10 Things You Must Put in Your Next House

Americans love getting a deal, which might begin to explain why so many consumers flock to shopping malls on Black Friday. Of course, they aren't always ending up with a real bargain, but sometimes this doesn't matter. As long as an item or service has a high perceived value to people, there’s a good chance they’ll choose to buy it. 

That is why staging is so important, as well as adding improvements to your home that have a high perceived value. By creating this higher perceived value, you will stand a better chance of closing the deal with buyers. Try offering higher value at a lower total cost. For example, if your kitchen was inexpensive to build, but looks like it costs you a fortune to have installed, you will have accomplished raising the perceived value of your home. home. 

Here are a few ideas of ways to make your home stand out.

Radiant-heated bathroom floors

Forget fancy water-filled tubes embedded in concrete. You can now buy simple mesh-and-wire mats that install fast and easy under ceramic tiles. The cost range is quite wide to do your homework. They all come with a variety of thermostats and configurations. 

An average Electric Floor Heating Kits runs on 120 volts and puts out roughly 12 Watts Per Square Ft., capable of heating an area of 20 sq. This feature eliminates waking up to a cold bathroom floor. 

Stone counter tops 

Sea Grass Limestone Countertop

Kitchen counters play a huge role in establishing value in a kitchen. Many older homes came with melomar type counter. Upscale kitchens upgraded those to butcher block. 

Over the years, decorating tastes changed, and most upgrades today include a granite counter top as a minimum feature. Counter tops are trending towards more exotic stones, metals and glass. There are many choices in quality and color. Choose wisely as quality can greatly vary.    

Glass tiles

Yes, glass is cool and getting cooler. And yes, it’s pricey, but can make a room stand out. If you have a smaller budget, use glass sparingly as a kitchen or bath backsplash to liven things up. Glass themes like our example and add creativity and style. It reflects light, shimmers with color, and is virtually maintenance-free. If you shop carefully, you can buy it for as little as $7 a square foot from importers directly.

Dual flush toilet

Yes, now we have high tech push button toilets. It's all part of the effort to save water. Each button on a dual flush toilet uses a different amount of water based upon whether or not you are flushing liquids or solids. Literally, number 1 or number 2. Go figure. One can only imagine the perceived value of a dual-flush toilet installed in a powder room close to a public area.  The pricing is about $250, but there are deals everywhere. That is about $130 or so more than a standard toilet, but adding a dual flush can save a typical family of four up to 6,000 gallons of water per year.

Low-flow showerheads

The California Energy Commission adopted new standards for shower heads this past August in a move that will eventually lead to the toughest water use rules in the nation. Read more here..

There’s a chance you’ve used a new low-flow showerhead and don’t even know it. And that’s the point. These units use air to deliver the same robust performance as a traditional showerhead, but with a flow rate of 1 gallon per minute as opposed to 3.5 gallons a minute. THere are different designed that use turbines built into the units.  

Tankless water heater

An on-demand (or tankless) water heater is an excellent choice for an endless supply of hot water. They cost a bit more than your average tank style unit, but instead of heating water at a constant temperature 24 hours a day, the energy-saving unit only activates when there is a need for hot water somewhere in the house. What's more, it hangs on the wall saving floor space, and you have the option of installing it inside or outside your home. 

Remember, once you make the change to tankless, you will always want to make sure you have enough drinking water on hand in case of emergency. 

Water re-circulator

Whether you have a tank type or a tankless water heater, one of your best strategies for saving water is by installing a water recirculation system. If a tankless water heater is a little too edgy (and costly), you can still give your home buyers instant hot water by using a high-efficiency conventional heater and a water re-circulator. With the push of a button, the device circulates ambient-temperature water from the line so hot water is instant and nothing is wasted down the drain waiting for the water to get hot.

Folding patio-doors

Nothing says open floor plan like folding patio doors. This feature allows you to completely remove the barrier to your private outdoor areas. In 2007, four out of the most popular 10 products among BUILDER readers were folding patio-door systems. Here's why: When closed, these doors look like any other, but they fold up like an accordion to provide access to the great outdoors. Full-wall installations are pricey, but you can reduce cost with a two-panel system.

Central vacuum

A central vacuum cleaner is a built-in system consisting of a power unit, collection canister, and hose. Connected by special pipes installed within interior walls, the system collects dust and deposits it in the centrally located canister. Five times more powerful than an upright, it’s quiet and efficient. Plus, an entry-level system can cost as little as $800. Most people who have lived in homes that have had them prefer having it than not having it. The convenience of not having to lug heavy equipment around the house. 

Insulation 

Insulation isn’t sexy, but when it’s 95 degrees in the summer or the mercury dips below freezing in the winter, your buyers will thank you for this, even if they didn't see the perceived or real value when they first signed the sales contract. Forget the entry-level insulation, and go for something that will really stuff the wall and the roof. While you’re at it, don’t forget the attic. 

Material manufacturers have applied some interesting technology like this pictured product that takes phenolic foam as the core material, which is reinforced by Aluminum foil on both sides. It is of light weight, high performance, on-combustible, fire-proof, excellent thermal insulation and heat preservation, which is widely used as walls and partition boards.  

Looking for a new home? If you or a friend or relative is looking for a new home, have them contact me. I can help you sell your current home and find the perfect new home. Complete the Client Registration form to receive daily listings by email that match your specific search criteria.

Is There Another Real Estate Market Bubble Developing?

According to David Girling, President of the Newport Beach Association of Realtors and a financial expert, feels that four of five economic indicators portend a correction, but not of the magnitude that was seen in 2006-2007. 

In an article published this month in OC Realtor, David comments that "Any significant

increase in interest rates will have an impact on our real estate market, most notably on buyer purchasing power."  Let's take a look at the five indicators that may signal price corrections and see if there is any validity to this talk of a real estate bubble:

Housing Affordability

Rising home prices have impacted housing affordability, and affordability has been decreasing across the country since the beginning of the year. In California, the percentage of home buyers who could afford to purchase a median-priced, existing, single family home in the second quarter of 2015 was at 30 percent according to the California Association of

REALTORS® (C.A.R.) Housing Affordability Index (HAl). The HAl peaked at 56 percent at the beginning of 2012. The median price for a home in California has doubled since February 2009, while the median price for a home in Orange County has risen 62 percent in that same period (see Figure 1). Wages have not kept pace, so fewer people have been able to afford to buy as prices have climbed. Housing affordability is one of the most critical barometers of the health of our real estate markets. David concludes that unless wages keep pace, a correction in prices may be warranted. 

Housing Inventory Levels
Housing inventory levels remain extremely low. David offers a few of the reasons why:

1. Higher property taxes for any comparable property purchased.
2. Fear of not finding replacement housing because of high rents.
3. The negative equity many homeowners still can y.
4. Reluctance to give up favorable interest rates from 2013 even though today's rates are still low.
5. The challenges smaller builders are experiencing in procuring loans.
6. The capital gains taxes that many homeowners will face if they sell (This may be the most important reason.)

All six of these reasons affect inventory levels; but in the aggregate, the result David feels may be low inventory levels for extended period of time. As long as demand remains strong and supply low, home prices will be supported at their present rate.

Foreign Investment and the Stock Market
David comments that during the week of August 25, the stock market suffered its worst losses since 2010, falling more than one thousand points for the week (a 5.8 percent drop). While the market recovered some, as of August 31, it was still down 7.3 percent since the beginning of 2015. In large part, the drop was the result of the devaluation of the Chinese currency (yuan), combined with weak economic growth in China. This relationship between a drop in the U S. stock market and China's economic woes should confirm that ours is a global economy. As we know, foreign investment in U S. real estate and other factors, such as low interest rates, have buoyed home prices. Further, a strong dollar makes U.S. real estate seem more expensive. Many foreign investors- especially Chinese investors- are buying real estate in the United States because it is a safe haven; however, it will be important to see how recent developments affect foreign investment in U S. real estate going forward, especially when US. real estate appears to be more expensive.

The conclusion he draws here is that a strong dollar, combined with losses in the equity markets, may cause foreign investment to slow. How long will the need for safety override these factors? A slowdown in foreign investment would certainly create softness in home prices.

2006-2007 Peak Price Levels
Some experts think that, once housing prices return to the peak levels of 2006-2007, we may be close to another bubble. Driven by low interest rates, limited inventory, good buyer demand, and improved job markets, prices in some areas of California are approaching
those peak levels. However, in May, the California median home price was more than 18 percent below peak levels. Orange County median prices, although closer, are 7 percent from peak levels. As of June 30, Newport Beach prices are 11 percent off peak levels
according to the Newport Beach Home Price Index shown on the right. 

As prices approach peak levels in some areas, some experts believe that those areas will develop mini bubbles. The market may very well be in store for a correction, especially since many of the fundamentals that existed in 2006-2007 have not corrected to peak levels.

Interest Rates

Along with foreign investment in U.S. real estate, low interest rates have supported real estate prices. For the better part of two years, the Fed has been talking about an increase in interest rates. Easier said than done! Any significant increase in interest rates will have an impact on our real estate market, most notably on buyer purchasing power. Mathematically, for a given increase in rates, payments will be higher and, thus, purchasers will be able to afford less.

The conclusion to draw here according to David is that higher interest rates will further reduce housing afford ability and may lead to a price correction.

The Bottom Line
A "real estate bubble"? Some analysts will tell you that we are not nearing a real estate
market correction. One camp references studies that show we still have a few years to run in this current real estate cycle before there is a correction. Others will say a bubble is just around the corner. Four of the five economic indicators discussed above suggest a correction in housing prices, but nothing like the crash we experienced in 2006-2007.

Looking for a new home? If you or a friend or relative is looking for a new home, have them contact me. I can help you sell your current home and find the perfect new home. Complete the Client Registration form to receive daily listings by email that match your specific search criteria.

Preparing Your Home for Colder Weather

Do you make a home maintenance and repair schedule each year? You should, and they are easy to make. Basically it's a to do list of chores to do before summer and chores to do before winter. Sprinkled in between are all those wonderful home improvement projects. An afternoon of maintenance in the fall or spring can save time and money when the winter or summer hits. 

Here are several areas to check and inspect before the cold arrives:

Gutters -- If you don't have them you should. Not only can they collect and direct rainwater away from your foundation, they can also help you to capture it for use in your indoor planters. Clean them out before and after the leaves fall. Even if you don't have trees shedding leaves, you will still have debris that collects and washes down into them. To make the occasional cleanup job even quicker, install gutter guards, which help prevent leaves from clogging up gutters.

Roof -- While you have the ladder out, take a look at the roof. Check for damaged or torn shingles and replace them. Also look for cupping or areas that look concave. The latter can can be an indicator of damage to your sub-roof. If in doubt, give your trusted roofer a call. Next inspect the flashing around skylights, the chimney and any roof vents. Replace bad flashing before a winter storm tests it for you. Also make sure that the caulking around the flashing is still doing the job. If not, a little touch up is in order. Also, make sure that you have a screen covering any gable vents to the attic, or pockets under the eaves. A warm, dry place is exactly what pests are looking for on a cold night.

Windows -- After the heat of summer, the seals around windows can expand and contract, and the rubber can become brittle. Check for air leaks around your home, including around window frames. If you find gaps, re-caulk as necessary. Check with your home improvement store. Caulk is sold in a multitude of formulas and colors. Make sure you are using the right mix for the job. 

Chimney -- Over time, soot and creosote can build up in chimneys, which can become dangerous. Over time, the layers build up on the walls of your chimney flew and can restrict the air flow that is moving the smoke out of your fireplace and out of the house. The build up can also be  afire hazard. You can clean out the ashes yourself, but if you use your fireplace often, schedule a more advanced cleaning with a chimney sweep each year. Another option is to purchase and burn a creosote sweeping log in your fireplace twice a year. Also, in seismically active areas it's always a good idea to check the structure of the chimney itself. Are there any broken or missing bricks, or has it started to pull away from the house? I've seen damage like this before in Orange County CA, so I know it must also occur in other markets. 

Furnace -- Annual furnace maintenance is an important task to leave to a professional who can make sure the system is safely able to keep you warm throughout the winter. What can homeowners do? Change the air filter regularly to ensure proper and efficient airflow. Make sure that your vents are clean and free of debris. Consider a vent cleaning as dust and dirt that blow by your filter (that sometimes you forget to change) and lands in the duct work of the house where it can blow into your rooms thus creating moire sneezes and dusting. They make both disposable and reusable filters. All have rating for purity. If allergies are an issue, I would recommend looking at an air purifier upgrade for your furnace. 

Detectors -- Fall is a good time to replace the batteries in both smoke and carbon monoxide detectors. Use daylight saving time as a reminder, and make the battery change right after you set back any of your unconnected clocks in your home. 9 volt batteries have gotten ridiculously expensive, but don't let that expense of changing them deter you. They sell inexpensive 9 volt batteries, as well as other sizes, for a dollar at most stores of this type.   

Yard -- Fall is no time to skimp on yard maintenance. Make sure to keep the leaves raked or mulched, as leaves can hold moisture in the soil and cause a variety of lawn diseases. Fall is also the perfect time to aerate the lawn. Aeration involves perforating the soil with small holes to allow air, water and nutrients to penetrate the grass roots. This helps the roots grow deeply and produce a stronger, more vigorous lawn that can require less watering. There are several tools available on the market, as well as service providers who will aerate and fertilize your lawn for you.  

Drain Hot Water Heater -- Draining your hot water heater one or twice a year will remove sediment. Be sure to take a moment to make sure the pressure valve is working properly.

Clean Washer and Dryer -- Take this opportunity to clean and maintain your washer and dryer. Check the hot and cold water hoses for cracking and leaks. Clean or replace the water inlet filter on your washer. Move the dryer away from the wall, take the vent hose off of the back of the dryer, and use a vacuum cleaner to remove lint from the ducts. Lint build up is a huge fire hazard, so make sure you reach in there and pull out any large clumps of lint that might get stuck in the folds of the duct. 

Trim Tree Limbs -- Check your trees for limbs that are growing dangerously close to power lines or to your roof. If you have tree limbs that are close to your roof or close to power lines, make sure they are trimmed before winter. Heavy snow and ice on branches can cause them to break, and fallen branches can cause lots of damage to your home or utilities. You don’t want to be stuck in the cold without power!

Looking for a new home? If you or a friend or relative is looking for a new home before winter arrives, have them contact me. I can help you sell your current home and find the perfect new home to spend your fall, winter, and beyond. Sign up to receive listings by email.