Boosting your home's value: part I
Real estate values are ruled in a large part by what generation is buying the real estate. Currently the millennial generation, born from approximately the early 1980s to around 2000, is the target buyer. Since they are 75 million strong and purchased 32 percent of the homes in 2014, everyone is interested in marketing real estate is paying close attention. Along those lines, Consumers Reports did a recent survey of millennials and what they are looking for in a home, resulting in a report of the eight ways to boost a home's value based on the standards of today's primary buyers.
Rule number 1: Every generation always wants a nice kitchen, and the millennials are no different with one third of them surveyed indicating it was their top most important item in a home. The two items that came in as the most important in a kitchen are stainless steel appliances and quartz countertops. Stainless has been around for decades, but it is still the first choice in appliances. Some of the newer stainless finishes like black stainless and less reflective finishes are just as popular.
A quartz countertop is the primary challenger to granite as the countertop of choice. It is easier to maintain and is more heat and scratch resistant than granite and now comes in a much larger range of colors and designs. However, even a smaller less expensive renovation will add value to your property. The estimated value of an updated kitchen is between 3 and 7 percent increase in selling price.
Rule number 2: The second most important home feature after kitchens in the survey was an open floor plan with flexible living space. Additional living space carved out of the existing square feet of the home is very valuable to this generation and a home office is essential since so many work remotely from home, as is a dedicated play area for children. Some of the floor plan hot buttons are a flex room that can be almost anything from a guest room to a game room.
A mother-in-law apartment to accommodate family who are helping with children and an upstairs laundry room or one near the bedrooms is important, since that's really where all of the laundry is. Flexible floor plans can add between 4 and 6 percent to the selling price.
Rule number 3: Environment sensitive millennials are very interested in energy efficient homes. Here in Florida where air conditioners run for months at a time, having a system that will save electrical costs is vital. Expect to be asked for a couple of year's worth of electrical bills by potential buyers, as well as the efficiency ratings on air conditioning systems, hot water heaters and refrigerators. High efficiency windows with an Energy Star certification are very important as are LED lights with a long life expectancy. These improvements can add 1 to 3 percent to the selling price.
Rule number 4: Keep it simple and stress free since this generation has no time to spend dusting and repairing. Important features are updated and functioning systems like air conditioning , electricity and plumbing. Also new or young roofs are in demand, especially tile roofs in our area, which are very expensive to replace. Less carpet and more hardwood floors, including engineered wood flooring is a must. Potential increase in value is 3 to 5 percent.
Next week I'll outline the last four ways to boost your home's value based on the Consumer's Report survey. In the meantime, be nice to the millennial generation since they may be pushing your space saving, energy efficient, stainless steel wheelchair some day.
