That's what everybody wants to know. If you redo your kitchen, or add a deck, will it pay off when you sell the house some day? Will the investment get you more attention and money?
I've though like this lately as I went through the process of renovating my blog with a new look and feel. In fact, it was a lot like renovating a kitchen. First I had to decide what I wanted it to look like when it was finished. Then there was the time when I was still "living" in my old blog format and keeping that up while working to construct a new look. Finally, the day came when the new version was complete and the old blog look faded into memory. As for that first question - will there be more attention? - that is still being answered.
It's hard to know if a blog redo will pay off, but it's not hard to get an idea about whether making big changes in your home will pay off. Each year, RemodelingOnline publishes a Cost vs. Value Report. They review the cost of 25 different remodeling projects and then combine that with data collected from more than two thousand REALTORS® on resale values. The results are in chart form - one for the country as a whole, and one for each of nine regions of the United States.
Of course, when you decide whether to renovate, money is not the only issue. Maybe you need more space, and the decision is between adding on and moving. Or perhaps you are simply tired of that black and white bathroom tile. Whatever the reason, eventually cost is an issue. That's when it helps to have an idea of whether you'll make most of your investment back when you sell.
Nationwide, the projects that return the most at sale are kitchen remodeling - either minor or major - and bathroom remodeling. When you look at the chart by region, though, you see differences. In the Mountain Region, basement remodeling returned about 86% of the investment, about the same as a bathroom remodel or minor kitchen remodel. But if you're deciding between building an addition, and moving, it could help to know that the best return was for a two-story addition, recovering more than 88% of the cost.
Of course, you need to use your own good sense before starting any home improvement project. Ask for recommendations from friends and family for reputable and quality contractors they have used. Be sure to get everything in writing, including verification of insurance, and read the contract carefully including all that tiny print on the back.
Whatever your renovation plans, remember that the return on investment is not only measured in dollars. Factor in the convenience, comfort, and enjoyment you and your family will have for as long as you live in your home.
"Real Buildings for Real People" – that's the theme of this year's annual Solar and Sustainability Spring Tour. Sun lovers who want to experience more than light and heat from our powerful star will be able to visit 15 properties throughout the Valley from 9:00 am to 4:00 pm on Saturday, April 28. Best of all, they will be able to meet and talk with the people who are living in and using the facilities on this free self-guided tour.
Attendees will see a wide range of solar applications including innovations in solar and sustainable design for private and public buildings. Highlights include using typical paper waste as construction material, and new residences that incorporate passive and active solar design.
A new development in south Scottsdale will provide another real life example of solar power use by next spring. The development of nine town homes, known as Array, is the first in the Phoenix area to be built with electric systems that employ solar panels as a standard feature.
Energy saving features such as energy efficient appliances, passive lighting, and floors of limestone or stained concrete that will help regulate temperatures will be included in homes in the development. Solar panels will produce electricity for the 1,700-square foot homes. In the hot summer months the homes will use all the energy they can produce plus some additional from SRP. But in cooler months, enough energy will come form the solar systems to actually return power to SRP's grid. Arizona's price of energy ranks in the top 20 nationally, so these savings can be good news for the homeowners.
Whether you are interested in solar power for environmental or financial reasons, come out to Scottsdale on Saturday April 28. The Solar and Sustainability Spring Tour will help us all breathe easier.
We will soon find out. You might remember that I did a post about my blog identity crisis and got some great responses to my questions. The first thing I asked about was what made a good design, what catches your eye. I thought a lot about the design question, and came to the conclusion that I wanted something more individualized than any format that comes with the usual blog service.
So I got some help, and we came up with a new blog design. We asked some people to look at the beta version, took their feedback, made some changes, and now…it's my new blog! I hope you like the look as much as I do.
Thanks to all of the Active Rain community for your feedback and encouragement to me as a novice blogger. I appreciate the support this extraordinary group provides.
The Westin Kierland in Scottsdale was the place to be late last week for REALTORS® who wanted to learn from the masters about using technology, digital photography, and generally "mastering the market" in 2007. Some 400 of us showed up for the Real Estate Marketing EXPO sponsored by REALTOR.com. I always want to learn how to market homes and serve my clients better, so it was a great opportunity to meet and get tips from some of the big names in the business.
The advertising for the EXPO promised a lot, including:
How to changing your focus from selling more homes to selling homes for more – that's good for sellers and agents alike.
How to benefit from the fact that 77% of all home buyers used the Internet at some point in their search for a home – and how to make sure they find you as their agent.
How to deal with change in the industry
How to choose the right digital camera, and what features in a camera are important for Real Estate
How digital video is changing the way agents market real estate.
Introduction to the newest REALTOR.com products, "Showcase Listings," "Feature Properties," "Feature Agent/Feature Community."
They really delivered, too. REALTOR.com Vice President Max Pigman did an excellent, high-energy presentation that covered the evolution and revolution in real estate technology, all the way from the fax machine in 1973, through the cell phone, Internet/email, instant messaging, cell phone text messaging, multimedia messaging, and now blogging. According to Max, the next big things for REALTORS® are pod casting and video tours.
As part of that discussion, he gave some startling statistics. We know that most people start their search for a new home on line, but did you know that the chances that a potential buyer will find a property on the Internet is 500% greater than in the newspaper, and over 2400% greater then in a Homesbook? Today's agent must have a presence on the Internet, in several ways, to really be successful. Only that way can we give our clients' properties the exposure they need to sell quickly and at the best price possible.
Max also spent time talking about photography for real estate, and how to achieve good pictures without spending a lot of money. One secret is the after market magnetic wide-angle lens. These are often available for about $25, and the results are amazing. Using the right aftermarket lenses will prevent the "fish-eye" look you often get with a camera's built-in wide angle lenses or using a too wide of a lens.
One of the best features of the day was the discussion of how we can deal with change in the industry. He made it easy to remember this way:
Contemplate & Consider
Hammer out a plan
Accept, Adapt & Act
No looking back
Gain a competitive edge
Execute with Enthusiasm
I had a chance to meet Max Pigman, and was very impressed. All in all, the EXPO was a great way to spend a Thursday. There were a lot of new ideas presented, and my clients will definitely benefit from it. I call that a win-win.
The Phoenix area is home to enough celebrities and captains of industry that there's little notice when a high-end home sells. But you can be sure the transaction will get some media attention when there's a famous - or infamous - name attached. In this case, Mike Tyson.
Tyson's home has been on the market with a listing price of $2.7 million. The property is in Paradise Valley, a suburb of Phoenix. One of my clients had made an offer on the house that was not accepted, so when I read about the recent sale at $2.34 million, I wondered if the buyer really got a good deal.
From the photos you might think it's a great price, especially when Paradise Valley has many beautiful homes with higher prices. The home's location at the end of a cul-de-sac and its magnificent views certainly make it desirable, but there's more to the overall picture. The interior, for instance.
Built in 1988, the home represents the architectural design of that era. This house is so 1980's, in fact, that you wouldn't be surprised to see Don Johnson step out of the front door! What was "in" 20 years ago is very "out" now, and there have been zero upgrades since it was built. Even a four-car garage, five bedrooms, game room, pool, and fully equipped guest house cannot make up for loads of needed work and an obsolete floorplan.
The main concern among investors who looked at the property was that it was too good to tear down, but difficult to bring up to today's standards because of the cost to change the difficult floor plan. Some people thought that the lot itself would be worth $1.5 to $1.8 million. But the demolition cost and tedious permitting process would make tearing the house down and rebuilding it especially challenging. If the house were torn down and then completely rebuilt it would be have to have a high listing price, and the competition in Paradise Valley is stiff with many desirable homes available in the $3 to $4 million range.
The buyer is a limited liability partnership called Oppenheimer Partners Properties. Did they get a knockout deal or a TKO? Like beauty, that's in the eye of the beholder. It will be interesting to see what happens next with this property.
Not long ago, I did a post called Blog Identity Crisis and asked Active Rain bloggers to help answer six questions that I have been wrestling with about. The response was great! Since so many people took the time and effort to answer, it seemed only right to let them know how their comments have helped me.
The first thing I noticed was that Rainers are quite independent about how they answer (is anyone surprised?) I asked six questions, and only Kaye Thomas answered them specifically and in order. Others like Herb Hamilton and Elaine Reese had very helpful suggestions in their own formats. No matter how the comments were written, I do appreciate every one who added their voice to the discussion. It was also nice to discover that there are plenty of other "freshmen" wondering the same things. Now it's up to me to follow the guidance and find ways that I can improve my blog's content and relevance.
Step One is homework. Herb's suggestion about using the search bar to research a topic and then save results in a Favorites folder was helpful. With the right title for the folder, I can keep track of my topics. I've already bookmarked the blogs of some of AR's best, thanks to suggestions in the comments.
Step Two is to ask myself questions when I'm creating a blog. What would my client or potential client want to know? What's going on in my market area of Phoenix that is interesting or unusual? Some clients are first-time buyers and so ever step of the process is full of questions, but I can't forget the couple buying their fifth house who have different questions.
Step Three is to do it! Frequently! It's always a challenge to make time for blogging, especially when you are juggling transaction details and client needs and private life. I have to remind myself that blogging is just as important as any kind of marketing I might do. But I cannot just throw something together to create a post. Whatever I write will be there forever so I have to choose my words and tone carefully. Personally, I prefer a positive approach so that I'll never be embarrassed no matter who might find and read my blog.
I said it before: there are always people who are committed to doing things better and are eager to share their knowledge in the Active Rain community. Thank you all for helping this newcomer with your responses and encouragement.
Is it wrong for homeowners to ask a Realtor for a CMA if they intend to sell the house themselves? That question was raised on the Future of Real Estate Marketing blog recently. For Sale By Owner (FSBO) listings are always a hot topic, and there were some predictable answers in the comments.
One obvious response is, "No, it's not fair to lead the Realtor on." Or maybe, "Well, the owners do need to find out what the house is worth, but they shouldn't pretend that they will sign with agent if they don't mean it."
As a real estate professional who makes my living listing and selling homes, you might expect that I would agree. I don't.
My experience shows that, first, you do not get every listing you go after. Maybe the prospective client intends to pursue the FSBO route. It could just as well be that they like another agent better, or can negotiate what they think is a better deal from that other agent. They might not decide to sell at all. As an agent, you can get upset about losing a listing, or you can close that file and move on to the next opportunity.
Second, we are not the only professionals who give free advice as part of our every day business. Brokers often give information on stocks they never sell. People test drive cars but buy from another dealer. It is by doing exactly that – giving advice and the benefit of our experience – that we can turn a FSBO into a client. Spend one-on-one time with homeowners, give them honest answers and valuable information, and you'll find that some doors will open. When you explain all that's involved in selling from listing to settlement, and make it clear that what you do can put more money in their pocket, they may see the value and choose to list with you.
Even if the homeowner decides on the do-it-yourself route, that's not the end. I have had people come back to list with me after being unsuccessful in selling by themselves, because I helped them earlier. FSBO's believe they can save money doing it themselves, and sometimes that is true. But most of the time, they find out that buyers expect to get the benefit of the savings, and so make low-ball offers even when the house is priced correctly. It also can take longer for an owner to sell on their own, and the longer the house is on the market, the greater the perception it is overpriced. After some time of frustration, many owners are ready to hear that sellers who use REALTORS® generally end up doing better, even after deducting the commission, than those who go it alone.
Like anything else in life, it all comes down to how you treat people. If you go into a listing appointment with the attitude that the homeowner is going to take advantage of you or get something for nothing, then you probably won't do well. But if you approach every meeting with a "what can I do to help this person" attitude, people recognize and appreciate what you do. When they are ready to list, chances are you are the one they will call.
Two recent posts got me thinking, and I ended up coming back with more questions than answers. Colleen reminds us to keep our profiles updated, and Elaine asks how to explain blogging to a client or prospect. These two bloggers are like the college seniors who know it all, but I'm more like the freshman still finding his way around campus. My questions are more elementary.
But if there's one thing I've learned so far about the Active Rain community, it's that there are always people who are willing and eager to share their knowledge. No matter where they are in their real estate career, people who blog on Active Rain are committed to doing things better.
I know there are plenty of very helpful articles here on using keywords and getting a better position in the search engines, and I'm grateful for that guidance. Right now I'm focused on content, and I'm interested in the opinions of the blog readers as to what makes a good real estate blog.
My questions are things like:
What makes a good blog design? What catches your eye?
What kind of information do clients and potential clients look for in a blog?
What topics are really relevant, and which topics are done so much that no one cares anymore? In other words, what's hot and what's not?
Is a blog better if it gives market information, or if it focuses on sharing experiences?
Should an Active Rain blog be geared towards fellow professionals or both professionals and clients?
Which real estate blogs are the hottest these days? What sets them apart?
Of course I'd like to hear from both the Active Rain professionals and people who are NOT in the business, too.
When I joined Active Rain just a couple of months ago, I had no idea how valuable this community could be. There are so many people who are eager to share what they know and to encourage others to learn and grow as professionals. Now I'm pleased to welcome another new member who has the same helpful approach.
Gary Miljour is with GMAC Mortgage, and I've had the pleasure of working with him on some transactions. Gary specializes in helping first time home buyers, investors, and small business professionals. You get a sense of his approach when he says, "A solid, long term mortgage plan is always better than a short term solution."
I learned early that Gary places the interests of the client above all. With that attitude, of course, he's not only successful but also a great guy to deal with. His advice has saved my clients money, and saved all of us time and aggravation.
Welcome, Gary! Glad you've joined us here on Active Rain.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
That's what everybody wants to know. If you redo your kitchen, or add a deck, will it pay off when you sell the house some day? Will the investment get you more attention and money? 
Of course, when you decide whether to renovate, money is not the only issue. Maybe you need more space, and the decision is between adding on and moving. Or perhaps you are simply tired of that black and white bathroom tile. Whatever the reason, eventually cost is an issue. That's when it helps to have an idea of whether you'll make most of your investment back when you sell.
"Real Buildings for Real People" – that's the theme of this year's annual Solar and Sustainability Spring Tour. Sun lovers who want to experience more than light and heat from our powerful star will be able to visit 15 properties throughout the Valley from 9:00 am to 4:00 pm on Saturday, April 28. Best of all, they will be able to meet and talk with the people who are living in and using the facilities on this free self-guided tour.
The Westin Kierland in Scottsdale
They really delivered, too. REALTOR.com Vice President Max Pigman did an excellent, high-energy presentation that covered the evolution and revolution in real estate technology, all the way from the fax machine in 1973, through the cell phone, Internet/email, instant messaging, cell phone text messaging, multimedia messaging, and now blogging. According to Max, the next big things for REALTORS® are pod casting and video tours.
The main concern among investors who looked at the property was that it was too good to tear down, but difficult to bring up to today's standards because of the cost to change the difficult floor plan. Some people thought that the lot itself would be worth $1.5 to $1.8 million. But the demolition cost and tedious permitting process would make tearing the house down and rebuilding it especially challenging. If the house were torn down and then completely rebuilt it would be have to have a high listing price, and the competition in Paradise Valley is stiff with many desirable homes available in the $3 to $4 million range.
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