What's Cool for Pools?

Dena Kouremetis with Realty Times tell us. Here's a sneak peek.

According to pool builders, beach entries, fire features, water fountains, infinity edges and saltwater pools are all the rage.

One thing they left out was size. I have found that today's consumer wants a smaller pool because they still want to have grassy areas in their backyard, especially if they have children and a playset. In my experience, when buyers in Dallas see an older pool needing work it is a sure bet they will bypass that house simply because of the pool. Hint: If you have an older pool that needs a complete overhaul, you might want to consider filling it in as opposed to renovating it. If a buyer really wants a pool they can build their own. And a nice green backyard can be a perfect blank slate.

When Did a House Stop Becoming a Home?

I've said it before and I'll say it again, if sellers are expecting to make tons of cash selling their homes after living in them for 1 or 2 years, they are simply being unrealistic and, frankly, stupid. Blanche Evans of Realty Times gives us her take on today's consumer,

"Today's homebuyer thinks a home is only an investment. The NASDAQ has never recovered to its 2000 highs because people want the big return on their investment. They could likely look at housing the same way - not interested if it only returns two percent a year. Never mind that two percent a year is the historical norm. They want more."

How did we get to this point? When did homeowners start feeling entitled to lots of money from the sale of their home simply because they purchased it and made no improvements to it while they lived there? How did we go from pride of home ownership and being ecstatic that we were finally able to "realize the American Dream" to a competition of "How much equity were you able to squeeze out of your house?". I'm sure this mindset might have something to do with this.

Best Idea Ever That Will Never Happen

Blanche Evans over at Realty Times continues to impress me with her ability to think outside the box. Add to that her ability to think practically and logically and you have a recipe for genius ideas like the one she offers in this article. The takeaway for those too lazy to read the whole article?

"Services, as a percentage of personal consumption, have grown exponentially. Think cell phones, cable TV, and the Internet. In 1929, services were $30.5 billion, or 29 percent of personal consumption. In 2007, services were a whopping 60 percent of personal consumption.

So here's my plan for avoiding the recession and getting housing back on track. Instead of an economic stimulus package, make the cell phone and cable companies give consumers rebates and better rates on our phone and TV services."

This hits a little close to home for me. Before I got into real estate I was getting my masters in Kinesiology and making about $15,000 a year student teaching, coaching tennis and teaching private lessons on the side. And that's being a little optimistic. But my bills and rent were always paid on time and I was content with my Ramen noodles and Hamburger Helper. When I experienced a little success in real estate I moved up to a more expensive apartment, got the HBO and Showtime package, wireless internet and upgraded from Ramen to chinese takeout. Then came a new car, house, maids, more bills, dry cleaning, fancier dinners. You get the idea. Mo' Money, Mo' Problems.

Today's consumer can easily and quickly become immersed in a never ending sea of bills that are the services Blanche speaks to in this article. What good is a $300 stimulus check from the government going to do for someone whose electricity bill is $350 a month? What about the person who is paying $500 a month in credit card bills with 28% interest rates? Blanche is so right on with this idea. It's just too bad it will never become a reality.

Most Important Improvements You Can Make to Your Home

Many of my clients and friends ask me what things they can do to their home before putting in on the market that will bring in the most bucks. Here's a list of improvements I've compiled based on my experience and reading great articles like this one from Realty Times.

1. Landscaping - This is #1 most underrated improvement that most people ignore but can net you big bucks on your sales price. Curb appeal in both front and back yards can sometimes make buyers over look your somewhat dated interior.

2. Interior and/or exterior paint - A professional paint job makes homes feel freshly updated even though your old furniture looks the same.

3. Put ceramic tile/marble in "wet" areas - Replace that dingy carpet in the bathrooms with ceramic tile or tumbled marble. Use whatever materials are common in your neighborhood.

4. Repair deferred maintenance issues - Replace broken down gutters, replace broken windows and window seals, patch holes in sheetrock, patch roof shingles, fix plumbing leaks, repair AC, water heater, etc. It's tough spending money on these items because they don't impress like brand new floors would, but these are items that will allow you to get closer to your asking price. Pay for these now or pay after the buyer inspects your home.

5. Update your home to "average" - If other homes have stainless steel appliances and granite counter tops and your counters are formica, don't expect to get your money back for that improvement because you didn't "improve" your home. You just brought it up to "average". If other homes have wood floors and you don't, don't expect to get dollar for dollar back for installing wood floors before you list your home.

Remember that there is a difference between a "repair" and an "improvement". Buyers typically want sellers to pay for certain "repairs" in a transaction. Sellers typically want to pay for "improvements" such as tiling the baths but are unwilling to pay for "repairs" before listing. Many buyers are willing to put in a new backsplash in the kitchen but would gladly walk away from a deal over cracks in your sheetrock and 2 broken windows. Add all three of those things together and you can plan on being on the market for a very long time.

If you're thinking about making improvements to your home whether you plan to see or not, you still need to consult a real estate professional (ME!). And yes, that purple wall paper in your kitchen needs to GO!

See? I Told You So

This article from Realty Times discusses overbuilding right on the tail of my previous post about overbuilding in Preston Hollow. The take away line of the article is near the end.

"...homebuilding is still outpacing household formation, which means some areas will continue to have more new homes than they need. "

Yes Preston Hollow, we're talking to you.

And Speaking of Rates

This is a great article from Realty Times giving us the low down on how 30-Year Fixed-Rate interest rates have fluctuated since 1971. Cick here for the awesome info.

As many people have been trying to tell those scaredy cat buyers out there for a while now, "Rates are great and if you're waiting for rates to go below 5% you're going to be waiting for a while." These stats show that the average interest rate for a 30-Year Fixed-Rate loan between 1971 and today is 9.31%! But since 1998 we have had interest rates hovering around 6% so if people can't get the 6% or 5.85% rate they are upset and think they can wait until they drop further. This is poor business decision making logic and if they're not careful they are going to miss the boat and then what? Probably complain some more to their Realtor.

Can you tell I'm in a good mood today?

"Fish or Cut Bait" Among Other Things

Dallas is suffering from buyer paralysis. Home buyers have heard about the horrific real estate doom and gloom for so long that now they now are going to "wait it out". Question: What are you waiting for? Interest rates to rise? Inventory to get smaller. Which means not only less homes to choose from but possible multiple offer situations. This article from Realtytimes.com addresses this issue.

"...you have plenty of housing inventory from which to choose. Sales are slow, so sellers are offering thousands of dollars in incentives to tempt you to buy. Prices are flat. Interest rates are still historically low. Sounds to me like the buyer who has been waiting on the sidelines needs to get off the fence and pull out his checkbook."

I couldn't have said it better myself.