Technology, Walkability, and Resilience are the Key Housing Words for 2016

As building companies get back to the business of constructing houses, they find the housing landscape has changed significantly. While the economy and housing market has been sluggish, technology has surged right along. Young people embrace technology and are less inclined to seek employment working with their hands. To remain competitive, builders must not only attract young buyers, but also find ways to attract them as workers to help build homes. To do both, construction companies and builders must learn to utilize technology to their advantage. A top feature young buyers want is walkability. Another issue that is always a major concern for every home owner is how well their house can withstand inclement weather. Builders and REALTORS  must understand the issues currently relevant to home buyers and those issues that will continue being important in future years.

Technology

According to the National Association of REALTORS report "Real Estate in a Digital Age," 68 percent of first-time home buyers are Millennials. Thirty-two percent of all home buyers are between the ages of 25 and 34. These buyers begin their search online and are connected to the internet 24/7. Many older generations also rely on technology to find homes and research things like title insurance and mortgages. Even old marketing techniques like open houses that were near extinction a few years ago are finding new life thanks to technology. Savvy builders and REALTORS use Twitter and Facebook to post live updates and promotions that will entice all potential buyers in the nearby area to stop by. The QR code has little worthwhile use in many industries, but it provides a wealth of information about a home for sale to interested buyers. Every real estate agent and builder who has filled one of those little plastic information boxes with flyers, only to get an angry caller the following day complaining it is again empty, understands the value of providing pertinent information on-site at all hours of the day. Technology can do that in a variety of ways. Increasingly, buyers are expecting builders to use technology for communication and showing things like elevations, floor plans, and site maps.

Walkability

The American Institute of Architects (AIA) conducted a Home Design Trends Survey in the third quarter of 2015. Their survey found more buyers seeking a sense of community and opting to located in or near one of the many expanding metro areas across the United States. Some of the community design trends that are currently gaining strength and expected to remain popular for the foreseeable future include walkable neighborhoods, access to public transportation, multi-generational housing,  and mixed-use buildings. AIA Chief Economist Kermit Baker said there has been a significant change in driving habits of the population in recent years. More people use public transportation and want to be near their employment and other commercial activities. For single family homes, these buyers look for contemporary-style with low-maintenance features. Some traditional wants like single-story layouts and front porches remain popular. Regardless, owners still need quality title insurance to protect their investment. A growing number of households are single adults with or without children. They like smaller, simple spaces with an emphasis on aesthetics.


Resilience

Presenters at the recent BUILDER Sustainability Summit emphasized the need for community leaders to think about resiliency before disasters occur. Threats like hurricanes, tornadoes, flooding, and heavy snow can affect people in all parts of the United States. Regardless of where a home is located, it needs title insurance and must be able to withstand one or more of these natural disasters. Alex Wilson is an architect who believes resilient design doesn't have to be expensive. Wilson listed ways builders can construct houses that are better able to withstand disasters:

• Include timber framing and hurricane straps on houses in storm-prone areas.
• Improve living conditions of homes that lose power with better insulation and passive solar features.
• Limit the need for mechanical cooling by orienting homes on an east/west axis, install better windows with some shading, attach awnings, use larger overhangs, reflective roofs, and natural ventilation.
• Have flood barriers along driveways in low-lying areas.

Walkable communities are more resilient. When disaster strikes, it is much easier to provide needed services in areas that are pedestrian friendly. Just as home owners must protect their investment with title insurance, community leaders must protect their local area through resiliency planning before the natural disaster occurs.

A Guide to Working With First-Time Home Buyers

Buying a home is exciting. It is easy for buyers to be distracted by all the things they want and to overlook many aspects of the home buying process that are important. For the mortgage company, it is all business. They make sure they are protected by things like title insurance. First-time buyers want the most home they can afford. Sometimes, they pursue more than they can comfortably afford. Without proper guidance and counsel from a knowledgeable REALTOR, these novice buyers will skip on procedures such as home inspections by a third-party professional and their own title insurance policy to try and cut their costs.

Connectivity increases vulnerability

The National Association of REALTORS states in their "Real Estate in a Digital Age" report that 68 percent of first-time buyers are Millennials between the ages of 25 and 35. They make a decent living with an average income of $84,500. Many of them witnessed the housing market collapse and have seen their parents struggle to keep a roof over their family's head. Many of these young buyers have opted to pay down their college debt before they even consider buying a home. They are connected to one another and an infinite source of information on all things (the web) practically 24 hours a day and 7 days a week. However, these accomplished and knowledgeable buyers are vulnerable in many ways. A study by Wombat Security Technologies found that young people 18 to 25 are more vulnerable to phishing attacks because they are so open to provide personal information if they believe doing so will provide additional convenience.

Working with first-time buyers requires tact

It is important to reach and work with all first-time buyers in a way they are comfortable without allowing them to make costly mistakes. These novice buyers think they know more than they actually do. Just as they are more likely to fall for phishing scams, the information they gain from doing their own research online may not be from credible sources. For example, they may stumble across a blog that advises them against purchasing their own title insurance policy because they are already paying for a policy for the mortgage company. But that is not enough to protect the home buyer's investment. Agents must be a resource of reliable information without being condescending.

Really listen and understand their priorities

Far too often, real estate agents fall into a pattern of just going through the motions. Each transaction begins to look the same, and the agent tries to do too much of the decision making for the home buyer because they think they know what is best. It is true that many first-time buyers do not have any understanding of the process, but the agent still works for them and in their best interest. Just because many new home buyers in the market are gravitating to a specific area, price range, or style, that does not mean it is right for every buyer. It is just as important to gather the right information from your buyer as it is to provide them with information.

Be clear about your role upfront

Some first-time buyers do not understand the value of REALTORS. They think agents make a lot of money without actually doing much work. Establish yourself as a resource early in in the relationship, but make sure they understand what you can and can't do. Be sure to provide them with an agency agreement and have them sign a document that explains the different types of agency relationships. Some agents avoid having uncomfortable conversations because they think it might scare potential clients away. It is better to thoroughly discuss the value you bring to them and how you are compensated early, rather than have lingering misunderstandings and conflict down the road.

Taking the time to nurture relationships with first-time buyers is challenging, but also rewarding. Just as many home buyers overlook the value of title insurance, many real estate agents choose to not invest in working with first-time buyers. Title insurance is important to protect a home buyer's investment. Working with first-time buyers is important to have future referrals and a balanced real estate business.

Home Improvement Projects That Add Value To Your Home

Buying a home is exciting and loaded with possibilities. For the seller, it can be a highly emotional and stressful experience. The place that they have called home for many years is heavily scrutinized and picked apart by potential buyers, real estate agents, and inspectors. There are some smart upgrades every seller can make that will not cost a lot of money and can improve their likelihood of getting the sales price they want.

The most important room in the house?
What room do you think of when asked that question? For most people, it is the kitchen. There are entire TV channels devoted to home cooks. More families are opting to prepare meals at home rather than dine out. In addition to saving money, cooking from home is healthier, more rewarding and improves the family dynamics. Many buyers head straight for the kitchen when viewing possible houses. They are looking for the kitchen that "just feels right" and that they will enjoy spending time in.

Industry experts agree that it is well worth an investment of a few hundred dollars to upgrade kitchen faucets and lighting fixtures. Sellers should choose energy-efficient lighting and make sure that it adequately illuminates all areas of the room. There are several options for kitchen cabinets. Some companies specialize in refinishing the cabinet boxes and replacing the doors and drawers. Short of that, homeowners can give cabinets an updated look with a fresh coat of paint or thorough cleaning. The most important thing is that the kitchen is clean and looks reasonably up-to-date. It is expensive to renovate. Sellers can still make a few low-cost improvements. The seller wants the buyers to envision themselves cooking in the kitchen, not thinking about the cost of upgrading the entire room.

Appliances
Buying all new appliances is not recommended, but sellers may be able to freshen up the look of existing units by purchasing new doors or face panels. Many dishwashers have panels that are easily reversible or changed out. Home sellers want to go for a cohesive look and minimize any concerns buyers may have for unexpected expenses. If the old appliances are in the final stages of their useful life or there is no way to freshen their look, sellers may want to offer an allowance for new appliances to be part of an accepted contract. The buyers can choose the appliances they want, the seller does not have to pay the allowance until the closing of an acceptable offer. Laws regarding such agreements vary by state and allowances can be easily misunderstood. Real estate agents representing each party should carefully review wording for legal compliance and be sure their client understands the terms. But it can be beneficial to both parties.

Bathrooms
Second to kitchens, bathrooms are important rooms and can be costly to to completely update. A new toilet seat, vanity, or pedestal sink are easy to install and can greatly improve the look of any home's bathroom. Dingy looking tile and grout makes buyers think the house is unclean and needs renovating. If possible, re-grout and replace any chipped or missing tiles. It is much less costly than completely replacing the old tile and makes a big difference.

Painting

If sellers are going to do only one thing, they should paint. Most real estate agents and industry analyst agree that painting provides sellers with the best return on investment. The payback can be as much as 300 percent. Sellers should spend a bit of time discussing which colors are current with their Realtor. They should go with neutral, tasteful colors more so than their own thoughts on what looks good.

Curb appeal
It is an old truism that applies to homes and people: "You only get one chance to make a good first impression." The entry should be fresh and clear of any dirt, cobwebs, or overgrown shrubbery. If time and money for painting is limited, make painting the door and entry area a top priority. Also, worn out door knobs and locks convey that the house is also worn out. An impressive bit of hardware on the front door signals that the home is solid.
Just as buyers should begin planning for their purchase months in advance, sellers who make a written plan and break it down into manageable projects have the best chance of being in control of their transaction from start to finish. With the guidance of a knowledgeable Realtor, selling a home can be a rewarding accomplishment they look back on proudly for many years ahead.