It's Crunch Time - You just got orders, are buying a bigger house or just need to sell and move on.  You've dealt, as much as possible, with the major items (see Part I of this post) but what final adjustments should you make to your older home just before putting it on the market?  Some cost effective suggestions:

Grab Your Agent - What the heck, you're paying him anyhow so why not put her years of experience to work for you.  One thing though - please don't ask for an unvarnished opinion of what needs to be done and then get mad at the agent when she provides it.

Grab a Brush - Unless the interior paint is in great shape and especially if your colors are anything but neutral - buy a box of brushes, a few gallons of paint and a keg of beer then invite your friends over to repaint.  Hopefully you've been keeping the exterior paint in good shape all along because weather, costs and lack of time probably means it's too late to deal with it now.

Grab a Rake - Spend a few dollars to spiffy up at least the yard.  Plant a few small shrubs, a small tree or anything that looks like your family was proud of and cared for their home. 

If you're all about tact, you might even want to drag that rake over to the next door neighbors' house and suggest that "since you're really getting into the yard work thing" you'd be happy to help him give his front yard the once over.  Tread lightly on this one as the neighbor's trashy yard is better than having an embittered neighbor who'll make it his business to bad mouth you and your house to every passer by.

Grab That Rake Again - Hopefully you won't need a rake to clear the clutter in your home but if you do - have at it.  Buyers will understand boxes in the garage but in the house - not so much.  Besides - clutter makes your rooms look smaller.

Grab Your Nose - If you have dogs, liberally apply the implement of your choice to cleaning up the yard where the "buffalo roam".  Since you're dealing with repeat offenders, make sure you do a quick scan and sniff before each home showing or the prospects will be remember their visit for all the wrong reasons.

Grab Your Pocket Change - And buy a welcome mat and the more blatant the word "WELCOME" the better.  Corny - yes.  Cheap - yes.  Effective - yes.  Anything that you can do to help your prospects warm to your home and envision that same positive experience for their family will move your home towards the top of their list.

Jan DeGiorgio - Associate Broker
Century 21 Southern Idaho Realty
Mountain Home, ID
www.mtnhomejan.com

The clock starts running on a new home when the Mountain Home, Idaho Building Department signs the building permit. Advances in building science and changing economic conditions work together to cause our homes to rapidly become something less than "state of the art" and worth less than the "next new thing". This is true of every home in the community, but 30+ year old homes need special attention to ensure that value lost by obsolescence doesn't negate value gained through other factors.

It's important to recognize that older homes, in particular, are competing not only with other homes for sale but also with the options of renting in town or living on base.

In Part I of this post we'll look at the "bigger ticket" items to consider and budget for.

My Three Recommended (Major) Upgrades to the Older Home

• The Clear Winner - Energy costs aren't going anywhere but up and installing double pane windows is often a cost effective and visually appealing upgrade. Buyers using VA financing can usually include the cost of new windows and other energy efficiency items in their loans but there's a trick to buying windows so contact me first.
  
  
• Leave the Gravel in the Road - Gravel roofs are messy, trouble prone and singularly unattractive. If you currently own a home with this roofing system and it's time for significant repairs, spending the extra money for shingles may be a smart choice. The current cost of replacing a gravel roof with shingles is about $3.50-4.00 a square foot but shingles require less maintenance and have far greater appeal to buyers.
  
  
• Don't Be Short Circuited - Fused, 60 amp electrical systems are antiquated, possibly dangerous and usually uninsurable - fused, 100 amps systems are only slightly better. Even the smallest of homes should include minimum 125-150 amp service with circuit breakers. Although not as costly as new windows or roofing, upgrading the service may require other code updates so be sure to talk to an electrician first.

Buyers Beware - If you're buying a home with seriously obsolete components (e.g. single pane windows) BE SURE that this is reflected in what you offer. Ask to see sales information about homes with and without the upgraded items. But then again, that's what a good real agent is for.

Jan DeGiorgio - Associate Broker
Century 21 Southern Idaho Realty
Mountain Home, ID
www.mtnhomejan.com

Don't get me wrong - homes sales are clearly off from a year ago and I currently have more time to catch up on old paper work than I care to. Still, despite the media's constant wailing and gnashing of teeth, the Mountain Home, Idaho real estate market remains in pretty good shape. There are a couple of reasons for our relative good fortune.

The dominance of Mountain Home Air Force Base in the local economy is a powerful force in maintaining employment stability. The number of jobs at MHAFB, at least in the short term, isn't directly tied to changes in the economy. Although we're beginning to see some job loss in the construction sector, that lovable 800 pound gorilla eight miles east acts as a brake on wild fluctuations in total area employment.

The other stabilizing factor is that there hasn't been a large number of residential foreclosures - just over 1 per week for the last four months. As much of the country is now learning, there are few things more damaging to sales prices and marketing times than having several lender owned (and often poorly maintained) properties in your neighborhood. Fortunately, during the recent housing boom, few subprime and other high risk mortgages were made in this area and fewer risky loans mean fewer foreclosures.

As I continue to file my stack of dusty sales folders, I think I'll work on creating a new economic term to describe the current state of the Mountain Home real estate market - hmm, how about "soft stability"?

Jan DeGiorgio - Associate Broker
Century 21 Southern Idaho Realty
Mountain Home, ID
www.mtnhomejan.com

Recently, one of my clients was preparing to replace the single pane windows on his 45 year old home and found himself looking at a bid for $8000.  Sensing that this might be a bit high, he called me at home for some quick feedback.  After recovering from a fit of choking, I pointed out that I'd recently managed the "re-windowing" of a similar home for a bit less than half of that using pretty much the same product (I think my windows had argon gas and the $8000 windows used red kryptonite or something).

Inspired by this save, I'm providing a few hints for your consideration before tackling a major energy efficiency project (most of which apply to major home renovations of any type)

• Talk to a knowledgeable Real Estate Agent first.  Ask about costs but also if you'll be able to recover those costs in a reasonable time.  An experienced agent will either provide guidance or get you in touch with someone who can.


• Seriously consider having an energy audit done by a qualified energy rater and I am most definitely NOT talking about the supplier or installer.  A professional energy rater will charge you $200-300 but may save you thousand by providing unbiased information about the most cost effective actions to take.


• Depending on the complexity of the project, try to avoid "package deals".  If you need insulation and windows, call individual insulation contractors and window suppliers directly.  If the project is simple, you may not need the services (and associated costs) of an "energy contractor".


• No surprise here but get at least two bids one of which should be from a big box supplier such as Home Depot or Sears.


• Determine if the supplier has a local presence and, even more importantly, the installers.  Will you be able to get quick warranty work or have to wait two weeks for them to make it up the Interstate?  Make sure the supplier's warranty also covers installation so that they, and not you, are responsible for resolving installation issues.


• Fraud abounds in the world of home improvement so check with the Better Business Bureau before signing.  Slick brochures and smiling salespeople do not a legitimate operation make.  Watch out for the ol' "bait and switch".  If the salesman scoffs at their advertised special ("why, I wouldn't put that stuff on my dog house") - show them the door.


• Keep frills to a minimum.  The typical home ownership period in Mountain Home, Idaho is just over 3 years and (generally) the more you spend on the project, the less likely you'll recover its cost before you leave.


• Avoid vendor financing programs - contact me for information about any energy efficiency loan programs that you may qualify for.  If you haven't purchased the home yet and will be using VA financing, the cost of most energy upgrades can be included in the home loan.  How would you prefer to pay for your project (note: the following figures are examples only)  - vendor provided financing at 14% over 5 years or VA financing at 6% over 30 years?  

Jan DeGiorgio  Certified EcoBroker^®
Century 21 Southern Idaho Realty
Mountain Home, ID
www.mtnhomejan.com

After running my weekly analysis of what's going on in the Mountain Home, Idaho real estate market, I'm now of the suspicion (and working towards the conclusion)  that new home prices may have finally reached the point where local builders are drafting new game plans.  In 2007, for the first time in practically forever, the median size of a new home was smaller than in the year before.  The difference was small, only about 6%, and one year does not a trend make but it is something I'm watching closely.

Apparently at least one Mountain Home builder has taken notice and is offering a line of smaller homes but built to the same quality levels as his larger homes.  These "mini-mansions" eliminate all wasted space and generate maximum utility from every square foot of house.  They're attractive, energy efficient and should appeal to several segments of the home buying public.  Will other builders follow?  If they want to remain competitive they may have to.

Unless the immutable laws of economics are repealed, it's likely that the house itself isn't the only thing that will be shrinking.   Since land costs (including significant permit, impact and and other regulatory fees) make up 25-35% of the price of the typical new home, reduced lot sizes and higher densities are probably not far behind.

Although smaller homes and higher density development may be an unwelcome change for many, its not without its benefits one of which is reducing the impact of housing on the environment.

Jan DeGiorgio - Associate Broker
Century 21 Southern Idaho Realty
Mountain Home, ID
www.mtnhomejan.com