Monday, January 22, 2007

REAL ESTATE TRENDS

Real estate 2007: What's in and what's out

Before you list your house for sale this spring, better check out this list of what's in and what' out for real estate this year. Author and trend-spotter Mark Nash surveyed more than 900 sales agents, brokers and executives and this is what they said.

The housing correction. Nationwide in 2007, project a 5 to 8 percent decline in sale prices for houses and condos.

What's in: Homes that are priced right. Look at only the sold comparables from the past six months. Forget the cocktail party chit-chat when all you heard was record prices.

Online home valuation sites (Zillow.com, etc.). Technology is great when it works, but tread carefully with online valuation websites.

Market timing. Many buyers and sellers were on their own timelines in 2006 and they missed opportunities by not recognizing the real estate market's ebb and flow. Spring is high market, summer is a good market, fall is fair and winter is the remnant market.

Savvy buyers. With interest rates historically low and pent-up demand from a soft year in 2006, the deals and lack of frenzy won't last long.

"Officetels." Home offices are on the rise, though those who work from one need more. Look for alternative work spaces such as hourly rentals of conference room-type spaces that offer technology and privacy.

Upscale garages. Today's garage owners want them decked out with cabinet and storage systems, mini-refrigerators, insulation, heating and air conditioning and durable but residential-looking flooring.

Caving. Man caves and mom caves are coming out of the closet. Personal dedicated space where one can go and work on projects or "chill."

Two home offices. Higher fuel prices and commuting times have created more two-work-at-home families. Make sure each is at least 10-by-10 feet.

Rejuvenation rooms. A one-stop space for exercising, meditation, yoga, sauna and fancy steam showers. Showers are going upscale, too, with waterfall fixtures, programmable temperature and water flow.

Heated patios, walkways and driveways. Baby boomers who are tired of shoveling are looking for ways to decrease winter maintenance.

Snoring rooms. Adjacent second bedrooms to the master, they offer relief from the "buzz saw" and an alternative to the couch.

Modular housing. Many think of the out-dated double wide as the typical modular, but modular options and quality have exploded.

Sustainable design. Energy conservation, indoor air quality and resource conservation.

Structured wiring. Must-haves for technology-based home buyers include coaxial TV cable (RG-6), category 5E voice and data lines, distributed radio and remote camera security.

Mixing finishes on kitchen base and wall cabinets. Matchy-matchy is out in kitchen design. The new look is to have stained-wood bases and painted-wood upper cabinets.

What's out: "As is" in home sale marketing. Anything went in the boom market, but if you're planning to use "as is" in 2007, forget it. Buyers see it as a red flag about the home and you the seller.

Buyer incentives. Free cars don't sell houses; realistic pricing does. Gimmicks only confuse and distract buyers.

Endless open houses. Desperation is when your home is open every Sunday. Buyers know and track it. Plan on every three weeks to have a public open house.

Over-full-price offers. One thing that won't change in 2007 is that every buyer will want a deal, and walk if they don't get one.

Bedrooms not large enough for a bed. In the boom, rehabbers and developers learned the fastest way to profit was to increase the room count. Bedrooms shrunk to walk-in closet size when a four-room one-bedroom was gut-rehabbed into a four-room two-bedroom.

Loads of glass upper kitchen cabinet doors. Buyers say it looks great, but many who specified and experienced it firsthand don't have the time to keep their kitchen cabinets organized. Plus, having more glass in a greasy room such as a kitchen is high-maintenance.

Bowl-shaped above-counter bathroom sinks. The splashing and overall upkeep have earned these the reputation of nice to look at, but don't want one.

Any shiny metal finish. Brushed nickel and pewter is in, antiqued and polished brass is out.

Stainless-steel refrigerators and dishwashers are a fading trend. The cold look and higher maintenance is shifting buyers to specify warmer colors in kitchen appliances.

Spiral staircases. The boomers have aged, their kids don't like them and they're unfriendly to pets and young children.

On the way out: Bamboo floors. Easily dented and scratched, and prone to warping from variations in our climate and humidity levels.

Hardwood laminate floors. Don't stand up to multiple sandings to change color or to remove stains.

Sellers who smoke in their home while it is being marketed. Buyers hate second-hand and stale smoke odors. Marketing your home is not the same as living in it.

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