Tuesday, April 23, 2013

In residential real estate, bid farewell to the 'master bedroom'


Staff Reporter- Washington Business Journal

The “master suite” is being phased out — not from our homes, but from our lexicon.
I surveyed 10 major Washington-area homebuilders and found that six no longer use the term “master” in their floor plans to describe the largest bedroom (with its own bathroom) in the house. They have replaced it with “owner’s suite” or “owner’s bedroom” or, in one case, “mastre bedroom.”

Why? In large part for exactly the reason you would think: “Master” has connotation problems, in gender (it skews toward male) and race (the slave master).

Enter the owner's suite.

“I imagine it’s not only a more accurate description but also a more politically correct term of art,” said Steve Nardella, senior vice president of operations for Winchester Homes Inc.
Either way, the “master suite” has been linguistically shoved aside.

Winchester, Pulte Homes, NV Homes and Ryan Homes (both under the NVR Inc. umbrella), Van Metre Cos. and D.R. Horton Inc. have all replaced “master” in their floor plans, some more recently than others.

Richmond American Homes, Shulz Homes Corp. Sekas Homes Ltd. (in some of its models) and Quaker Custom Homes LLC continue to employ the word “master” in their designs.

In general, said Grant Johnson of Sekas Homes, “we’re using owner suite, but sometimes it will come through as master.”

Over time, “master” will be filtered out entirely, he said. The change is “just working through the industry, and finally, bingo, we got it.”

Randy Creaser, owner of D.C.’s Creaser/O’Brien Architects PC, said he ditched “master” in the early 1990s in his home designs. He vaguely recalled a few lawsuits brought against builders over the phrase. Pulte spokeswoman Valerie Dolenga said Pulte made the shift maybe three or four years ago.
Word of the change is now reaching the resale market, where “owner’s bedroom” is most commonly used in higher-end listings, said Brian Block, managing broker for McLean’s RE/Max Allegiance.

“The terminology has more of an upscale tone to it, particularly in some of the really large homes that truly have a large bedroom, sitting area, enormous walk-in closets, and lavish bathrooms,” Block wrote in an email. “Owner Suite conveys a sense of being distinguished, having ‘made it’ or ‘arrived’ rather than the everyday ‘Master Bedroom.’”

Lorraine Arora, vice president and managing broker of Long & Foster Real Estate Inc. in Springfield and Kingstowne, said older brokers tend to use “master,” because that is what they’ve always used, while the younger agents “want to be more politically correct.” Her office, she said in an email, is split between the two terms.

A quick, terribly unscientific poll of Washington Business Journal homeowners found none who could recall a real estate agent referring to the “owner’s bedroom.” It was "master" across the board.
Now, about the name “Redskins.”

Wednesday, April 3, 2013

What Do Buyers Really Want in a Home?

What sets one home apart from another as buyers are touring homes? What features do buyers truly need, and which amenities would they merely view as a bonus? The National Association of Realtors has tried to answer those questions (and more) with the recently released 2013 Profile of Buyers' Home Feature Preferences. The survey was completed by buyers who purchased a home between 2010 and 2012.
According to the study:
The typical buyer bought a home with three bedrooms and two full bathrooms. About half of homes purchased were on a single level, while two-fifths were on two levels. Garages were more popular among buyers of new homes, homes in the Midwest, and homes in the suburbs. Fireplaces were most common in higher priced homes, homes in resort or recreation areas, and in detached single-family homes. Forty-one percent of homes had basements, which could be finished, partially finished or unfinished. Finished basements were more popular among single males, younger home buyers, and buyers in the Northeast and Midwest.
For sellers who are looking at remodeling, and want to make sure their renovation dollars are well spent, this could be a road map of what to update or add to their homes. Some other highlights:
  • 78% of buyers chose a home with a garage
  • 58% purchased a home with a fireplace
  • New kitchen appliances were more important to buyers than granite countertops
  • 69% of buyers who didn't buy a home with new appliances would have been willing to pay more for a home that had them
  • Among buyers 55 and older, 42% rated a single level home style very important, compared to only 11% of buyers under 35
  • Buyers were willing to pay a higher dollar value for an in-law suite and a basement than other extra room types.
  • The feature that had the highest dollar value buyers were willing to pay extra for? Waterfront location.
  • 53% of buyers started a home improvement project within 3 months of buying, typically in the kitchen.
  • The majority of buyers wanted more or larger closets and more storage.
The great news is that 97% were satisfied with their home purchase.

Click HERE to view the original article. 

Should Your Buyers Increase Their Offer?

by The KCM Crew on March 28, 2013

Limited inventory and a very strong demand for housing has created an environment where bidding wars are commonplace in today’s real estate market. Homes priced properly are getting multiple offers within a short time of coming to market. This brings about a dilemma for the agent: How should they advise their client who is about to make an offer when other offers will also be presented?
Over the last several years, there wasn’t any pressure on the buyer to adjust their offer for three reasons:
  1. There were plenty of homes for sale
  2. Prices were falling
  3. Mortgage interest rates were falling
They buyer could find another home easily for probably less money and a lower mortgage rate. There was no downside to not ‘upping the ante’. However, in today’s market, things have dramatically changed.

HOUSING INVENTORY

A normal real estate market has between 5-6 months worth of inventory. Over the last several years, the inventory of homes for sale had skyrocketed to 10 months. Most buyers in almost any price range had a multitude of houses to choose from. Today, the national month’s supply of inventory has fallen below five months. In many markets, there is not enough housing inventory to satisfy the current demand.
Conclusion: If the buyer loses the house they are bidding on, there is no guarantee they will find a similar home anytime soon.

HOME PRICES

Becausemof the limited inventory, home prices are again appreciating. The Case Shiller Pricing Index revealed that house prices rose by 6.8% in 2012. Experts are projecting home prices to increase by 5% to 8% in 2013.
Conclusion: If the buyer doesn’t get this house, there is a good likelihood that a similar home will cost more in the future.

MORTGAGE RATES

The ‘cost’ of a home to a buyer is determined by the price of the house and the expense associated with the financing. Mortgage rates are projected to inch up in 2013. In a recent forecast, the Mortgage Bankers Association predicted that rates could climb as high as 4.3% by the end of the year.
Conclusion: If interest rates do inch up, the ‘cost’ of the next home could be impacted significantly.

Bottom Line

If a buyer truly loves the house they are bidding on, it probably makes sense to raise their bid now instead of waiting for another dream house to appear.

Click HERE to view the original article.