5 Home Improvements that COST you money at closing

You are selling your house, you have a great Realtor, of course, and you are getting traffic, but no offers. Could it be because of one of these 5 reasons? 5 Home improvements that cost you money and keep you from closing.....

When home owners think of renovations, home improvements or other additions, they are often thinking of ways to increase the value of their homes. Typical renovations do increase value, so it is a logical thought, whether a homeowner plans to stay in their home long-term or they are preparing to sell.

What homeowners may not realize is that some home renovations or home improvements actually can decrease the value of their homes. Yes, you read that correctly. There are home “improvements” that can lower the value of your home.

If you are considering making renovations to your home this spring or summer, here are five that you may want to avoid:

1. Wild Colors and Wallpaper

Bright colors and patterned wallpaper may be in for the moment, but homeowners who choose to go the trendy way with their home improvements and renovations need to proceed with caution, particularly if they intend to sell anytime soon. Your shrine to the Cowboy Cheerleaders will probably not win you many fans, unless you are in Dallas.

Today’s buyers often are seeking homes that are move-in ready and if they see a home they like, but know that painting or tearing off wallpaper will be one of the first things they have to do when they move in, they may be less likely to make an offer.

So, that bright home renovation idea can become a dark spot for some homeowners.

2. High-End Enhancements that Outshine Your Home

We can’t say enough about updated kitchens and baths, but there is a limit when it comes to renovating these high traffic areas of the home. Many of today’s home improvement shows may encourage homeowners to install professional kitchens or luxury bathrooms in their homes. While those high-end features may be a dream for some, the reality is that they don’t always fit the motif of many homes. This is particularly true if the kitchen and bathrooms are the only areas of a home that receive those high-end updates. They actually can make the rest of the house appear less enticing.

Do you really need a $5,000 stove to make fried eggs or will the $500 item work just the same? Safe bets for kitchen and bath improvements? Stick to the countertops, cabinets and sinks.

3. Outlandish Landscaping

When homeowners hear the words “curb appeal,” they often want to do everything they can to make their home stand out among their neighbors’ homes. But, it is important to consider the reasons that a home’s exterior stands out in a neighborhood. That shrine you saw to Mickey Mouse at Disney belongs there at Disney, not in your front yard when trying to sell your house.

Yes, greening up a lawn, pruning shrubs and planting flowers are all great ways to enhance a home’s beauty. Adding expensive fountains, ponds or other intricate lawn décor that make it harder to keep a lawn well-manicured can not only be considered eye sores, but they also can detract from a home’s selling potential due to their high maintenance issues.

When it comes to landscaping improvements around the house, simplicity may be the key to increasing home value.

4. Bedroom Conversions Gone Crazy

Everyone loves functionality; so, when Jimmy and Susie are heading off to college, the thought of turning their bedrooms into a home office, gym or sewing room may seem like an excellent idea. But, for homeowners who intend to sell any time in the near future, those short-term improvements can cause long-term headaches. Take your office apart, you're moving anyway, make the office back into a bedroom.

When a buyer sees a home advertised as a three-bedroom beauty, they want to see three bedrooms. One bedroom plus a home office and a small gym may make it hard for them to envision themselves and their children calling the house “home.” Give them the three bedrooms, make it easy for the buyer to see three real bedrooms.

If you’re a homeowner with intent to sell, keep in mind that you may be deconstructing that home gym to restage Jimmy’s bedroom for the sales process.

5. Waterworks that Just Don’t Work

Installing a hot tub or pool at a home may seem like a no-brainer for increasing home value. However, those expensive upgrades can detract from a home’s value and resale potential. Of course, for homeowners in it for the long haul, home spas and pools can be dreams come true.

For homeowners with any intent to sell, these water additions can leave them all wet. Some buyers can find another person’s hand-me-down hot tub to be a bit of a turn off, either for sanitary or other maintenance reasons. Depending on the weather in your region, a pool sometimes can be seen as impractical as well. I envision every owner having 20+ people in a hot tub at once, ick!

The bottom line when it comes to home renovations or home improvements is to choose wisely. When it comes to home improvements, one person’s treasure can end up being another person’s trash.

Bottom line, unless you inherited the house with all of these lovely new additions, you will catch far more opportunities to sell the house if the amenities are plain vanilla. Turn these over-the-top additions back into the basics when you first purchased the property. Not only will you sell the house quicker, your Realtor has more to work with in terms of working with prospects.

#LizBobeck

Some 32205 and 32210 Home Sales Data here in Jacksonville, FL

Here is some data on the course of sales in #Jacksonville, FL and some of the hotter zip codes in the area. Please enjoy.

With home sales in the 32205 zip code market already below average, in this week's report they slid 9.7% to 28 homes sold over the last 30 days. On the other hand, the close-by 32210 zip code registered 55 homes sold in the same period, the most of all surrounding zip codes. Prices are rising in the 32205 zip code, and the median sales price this period increased from $95,000 to $120,500. The 32205 zip code is a solid buyer's market, thanks to a big nine months of inventory to choose from and a pullback in sales.

Mortgage rates fell this week to 4.30%, signaling that it's probably a good time to think about locking up financing. Some interesting details on 32205

1. The population of Riverside, Avondale, Normandy, Murray Hill has decreased 9.2% in the last 10 years. 
2. The safety rating of this urban area is a 21 out of a possible best 100 score, reflecting the location of houses in such a close area.
3. The average commute to work for people in this area is 23 minutes, showing that most of the folks who make up this statistic work outside of this zip code.

This week saw a record in sales growth for the 32210 zip code market. It resulted in 55 homes selling over 30 days, which is a 14.6% spike from last week's number and also the highest amount since January. When comparing other close-by zip codes within the same period, the most came from the 32244 zip code with 50 sales. As sales reached a new peak, they seem to be correlating to a drop in months of inventory, which hit a three-month low at six months.

1. The average elevation in this area is only 28 feet.
2. The median income per household is $44,449 for this zip code, higher than 32205 which came in at $42,837. 
3. There are more indian named streets in the Ortega area than in any other part of Jacksonville. 

#LizBobeck

Almost 20 percent of U.S. metros will surpass their housing boom peaks in the next year

Before all the naysayers throw me under the bus and claim, "that Zillow data is not worth what you paid for it", well maybe not, but this is interesting to see if it lives up to its claim. Imagine 20% or more of metro areas in the United States surpassing the boom of the earlier years. So while we thought 2005 and 2006 looked frothy,  we may find that the next few years may be worse in some areas.

Home values in almost 20 percent of all U.S. metros will surpass their housing boom peaks over the next year, and affordability problems that have begun to affect a fraction of markets may spread to others over the next few years, Zillow reported.

“The lows of the housing recession are becoming an increasingly distant memory as home values reach new highs and homes become more expensive than ever in many areas,” said Zillow Chief Economist Stan Humphries in a statement. “This is a remarkable milestone coming only two and a half years after the end of the worst housing recession since the Great Depression.”

Home values nationwide were up 0.5 percent from the fourth quarter of 2013 to the first quarter of 2014, and were up 5.7 percent from the same time a year ago, according to the latest Zillow Real Estate Market Report.

Over the next year, Zillow forecasts that national home prices will appreciate by an additional 3.3 percent.

Price gains have already pushed values close to or above their housing boom peak in about 12 percent of the 8,700 markets tracked by Zillow.

Among the more than 300 metros tracked by Zillow, home values in nearly 20 percent of them have already passed or are expected to pass their prerecession peaks over the next year. Those fully or almost fully recovered metros include Dallas, Houston, Denver, Pittsburgh, San Antonio, Texas, San Jose, Calif., and Austin, Texas.

In a most metros, homes will remain affordable even as prices continue to climb, according to Zillow. Markets including San Francisco, Los Angeles, San Jose and San Diego are already unaffordable, however, and as mortgage rates rise, that will become a concern in other markets, Zillow said.

“As affordability worsens, more residents will be forced to search for affordable housing farther from urban job centers, and home values in some areas may have to come down,” Humphries said.

Five ridiculous things Buyers or Sellers say that you hear as a Realtor

In the Real Estate world, Realtors need customers. We need buyers as well as sellers. We know that in sales the 80/20 rule will normally apply where 80% of your business comes from people who use 20% of your time and visa versa. Its just part of sales 101.

For first-time (okay, sometimes second-time) sellers, the process of getting their home sold can be a bit of a mystery. Most sellers are well-intentioned, but in the midst of what can be an emotional or overwhelming experience, sometimes agents may hear a handful of seller sayings that in retrospect and out of context, can seem crazy and out-of-touch, and—yes—even ridiculous.

As an agent, tactfully correcting these sentiments is par for the course. So, here are some of the most common seller sayings, I've heard and some smart insights and troubleshooting tips to keep them from running a successful sale afoul.

1. “But I spent X years or $XX on that!”
One of the biggest perks of home ownership is the ability to customize the home to the personal needs and wants of the owner and their family. One homeowner may find that a soundproof mediation room is a necessity, while another may think that the installed slide in the kids’ room is a wise investment. Sometimes it can be difficult for sellers to understand that while they may value (both emotionally and monetarily) a home feature, potential buyers may not always value that feature in the same way—and that means that they may not be willing to pay for it.

I recently had a client who spent a lot of money in his kitchen. Nice stainless steel appliances, granite countertop, nice island working space and he wanted exactly what he paid out of it. Ever heard of depreciation? Can you sell your car for what you paid for it? The kitchen and the car have miles on them, they need to be sold for a percentage of their value in today's dollars.

So what do you tell a seller who thinks that a particular so-called “enhancement” means that the home is worth more than the current market dictates?

Remind the seller that while some home improvements can increase the value of the home, many should be looked at as features that enhanced their quality of life while the owner lived in the home. But, when it comes time to sell, it comes time to let it go. Emphasize that the enjoyment of those special features was the return on investment. If an eventual buyer also happens to love them, fantastic! But sellers can’t approach the home selling process expecting every buyer to share your value system and pay through the nose for them.

2. “We just need to find a buyer who understands my tastes.”
There are certainly occasions, with rare properties, where there is truly a narrow niche of buyers that will have to find, understand and appreciate a property. In cases like that, with acreage, converted warehouses, horse properties, and the like, this saying is not ridiculous at all.

But this saying is ridiculous when it is uttered by the owner of a home with potentially wide appeal as a reason for not staging or preparing their home for sale, or in the effort to avoid neutralizing highly personal design and decor choices.

If you have a client who is reluctant to make these necessary adjustments, remind them that the goal is to maximize the home’s appeal to a broad segment of ready, willing and able buyers who are willing to pay top-dollar for the home. Why should a seller limit their ability to get the most offers possible?

There are two strategies to take here:

A. Take the seller around on an open house tour to show them examples of sellers who staged their home appropriately and those who kept the home as is and ask them which they feel is more prime for a top sale.

B. Work with your sellers on a Plan B ahead of time. Agree on a time period (30 days, for example). If the home is still on the market, explain that it will be time to course-correct and stage the home.

3. “I want to price it high, so I have room to come down.”
Now, in all fairness—there’s a time and a place for this. By that I mean that there are certainly local markets where it’s very much standard practice for buyers to expect to come in below asking, and sellers can price their properties a few thousand dollars higher than the target price point without killing their deals. Sometimes explaining to a seller when this strategy is appropriate can help them see why now may not be that time.

Explain that if other sellers are pricing appropriately and the seller’s home is priced too high over what the market will bear, many buyers won’t even bother trying to negotiate down. Rather, they’ll go find a home with a more realistic price, they’ll wait until the seller lowers the price or they’ll wait until the home has been lagging so long they sense the seller might be desperate, and will swoop in with a lowball offer.

Even in a relatively hot market climate, the aggressively priced homes get the most buyer traffic and, accordingly, get the most offers. In turn, these bidding wars drive the eventual sales price up. Overpricing it might actually sabotage success.

4. “That offer is an insult— I won’t even dignify it with a response.”
For sellers, a home represents a massive investment of money, time, hopes and dreams. It probably also represents personal tastes, style and some precious memories.

But once it’s on the market, sellers need to get a thick skin and decide not to take anything personally.

Let your seller’s know that if someone offers to pay many thousands of dollars for their home, it’s not an insult, even if the offer is far afield from what they are willing to sell the home for, or from what they believe it is worth. They might be deeply misguided, and not yet experienced enough in the market to know that the offer was unreasonable. Or they might just love the home and be going for it, even though it’s really outside of their personal resources.

Finally, they might actually just be trying to get the seller to come down a bit on the asking price. Some buyers see making a very low offer as part and parcel of negotiations.

In any event, home sellers should always respond to an offer made by a qualified buyer. Remind your clients that they can always respond with what would be appropriate counter. They might be surprised at how even a very low offer can come together with a respectful, reality-based counteroffer and a little negotiating.

5. “I need $X to get the home I want and take my Australia trip—let’s list the place for that.”
There are lots of respectable strategies for setting a list price, but all of them have their basis in one thing: data. Pricing can be the toughest conversation of all to have with sellers. Be firm: The market sets the home’s price. Not some desire for a big vacation. The ultimate value is based on what a qualified buyer is willing to pay for it—not what the seller “needs” to move.

A million dollar listing I recently had, I had to dump the seller, he would not listen in the end, the property was over priced, not getting traffic and he then had the audacity to ask me for the picture I paid for to list the property. I said no, he thinks he can do a swap of a home with someone who has a condo and he is going to market the property better "so he says" than what you can find on MLS. Sometimes you just have to let people do the crazy stuff they want to do, because they think they know best. Sometimes you are just pouring money down the drain with crazy buyers and sellers.

#LizBobeck

Some local data here in Jacksonville

Each month, I like to educate folks about some of what we are seeing in some zip codes of Jacksonville. I do live in 32205, the Riverside Avondale areas of Jacksonville, but I cover and go anywhere I need to help my customer. Here is some information on March sales in a few zip codes:

The 32205 zip code remained below its 12-month average sales volume this week as sales dropped 6.1% to hit 31 homes sold over the last 30 days. In comparison, the nearby 32210 zip code had 52 sales in the same time frame, the most of all neighboring zip codes.

 Prices are falling in the 32205 zip code, and this period the median price of all sales fell from $135,000 to $95,000. The 32205 zip code is a definite buyer's market, due to a big eight months of inventory left and aided by the dip in sales.

Mortgage rates fell this week to 4.31%, signaling that it's probably a good time to think about locking up financing.

http://www.homesnap.com/news/Jacksonville_Metro/Jacksonville/33845

Sales fell this week to 52 homes sold in the 32210 zip code market over the last 30 days. However, a six-week positive trend for contracts was extended, with 85 pending transactions in the same time frame.

Potential buyers should note that prices are coming down in the 32210 zip code, and for this period the median sales price slid from $72,000 to $70,500. The 32210 zip code is a definite buyer's market, thanks to a big seven months of inventory to choose from and a pullback in sales.

It is still a buyer's market aside from all the hype you hear from the national media. You can still find a great deal on a house and a good mortgage rate, below 5%. If you know of anyone looking to buy or sell in the Jacksonville area, please ask them to contact me.

#LizBobeck