Revamping a kitchen can be a costly undertaking, with the median price of a remodeling job coming in at $60,000. So, how do you make sure the changes you make won’t look dated in a few years?
HouseLogic, a home improvement website by the National Association of REALTORS®, offers ideas to future-proof your kitchen, including:
Stick with white
White has remained the top choice of the National Kitchen and Bath Association’s annual survey for years. “It’s a bright color that reflects light and makes even small kitchens feel larger,” notes HouseLogic, adding that white appears to be the “most marketable color” in the kitchen.
Put in hardwood flooring
Not having hardwood floors apparently comes with later regrets. More than half of home shoppers who purchased a home without hardwood floors say they would have paid an extra $2,080 for them, according to the National Association of REALTORS®’ Home Features Survey. Overall, 80 percent of buyers say hardwood flooring is “somewhat” or “very important.” Hardwood flooring can pair well with any kitchen style too, from traditional to the most contemporary styles, designers say.
Choose Shaker-style cabinets
These frame-and-panel design cabinets have a look that stand the test of time. “In a kitchen with a timeless look, you want the cabinets to be part of the backdrop,” says Alan Zielinski, a former president of the National Kitchen and Bath Association. “You don’t want to be overpowered. You’re looking for plain, simple, clean lines.”
Go with Carrara marble countertops
This classic surface material has lacy graining and subtle white colors that pair well with any kitchen. It’s also readily available and less expensive than higher-end alternatives, like quartz, HouseLogic notes.
Choose subway tile backsplashes
Classic subway tiles are white, 3-by-6-inch rectangles. They’ve grown popular in kitchens and baths. A neutral or white-colored subway tile used as a backsplash in the kitchen not only “looks classy” but also guards against moisture damage and is easy to clean, HouseLogic notes. “A subway tile backsplash and a marble countertop make a dashing couple that will stand the test of time,” HouseLogic notes.
Mortgage rates have been decreasing in recent weeks, but if they reverse course and start to rise again, more potential home buyers may get “priced out,” a new study from the National Association of Home Builders shows. About 1 million households would likely no longer be able to afford buying a median-priced new home if mortgage rates rise from 4.85 percent to 5.1 percent. Last week, the 30-year fixed-rate mortgage averaged 4.51 percent, according to Freddie Mac.
Many Americans shopping for a new home may be in danger of being priced out if prices rise by just $1,000, the analysis showed. Based on incomes, 127,560 households would not be able to qualify for a mortgage to purchase a new home if prices rose by $1,000, either due to a jump in mortgage costs or the new home price, researchers found.
Not surprisingly, the number of “priced out” households varies across states and metro areas. The NAHB found that Texas saw the largest “priced out” effects from a $1,000 home price increase; that could cause 11,152 households to have to leave the market. California followed at 9,897 and then Ohio at 7,341.
Mortgage rates have fallen to their lowest averages in eight months, and as word gets out, more potential home buyers may come off the sidelines, real estate pros say.
“The problem is that volatility is the obstacle,” Sam Khater, Freddie Mac’s chief economist, told The Wall Street Journal about expectations of fluctuations in mortgage rates over the next few months.
The 30-year fixed-rate mortgage fell to a 4.51 percent average last week, which matches the lowest average since last spring, according to Freddie Mac’s weekly mortgage market survey. Mortgage rates are still higher than a year ago—when they were 3.95 percent—but rates have steadily fallen from nearly 5 percent this fall.
Higher mortgage rates in 2018 were blamed on dampening home sales and prompting affordability concerns among would-be buyers. Stock market swings and higher home prices also took the blame.
But as mortgage rates fall, some real estate professionals say they’re seeing buyers step back into the housing market to take advantage of the savings. Tami Pardee, founder of Halton Pardee & Partners in Los Angeles, told WSJ that her firm had seven homes go into escrow just one week before Christmas, which is typically one of the slowest times of year. “I think people are worried that rates are going to go really high,” she says.
Brian Benjamin, president of Two River Mortgage in Red Bank, N.J., told WSJ that after his buyers, who had been sitting on the sidelines, saw how much they could save with the lower mortgage rates, they actively resumed their search.
“Hopefully as the news gets out that mortgage rates have fallen, it will get those on the fence to accelerate their looking,” Benjamin says.
Sellers whose homes aren’t in tip-top shape may need to spend extra money or put in a little elbow grease to get their properties in market-ready condition. But what are the most important repair or maintenance tasks that support a higher asking price? “Smaller and less expensive updates in combination with good staging will have a great return,” Susanna Haynie, GRI, a sales associate with Colorado Real Estate Group in Colorado Springs, told HouseLogic. The National Association of REALTORS®’ consumer-facing news service highlighted some of the most important items to address before putting a home up for sale.
1. Fix flooring flaws. “Scratched-up wood flooring, ratty, outdated carpeting, and tired linoleum make your home feel sad,” the HouseLogic article notes. “Buyers might take one step inside and scratch the property from their list.” Most buyers don’t want the hassle of replacing carpet and may not accept a credit to cover the cost after the sale, Haynie says. When refinishing hardwood floors, for example, homeowners can expect to spend an average of $3,000 but recoup 100 percent of that cost at resale, according to NAR’s 2017 Remodeling Impact Report.
2. Repair water stains. The home’s plumbing issues may have long been resolved, but leftover water stains will mislead buyers into thinking the problems still exist. First, double-check that the problem truly is fixed, and then make any needed repairs to the walls or floors. Water-stained ceilings can cost about $670, on average, to fix. Drywall costs about $1.50 per square foot to repair.
3. Touch up the grout. Yellow or cracked grout can be a turnoff to buyers. New grout can make old floors look revived. “The best return-on-investment projects before selling a home involve making a home look like new,” Shelton Wilder, a sales associate at Berkshire Hathaway HomeServices in Los Angeles, told HouseLogic. Bathroom re-grouting costs an average of $1 to $2 per square foot, increasing to $10 for more complex jobs.
To understand how much your home is worth, you have to know what affects its value. The Zestimate home value is Zillow’s tool for extrapolating the real market value of your home, based on existing home-related data and actual sales prices in your area.
Thousands of data points correlate with home values and sale prices — some of which are obvious (like the condition of the home) and some that aren’t.
Here are several surprising things that can affect either the existing value of your home or the price someone is willing to pay for it, all based on data.
1. Proximity to a Starbucks
How far do you have to drive to get a Frappuccino? If the answer is “not that far,” you’re in luck.
Photo from Shutterstock.
A 2015 Zillow report found that, between 1997 and 2014, homes within a quarter-mile of a Starbucks increased in value by 96 percent, on average, compared to 65 percent for all U.S. homes, based on a comparison of Zillow Home Value Indexdata with a database of Starbucks locations.
To evaluate if this effect is isolated to Starbucks, the research team looked at another coffee hot spot (one with particular pull on the East Coast): Dunkin’ Donuts.
The data showed that homes near Dunkin’ Donuts locations appreciated 80 percent, on average, during the same 17-year period — not quite as high as homes near a Starbucks, but still significantly above the 65 percent increase in value for all U.S. homes.
2. Blue kitchens and blue bathrooms
Beyond America’s obsession with curb appeal, what’s inside your house counts a lot too — especially the colors you paint the rooms (particularly the kitchen).
According to Zillow’s 2017 Paint Color Analysis, which examined more than 32,000 photos from sold homes around the country, homes with blue kitchens sold for a $1,809 premium, compared to similar homes with white kitchens.
Blue is also a popular bathroom shade. The same analysis found that homes with pale blue to soft periwinkle-blue bathrooms sold for $5,440 more.
Walls painted in cool neutrals, like blue or gray, can signal that the home is well cared for or has other desirable features.
3. Trendy features
Joanna Gaines’ aesthetic is permeating more than just your YouTube search history. Zillow listings mentioning the shiplap queen’s favorite features — like barn doors and farmhouse sinks — sell faster and for a premium, according to a 2016 Zillow analysis of descriptions of more than 2 million homes sold nationwide.
Listings with “barn door” in the description sold for 13.4 percent more than expected — and 57 days faster than comparable homes without the keyword. Meanwhile, listings touting “farmhouse sink” led to a nearly 8 percent sales premium.
Sellers can use the listing descriptions to highlight trendy details and features that might not be noticeable in the photos.
4. How close you are to a city
If you own a home in a major American metropolitan area, you’re most likely sitting on a significant (and rapidly appreciating) financial asset. Case in point: Home values in the New York, NY, metro area are worth $2.6 trillion, per a recent Zillow analysis.
Photo from Shutterstock.
The average urban home is now worth 35 percent more than the average suburban home. Since 2012, the median home value in urban areas has increased by 54 percent, while the median home value in suburban areas is up just 38 percent.
The new year is kicking off with lower mortgage rates for home shoppers and people looking to refinance their mortgages. The benchmark 30-year fixed-rate mortgage dipped to a 4.51 percent average this week, Freddie Mac reports.
“Low mortgage rates combined with decelerating home price growth should get prospective home buyers excited to buy,” says Sam Khater, Freddie Mac’s chief economist. “However, it will be interesting to see how the recent turmoil in the stock market will affect homebuying activity in the coming months.”
Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 3:
30-year fixed-rate mortgages: averaged 4.51 percent, with an average 0.5 point, falling from last week’s 4.55 percent average. Last year at this time, 30-year rates averaged 3.95 percent.
15-year fixed-rate mortgages: averaged 3.99 percent, with an average 0.4 point, dropping from last week’s 4.01 percent average. A year ago, 15-year rates averaged 3.38 percent.
5-year hybrid adjustable-rate mortgages: averaged 3.98 percent, with an average 0.2 point, dropping from last week’s 4 percent average. A year ago, 5-year ARMs averaged 3.45 percent.
How much is that kitchen remodel going to cost you? That’s a hard number to nail down. It’s not like you can cost compare on Amazon.
Instead, you need to research, create a budget, and track your expenses. Having your own kitchen remodel worksheet can help. Download it here. (You’ll be prompted to make a copy of the interactive worksheet — just for you).
Or, scroll on to see what kind of costs to expect and how to save on a kitchen remodel to get the most return on your investment.
Costs of a Typical Kitchen Remodel
Below are itemized costs of kitchen materials and labor so you can see where the possibilities for savings exist.
Price ranges on materials include builder-grade, mid-grade, and better quality, but not the most expensive you can buy. These numbers are meant to convey typical costs.
Item
Estimated Materials Cost*
Estimated Labor*
Kitchen Cabinets
$6,000 – $15,000
$600 – $1,140
Dishwasher
$600 – $1,300
$115 – $270
Range / Stovetop
$350 – $3,000
$115 – $270
Wall Oven
$1,000 – $3,500
$115 – $270
Refrigerator
$350 – $4,000
$115 – $270
Range Hood
$175 – $600
$115 – $270
Microwave
$300 – $700
$115 – $270
Countertops
$700 – $3,750
$100 – $1,000
Flooring
$350 – $1,000
$150 – $3,250
Garbage Disposal
$150 – $250
$200 – $250
Paint
$150 – $2,000
$300 – $950
Sink and Faucet
$200 – $800
$250 – $650
Total
$10,325 – $35,900
$2,240 – $9,140
* Based on a 12-by-15-foot kitchen. Your costs will vary based on your kitchen’s size and the you choose.
Home values moved 5.1 percent higher this past November compared to November 2017, according to a new report by CoreLogic. However, appreciation growth is starting to curtail from its 5.4 percent annual gain in October. CoreLogic is predicting a 4.8 percent gain in home values by November 2019.
The National Association of REALTORS® also recently reported an uptick in inventory entering more markets as more homeowners put their homes up for sale. Buyers are having more choice, prompting some sellers to lower their asking prices due to the added competition, according to CoreLogic researchers.
Some buyers may still be skittish, however, due to affordability concerns. “The rise in mortgage rates has dampened buyer demand and slowed home-price growth,” says Frank Nothaft, CoreLogic’s chief economist. “Interest rates for new 30-year fixed-rate loans averaged 4.9 percent during November, the highest monthly average since February 2011. These higher rates and home prices have reduced buyer affordability.”
NAR has predicted home sales to top about 5.3 million for 2018, which would fall in line with sales performance from 2000. The strong economy may get more buyers purchasing in the new year.
“Given the 17 million more jobs now compared to the turn of the century, home sales are clearly underperforming today,” says Lawrence Yun, NAR’s chief economist. “That also means there is a steady longer-term growth potential.”
Certainly, a strong economy helps homeowners feel confident about the value of their property, adds Frank Martell, president and CEO of CoreLogic. “If recent declines in the stock market shake consumer confidence in the national economy, we may see homeowners’ perception of home values change and a subsequent buyer’s market emerge in 2019.”
The paint companies have released their color forecasts for the new year. Here are the hot hues expected to make waves in 2019. Which one is your favorite?
Living Coral / Photo Credit: Furniture Choice
Living Coral: Paint company Pantone announced “Living Coral” as its 2019 Color of the Year. The orange shade with golden undertones embodies “warmth and comfort,” Pantone says. “Living Coral easily delivers a graphic pop to a space,” says Rebecca Snowden, an interior style adviser at Furniture Choice. “Introducing it through small elements will brighten up a room, creating a sense of coziness that’s also fresh and chic.” For example, the energetic tone can liven up cushions, throws, and rugs in a living room. In a dining area, color blocked plates and coasters in the peachy hue may add some spark to a table arrangement, she says.
Blueprint / Photo credit: Behr
Blueprint: Behr has gone blue with its top color choice for the new year. Blueprint is a mid-tone blue that is described as warmer than denim but softer than navy. Behr is embracing a full range of blue, teal, and grays as key color choices in 2019. “Layer light and dark blues on walls, cabinets, furniture, and decor for impactful results,” Behr says.
Cavern Clay / Photo Credit: Sherwin-Williams
Cavern Clay: Sherwin-Williams has picked a warm terra-cotta color called Cavern Clay as its 2019 Color of the Year. The color embodies an American Southwest, modern desert aesthetic. “This warm, earthy hue is both casual and refined,” Sherwin-Williams says. “It can be the backdrop of a playful, welcoming dining room or kitchen when paired with bright tiles, warm stone, and sculptural greenery.” It also compliments materials like leather and woodgrains.
Metropolitan Gray / Photo Credit: Benjamin Moore
Metropolitan Gray: Benjamin Moore expects the gray trend to continue in the new year, which is shown through its neutral pick with Metropolitan Gray. “It’s a color in the neutral spectrum that references a contemplative state of mind and design,” says Ellen O’Neill, Benjamin Moore’s director of strategic design intelligence. “Not arresting nor aggressive, this understated yet glamorous gray creates a soothing, impactful common ground.”
Shifting economies, demographics, and land shortages are issues altering how we live and what buyers are looking for in a home. Going smaller has become bigger—a trend Not So Big House author and architect Sarah Susanka first advocated more than 20 years ago.
A desire for greater affordability, convenience, healthfulness, sustainability, and old-fashioned comfort are still on the wish lists of many clients. But Connecticut architect Duo Dickinson says he’s witnessing another trend: a renewed willingness to remodel.
With a mind to resale value, here are eight interior design trends that experts anticipate becoming more dominant in the new year, and advice on how you can apply these predictions to your real estate business.
Why it’s happening: Research shows that natural light can boost healthfulness, both physical and emotional, so architects and window manufacturers are responding. Dickinson’s top suggestions to clients are to repair or reglaze windows, add more windows, build a deck, or add on a screened porch. “It gives them an important connection with the outdoors,” he says. Manufacturers like Marvin Windows and Doors are debuting new product lines, such as windows mulled together for a wall of light, and the company’s new Marvin Modern collection minimizes framing for maximum sightlines. Rick Gehrke with RE/MAX Executives in Boise, Idaho, says he’s seeing more roll-up garage doors fitted with glass for views outdoors.
How you can take action: Let clients know that new glazing can make a big difference to the enjoyment and efficiency of a home, and it’s an affordable update. Dickinson says a quality single window or door with glazing might cost $1,000. An entire wall of glass may run $5,000 to $10,000, but the return on investment can be huge if it captures a view or lightens a dark space.
Why it’s happening: With reports of contaminants in drinking water, toxic levels of formaldehyde being released from laminate flooring, and other home health scares, consumers are increasingly concerned about how their home may affect their health. But rather than compromising health and wellness, homes can provide an opportunity to enhance lives.
Building experts await the U.S. debut of the DARWIN Home Wellness Intelligence platform at the January 2019 Consumer Electronics Show in Las Vegas. The platform focuses on air filtration, water purification, circadian lighting, and comfort-focused technologies, all to simulate the natural outdoor environment. “We wanted to get rid of stagnant air that’s two to five times worse than outdoor air, contaminated water that runs through old corroded pipes, synthetic materials that offgas, and artificial light that disrupts natural circadian rhythms,” says Paul Scialla, founder and CEO of Delos, DARWIN’s developer. “It also responds to changes it detects, such as pollutants coming in on the bottom of our shoes.” The first fully integrated DARWIN home was launched two months ago in Australia, with the platform adding only $2,000 to the cost of the project, he says. Eventually, Delos plans to make the technology available for retrofits of existing single-family homes.
How you can take action: Staying abreast of new building techniques and smart home developments will help you better serve clients who are eager to make their homes healthier.
Why it’s happening: According to a 2018 Houzz Bathroom Trends Study, baby boomers now account for the largest share of home owners choosing to renovate—and their top project is redoing the master bathroom. “A significant proportion of boomers (56 percent) are aware of the needs that arise aging in place,” says Nino Sitchinava, Houzz economist. “They are proactive about integrating accessibility features that address these needs during renovations.” Popular changes include removing tubs that are difficult to climb into and out of, adding accessible shower seats and grab bars, and installing zero-threshold entries between rooms.
How you can take action: Knowing the costs will help you serve as a trusted adviser to buyers. The median cost for a large master bathroom renovation was estimated at $16,000 by Houzz. If that’s too much, suggest piecemeal changes. Grab bars, for example, range between $140 and $300, depending on whether the wall includes blocking support or if it must be added, says Richard Duncan, a universal design expert and co-founder of the Better Living Design Institute in Asheville, N.C.
Why it’s happening: Natural disasters are occurring more frequently and sometimes with little warning. The most forward-thinking homebuilders are developing resilient solutions for new and existing homes. “The weather is getting almost biblical, and homes that don’t address that run a legitimate risk of being seriously damaged or destroyed and having their resale value put in question,” says Nathan Kipnis of Kipnis Architecture and Planning Solutions in Chicago. His designs include oversized gutters and downspouts that direct water to rain gardens or other landscape features that can handle intense rain. He also recommends an ice and water shield on the roof to create a rain barrier, so the interior has greater protection. Coastal homes should add hurricane straps where the roof and walls intersect, he says, to reduce possible wind damage. Sustainable features are also critical to decarbonize the built environment and conserve resources. Kipnis favors all-electric systems, including induction cooktops, mini-split HVAC systems, and heat pump water heaters. Homeowners could take it a step further and have the garage wired to be a charging station for electric cars and add solar panels to the roof.
How you can take action: Direct clients to experts who know how to build and remodel houses to withstand the weather and keep energy costs down. Also, know how and where products and materials are made, since more buyers are asking, says Amanda Mason, senior design director at Chicago-based Belgravia Group. You can increase your knowledge by obtaining the National Association of REALTORS®’ Green Designation or attending a green-building conference.
Why it’s happening: Color swings keep rooms fresh, but what may appeal often depends on how trend-focused the locale is, along with the age and style of the home. According to Sue Wadden, director of color marketing at Sherwin-Williams, “Grays are now in the midst of a warming trend.” In Chicago, real estate pro Jennifer Ames, with Coldwell Banker Residential Brokerage, says, “It’s back to more white and off-whites.” Her clients are seeking a more neutral, calm background. In Boise, Idaho, beige appeals to the broadest range of buyers, but millennials moving downtown favor a statement wall of bright turquoise or magenta, says real estate salesperson Gehrke.
When it comes to cabinetry, colors are becoming more robust nationwide. Manufacturer MasterBrand Cabinets has found blue tones are becoming more popular, while teal, sage, and olive colors are making inroads. But when it comes to selling, color expert Amy Wax generally recommends being more cautious and favoring lighter colors that convey an easy-to-decorate, move-in atmosphere.
How you can take action: Learn preferences of buyers in your market, which may require asking paint store salespeople, designers, architects, and color experts. Then share what you learn with clients. “You can help buyers find a look by showcasing an updated aesthetic that doesn’t feel contrived,” Wadden says.
Why it’s happening: After so much focus on clean, spare Scandinavian design, there’s yearning for more warmth and comfort with natural touches. In fact, Miami-based designer Antony Chandler, president of Archiforma Group, thinks sitting in your living room should evoke the feeling of lying in a hammock under a great tree on a breezy summer day. To get the look, Chandler suggests prints and florals in natural-colored tones. Butcher block kitchen countertops and a mix of warmer natural materials such as wood, leather, silk, and stone will help capture the natural feel. Chicago designer Steve Kadlec suggests open grain oak cabinetry, metallic linen draperies, saddle leather, and woven cotton rugs. A warmer, more natural glow can also be illuminated through new LED lights, says Chicago designer Tom Segal, of Kaufman-Segal Design.
How you can take action: Your sellers don’t have to revamp rooms completely. Make suggestions on incorporating a few pieces to get the look. “You can capture a concept with a single well-chosen piece. Make it bold, beautiful, and memorable, and your listing will stand out in buyers’ minds,” Chandler says.
Why it’s happening: Affordability is in great demand, with rising home prices and a shortage of desirable downtown locations. “What’s needed is more dense land planning, common outdoor space, greater acceptance of attached homes, and sometimes doing without a garage,” says architect Bill Ramsey with KTGY Architecture and Planning’s Denver office. What’s considered livable yet affordable often needs to be larger than tiny homes, most of which are less than 500 square feet. John Hunt, president of Atlanta-based MarketNsight, a research firm focused on the building industry, thinks there’s a more viable option: microhouses, which range from 500 to 1,000 square feet. They fit community codes for permanent housing, unlike tiny homes that often must be built atop trailers due to their modest square footage. Microhouses also offer equity, unlike rental microapartments. They can be constructed as narrow townhouses or as a one-story, single-family designs. Home builder Jim Chapman Jr. recently received approval from the city of East Point outside Atlanta for 40 microhouses, each between 500 and 1,000 square feet on a 7.69-acre historic downtown site. Prices will start in the high $100,000s.
How you can take action: This small livable option can be a good investment for your buyers. Find out if there are any developments in the works in your market. “Many pay higher prices for lower-square-foot rentals,” Hunt says.
Why it’s happening: For the millennial generation, quality supersedes quantity. But this isn’t limited to their desire for smaller, better homes, says Chicago designer Rebecca Pogonitz of GOGO design group. It also applies to what they choose to put inside their homes when they decorate. “It’s not about keeping up with the Joneses. How they live dictates their choices,” she says. “They’re very practical about the money they spend, often researching and gathering ideas from sites like Houzz and Pinterest that mix high and low, and then asking experts to cull and complete a look.”
Finished projects might translate into a combination of luxury vinyl planks—which are more practical than expensive real wood boards—and furnishings from readily available online resources like Wayfair, Crate and Barrel, and Arhaus. The benchmark isn’t how fancy or rare something is, but if it’s practical, gives them the right experiences, and nourishes their spirit.
