What’s HOT and What’s NOT for Real Estate in 2008
Down payment? In exotic mortgages? Out. Destination bathrooms? In. Living rooms? Out.
... *surveyed 886 real estate agents in 50 states and eight Canadian provinces and offer these predictions for what’s next.
HOT: Home buyers. What goes around comes around. Relegated during the boom years to bidding ware, over-full-price offer and new construction lotteries, buyers rule in 2008, and they know it. With swelling inventories, they are looking for newly updated kitchen and bath, pristine condition, and a perception of value. For the best in Summit NJ Homes contact the real estate team of Macy & McKee.
NOT: Unrealistic home sellers. These relics of another time and market missed the cocktail party char and water cooler angst by the transitional seller of 2007. Successful seller priced their home right, considered home-sale contingencies and offered closing cost givebacks. Hear no evil sellers were overlooked by buyers who pined for realistic ones. If seller were flexible, buyer bought.
HOT: Destination bathrooms. The master bath has evolved into the getaway with multiple task areas. Freestanding or “throne” bathtubs in the center of a soaking room, multiple flat screen TV’s and wireless Internet so you don’t miss anything as you move from bathing to grooming to lounging. Outfitted with serving bars featuring wine cooler, espresso machine, and snacks. Up next: in-home hair salons.
NOT: Living rooms. The great room has replaced the living in American residential culture. Informal lifestyles with eating, cooking and living spaces combined so family members and visiting friend can congregate together through various activities has conquered the forced museum. Increasingly homeowners are turning living rooms into workout spaces, home offices or craft /hobby centers.
HOT: Short sales. Over extended homeowners are looking to their mortgage holder to accept less than is owned on their property. Some lenders will accept less than is owed through a short sale, in place of taking ownership of a home through foreclosure.
NOT: Order taking agents. Everyone and anyone got licensed and into the frenzy. Little did they know that seasoned, full time, professional agents possessed ready willing and able buyers and know how to sooth seller anxieties.
HOT: Dog showers. Remember hoisting Fido into the utility sink? Forget about it. The new trend is custom dog showers. Located in a mudroom, utility room, garage corner or basement, dog lovers want a place to clean the pooch after a visiting to the dog park. Dog showers are designed for Fido to step-in and eliminate the masters need to lift.
NOT: Empty listings. Staging was the buzzword but making home seem lived in was prickly in 2007, a year when many listings were empty. Those leftover silk flowers, the left behind mismatched furniture and the one off design show decorating scheme were buyer no no’s. Neutral palettes, person objects, thoughtful furniture rental and something in the refrigerator say to buyers: “Maybe a person lives here.”
HOT: Home elevators. Baby boomers want vertical palaces with elegant mini elevators. No more unsightly and very 1970 chair on the rail system for these financially flush forward thinking homebuyers.
NOT: Obscene ceiling heights. It’s cheaper to go up than out. That’s been the thinking anyway as of late in residential design Buyer finally have had enough. They prefer ceiling between9-11 feet. Anything more is a waste practically if you can’t loft it.
HOT: Outdoor living spaces that look like indoors. Massive soaring statement fireplaces of cut stone, heated flooring and walkway, entertaining sized custom kitchen and indoor looking artwork-fabrics and finishes but one that can stand up to the elements.
NOT: Balconies as a marketing gimmick Functional outdoors space not the anorexic appendage hanging off the building is what buyers carve in 2008. Real balconies have room for a grill and a comfortable table and chairs. People love the outdoors and want to use it- but not only as a solo experience.
HOT: Down payments. Sexy home mortgages are out. Those who under write home loans are looking for substance from potential hone buyer. Substance equates with disciplined savings and credit scores.
NOT: Option ARM’s. Buyers have learned that these loans usually have only on option- foreclosure. Used by the rich for short term financing they were repackaged to buyers who wanted to qualify for the highest loan amount. Negative amortization is the harsh reality of Option Arm’s.
HOT: Carbon footprints. Manufactured homes, reused energy sipping mechanical system and appliances reduce the need for fossil fuels. Homebuyers are asking about how their potential new home can save the planet. Solar panels and windmills also are hot as alternative energy sources.
NOT: McMansions. Size does matter if it’s not well finished. Demand is waning for large home whose best attribute is the square footage. Homebuyers are looking for quality, not quantity.
HOT: Monitoring and controlling with hand held devices. Forgot to turn off the coffee maker, close or open the blinds and turn the heat down or the air conditioning up? The latest technology uses hand held devices to open or close the blinds, turn on or off lights or let Fido out the electronic per door.
NOT: Pioneering locations. Buyers have moved away from take a chance neighborhoods. Gentrifying or off the beaten path area were once the hotbed of potential appreciation. Now though buyer have returned to the tried and true address keeping resale desirability firmly in mind when making a purchase.
HOT: Floating homes. In areas with calm, protected waters expect to see floating home that look like conventional structures. From Louisiana to Vancouver, floating homes are at the top of must have list for those looking for a primary home to be lifestyle oriented. One advantage: No more lawns to mow.
NOT: Too trendy décor. Fashionistas embraced retro 1970’s chic but buyers were reluctant to buy a house with espresso colored shag carpeting.
*Credit for these thoughts come from Mark Nash of Coldwell Banker ResidentialMark Nash, a broker associate and author of 1001 Tips For Buying Selling a Home, surveyed 886 real estate agents in 50 states and eight Canadian provinces and offer these predictions for what’s next.
Although some of these trends my seem entertaining it's important to remember the housing market's ultimate approval comes from each buyer saying yes to style, features and value. How to determinue "value" i.e. price is what sets our team, Macy & McKee , apart from our industry counterparts. Our certified "Right Pricing" analysis goes far beyond the average realtor accessements. In the Summit NJ Real Estate marketplace competitive pricing with make a difference in whether a property in this market will sell at all. Our pricing system is proprietary for our client. Be apart of our suceess and let us guide your investment. "All About You. And Your Home". Look for our article about how "Right Pricing" looks at each home to determine an accurate value on a monthly basis in this changing market.
For the best in Summit NJ Homes contact
the real estate team of Macy & McKee.
