Denver Real Estate Blog

What’s your top 10?  I am always surprised, and a bit amused, when people start their home search looking for one type of house, and a list of “must-haves” which totally changes when they walk into that house that is “the one”.  I often start a home search by asking a bunch of questions - about lifestyle, mostly - because it’s important to hear from the buyer what is vital in their everyday lives, and what they think they want, but can most likely do without.  So what are the deal-breakers?  Of course, they are always different, but according to this article from Real Estate Magazine, based on findings from the experts at the International Builders Show - these are the Top 10:

Americans want smaller houses and they are willing to strip some of yesterday’s most popular rooms-such as home theaters-from them in order to accommodate changing lifestyles, consumer experts told audiences at the International Builders Show.”This is a traumatic time in this country and the future isn’t something we’re 100% sure about now either. What’s left? The answer for most home buyers is authenticity,” said Heather McCune, director of marketing for Bassenian Lagoni Architects in Park Ridge, Ill. Buyers today want cost-effective architecture, plans that focus on spaces and not rooms and homes that are designed ‘green’ from the outset,” she said. The key for home builders is “finding the balance between what buyers want and the price point.”

For many buyers, their next house will be smaller than their current one, said Carol Lavender, president of the Lavender Design Group in San Antonio, Texas. Large kitchens that are open to the main family living area, old-fashioned bathrooms with clawfoot tubs and small spaces such as wine grottos are design features that will resonate today, she said. “What we’re hearing is ‘harvest’ as a home theme-the feeling of Thanksgiving. It’s all about family togetherness-casual living, entertaining and flexible spaces,” Lavender said.

Paul Cardis, CEO of AVID Ratings Co., which conducts an annual survey of home buyer preferences, said there are 10 “must” features in new homes:

1. Large kitchens, with an island. “If you’re going to spend design dollars, spend them where people want them-spend them in the kitchen,” McCune said.

2. Granite countertops are a must for move-up buyers and buyers of custom homes, but for others “they are on the bubble,” Cardis said.

3. Energy-efficient appliances, high-efficiency insulation and high window efficiency. Among the “green” features touted in homes, these are the ones buyers value most, said Cardis. While large windows had been a major draw, energy concerns are giving customers pause on those. The use of recycled or synthetic materials is only borderline desirable.

4. Home office/study. People would much rather have this space rather than, say, a formal dining room. “People are feeling like they can dine out again and so the dining room has become tradable,” Cardis said. And the home theater may also be headed for the scrap heap, a casualty of the “shift from boom to correction.”

5. Main-floor master suite. This is a must feature for empty-nesters and certain other buyers, and appears to be getting more popular in general. That could help explain why demand for upstairs laundries is declining after several years of popularity gains.

6. Outdoor living room. The popularity of outdoor spaces continues to grow, even in Canada. The idea of an outdoor room is even more popular than an outdoor cooking area, meaning people are willing to spend more time outside.

7. Master suite soaker tubs. Whirlpools are still desirable for many home buyers, but they clearly went down a notch in the latest survey. Oversize showers with seating areas are also moving up in popularity.

8. Stone and brick exteriors. Stucco and vinyl don’t make the cut.

9. Community landscaping, with walking paths and playgrounds. Forget about golf courses, swimming pools and clubhouses. Buyers in large planned developments prefer hiking among lush greenery.

10. Two-car garages. A given at all levels; three-car garages, in which the third bay is more often than not used for additional storage and not automobiles, is desirable in the move-up and custom categories.

Updated bath incorporates natural stone, neutral tones. Photo courtesy of HGTV.

Looking for a weekend project that won’t cost you an arm and a leg, but will improve your home’s value and maybe make your mornings a little easier?  The bathroom is a perfect place to start!  Even if you aren’t thinking of selling right now, resale potential should always play a part in your decision-making process, so try to keep current trends in mind, and add your personality with easily replaced items like artwork, towels, shower curtains, and rugs.

The National Kitchen & Bath Association has compiled what it sees at the year’s dominant bathroom renovation trends. They are:

In With the Old, Out with the New - Traditional will be the most popular design style in bathrooms in 2010, as contemporary designs will be a distant second, followed by the Shaker style as an even more distant third. Beiges and bones will be the most common colors used in bathrooms, followed by whites and off-whites, and then by browns, indicating a somewhat subdued color palette this year.

Ceramic and Granite - Ceramic and porcelain tile will be the dominant flooring materials in bathrooms this year, while natural stone will continue to prove popular as well. Though increasingly popular in kitchens, hardwood flooring won’t become common in bathrooms in 2010. For vanity tops, granite will remain king, with quartz and marble also proving popular options.

Simple Fixtures - Perhaps more than ever, the most common color for fixtures will be white. Bisque and off-white will be the only other fixture colors at all common in new or remodeled bathrooms. For sinks, simple undermount models will be most popular, followed by integrated sink tops, drop-in sinks, vessel sinks, and pedestal sinks.

A Nickel for Every Finish - Faucet finishes in the bathroom are similar to those used in current kitchen designs, with brushed nickel continuing to lead the way in 2010. Polished chrome and satin nickel will also be incorporated into many bathrooms, just as they had been throughout 2009. These faucet finishes will be followed by bronze and stainless steel.

Keep in mind your home’s value when tackling DIY and remodeling projects.  If your property’s market value is around $200,000 - it doesn’t make sense to spend more than a couple thousand dollars on a bathroom update - it’s money that you won’t get back on resale.  But, there are some things that are worth the investment, and that buyers tend to look for when looking for a new place:

Real tile.  I know that the peel and stick products on the market right now are sometimes really tempting - they are super easy to install and you can trim them with scissors - in most cases you can find a cermic tile for a comparable price and with a little extra time and effort, you will add value with the real thing.

Jetted tubs.  Most people love a relaxing bath, and in some cases they might never have had one, so it’s a coveted item.  If you are going to have to replace your tub anyway, spring for the jets - you will see that money come back at resale, and you will have it to enjoy in the meantime!

Framed mirrors.  Nothing looks cheaper than those frameless mirrors attached to the wall with those little plastic tabby things.  Framed mirrors can be found at any craft or home decor supplier for a minimal imvestment.  Hobby Lobby and Target often have them on clearance, and thrift stores usually have them as well.  Painting an old frame is a great  way to update and reuse a found item.

Wondering what you need to do to get your home ready for sale, or which improvement projects are worth the investment?  Contact me, I would love to help you out!

Looking for a way to freshen up a space without investing in new wood floors or carpet?  Do a little investigating to figure out if painting the floors might be an option.  There isn’t a better way to bring color to a space - and anyone can do it, unlike installing wood flooring or carpet, which is a more serious commitment, including product cost and installation.

No matter what era your home was built in, there are ways to make color work on the floor - and because paint is one of the lowest cost, easiest materials to work with, it’s no big deal if you don’t love the result - simply paint over it or go with a more traditional product, like tile, carpet, or wood.  But it’s worth a shot, because you just might love it.

If you are thinking of putting your house on the market, also consider painting outside spaces such as patio, porch and walkway surfaces - it’s a great way to freshen up ragged old concrete without replacing it.  If surfaces might become slippery, mix some light sand into the paint before applying - you will find this in little packets next to the outdoor paint in any supply store.

Make sure to check with your HOA if you have one - some place limits on color pallettes for outdoor use.  If you don’t have an HOA to limit your selection, don’t be afraid to go bright and cheerful, and try to complement it with a memorable door color as well!

Here is an article from House Beautiful that features several different designers talking about how they have used painted floors to transform different types of spaces.

Before you hit those after-Christmas sales in search of upgraded appliances for your home, take a minute to do your research - and make sure that your purchases will be eligible for the State Appliance Rebate Program, which is expected to launch in Colorado in March 2010.

MSNBC.com featured this program yesterday…here’s some of their article…

Modeled after the popular Cash for Clunkers program, which was intended to get cars with low gas mileage off the road, a federal appliance rebate program is launching in early 2010. It offers a boost to people buying energy-efficient clothes washers, refrigerators and other appliances — those that qualify for the federal “Energy Star” designation — and to manufacturers, whose sales fell 10 percent in 2008 and another 12 percent through mid-December this year.

Read the rest here.

The program differs from state to state, here are the details regarding Colorado’s program, from Energysavers.gov, where you can also go to learn about Energy Credits, to compare different products, etc.

The State of Colorado will implement a mail-in rebate program to help residents replace older, inefficient appliances with ENERGY STAR® qualified appliances. The program is tentatively scheduled to begin in March 2010 and will continue until funds are exhausted.Eligible products include

Refrigerators
Clothes washers
Dishwashers
Gas storage water heaters
Gas tankless water heaters
Gas furnaces
Gas boilers
The state encourages residents to recycle their old appliances. Check with state officials for information on proper disposal of appliances.

Contact: Governor’s Energy Office

Total Funding: $4,739,000

Program information subject to change. Rebates may be offered for a limited time only. Before purchasing a product, check with your program sponsor to ensure rebates are available, and to confirm product eligibility and program requirements. Products purchased must meet efficiency criteria as established by the state.

Uncle Sam is offering taxpayers generous incentives to make their residences more energy efficient. Many of the eligible home improvements, such as adding insulation, can earn a tax credit of up to $1,500. More ambitious upgrades, such as installing solar panels, can net a credit worth 30% of the total cost of the project.

Improvements must meet IRS energy-efficiency standards to qualify. Don’t assume an Energy Star label is enough. Sometimes it isn’t. Save receipts and manufacturers’ statements certifying the tax credit-worthiness of the products. The IRS could ask for them. Consult a tax adviser.

Tax credit capped at $1,500

Replace aging windows, HVAC systems, and non-solar water heaters, install efficient biomass stoves, add insulation, or fix a worn roof, and you might collect a tidy credit come tax time. To encourage greater energy efficiency, homeowners can recoup 30% of the cost, up to $1,500, for making any of these qualifying upgrades during 2009 or 2010. Claim the credit for the year in which you complete the project.

The improvements must be made to your existing primary residence to be eligible. You can include the labor costs for HVAC, stove, and water heater installations; only the cost of materials counts for insulation, roofs, and windows (as well as exterior doors and skylights). Ask your contractor for a receipt that itemizes materials and labor. The IRS refers to the tax relief you can get for these projects collectively as the Nonbusiness Energy Property Credit.

Keep in mind that the $1,500 cap applies to all of the projects combined for both years. You can’t claim a $1,500 credit for new windows in 2009 and a separate $1,500 credit for a new furnace in 2010. A $5,000 project would max out the credit.

Uncapped energy tax credit

There’s no cap on tax credits for a handful of residential projects that involve alternative energy sources including solar, geothermal, and wind. That’s good news considering costs can run into five figures for photovoltaic systems (for electricity), solar water heaters, geothermal heat pumps, and small wind turbines. Fuel cells qualify too, though they’re subject to slightly different criteria.

This tax incentive is called the Residential Energy Efficient Property Credit by the IRS. Homeowners can earn it anytime between 2009 and 2016 for the tax year that one of these systems is placed into service. The tax credit, equal to 30% of the project cost, applies to second homes as well as primary residences. New homes are eligible too. A rental property generally is excluded unless it’s a second home that’s only rented out part of the year.

You can use the uncapped tax credit even if you’re using the capped tax credit. In fact, you can claim separate uncapped credits for a wind turbine, a geothermal heat pump, and a solar water heater. Use IRS Form 5695, which has separate pages for capped and uncapped tax credits.

How tax credits work

A tax credit is usually more valuable than a tax deduction because the credit lowers your tax bill—or increases your refund—dollar for dollar. Think of it this way: A $1,500 deduction will save $363 on taxes owed for a married couple filing jointly with an adjusted gross income of $100,000. That same couple would save the full $1,500 with a $1,500 tax credit. Married filing separately taxpayers may be able to take separate $1,500 tax credits.

Residential energy tax credits do have limits. The IRS considers the credits “non-refundable,” which means you can’t claim more in credits than you paid out in federal income taxes. You may be able to carry forward some of your surplus uncapped tax credits to future years.

While Form 5695 shouldn’t take more than an hour or two to complete, it’s a good idea to consult a tax adviser. Credits are gold, so you don’t want to risk missing one.

Want more information about Tax Credits or the upgrades that qualify?  Visit www.houselogic.com - it’s a great resource for home purchasing, selling, or valuating.

Denver used to be a commuter-only town - dead on the weekends and evenings, with traffic flowing in and out with business-hours.  Now that Denver has a thriving Urban Core, and is truly vibrant from neighborhood to neighborhood, it’s time to focus on the little things that would make it easier to live a bit greener, and transportation is one of them. 

I love to ride bikes with my kids, and we also love going for long walks - but the kiddos also like having a destination along the route - a break at the neighborhood book store, a stop at the local ice cream shop, a quick bounce in the castle at the farmer’s market…the thing is, it’s sometimes a bit too scary to ride with the littles along to places like these, so we end up driving. 

Which is why I was really happy to read this article in today’s Denver Post…

Increasing business to merchants along Denver’s busiest roadways is one of the goals of a city initiative focused on designing streets to accommodate pedestrians and bikes, as well as cars and public transit.

Eight city departments are collaborating on the Living Streets initiative, which will support the vision of Blueprint Denver, a framework for guiding development in the city.

“We’re changing the conversation from talking about roads for vehicles or cars to making streets for living,” said Peter Park, manager of the city’s community, planning and development department.

The city isn’t looking to spend a lot of money on the project. Rather, over time, it will implement changes as other necessary improvements to the roads are made.

Cities that have adopted similar policies have seen significant economic impact on both commercial and residential real estate.

For example, after San Francisco narrowed traffic lanes to slow cars and accommodate other users on Valencia Street, nearly 40 percent of Mission District merchants reported in increase in sales and 60 percent said more area residents were shopping locally, according to a study prepared by Denver-based Progressive Urban Management Associates.

Living Streets also can help occupancy rates in commercial buildings. In a walkable area, the vacancy rate for retail and office properties averages 7.5 percent, compared with 11.5 percent on streets that are not pedestrian friendly.

“It’s a different way of looking at the economics of these corridors,” said Brad Segal, president of Progressive Urban Management. “We’re really suggesting that there’s value through neighbors and walking and biking, and there are relatively inexpensive ways of marketing to adjacent neighborhoods that haven’t been used.”

In addition to benefiting the commercial district, the Living Streets concept also has a positive impact on residential property. Homes in pedestrian-friendly neighborhoods command a price premium of $4,000 to $34,000, according to a study by CEOs for Cities, a national network of urban leaders for sustainable cities.

The initiative is geared toward enhancing Denver’s most congested roadways without the expense of widening them.

“We hear the community saying it wants walkable and bikable, but there are tradeoffs,” said Crissy Fanganello, director of policy and planning for the city’s Department of Public Works. “If you want a bike lane, you might have to be willing to give up off-street parking or a lane of traffic.”

Of the 1,100 residents responding to a survey regarding the Leetsdale Drive corridor, 69 percent said they wanted pedestrian amenities and 52 percent want bike access. Seventy-five percent said they would be willing to invest in the improvements through property assessments.

“We have to look at the corridor in terms of how it relates to the neighborhood as opposed to how it relates to the traffic,” Segal said.

Eat Local

The National Resources Defense Council has created a new website, SmarterCities.nrdc.org that is a treasure trove of information about American cities and their level of sustainability.  Categories include Air Quality, Energy Production and Conservation, Environmental Standards and Participation, Green Building, Green Space, Recycling, Transportation, Standard of Living, and Water Quality and Conservation.  They also have a great feature that helps you figure out what is in season so that you can eat local.

It’s super interesting to check out the different rankings - and good to know that Denver is up there - #9 Overall.  Also #2 for Energy Production and Conservation, and #2 for Water Quality.

There is a TON of information on the site, check it out here.

I also thought that this was really interesting - I have driven by this site several times but wasn’t sure what they were up to - now I know:

Arvada is constructing solar energy capacity at its water treatment plant in partnership with SunEdison, and will be the first city in Colorado to have a system of this size run on solar power. Solar power from 3,300 panels is expected to provide 88 percent of the plant’s energy needs, which are currently supplied almost entirely by coal. The solar system, which will be owned and operated by SunEdison, will eliminate 39.5 million pounds of carbon dioxide emissions over 20 years and will save $10,000 to $15,000 the first year. The upfront costs will be paid back through a combination of rates paid by the city, federal tax credits and renewable energy credits from the utility, Xcel Energy.

Ori and I have spent the last several weekends creating our own little urban farm. 

Tearing out a large section of grass, we installed two raised garden beds and a large flower bed - it was a ton of work, but I know that it will pay us back in several ways.  As we live there, we will be able to plant, tend, and harvest our own food - it’s really satisfying work that will not only save money, but will taste great.  As the kids help us with our project, they will learn about the cycle of life, about the satisfaction of a job well done, and about the benefits of good nutrition. 

Eventually, we will sell our house, maybe move to a house with a few acres - and an even bigger garden - but I think that the urban garden that we have created will pay us back at resale, as well.  As contemporary homebuyers look to go green in all sorts of ways, they will look beyond the bamboo flooring, recycled glass countertops, and solar panels to the potential of the land and how it can give back.