Cindy's Blog

There are a couple of things I just need to get off my chest. First of all, real estate markets are local, not national. I just finished reading a rather annoying (on a number of levels) article on a real estate news site. The problem had begun when there was article in the local paper (in another market) about the horrible state of the real estate market , and it created a firestorm of controversy.

Seriously, it really is ridiculous- the media really does focus only on the bad. When the market was great, there were no headlines (that I recall, at leat) saying, "Hooray, the market is great!" If I recall correctly, they were something more along the lines of "how long can this continue," "prices are out of control", "the markets are overheated..." It is the bad news that sells papers, whether the topic is Britney Spears or the real estate market. Period.

Now, having said that, there are definitely homes that are sitting longer, and homes that are having multiple price reductions, that a few years ago would have had multiple offers, but overall, our market is not as bad as it is in some areas of the country. It's just not.

The other thing about this article that annoyed me was that there were agents who wrote in outraged about the article, and not just because it may not be true in their area, but because they felt that because they spend their advertising dollars with that paper, there should be some sort of bias about the way the news is printed.

Fundamentally, the stories should be about not only the national story, but the local one too. Balanced, and including the local angle. However, is it so hard to see how bad that makes this profession look when we expect to influence the news because of our advertising dollars? I mean, I'm all for an editorial rebuttal, but seriously!

We as realtors are only going to improve our reputation when the sleazeballs and the numbskulls get out of the business, and the people who really are in it for the long haul, understanding that it is all about the client, not all about the commission.

I will take this opportunity to mention, however, that the National Association of Realtors did just release the figures for the month of February, and while numbers are down since last year, by nearly 24% compared to last February, but the good news is that the numbers were slightly up from January, showing that for the moment, at least, there appears to be a temporary halt in the downward slide nationally.

In our area, it is not as bad as many, but no one is delusional enough to think that everything is coming up roses. I mean, gas is $3.50 in Richmond, for Pete's sake! That's crazy! However, despite all of the questions about the economy, there are still awesome rates, increased conforming and FHA limits, plus lots of great deals to be had. While it's perhaps a dubious time to sell (although again, things are taking longer, but if they are in a good location, well maintained, updated, and some care is put into getting them ready for the market, they will sell), it is all relative, and while you might sell for a bit less, you will most likely get a home for less as well. It's all relative... 

Well, if you haven't heard, tonight at 8 pm begins Earth Hour, where the World Wildlife Fund has asked that everyone (and hundreds of thousands, if not millions, all over the world are) turn off their lights, computers, tvs, etc. for one hour. It's one of those things that in the grand scheme doesn't seem like it would necessarily make that much difference, but if it makes us all think, just a bit more about what we do on a daily basis, and how much energy we use and rely on, then it does what it is intended to do. For more information on Earth Hour (even if you missed it this year), click here.

Even if you do miss it, or can't for some reason, take part (I'm not really looking forward to getting my almost 5 year old to bed in the midst of complete darkness, there are lots of things you can do today, and every day, to make a difference.

The cover of Time this week features a Photoshopped ear of corn with dollar bills surrounding it, and the headline reads something like, "BioFuels: The Energy Myth." It talks about all of the issues that come along with acting and thinking as though biofuels are a panacea for all that ails the environment, when in fact, they just cause different problems. What is important to remember, rather than trying to focus on these GIANT problems and solutions, is that we can really all make a difference by doing some small things.

Just to name a few: use your own bags at the grocery store. It barely takes any time to put them right back in the car after they've been unloaded, and you'll save tons of trees if you go paper, and lots of petroleum if you go plastic. Buy fair trade, organic coffee and foods. We will, as a wold, all be better off if we have fewer chemicals and better working conditions/ wages for the people working to provide our foods.

Replace your light bulbs with compact flourescents. If you haven't done this yet, it really does make a difference. The list goes on and on...I'll keep posting them here, but in the meantime, check out www.earthhour.org even after today for some terrific ideas.

As we move into spring, and the spring buying season (yes, even when the market is not great, there is still a spring buying season, and it appears to be starting right about now), outdoor spaces become more and more important to buyers, and the nicer the weather is, the more important it becomes. But what if you want to put your house on the market, and you don't have any outdoor space to speak of?? What are you supposed to do??

First of all, get off the sofa, put down the Wii, and get to work! You really can create a total transformation with relatively little money and a reasonable amount of work (money and work being an inverse correlation- if you want to pay someone to do everything, obviously, it will be less work, and more money.)

It doesn't have to be an elaborate Japanese garden, a terrific party deck, or flagstone patio either, as beautiful as they may be.  

If you don't already have a deck or patio, it's not usually a good use of your time or money to put a new one in. If you do have a deck or patio, the first thing you should do is clean it. Sweep, and depending upon the material, you probably want to powerwash, seal, or possibly stain the surface.

Make sure you have some sort of furniture on the deck or patio- even if it's relatively basic, just a couple of chairs, table, etc. That really makes a difference as far as making it feel welcoming and truly like a "living area".

If you have plantings already out there, make sure that they are well trimmed and weeded, and if you don't have any color, this is a great place to spend a couple hundred dollars. Fill in your perennials with some bright, blooming annuals, or any sort of flowering plant, and it will really add some "pop." If you have a deck, etc., put a couple of the flowering plants, or even potted lush greenery, around on that as well. Again, it adds to making it feel like a true outdoor living space, rather than just a backyard.

Obviously, you want to keep your outdoor areas nearly as clear as those inside, and make sure you've raked, weeded, picked up debris, put away lawn care implements, etc., and refreshed your mulch (another great place to spend your money- tip: get dark mulch, as it looks much more crisp and new than some of the other types you'll see.)

If you want your garden area to be a little "greener" (figuratively, perhaps, rather than literally) you could also use some small pebbles, and make walkways or more natural areas that need no water, and little weeding, but still have a terrific, and very zen, look.

Remember- the best way to think about an outdoor living space is to treat it very similarly to an indoor one- clean and neat, cozy and comfortable, with some bursts of color. You don't, though, need to spend thousands to get it that way (at least for most homes.).

So sorry for the delay in posting (or is this how I start every post?) This past weekend was the Junior League of Richmond's Junior Book & Author Event, of which I was the chair. Aside from those things that directly impact my clients, or were otherwise of paramount importance, everything else has been put on hold for the last couple of weeks in preparation for this event.

If you have never been to this event, and have a middle school student, it is an absolutely terrific day, featuring an awesome middle school author (this year, we had 2 time Newbery Honor Winner Gary D. Schmidt) and he was an absolutely terrific speaker, funny, engaging, but also imparting to the kids and the adults a light but definite wisdom. So, if you have a middle school child, definitely pencil it in on your calendar next year for late February, early March! There's a new author every year, but they are always terrific!

In the world of the real estate market here in Richmond, things are still a bit slow, but things do seem to be trending up just a bit, a move that is expected with springtime's arrival. Rates are still crazy low, and with all the the Fed is doing to keep rates low, hopefully some of their other plans will help things loosen up a bit, giving banks the confidence to lend and consumers the confidence to borrow.

I know so many people who are starting, finishing, thinking about, or bidding on renovation jobs, and spring is almost here, so what better time to talk about where you might best spend your money and get the most back when you do go to sell.

Most people doing a major addition are planning to live there for a while, but in many cases, especially when the market is not so hot, folks start thinking about what they might be able to do to not just help them get a little bit more money, but what might help them sell a bit faster.

The 2007 Cost vs. Value Report from the National Association of Realtors and Remodeling Magazine is a great place for getting that information.

If we look at the information from the Richmond area only, there is some very interesting information to be found. For example, the return on investment from siding replacement is a surprising 102%! I think we all know that siding makes a huge difference, and I've worked with enough buyers and sellers to know that if it's a difference between hardboard and vinyl or composite/ cement siding, even if the one with newer siding is more, there's often no contest. But even I was surprised at the size of the roi on that one.

If we take the next five in the rank of return on investment, the next highest is an attic bedroom renovation/ finishing the third floor. The ROI on that is ranked at approximately 97%. Next on the list is a basement remodel, at just over 95% ROI. (Whew! That's next on our list, so good to know!)

The third most "profitable" renovation is going to be the minor kitchen remodel. While I agree that roughly 95% is about what the return would be, it really is usually kitchens and baths that sell houses, so while the dollar return may not be 100% or more, it certainly does translate into time on the market. So, if you're looking to do something in a shorter term, prior to putting your house on the market, something like cabinets, countertops, appliances, etc., can certainly make a difference, and are definitely a good place to put your money, from both a time and money perspective.

The fourth, going back to the same issue that bathrooms and kitchens usually sell the home, is a bathroom remodel. The ROI on this is right around 95%, but again, probably will translate into less time on market, most particularly, perhaps, if the other homes in the neighborhood have baths that are perhaps a bit older. (You never want to do too much "over improvement" because the other homes in the neighborhood will tend to at least to some degree, drag the value of your home down. But you are in good shape if your home looks that much better than the other homes in the neighborhood...obviously).

Finally, roofs and replacement windows are about neck in neck as far as the ROI goes in this area, at just over 90%. However, if you're going to stay in the home for a while, your return has to include the energy savings you will realize, particularly from the windows.

As always, ROI on renovations and additions are very local, and depend on a variety of factors. These are just some good guidelines, for both putting a bit of money into your home before you sell, as well as scheduling things that you may not be doing all at once, but want to make sure you're getting the "bang" for your "buck".

In this unpredictable, correcting market, there are many lessons to be learned. Especially for sellers. It's easy to determine what we want for our homes (normally more than they are actually worth), and what we need for our homes, based on things that need to be paid off, downpayments on the new home, etc. What is not so easy, especially when we've been in a very different, much easier market for the last few years, is to determine exactly what the "magic number" is at which the house will sell, and coming to grips with the fact that that is often not the number we want to hear.

There are a number of ways to get that edge, though, in the market, and staging is most certainly one of them. Even homes that are reasonably well decorated, or basic, can really be fluffed up and "styled" by an accomplished stager. I cannot tell you what a difference this can make in a home, whether vacant or sparsely furnished.

The top five easy things to do (without even bringing in a pro):

1) Remove any food, pet, or smoke smells from the home. Seriously- if you can't tell, have a couple of friends that you trust come over and give you their honest opinion. If they hesitate, or tell you they smell something, then before you have showings, clean the carpets, use some Febreze, and paint, if necessary. I cannot stress enough what a huge difference this makes.

2) Clean your junk of the kitchen counter. If there is anything out of place, like four jugs of juice that lives on the counter all the time, move it. Anywhere. Trunk of your car, under the bed, anywhere. If people come to your house and see that you have no where to put your gatorade, soday, juice, etc., they are surely going to start thinking about where they would put theirs. One of my very large pet peeves is toaster ovens, fryers, and other kitchen gadgets. If they live on the counter, remove them for the open house and/ or showings. It just looks like you have no where to put them, or like you fry something everyday, which doesn't really paint a pretty picture either.

3) This one sounds really obviously, but really, you'd be surprised. Clean the house! Clean the floors, get rid of the dustbunnies, clean the crumbs off the table, wipe the kitchen counters, clean the glass, mirrors, windows, etc. Close the toilet seats, and get the little funky grime off the shower door. Put your "buyer glasses" on and give your house a long hard look.

4) Paint your front door, and jazz up the entry. You know what they say about first impressions. Sweep or scrub the dust/ cobwebs or gnats that seem to collect on the areas around the lights and doorway, and paint a color that "pops" if you don't have a fresh shiny door already. If there is any other paint or woodwork touch up necessary, you would be money in to get that taken care of as well. Finally, get a couple of pots of flowers and plants with some color, to really bring some color and draw attention to the entry. It makes it so much warmer and welcoming.

5) In your bathrooms, buy some inexpensive white towels and just leave those "for show". Don't use them, and don't hang out the old mismatched ones you have. Again, you want to remove all of the buyer's obstacles. They want to picture themselves in a spa like setting, having a bubble bath, getting ready for work, even. What they don't want to picture is you and your family getting ready, shaving, etc. So if at all possible, just get a little basket, and when you're finished with razors, toothbrushes, etc., put them in there and tuck them under the seat and wipe off the vanity. Big big big difference!

If you do all of these things, you're off to a great start! I do think that in many cases, you would still want to have a professional stager come in and help with the "fluffing" but otherwise, that really is a terrific place to begin, and you can just go from there.

Well, this weekend Richmond is host to yet another home show, this time at the Raceway Complex. Bigger show, certainly more spread out, but frankly, a rather disappointing "green zone". This seems to be all the "buzz" amongst these shows, but the execution and promotion of them seems to be a bit lacking. In the "green pavilion" at this show, for example, there seems to be nearly 50% of the vendors who are not "green" in any way, yet some vendors that arguably should be there, are in other buildings. There have been some good speakers and topics, although they don't seem to be making much of them- no announcements or promotion, but perhaps that's difficult when the event is spread out through so many buildings. The so called "pavilion" is also a tent, which I would imagine has no PA system either- if it does, it couldn't be heard over the roar of the portable heatings and the steady clang of the flip down gutters...

I have met some really great folks, and learned alot, over the last couple of weekends. The folks from Virginia Lime Works are some of my particular favorites. From Lynchburg, Virginia, they manufacture and sell all sorts of Lime products- plaster/ stucco, mortar for historic restoration, paints, and now have come out with a block, similar to a cinder block, but made with lime instead of cement.

What is really fascinating, though, is that they tell me that a 2000 square foot home built out of this product, would remove from the atmosphere the same amount of CO2 as 2 acres of trees! How cool is that!? Typically, a home of that size, would be about the equivalent of cutting down an acre of trees. Really cool product, really cool people- a real family business, that they are all involved in, and they are so nice (seeing that more people visit you when you have candy, they have given me lots!) and a lot of fun!

If you're doing any restoration, or looking for creative building materials, paints or stucco, check them out at www.virginialimeworks.com.