improvement Projects                        Within Three Months of Purchase?                                A...
Which Home Improvement or                             Remodeling Projects?                                    Rooms where ...
Very Important Home                 Features on the Rise                   60                   50                   40   ...
Where Buyers will Pay                 for Key Features                 60                 50                 40           ...
Improvement Justification                 When you consider its value at resale, a                   home improvement proj...
What to Expect to Pay for                 the Improvements                   •   Kitchens                   •   Countertop...
Kitchens                  Basic improvements to your kitchen could be                  the key to getting your house sold....
Kitchen Cabinet RefacingExpect to pay $130 to $150 per opening. This means every single opening in your kitchen... doors, ...
The Downside to CabinetRefacing1. Limited to existing layout2. Materials limitations - There generally   are three finish ...
Kitchen – Midrange MajorRemodelThe average amount spent on a midrange update in the U.S. is $58,897.00.  Resale Value - $4...
Kitchen – MidrangeMajor Remodel•   Update 200-square-foot kitchen•   30 linear feet of semi-custom wood cabinets•   3-by-5...
Kitchen – Upscale MajorRemodelThe average amount spent on a major kitchen-remodeling job in the U.S. is $115,436.  Resale ...
Kitchen – UpscaleMajor Remodel• Update outmoded 200-square-foot kitchen• 30 linear feet of top-of-the-line custom cherry c...
Countertop Types                  Type                           Price Per Square Foot                 Granite            ...
Countertop Types                 Granite                    The most popular choice. Durable and lots of                  ...
Bathroom – MidrangeMajor Remodel A midrange full-bath  remodeling job in the U.S.  has an average price tag of  $17,167. R...
Bathroom – MidrangeMajor Remodel•   Update an existing 5-by-7-foot bathroom•   Replace all fixtures•   30-by-60 inch porce...
Bathroom – UpscaleMajor RemodelThe average amount spent on a major upscale bathroom remodeling job in the U.S. is $55,398....
Bathroom – UpscaleMajor Remodel•   Expand an existing 35-square-foot bathroom to 100 square feet within existing house foo...
Flooring                   Hardwood Floors    $7.00 to $12.00 per                                      square foot        ...
Paint                 For most exterior paint jobs, labor makes up about                   75-85% of the cost of painting ...
Paint                 Costs typically average $1,500-$3,000                  for an average single-story, three-          ...
Inexpensive Tip #6                 • Adding crown molding, wainscoting                   and coffered ceilings can have an...
Decks                 Installing a deck may be the most cost-                   efficient way to add square footage to    ...
New Space                 As a rule, improvements that increase the                   functional space of a home hold thei...
Basement                 Turning your basement into a room                  for socializing will set you back,            ...
Landscaping                 Fancy gardens — which will require time and                   money to tend — usually wont add...
Home Maintenance                 It may not be all that enjoyable, but its the basic                    improvements that ...
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  1. 1. Fixing up and Staging Your House to Sell Mike Ford Licensed Home Improvements Contractor Licensed Real Estate Salesperson (703) 589-3848www.TheModelHomeLook.commike@themodelhomelook.com
  2. 2. Course Outline – 1st Session • Introduction • Reasons for Improving • Improvement Options • Buyer Expectations • Group Discussion • Case Study www.themodelhomelook.com (703) 589-3848 2
  3. 3. Who is Mike Ford Northern Virginia Native Bachelor of Sciences degree in Business Administration from Old Dominion University. Licensed Real Estate Agent - Coldwell Banker Residential Brokerage. Corporate Experience – Fortune 500 Companies – Motorola Communications & McKesson Healthcare, National Healthcare Trade Association Entrepreneur – Owner of The Model Home Look Community Volunteer – Youth Sports, Home Owners Association www.themodelhomelook.com (703) 589-3848 3
  4. 4. The Evolution to Non-RealEstate Clients We don’t want to sell our house, but would like it to look like a Model Home. Can you help us? YES! www.themodelhomelook.com (703) 589-3848 4
  5. 5. A New ApproachHome Improvements& Real Estate SalesWe offer our real estate clients the opportunity to make improvements that make their homes more appealing to prospective home buyers.We help all of our clients identify the home improvements that will have the biggest impact on their home’s values. www.themodelhomelook.com (703) 589-3848 5
  6. 6. The Model Home Look – RealEstate Knowledge is KeyOur clients have been particularly pleased with our knowledge of real estate, and appreciate the guidance to improvements that provide the most significant returns when the time comes to sell their homes. www.themodelhomelook.com (703) 589-3848 6
  7. 7. Understanding HomeValues – Trade License www.themodelhomelook.comWe help all of our clients identify the home improvements thatwill have the biggest impact on their home’s value. www.themodelhomelook.com (703) 589-3848 7
  8. 8. The Importance ofProject ManagementMany of our clients believe Project Management isone of the most valuable services that we provide. The Project Management Professional (PMP®) designation is the profession’s most globally recognized and respected credential. We handle of every detail of getting homes ready for sale! www.themodelhomelook.com (703) 589-3848 8
  9. 9. Student Expectations www.themodelhomelook.com (703) 589-3848 9
  10. 10. Course ObjectiveIn this course, we’ll discuss the importance of making cost effective improvements to improve chances of selling in today’s difficult real estate market. www.themodelhomelook.com (703) 589-3848 10
  11. 11. Reasons for ImprovingYour Home• Pure Enjoyment• Maintenance - Small problems often lead to large expenses• Increase probability of selling• To appeal to homebuyer expectations• To replace the low quality ―builder grade‖ fixtures & amenities www.themodelhomelook.com (703) 589-3848 11
  12. 12. Avoid Costly Mistakes• Missing out on big money by not making the proper upgrades.• Ignoring simple repairs often lead to big problems.• A job done right the first time is always less expensive. www.themodelhomelook.com (703) 589-3848 12
  13. 13. Improvement Discussion • Kitchens • Baths • Paint • Flooring • Exterior & Landscaping • Furnishing • Staging www.themodelhomelook.com (703) 589-3848 13
  14. 14. Minimum Expectations ofToday’s Homebuyers Reoccurring Buzz Words in Real Estate Advertisements • Updated Kitchen & Baths • Granite Countertops • Stainless Steel Appliances • Hardwood Floors • Open Floor Plan • New Carpet • Fresh Neutral Paint • Show’s Well • Great Curb Appeal • Finished Basement www.themodelhomelook.com (703) 589-3848 14
  15. 15. Minimum Expectations ofTodays Homebuyers What Sellers Can Control • Keep a very clean house • Eliminate pet or food odors • Remove clutter • Maintain the lawn and landscaping • Keep bushes and trees trimmed • Make sure your furniture fits properly in the rooms • Clean windows and remove screens • Turn on lights • Open blinds & curtains before every showing www.themodelhomelook.com (703) 589-3848 15
  16. 16. Did you you Know?Within 15 seconds a buyer hasdeveloped an opinion of theproperty they visit. Buyers must say ―Wow‖ when they enter a home! • Must reflect today’s homebuyer’s tastes. • Must capture the buyer’s emotions! www.themodelhomelook.com (703) 589-3848 16
  17. 17. Public fascination withInterior Design!The world is fascinated with interior design. If youhave any doubt, you need only tune into HGTV, orvisit Crate & Barrel, Restoration Hardware andother retailers. www.themodelhomelook.com (703) 589-3848 17
  18. 18. KitchenWhen remodeling your kitchen for resale, steer clear of highly personalized looks and outrageous color schemes. What to look for: • Traditional Materials • Quality Cabinets • Commercial-look Appliances • Natural Wood or Stone Floors • Granite Countertops www.themodelhomelook.com (703) 589-3848 18
  19. 19. BathroomA bath remodel maybe a sure-fireinvestment, oftenreturning the highestpercent of the cost.• Must be clean, with no visible signs of water of mold.• Caulk and clean grout.• Replace pink or blue fixtures• Remove wallpaper www.themodelhomelook.com (703) 589-3848 19
  20. 20. TipTub & Tile Re-GlazingA fairly inexpensive way to update a bathroom is to re-glaze the tub and wall tiles.Re-glazing a typical tub and shower will cost less than $1,000.00. www.themodelhomelook.com (703) 589-3848 20
  21. 21. PaintBuyers spend more timethan you would thinkstaring at ceilings. They are looking for signs of a leaky roof, but what you dont want them to see are stains from water, grease or smoke and ceiling cracks. Same for walls. www.themodelhomelook.com (703) 589-3848 21
  22. 22. Paint Its the most cost effective improvement you can make! • Fix nail pops & cracks • 3-color with neutral paint color Hire a professional. A bad paint job will turn off prospective buyers. www.themodelhomelook.com (703) 589-3848 22
  23. 23. WallpaperIts not that all buyers hatewallpaper. They hate your wallpaper- because its your personal choice,not theirs. And they hate all datedwallpaper. Get rid of it www.themodelhomelook.com (703) 589-3848 23
  24. 24. Wood PanelingEven if your wood panelingis not real wood butcomposite, you can paint it.Dated paneling must go. Older wood panelingsuch as walnut, mahogany, cedar and pine, itsall gone out of style. Paint it a neutral and soft color after priming it. www.themodelhomelook.com (703) 589-3848 24
  25. 25. Textured CeilingsOlder popcorn ceilings with the "sparkles"often contain asbestos and if disturbed arehealth hazards. Say goodbye to it. Buteven recently sprayed ceilings turn offbuyers. www.themodelhomelook.com (703) 589-3848 25
  26. 26. Hardwood Flooring &CarpetingHardwood FloorsIf your home has hardwood floors, thats whatbuyers want, and it would pay to have the carpetingremoved and the floors refinished.CarpetingIf your sub-floor is plywood, then replace thecarpeting with light tan. Neutral carpeting is yourbest bet for resale. •Worn or outdated carpet should be replaced •Dirty carpet should be cleaned www.themodelhomelook.com (703) 589-3848 26
  27. 27. Tile – Ceramic & PorcelainThe options are truly endless with respectto color, texture and style of ceramic andporcelain tiles. The hardest part is decidingwhich one best fits with your space! The best option for wet environments and durability www.themodelhomelook.com (703) 589-3848 27
  28. 28. Roof & ExteriorIf your home needs a new roof, bite the bulletand do it. Even though most roofing tear-off jobstake one to two days, buyers shy away frombuying a home if the roof needs to be replaced. • Patch cement cracks in sidewalks • Resurface asphalt driveways • Plant flowers • Caulk windows and doors • Replace doorknobs and locks • Fix or paint fences www.themodelhomelook.com (703) 589-3848 28
  29. 29. LandscapingIf people drive by your home and are notimpressed they’re not going to walk inside. • It’s all about curb appeal! • Fresh Mulch • Mow the Lawn • Trim Bushes • Weed www.themodelhomelook.com (703) 589-3848 29
  30. 30. Tip Mulch Dye Applying mulch dye, which can be purchased from a specialty landscape supplier, is a low cost way of making the mulch look new again. Expect to pay about $80.00 per gallon. www.themodelhomelook.com (703) 589-3848 30
  31. 31. TipYour home must be clean!To achieve this level is usually only feasible by hiring a cleaning crew. In fact, having a cleaning service return weekly while your house is for sale is probably a pretty good investment.Get your windows professionally cleaned inside and out too. www.themodelhomelook.com (703) 589-3848 31
  32. 32. Tip Eliminate ClutterClutter makes homes seem smaller and disorganized.Have you ever noticed that the really expensive stores seem to have an expansive, clutter- free layout, while "cheap" stores are often a jumble of merchandise? www.themodelhomelook.com (703) 589-3848 32
  33. 33. Tip De-Personalize Remove objects that your potential buyers wont be able to identify with. For example, political and religious items may turn off whole groups of buyers, because they cannot "imagine" your home as their home. Buying a home is an emotional decision, and you want potential buyers to make an emotional connection with your home by being able to "see" themselves in it. www.themodelhomelook.com (703) 589-3848 33
  34. 34. Staging Staging is what you do after youve cleaned, de-cluttered, painted, made repairs; its all about dressing the house for sale. www.themodelhomelook.com (703) 589-3848 34
  35. 35. Basement Makeover www.themodelhomelook.com (703) 589-3848 35
  36. 36. New Countertops & Wall Tile www.themodelhomelook.com (703) 589-3848 36
  37. 37. Granite Countertops www.themodelhomelook.com (703) 589-3848 37
  38. 38. Countertop & Paint © 2005 Interior Makeovers © 2005 Interior Makeovers www.themodelhomelook.com (703) 589-3848 38
  39. 39. Basement Improvement © 2005 Interior Makeovers © 2005 Interior Makeovers www.themodelhomelook.com (703) 589-3848 39
  40. 40. Formal Living Room www.themodelhomelook.com (703) 589-3848 40
  41. 41. Home Office www.themodelhomelook.com (703) 589-3848 41
  42. 42. Hardwood Floors www.themodelhomelook.com (703) 589-3848 42
  43. 43. Kitchen Makeover www.themodelhomelook.com (703) 589-3848 43
  44. 44. Kitchen Cabinets www.themodelhomelook.com (703) 589-3848 44
  45. 45. Kitchen Makeover www.themodelhomelook.com (703) 589-3848 45
  46. 46. Kitchen Makeover www.themodelhomelook.com (703) 589-3848 46
  47. 47. Kitchen Makeover www.themodelhomelook.com (703) 589-3848 47
  48. 48. Kitchen Makeover www.themodelhomelook.com (703) 589-3848 48
  49. 49. Kitchen Makeover www.themodelhomelook.com (703) 589-3848 49
  50. 50. Kitchen Makeover www.themodelhomelook.com (703) 589-3848 50
  51. 51. Bathroom www.themodelhomelook.com (703) 589-3848 51
  52. 52. Bathroom Improvement52 www.themodelhomelook.com (703) 589-3848
  53. 53. Bathroom www.themodelhomelook.com (703) 589-3848 53
  54. 54. Builders have MODELHOMES – Why?TO CREATE SALESThey understand that buyers want ahome in near-perfect ―model home‖move-in condition where all the buyermust do is turn the key in the frontdoor and move in. www.themodelhomelook.com (703) 589-3848 54
  55. 55. Reasons HomeownersDo Not Invest to Selltheir Home?• Don’t have the time• Think it is too costly• Unsure of which improvements yield the highest return• Believe their personal decoration style is appealing to today’s homebuyers• Believe that a price allowance can be made when the home is sold www.themodelhomelook.com (703) 589-3848 55
  56. 56. Fixing Up Your House to Sell – Session 2 Mike Ford Licensed Home Improvements Contractor Licensed Real Estate Salesperson(703) 589-3848
  57. 57. What Buyers WantHighlights from theNATIONAL ASSOCIATIONOF REALTORS®2007 Profile of BuyersHome Features Preferences
  58. 58. 1. What single home feature do buyers say they want most in a new home? a) Walk-in closet in master bedroom b) Central air conditioning c) Backyard d) Fully finished basement www.themodelhomelook.com (703) 589-3848 58
  59. 59. 2. What’s the median size of homes purchased between late 2005 and early 2007? a) 2,230 square feet b) 1,840 square feet c) 1,450 square feet d) 1,000 square feet www.themodelhomelook.com (703) 589-3848 59
  60. 60. 3. Repeat buyers tend to be choosier than first-time buyers. In particular, repeat buyers place much more emphasis on these home features: a) Fireplaces and air filtration systems b) Bay windows and finished basements c) Oversized garages and master bedroom walk-in closets d) Backyards and proximity to entertainment www.themodelhomelook.com (703) 589-3848 60
  61. 61. 4. Within three months after buying a home, nearly half of all buyers remodeled or made improvements to which part of the house? a) Master Bathroom b) Backyard c) Kitchen d) Home office www.themodelhomelook.com (703) 589-3848 61
  62. 62. 5. Which home feature saw the biggest jump in buyer popularity since 2004, when NAR conducted its previous buyer preference survey? a) High-speed Internet access b) Media room c) Eat-in kitchen d) Oversized garage www.themodelhomelook.com (703) 589-3848 62
  63. 63. 6. What three features did buyers say they’d be most willing to pay extra for in a home? a) Proximity to work, a wooded lot, and a backyard or play area b) Whirlpool baths, proximity to schools, and a deck c) A corner lot, a lawn sprinkler system, and high-end kitchen appliances d) Central air conditioning, walk-in closets, and hardwood floors www.themodelhomelook.com (703) 589-3848 63
  64. 64. 7. A home’s energy efficiency is most important to which segment of buyers? a) Repeat buyers b) Second-home buyers c) New-home buyers d) First-time buyers www.themodelhomelook.com (703) 589-3848 64
  65. 65. 8. Where do first-time home buyers tend to purchase a home? a) Rural area b) City or urban area c) Suburb or subdivision d) Small town www.themodelhomelook.com (703) 589-3848 65
  66. 66. 9. What’s the most common type of home purchased? a) Single level b) Split level c) Two levels d) Three levels www.themodelhomelook.com (703) 589-3848 66
  67. 67. 10. What did new-home buyers most wish their home had more of? a) Storage b) Bedrooms c) Kitchen space d) Bathrooms www.themodelhomelook.com (703) 589-3848 67
  68. 68. What single home featuredo buyers say they wantmost in a new home? a) Walk-in closet in master bedroom b) Central air conditioning c) Backyard d) Fully finished basement www.themodelhomelook.com (703) 589-3848 68
  69. 69. What’s the median size ofhomes purchased betweenlate 2005 and early 2007? a) 2,230 square feet b) 1,840 square feet c) 1,450 square feet d) 1,000 square feet www.themodelhomelook.com (703) 589-3848 69
  70. 70. Repeat buyers tend to be choosierthan first-time buyers. Inparticular, repeat buyers placemuch more emphasis on thesehome features: a) Fireplaces and air filtration systems b) Bay windows and finished basements c) Oversized garages and master bedroom walk-in closets d) Backyards and proximity to entertainment www.themodelhomelook.com (703) 589-3848 70
  71. 71. Within three months afterbuying a home, nearly half ofall buyers remodeled or madeimprovements to which partof the house? a) Master Bathroom b) Backyard c) Kitchen d) Home office www.themodelhomelook.com (703) 589-3848 71
  72. 72. Which home feature saw the biggest jump in buyer popularity since 2004, when NAR conducted its previous buyer preference survey? a) High-speed Internet access b) Media room c) Eat-in kitchen d) Oversized garage2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 72
  73. 73. What three features did buyers say they’d be most willing to pay extra for in a home? a) Proximity to work, a wooded lot, and a backyard or play area b) Whirlpool baths, proximity to schools, and a deck c) A corner lot, a lawn sprinkler system, and high-end kitchen appliances d) Central air conditioning, walk-in closets, and hardwood floors2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 73
  74. 74. A home’s energy efficiency is most important to which segment of buyers? a) Repeat buyers b) Second-home buyers c) New-home buyers d) First-time buyers2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 74
  75. 75. Where do first-time home buyers tend to purchase a home? a) Rural area b) City or urban area c) Suburb or subdivision d) Small town2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 75
  76. 76. What’s the most common type of home purchased? a) Single level b) Split level c) Two levels d) Three levels2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 76
  77. 77. What did new-home buyers most wish their home had more of? a) Storage b) Bedrooms c) Kitchen space d) Bathrooms2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 77
  78. 78. What Buyers WantHighlights from theNATIONAL ASSOCIATIONOF REALTORS®2007 Profile of BuyersHome Features Preferences
  79. 79. National Association of Realtors Survey • Home buyers were asked about 75 features and room types to assess the importance of each • Buyers who didn’t get a feature they desired in the home they purchased, were asked how much extra they would have been willing to pay to get it • The survey examined home improvement or remodeling projects undertaken by recent buyers • The survey is based on 2,530 responses from buyers who purchased a home in between late 2006 and early 2007 • The sample was obtained from Experian, a firm that maintains an extensive database of recent home buyers derived from county records2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 79
  80. 80. What was Important while searching for a home? It was “very important” to find a home with: Central air conditioning 74% Garage with 2 or more spaces 57% Walk-in closet in master bedroom 53% Backyard or play area 50% Cable/Satellite TV-ready 46% High-speed Internet access 40%2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 80
  81. 81. Oversized Garages are The New Big Thing With Buyers • The most significant change between the previous & current survey in what buyers consider very important is oversized garages (up 16 points) • Hardwood floors, granite countertops, and cable- readiness follow2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 81
  82. 82. Change in Preferences in Time It was “very important” to find a home with: 74% Central air conditioning 73% 57% Garage with 2 or more spaces 41% 53% Walk-in closet in master bedroom 51% 50% Backyard or play area 46% Bedroom on main level 42% 46% Cable/Satellite TV-ready 40% 40% High-speed Internet access 28% Hardwood floors 21% 23% 2007 survey Granite (or similar) countertops 17% 2004 survey2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 82
  83. 83. Age Makes the Biggest Difference in What Buyers Want Walk-in closets for older buyers Back yards for younger buyers2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 83
  84. 84. Examples of Differences in Desired Features by Age of the Buyers Separate shower enclosure in master bath Eat-in kitchen 59% 55% 47% 44% 43% 38% 37% 35% 35% 33% 26% 24% 20% 12% 18-24 25-34 35-44 45-54 55-64 65-74 75 or 18-24 25-34 35-44 45-54 55-64 65-74 75 or older older Backyard or play area Walk-in closet in master bedroom 71% 60% 59% 62% 53% 57% 58% 53% 45% 44% 35% 35% 17% 14% 18-24 25-34 35-44 45-54 55-64 65-74 75 or 18-24 25-34 35-44 45-54 55-64 65-74 75 or older older2/10/2011MikeFord(703) 589-3848 The 2007 NAR Profile of Buyers Home Features Preferences 84
  85. 85. Energy Efficiency is Most Important to New-Home Buyers As buyers age, this becomes more important2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 85
  86. 86. How Important was a Home’s Energy Efficiency When Searching for a Home? ALL BUYERS 46% 46% 8% First-time buyers 41% 49% 10% Repeat buyers 50% 44% 6% Buyers of new homes 65% 31% 4% Buyers of existing homes 39% 52% 9% 18-24 32% 48% 20% 25-34 38% 53% 10% 35-44 42% 51% 7% Age of Home Buyer: 45-54 55% 41% 5% 55-64 57% 39% 3% 65-74 56% 37% 7% 75 or older 63% 31% 6% Very important Somewhat important Not important 2/10/2011Mike www.themodelhomelook.com FordThe 2007 NAR 589-3848 (703) 589-3848 (703) Profile of Buyers Home Features Preferences 86
  87. 87. Bigger and Younger From 2004 to 2007, the size of the typical home purchased increased by about 100 square feet The median age of homes purchased decreased from 15 to 12 years2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 87
  88. 88. Characteristics of Homes Purchased 2007 2004 Medians Size of home 1,840 sq. ft. 1,730 sq. ft. Age of home 12 years 15 years Number of levels 2 1 Number of bedrooms 3 4 Number of full bathrooms 2 2 Number of fireplaces 1 1 Central air conditioning 83% 83% Garage 82% N/A Basement 41% N/A Previously owned 71% 71% Purchase price (median) $205,000 N/A2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848of Buyers Home Features Preferences The 2007 NAR Profile 88
  89. 89. Detached and Suburban Over four-fifths of homes purchased are detached single-family homes More than half are located in the suburbs2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 89
  90. 90. Type and Location of Homes Purchased Detached single-family 82% home Townhouse/row house 7% Apartment/condo in 5 or 5% more unit building Duplex/apartment/condo 5% Resort/ in 2 to 4 unit building Recreation Rural area, area, 1% 10% Urban/ Suburb/ Central city, Subdivision, 15% 53% Small town, 20%2/10/2011Mike www.themodelhomelook.comFord The 2007 NAR Profile of Buyers Home Features Preferences (703) 589-3848(703) 589-3848 90
  91. 91. From the Closing Table to the Home Improvement Store Sixty percent of buyers undertook home improvement projects immediately after the home purchase Median amount spent on home improvement or remodeling projects undertaken within three months of the purchase was $4,3502/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 91
  92. 92. Who Did Home Improvement Projects Within Three Months of Purchase? ALL BUYERS 59% First-time buyers 57% Repeat buyers 59% Buyers of new homes 42% Buyers of existing homes 65% Buyers who purchased homes aged: One year or less 42% 2 to 5 years 50% 6 to 10 years 57% 11 to 20 years 64% 21 to 30 years 71% 31 to 50 years 72% 51 or more years 73%2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848of Buyers Home Features Preferences The 2007 NAR Profile 92
  93. 93. Which Home Improvement or Remodeling Projects? Rooms where improvements were undertaken: Kitchen 47% Bathroom(s) 45% Bedroom(s) 43% Living room 31% Family room 22% Garage 18% Home office 14% Features added or replaced: Appliances 39% Lighting 39% Floor coverings 36% Landscaping 35% Additional storage 15% Windows 12% Fencing 12%2/10/2011Mike www.themodelhomelook.comFord The 2007 NAR Profile of Buyers Home Features Preferences (703) 589-3848(703) 589-3848 93
  94. 94. Very Important Home Features on the Rise 60 50 40 30 20 10 0 Granite Hardwood Cable Whirlpool closet/master bath 2007 20042/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 94
  95. 95. Where Buyers will Pay for Key Features 60 50 40 30 20 10 0 Hardwood Floors Granite Countertops Oversize Garage 2007 20042/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 95
  96. 96. Improvement Justification When you consider its value at resale, a home improvement project costs only 20 cents to 25 cents on the dollar. The other 75 cents to 80 cents spent on a project goes directly back into the home through increased value — not to mention increased owner enjoyment. Kermit Baker, director of the Remodeling Futures Program at the Joint Center for Housing Studies at Harvard University.2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 96
  97. 97. What to Expect to Pay for the Improvements • Kitchens • Countertops • Bathrooms • Flooring • Painting • Decks • Landscaping • Maintenance2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 97
  98. 98. Kitchens Basic improvements to your kitchen could be the key to getting your house sold. For most buyers, the kitchen is the heart of the house. • Paint the walls and update the floor if necessary. • Replace old cabinet hardware — a low- cost improvement that makes a big difference in appearance. • Be sure to go with a classic design and, if possible, use high quality materials. Replace dingy-looking or dated cabinets.2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 98
  99. 99. Kitchen Cabinet RefacingExpect to pay $130 to $150 per opening. This means every single opening in your kitchen... doors, drawer fronts and false fronts. Each door is an opening. The average price for materials and labor, runs anywhere from $4,000 to $8,000 depending on door style, wood species, stain choice, and decorative trims. www.themodelhomelook.com (703) 589-3848 99
  100. 100. The Downside to CabinetRefacing1. Limited to existing layout2. Materials limitations - There generally are three finish options: plastic laminates, rigid thermofoils (RTF) and wood veneer.3. Other conditions that rule out refacing include existing cabinets that are beginning to fall apart or arent well built to begin with; metal cabinets that are rusting; and larger structural issues, like floors that have settled and left cabinets out of kilter. www.themodelhomelook.com (703) 589-3848 100
  101. 101. Kitchen – Midrange MajorRemodelThe average amount spent on a midrange update in the U.S. is $58,897.00. Resale Value - $43,456 Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 101
  102. 102. Kitchen – MidrangeMajor Remodel• Update 200-square-foot kitchen• 30 linear feet of semi-custom wood cabinets• 3-by-5-foot island• Laminate countertops• Standard double-tub stainless-steel sink with standard single-lever faucet• Energy efficient wall oven, cooktop, ventilation system, built-in microwave, dishwasher, garbage disposal• Custom lighting• Resilient flooring• Painted walls, trim, and ceiling. Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 102
  103. 103. Kitchen – Upscale MajorRemodelThe average amount spent on a major kitchen-remodeling job in the U.S. is $115,436. Resale Value - $69,048 Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 103
  104. 104. Kitchen – UpscaleMajor Remodel• Update outmoded 200-square-foot kitchen• 30 linear feet of top-of-the-line custom cherry cabinets with built-in sliding shelves and other interior accessories• Stone countertops• Imported ceramic- or glass tile backsplash• Built-in refrigerator, cooktop, and 36-inch commercial grade range and vent hood; built-in warming drawer, trash compactor, and built-in combination microwave and convection oven• High-end undermount sink with designer faucets• Built-in water filtration system• General and task lighting including low-voltage undercabinet lights• Cork flooring, cherry trim. Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 104
  105. 105. Countertop Types Type Price Per Square Foot Granite $49.00 to $100.00 + Corian® $40.00 to $85.00 Laminates $15.00 to $30.00 Engineered Stone (Silestone®) $70.00 to $120.00 Marble $69.00 to $79.00 Limestone Approximately $100.00 Soapstone $55.00 Polished Concrete, Glass Approximately $80.00 (Icestone) Volcanic Lavastone Starts at $250.002/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 105
  106. 106. Countertop Types Granite The most popular choice. Durable and lots of color choices Corian® Not too popular in the Northern Virginia market. Has a ―plastic look‖ Laminates Low end countertop Engineered Stone Gaining popularity! More color choices than (Silestone®) in the past Marble Italians have been using it for years. Not as durable as granite Limestone Looks great, but not very durable Soapstone Looks Great – Scratches easily Polished Concrete, Glass Glass (Icestone) – Requires more (Icestone) maintenance Volcanic Lavastone Very Expensive2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 106
  107. 107. Bathroom – MidrangeMajor Remodel A midrange full-bath remodeling job in the U.S. has an average price tag of $17,167. Resale Value - $12,052 Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 107
  108. 108. Bathroom – MidrangeMajor Remodel• Update an existing 5-by-7-foot bathroom• Replace all fixtures• 30-by-60 inch porcelain-on-steel tub• 4-by-4-inch ceramic tile surround• Single-lever temperature and pressure- balanced shower control• Standard white toilet• Solid-surface vanity counter with integral sink• Recessed medicine cabinet with light• Ceramic tile floor Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 108
  109. 109. Bathroom – UpscaleMajor RemodelThe average amount spent on a major upscale bathroom remodeling job in the U.S. is $55,398. Resale Value - $32,547 Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 109
  110. 110. Bathroom – UpscaleMajor Remodel• Expand an existing 35-square-foot bathroom to 100 square feet within existing house footprint. Relocate all fixtures• 42-by-42-inch neo-angle shower• Ceramic tile walls with accent strip• Recessed shower caddy• Body-spray fixtures• Frameless glass enclosure• Customized whirlpool tub• Stone countertop with two sinks; two mirrored medicine cabinets with lighting• Compartmentalized commode area with one-piece toilet• Humidistat controlled exhaust fan• Color fixtures• Larger matching ceramic tiles on the floor, laid on the diagonal with ceramic tile base molding• General and spot lighting including waterproof shower fixture• Custom drawer base and wall cabinets for a built-in look• Extend HVAC system• Electric in-floor heating and heated towel bars. Source: Remodeling 2010–11 Cost vs. www.themodelhomelook.com Value Report (www.costvsvalue.com) (703) 589-3848 110
  111. 111. Flooring Hardwood Floors $7.00 to $12.00 per square foot Ceramic Tile $6.00 to $10.00 per Floors square foot Carpet $18.00 to $30.00 per yard Laminate Floors $6.00 to $12.00 per square foot Vinyl Floors $18.00 to $30.00 per yard2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 111
  112. 112. Paint For most exterior paint jobs, labor makes up about 75-85% of the cost of painting your house, while actual paint and supplies makes up only 15-25%. Do not skimp on paint quality when choosing your paint. Paying a few extra bucks per gallon might add $200 to the total job, but if your paint lasts for 8 years instead of 4 years, that is a pretty minor expense to incur.2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 112
  113. 113. Paint Costs typically average $1,500-$3,000 for an average single-story, three- bedroom home, but easily run $3,000- $5,500 or more for a multi-story or multi-level larger house.2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 113
  114. 114. Inexpensive Tip #6 • Adding crown molding, wainscoting and coffered ceilings can have an immediate impact on your home. • Replacing baseboard, casing and chair rail can have a dramatic effect as well.2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 114
  115. 115. Decks Installing a deck may be the most cost- efficient way to add square footage to your house, and of all the outdoor home improvements except painting, it may be the most reliable value. Deck additions average $14,7282/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 115
  116. 116. New Space As a rule, improvements that increase the functional space of a home hold their value longer than ones that just make a house look better. Its also significantly cheaper than adding an addition to your home. Converting an attic into a bedroom, for example, usually costs about $35,9602/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 116
  117. 117. Basement Turning your basement into a room for socializing will set you back, on average, $56,7242/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 117
  118. 118. Landscaping Fancy gardens — which will require time and money to tend — usually wont add to the offering price. • In general, landscaping is for your own enjoyment. It may be a $40,000 investment, but it will not add $40,000 to the value of your house. • The same goes for expensive fences and stone walls. They look nice, but buyers dont pay up for them.2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 118
  119. 119. Home Maintenance It may not be all that enjoyable, but its the basic improvements that may have the greatest return on your homes value. "You could have a beautiful new kitchen, but if your roof is leaking, you have a real problem. So if youre thinking of putting your house on the market in the next year or so, be sure to tackle any problems with the homes structure or mechanical systems before you, say, install that hot tub youve always dreamed of.2/10/2011Mike www.themodelhomelook.comFord (703) 589-3848(703) 589-3848 119

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