Home Theaters: Great for the Family, Desired by Home Shoppers

One of the most in-demand requests that real estate agents are getting from those looking for new homes concerns home theaters, or at least the space to add such a multi-media room.

With home-theater technology evolving and prices lowering over the last decade, the concept has evolved from luxury to near necessity for many households. It’s the place where the family comes together to be entertained, and is the most occupied room in the house after the kitchen and family room. It’s become the focal point for entertaining and showcasing expansive, crystal clear flatscreens and impressive components. It’s why many homebuyers are looking for houses with home-theater spaces or extra rooms to create one.

Real estate experts agree that home theatres add value to a home. According to the Home Builders Association, most new homes with a $250,000-plus price come with a home theater or media room.

“Home theater is a way for the homeowner to bring all these cool new pieces of technology together and fit them seamlessly into their lifestyle,” said David Start, vice president of Sacramento, Calif.-based theater-furniture manufacturer California House. “You have Apple, Netflix and now Amazon—all these big tech companies with really fantastic products. Home theater allows you to integrate these products into the way you live.”

There are several ways one can make the home theatre room more appealing prior to showing a home.

Start by cleaning all surfaces, keeping wiring as discrete as possible and storing electronics that may look sloppy due to wires or size. Also, although having lots of seating space is practical in a media room, it may be a good thing to reduce the number of sofas to give a spacious look to the room.

“I think a media room does add value, however, it is truly a personal preference based upon what the buyer wants and/or is looking for in a home,” said Teresa Cwik of Showcase Staging Houston, Houston, Texas. “I have seen a lot of these rooms staged and in my professional opinion I believe the room should be staged with appropriate media room furniture, such as theater seating.”

There are a number of smart furniture choices to make the room look better and create the movie environment that so many desire.

“Customers are looking for furniture that will present their TV in style while concealing many of the other components—DVDs, gaming consoles, speakers—neatly out of sight,” explained David Adams, marketing director for home-theater furniture manufacturer BDI of Chantilly, Va. “Unique features that are integrated into better home theater furniture include hidden wheels, flow-through ventilation, adjustable shelves, built-in media or speaker storage, and integrated cable management systems.”

Indeed, we’re in the golden age of gadgets and components. Rooms focused on technology can be just as appealing to today’s home buyer as a large bathroom or walk-in closet.

Prudential Towne Realty can be reached at (888) 737-9246. Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

A Glance at Green Benefits

The U.S. Green Business Council recently reported that single-family homes are responsible for a little over 20% of the country’s greenhouse gas emissions. By living in a green home, people can help reduce the causes of climate change and studies show that more homebuyers are looking to purchase homes that have eco-friendly features.

“We put out a homebuyer and seller survey annually and studies show people are more interested in buying green improved homes,” said Michelle Wardlaw, Public Affairs Associate for the National Association of Realtors. “NAR research has consistently shown that there is a considerable growing market for green homes. Many of the consumers today, we find, want homes that are sensitive to the environment.”

Many who think about going green in a home envision solar panels, but those aren’t the best investment for everyone. With solar panels, a home must be in an area with sufficient sunshine and it must be in a location that is eco-friendly minded.

“Solar Panels require an up-front investment but because they are clearly visible from the street they are likely to command a price premium,” said Matthew E. Kahn, Professor at UCLA Institute of the Environment in the Department of Economics. “In preliminary work using data on home sales in Sacramento County [California] I have found that with all else being equal, that homes with solar panels sell for a 6% higher price.”

If you were selling a home in the Midwest, that probably wouldn’t be the case.

While solar panels are clearly seen by a potential homebuyer, this can be the tip of the iceberg in determining whether a home can offer energy efficient savings.

“While a potential buyer will notice whether the home has a swimming pool or a great kitchen, the home’s energy efficiency and ‘greenness’ is harder to see,” said Kahn. “The seller who owns such a home should recognize this point and make his home’s green features well known.”

There are more inexpensive things a seller can do to make their home green prior to putting a house on the market.

Justin Barnes, a policy analyst for the Database of State Incentives for Renewables & Efficiency, funded by the U.S. Department of Energy, said the easiest green fixes deal with appliance replacements.

“There are all kinds of incentives for these and that makes a home attractive,” he said. “Other measures are cost effective and advisable as well, such as replacing windows and doors and finding ways to insulate the home more effectively.”

Some upgrades have more appeal and return on investment than others. Energy-efficient appliances can reduce monthly utility bills, tankless water heaters mean less time and water wasted waiting for water to warm up, and replacing old furnaces can lower a heating bill.

These eco-friendly upgrades may not be a top priority for most buyers, but when pointing it out, you can pique their interest.

“In terms of resale price maximization, the best green initiatives to help sell hinges on whether potential buyers value energy efficiency and are aware of the home’s energy efficiency,” Kahn said. “If the seller believes that his home is highly energy efficient due to his past investments and the architecture of the home, then the seller should produce 12 months of past electricity bills to signal to potential buyers that the home has this added bonus.”

Remember, anytime you need to replace something in your home, it’s an opportunity to make an eco-friendly choice, which can help in the resale value later on.

Prudential Towne Realty can be reached at (888) 737-9246. Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Fireplaces Provide a Warm Glow to a Home on the Market

With winter weather gripping most of the country the fireplace takes on greater importance in the sale of a home.

The National Association of REALTORS^® recently conducted a survey that found nearly two-thirds of homebuyers had a fireplace on their wish list. The fireplace has become a coveted amenity and homes boasting this feature see its benefits during resale.

“The fireplace is a focal point when people come to see your home,” said Hillary Staats, an interior designer for Sanctuary on Church in Vienna, Va.

That’s why it’s important to make sure that the look of your fireplace has been updated and is working properly. An older looking fireplace that seems an eye-sore can be easily updated.

“There is a lot you can do to enhance the fireplace before a sale. A lot of times, if it has older brick, I will re-stone a fireplace. Other times it could be as simple as changing mantels, adding a fancier screen or placing a beautiful piece of art above it.”

Transformation materials that are inexpensive and easy to work with are tile, manufactured stone, granite, marble and wood. Sometimes even painting over old, ugly brick will make a huge improvement.

“A masonry fireplace can really set a home apart from the rest and significantly improve resale value,” said Larry Kett, owner of Kett’s Hearth and Home in Grand Rapids, Mich. “Adding a mantel also helps. An engaging fireplace and mantel can provide grandeur for an otherwise ho-hum room.”

Keeping the mantel clean and uncluttered is also a must. “You want the fireplace to look inviting but not cluttered, so keep the mantel clear of all photos and knickknacks,” Staats said. “It’s fine to decorate with accessories, but they shouldn’t distract from the fireplace itself.”

If you want to add a fireplace to improve your home’s resale value, consider an electric fireplace as it’s often the least expensive option and reasonably easy to install.

Gas fireplaces are more common today and easy to use, plus they can be installed just about anywhere. There is no need for a chimney, wood or even matches with this type of fireplace and there is no mess to clean up either. Ceramic log kits are efficient and look like the real deal, without ashes to clean up.

Finally, regardless of the season, a fireplace should be kept clean and in working order. “You want your buyer to go home feeling really great about that room and knowing they can move in and sit in front of that wonderful fireplace and hearth,” Staats said. “There are few things as warm and inviting as a burning fire on a wintry day.”

Prudential Towne Realty can be reached at (888) 737-9246. Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Technology and Home Sales

Today’s home buyers are often thinking about a home’s technology advantages as much as they are its floorplan, square footage and location.

A recent survey by the Consumer Electronics Association of real estate agents showed that home-theater systems, home security systems, home automation management systems and energy management systems are selling faster than they ever have.

“There is a strong relationship between home technologies and the real estate market,” said CEA’s Rhonda Daniel in a recent press release. “While the market needs to recover before home technologies play a more important role in home sales, the industry can help prepare real estate agents to be comfortable in discussing these types of systems with their clients.”

According to the survey, the number of real estate agents who have been involved in buying, selling or showing a plugged-in home equipped with technology has risen greatly during the last two years. Those showing established systems such as monitored security were calculated at 93%; home theater or home theater-wired systems were 89%; home automation and management systems were 54%; and energy-management systems were 51%.

The survey also shows that 68% of REALTORS^® believe home technologies will play a more important role in the success of home sales within five years.         “Manufacturers and electronic systems contractors should be laying the ground work now to take advantage of the eventual upswing in the real estate market,” Daniel said. “Educating REALTORS^® on the benefits, value and functionalities of installed technologies now will demonstrate that the CE industry can be a trusted partner to equip them with knowledge.”

Nearly two-thirds of real estate agents surveyed offered that their clients are excited to see technologies in homes. That means current homeowners looking to sell should consider upgrading their home with some sort of home technology system.

“The ideal goal for the consumer electronics industry is to have knowledgeable real estate agents who are excited and open to promoting technology as a selling feature of homes,” Daniel said.

A less expensive way to appeal to technology enthusiasts is to simply make sure there are enough outlets, cable lines and phone jacks at the ready so that someone coming with their own equipment will have an easy time installing them. A home with only one outlet in the family room or media room and no place for a fiberoptic line to be added can be a turnoff.

Thinking of the future may help you sell your home faster in the present.

Prudential Towne Realty can be reached at (888) 737-9246. Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

The Pros and Cons of Home Selling During the Holidays

One of the great debates in real estate concerns the prospect of keeping a house on the market during the holiday season. Some argue that the time between Thanksgiving and New Year’s Eve is busy enough without the worry of buying a home, while proponents like the prospects since those shopping are generally more serious about buying.

A downside for the seller is that the hectic time of year makes it harder to get your home ready at the drop of a hat if a call comes in. People are busy making food, wrapping presents and preparing for a house-full of guests.

However, your house will also be decorated with beautiful lights and decorations and will create a festive elegance to a home that will attract buyers.

Some agents believe that keeping your house on the market will have you appealing to a much smaller inventory of buyers who have very specific needs that your home might not match. Others counter that less inventory over the holidays means less competition and since more people have vacations this time of year, they actually have more time to search for their ideal home.

The holidays can provide a breather for homes that have been on the market awhile, as some use the time to remove property from the market in favor of a fresh start in January. However, you risk losing the buyer who may have been looking in December to capture tax benefits that many consider with their need to buy a home.

What’s the best solution? Of course it’s up to individual homeowners and their respective circumstances. Prospective sellers should discuss their holiday prospects in detail with their Prudential Towne Realty Real Estate agent. Working together, they can make holiday wishes come true.

Winter Is Approaching … Is your Home Ready?

Autumn winds blow a chilly reminder that winter is fast approaching. Perform the following maintenance tips each fall to protect your property’s value and prevent major repairs.

 Roof, Gutters and Downspouts

Rain, ice, snow and wind can all cause damage to your roof and gutters. Now’s the time to trim back all tree limbs and vegetation away from the roof. You also should remove debris, such as leaves and sticks from your gutters and downspouts. Clogged gutters don’t allow water to properly drain away from the home, which can cause seepage in your ceilings and walls. You can also invest in gutter guards, a screen that prevents debris from entering the gutter and directs the flow of water away from the house and into the ground.

Water Heater

You don’t want to find out that your water heater isn’t operating properly when you need it most. So use this time to perform an annual inspection, which includes having your tank’s pressure and temperature relief valve checked. In addition, remove sediment from the bottom of the tank by draining two gallons of water to improve heat transfer and the efficiency of your heater.

Heating and Cooling System

If you have a forced warm-air heating system, you should check the exhaust vent and air shutter openings for dirt and dust. Clean any lint and dirt from the blower blades, motor and burner (if you have a gas heater). Vacuum air passages and check and replace, if necessary, fan belts. To prevent airborne dirt from circulating throughout your home, wash out your reusable filter or replace it if it’s disposable.

Doors and Windows

To help control heating costs, make sure your doors and windows are properly sealed. Now is the time to repair or replace weather stripping around door bottoms and jambs and window frames. Check for loose or missing glazing putty and caulking for deterioration. If you have storm windows, install them.

Water Pipes

Frozen or burst pipes can cause major damage to your home and be expensive to remedy. Before frigid weather hits, protect your pipes in unheated areas from freezing by adding insulation, which reduces heat loss from hot-water pipes and condensation on cold water pipes. This can be accomplished by wrapping the pipes with heating tape or blanket insulation and duct tape or by encasing the pipes with preformed plastic foam. In addition, examine your pipes for cracks and leaks.

Fireplace

Before you light the logs and get ready to settle in front of a cozy fire, make sure that your fireplace is in good working order. Clean the chimney flue and, if needed, have it inspected and repaired. Check the seal on your flue, which is designed to keep out drafts. Replace the seal if it is loose or damaged.

If you decide to perform the fall maintenance yourself, disconnect the power for any electrical or gas systems. In addition, before inspecting, cleaning or making any repairs refer to your owner’s manual for all equipment for proper instructions, which should be the final authority on any maintenance.

Outdoor Surfaces and Landscaping

Fall is also a great time to seal your driveways, wood patios and other hardscape surfaces. In addition, prune tree branches away from your home and electrical wires. Plant spring flower bulbs and move sensitive potted plants indoors.

Although this list is merely a guide, it can help you keep your home in good shape and have a winter free of major repairs.

Prudential Towne Realty can be reached at (888) 737-9246. Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Dispelling political misinformation

The below post is a reprint of the November 14, 2011 KCM blog post “Is There a 3.8% Tax on Homes in the Health Bill?’.

As the presidential debates start to heat up, there will be comments about the Administration’s Health Care Bill. We are again getting many questions about a possible 3.8% tax on home sales that some claim is in the bill. To answer these questions, we have decided to re-run a blog post we did last year. – The KCM Crew

We have received many questions about a possible 3.8% tax which will be put on home sales beginning in 2013. We want to do our best to clarify this situation for everyone. We are not accountants and give you this information just as a simple answer to the misconception. Understand that, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.

A little history on the confusion

Fact Check.org explains it this way:

The truth is that only a tiny percentage of home sellers will pay the tax. First of all, only those with incomes over $200,000 a year ($250,000 for married couples filing jointly) will be subject to it. And even for those who have such high incomes, the tax still won’t apply to the first $250,000 on profits from the sale of a personal residence — or to the first $500,000 in the case of a married couple selling their home. We can understand how this misconception got started. The law itself is couched in highly technical language that only a qualified tax expert can fully grasp. (This provision begins on page 33 of the reconciliation bill that was passed and signed into law.) And it does say the tax falls on “net gain … attributable to the disposition of property.” That would include the sale of a home. But the bill also says the tax falls only on that portion of any gain that is “taken into account in computing taxable income” under the existing tax code. And the fact is, the first $250,000 in profit on the sale of a primary residence (or $500,000 in the case of a married couple) is excluded from taxable income already. (That exclusion doesn’t apply to vacation homes or rental properties.) The Joint Committee on Taxation, the group of nonpartisan tax experts that Congress relies on to analyze tax proposals, underscores this in a footnote on page 135 of its report on the bill. The note states: “Gross income does not include … excluded gain from the sale of a principal residence.” And just to be sure, we checked with William Ahern, director of policy and communications for the nonprofit, pro-business Tax Foundation. “Some home sales would see a tax increase under this bill,” Ahern told us, “but it would have to be a second home or a principal residence generating [a gain of] more than $250,000 ($500,000 for a couple).”

Simple Explanation: 

The following simple explanation comes from midiShaw: The tax will affect those sellers of real property who will be otherwise taxed on capital gains under current tax laws. Under current laws, if you sell your primary residence and meet the ‘time ‘ criteria, you are exempt up to $250,000 or $500,000 (filing individually or jointly).  Any amount realized OVER that amount is taxable under current tax schedules based on income.  As such, this new tax will apparently be added to the current capital gains tax burden IF your income is over $200,000/$250,000 (filing individually or jointly). For those selling second homes and investment properties, the tax, once again, will be applied to the amount of gain realized.

Detailed Explanation:

The following also comes from midiShaw in a comment to the above answer. Beginning in 2013, the national health care reform legislation that became law in March, 2010, imposes a new 3.8 percent tax on certain investment income. The new tax will apply to single filers with incomes over $200,000 and married taxpayers with incomes over $250,000. Under the law, the investment tax provisions in Chapter 2A of the Internal Revenue Code are placed under the heading “Unearned Income Medicare Contribution.” In general, this new Medicare tax will apply to investment income that is subject to income tax, which includes capital gains. Pursuant to IRC Section 1402 (C)(1)(A)(iii), the investment income to which this new tax applies includes “net  gain” (to the extent taken into account in computing taxable income) attributed to the disposition of property that qualifies as a capital asset under Section 1221 (capital gains), as well as gains on other property that are considered part of ordinary income.

We offer this just as an explanation.

Remember, when it comes to IRS regulations, you should check with your accountant for the most accurate and up-to-date information.

Prudential Towne Realty can be reached at (888) 737-9246. Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Survey: Norfolk ranked second-best for military retirees to start second career

USAA and Military.com commissioned Sperling’s BestPlaces to create this ranking to help military retirees launch a second career by highlighting the best places in the nation for jobs that match their skill sets.

https://www.usaa.com/inet/pages/enterprise_retirement_best_places_landing?adID=VURL_bestplaces

 

We’re proud that so many military decide to call Hampton Roads “home” after retirement. In addition to a great job outlook for retired military, it is also a great time to buy a home in Hampton Roads. With Prudential Towne Realty’s Military Advantage Program you can earn consumer credits at closing that help you save thousands on your next move.

 

Keeping the Kids at Bay When Selling Your Home

Homeowners with young children face a common challenge when their house is on the market: How do you keep the home clean and ready for prospective buyers while maintaining a kid-friendly and safe environment?

Keeping that “staged look” as the kids create instant messes can be overwhelming.  Your primary focus should be the kids’ bedrooms, according to two home stagers.

“Children’s bedrooms are often problematic when getting a home ready to sell,” said Külli Yee, founder and president of Ilus Design Home Staging and Re-design, Port Coquitlam, B.C., Canada. “They tend to have more clutter than most rooms in the form of toys and activities, and out-of-season and hand-me-down clothes and toys are often stored in the child’s bedroom.”

Ye suggests limiting the number of toys and activities that children play with each week and adding and subtracting as the kids get bored.

“Most kids only actively use three or four favorite toys at a time and the rest just sits there collecting dust,” Yee said. “Pack away extra toys, stuffed animals and books. Organize the remaining toys neatly in baskets, boxes and bins and display only a few items on the shelves.”

 Alice T. Chan, a Fremont, Calif.-based home stager and author of the book 8 Steps for Creating an Irresistible Market Ready Home that Sells, recommended keeping a child’s bedroom floor and closet free of clutter by lightening the load.

“Reduce the amount of items stored in the closets,” she said. “Pack, store or give away anything that the child doesn’t need for the next two to three months. This is also the perfect time to get rid of unused or broken toys and old clothes.”

For those with infants, a nursery should be kept tidy with all extra diapers, wipes, lotions, baby bottles and clothes hidden away in a dresser. Make sure that the diaper pail is emptied frequently.

Moreover, remove any furniture that doesn’t serve a purpose in the nursery. Anything beyond a crib, dresser, rocking chair, changing table and small accessories should be packed away.

If your kids have their own rooms, consider asking them to share a room for a couple of months until the home sells. This allows you to set up the other bedrooms as a guest room or home office, adding extra value to your home.

Unlike pets, you can’t simply pack up the kids and send them away for weeks at a time. Remind your children that once your current home sells, the new home will bring them exciting new adventures. If that doesn’t make them more cooperative in helping keep the place then there’s always plan B: bribe them with ice cream, outside!

 Prudential Towne Realty can be reached at (888) 737-9246. Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.

Selling an Ugly Home

Let’s say that you inherited an old house in a distant location and want to put it on the market. You may not have the time, resources or energy to make it perfect and just want a quick sale.

Or, maybe you had renters at your property who did substantial damage and you don’t have the money to make necessary renovations.  

Fear not. Just because the house needs work doesn’t mean you can’t sell it. Many homebuyers today are shopping for deals and want to see the potential in your home. In that case, leave brochures for new cabinets in the kitchen, color palates around the bedrooms and even create computerized images of what updates could look like.

In addition, secure bids from licensed contractors on necessary fixes and provide them to your potential buyers. People may overestimate the cost of a new roof, shower stall or drywall repair and fresh paint. Estimates will bring the home into clearer perspective.

Work with your real estate agent to make the home as presentable as possible for the least amount of money. Make a room or two inviting so you have the photos that will attract buyers to what you can call “a fixer upper.”

Of course, nothing is going to attract people more than a low price. Obviously, you will need to discount the sales price to gain an advantage over comparables in better condition.  

A down-and-out house doesn’t mean you’re stuck. With small repairs, research and practical pricing, you can turn that “Ugly Betty” into a sale.

Prudential Towne Realty can be reached at (888) (737-9246). Prudential Towne Realty is an independently owned and operated member of Prudential Real Estate Affiliates, Inc., a Prudential company. Equal Housing Opportunity.