Unlike a standard home purchase, land deals come with hidden complexities—zoning restrictions, utility costs, financing hurdles, and environmental red tape. One overlooked step can turn a “great deal” into an expensive mistake.
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Buying an outdated, or even dilapidated, property can be exciting for those with a DIY mindset and creative vision. For many, it provides a chance to own a home that has more square footage, is situated on a bigger lot, or has a sought-after location. Plus, with properties like these, the purchase price is often lower than market comps, which can mean lower monthly mortgage payments.
An early 2024 survey from RE/MAX found that of consumers looking to buy a home this year, 56% were interested in considering a fixer-upper as a creative way to achieve homeownership amid changing (and sometimes challenging) market conditions. Of those who were open to the option, more than half were willing to do so based on location.
Don’t be fooled, however, by reality TV shows that gloss over the details in what can be a complex process – projects like these often require abundant time and resources, with costs adding up along the way.
Here are five fixer-upper questions to consider:
Cost will lay the groundwork for all plans pertaining to the renovation process – and setting a budget ahead of time will help you prioritize what to fix. It’s generally better to overestimate the potential costs to account for unexpected situations that might pop up along the way. Ultimately, the budget depends on your personal financial situation, as well as location, property type, renovation goals, and more.
Some people work with a lender on financing solutions, like home improvement loans, if they meet qualifying criteria.
A home inspection is an essential step when buying any property – and it’s extra important with a fixer-upper. A professional inspector focuses their examination to the home’s physical structure and major systems. They’ll look closely at the foundation, as well as the structural integrity of floors, walls, ceilings, and the roof. They’ll also check the functionality of windows, doors, HVAC system, electrical, and more.
With fixer-uppers, there’s a higher likelihood of some of these features being compromised. Costs for repair and restructuring can vary depending on the issue and the severity of damage or wear.
You may hear people saying a house has “good bones.” Essentially, if a house is structurally sound and just needs some cosmetic upgrades, it’s a very different process than if it requires larger-scale demolition. Before you take on a fixer-upper, consider the scale of the necessary renovations to determine the feasibility of your plans.
It’s important to also think about who would be doing the work. Hiring contractors can be much more costly than going true DIY. It’s also critical to identify health hazards that may be present, like asbestos, mold, lead paint, and more – and always hire professionals to remove toxins like these in a safe manner.
Each city and town has regulations and restrictions on residential construction. Some places, for example, allow grandfathered property rights or adhere to strict rules that limit the current-day building potential of structures and footprint additions. Many larger-scale home repairs require permits and inspections during the process.
As you determine what fixes need to be made, check with the local government to make sure your plans are legally compliant before starting any form of demolition.
Priorities will likely take shape based on the condition of the home. Some people buy a fully functioning house that simply has outdated style, prompting them to make cosmetic upgrades. In cases like these, many choose to space out renovations over time and slowly update the place room-by-room while living there.
For those who go with a more dilapidated structure, the fixing of essential features – like foundation, roof, HVAC, etc. – will likely take priority over aesthetic changes, and need more urgent attention before the space becomes habitable.
Whether you’re looking for a fixer-upper or move-in-ready home, contact me! I’ll be happy to help you get the process started!
If you own a pet dog, there’s a good chance you’ve: swapped out words in your favorite song with their name, cancelled plans to spend time with them, and filled up your smart phone’s camera roll taking their picture. But, have you bought a home specifically for them?
While dogs aren’t the primary reason many pursue real estate opportunities, they are a factor plenty of homebuyers take into serious consideration during the house search process. This is especially true nowadays with pet ownership on the rise.
The COVID-19 pandemic – and the increased time people spend at home as a result – played a key role in the uptick of pet ownership in the U.S. From 2020 to 2021 alone, nearly one in five households acquired a cat or dog, according to the American Society for the Prevention of Cruelty to Animals (ASPCA).
“I do think more people have pets nowadays, but what’s noticeable is the focus on our pets and how they are becoming more involved in society. There are pet-specific cafes, bakeries, boutiques, and specialized food choices, as well as pet-friendly businesses and more,” says Joanne Thomas, an agent with RE/MAX Advantage Plus in Eagan, Minnesota, who is currently working with buyer clients seeking a home specifically for their dog.
In a small neighborhood of Denver, Colorado, for example, you can even spot pup parents stopping by a popular dog treat truck that serves goodies to its drooling patrons. With these cuddly canines having stolen the hearts of so many, it makes sense that plenty of people care deeply about their dog’s well-being at home, too.
Enter “barkitecture” – a popular pet-forward architecture trend where homeowners are making intuitive design choices that strike a balance between function and fabulous, all framed by the needs of their furry friends. The good news? These features are in demand when it’s time to sell the house. A growing number of dog owners looking to move are making pet-friendly features priority items on their list of home criteria.
From wanting a fenced-in yard to a barkitecture-inspired luxury pet spa, here are a few ways that today’s buyers are taking their dog’s needs into consideration when shopping for a new place to call home.
Having easy access to a green, grassy yard means a dog has increased opportunity for fresh air during the daytime and convenient potty breaks at nighttime. This factor makes a direct impact in one’s quality of life, for human and dog alike – and it’s a key characteristic many homebuyers are in search of.
The 2023 National Association of REALTORS® Profile of Homebuyers and Sellers revealed that 19% of all buyers between 2022 and 2023 saw outdoor space for a pet as an influential factor in their purchase, the same percentage as those who considered lot size and school district. Convenience to outdoor space for pets even topped the quantity of buyers considering factors like proximity to schools (18%), healthcare facilities (16%), and airports (9%).
Outdoor space isn’t just a yard – it can take the shape of other accessible ways to exercise outside.
“People looking to live in urban areas often find it especially important to make sure there’s ample sidewalks for walking the dogs,” says Donna Deaton, Manager of RE/MAX Victory + Affiliates in Liberty Township, Ohio.
Plus, those looking to live in multi-family dwellings have different factors to take into consideration.
“I am in Minnesota and winters can be cold! So, if buyers in my area aren’t looking for a single-family home and prefer the condo lifestyle instead, having a dog-run or dog relief area either covered or indoors is key. If this isn’t an option, then having some green space nearby for their dog to run and play is really important to buyers,” Thomas says.
Many dog owners have a skilled escape artist on their hands – so a yard isn’t fully functional until it’s been securely enclosed.
“A fenced yard is usually the most requested feature for the dog owners I work with looking to buy a home,” says Ana Duarte Cole, an agent with RE/MAX Advantage in Waynesboro, Virginia.
Other agents agree that a fence is a high priority for many prospective homebuyers. Those who consider a home without a fence have a few extra steps to think about.
“Most of the time, yards with fences are a must have. But they’re not always a deal killer, especially for those who are willing to add in their own,” Deaton shares. “This is when it is important to really study the HOA (homeowners association) rules and regulations, if applicable, as some will not allow a fence or will allow only certain styles, colors, and heights of fences.”
Cost can also be a reason why homebuyers prefer to find a house with a fence already in place. The common types of fencing people choose for residential properties are wood, metal, vinyl, or composite. And the choice of fence type, as well as style and quantity of material needed, can cause price points to greatly differ. According to Forbes, the average cost of installing a new wood fence is roughly $3,300 – but on the upper end of their spectrum, some projects (particularly those on larger properties) can cost over $10,000.
Barkitecture is all about space-savvy, oftentimes luxury features that make humans and dogs alike say (bow) wow. The concept stems from making necessary pet gear – like crates, beds, and kibble storage – blend more seamlessly into a home. For example, some kitchens come with a water bowl fill-up station close to the ground, as well as a hide-away feeding zone.
“A client of mine recently built a custom home and their laundry room has a dog shower. It features tile, pony walls and a hand-held shower wand. As a bonus, it is often used to wash off muddy boots in addition to puppy paws,” shares Rachele Maczuk, an agent with RE/MAX Today in New Haven, Missouri.
Deaton, who has plenty of experience in the new build market, has also seen an uptick of built-in dog spas.
“I notice features like this in newer and custom-built homes. For cleaning off muddy pets, homebuyers get excited if by chance the home has an actual dog wash station, or even just a full bath on the first floor. This isn’t necessarily a reason as to whether they purchase that particular home or not – but if the buyer is a pet owner, they see value in having it.”
Thomas agrees, too.
“Dedicated pet baths in homes, and custom cabinetry features to store their food and bowls, is becoming a more common sight to see. Plus, I continue to see kennels that are disguised as furniture,” she says.
Technology is also playing a role in pet well-being inside the home.
“I’ve shown homes where the buyers appreciate the fact that the pet door is automatic or sensored instead of those ones that flap as the pets wander in and out,” Deaton says. “These digital pet doors are a newer thing and are appealing to today’s tech-forward buyers. Some can also be opened and closed through an app on your smart phone.”
Aside from modernized, dog-forward home innovations, some homebuyers are focused on the overall layout of a home – especially those looking to accommodate older dogs.
“A recent client of mine wanted a one-level home with little to no steps to the backyard since their senior dog couldn’t do steps anymore,” Duarte Cole says. “After moving in, they actually replaced the previous owner’s newly installed carpet for vinyl flooring due to their dog having incontinence problems. They needed something easy to clean.”
Back to that whole “good bones” thing. Today’s homebuyers are often keeping a keen eye out for ways to make pet-friendly tweaks to their new place once they’ve moved in (like a fence, explained above).
Even if a home comes with a fence, certain buyers will choose to add in a dog window, giving their pet an entertaining view of passersby. Other tweaks might include adding interior pet gates, installing a central vacuum cleaning system, or even retrofitting a dog bedroom.
But something as simple as wall color is a factor people can plan around their dog’s preferences. And unless a prospective home boasts neutral wall colors, there’s a good chance buyers will want to make changes.
The American Animal Hospital Association shares how certain paint colors are more soothing than others to pets because of how their eyes process hues differently than humans. They note how animals are likely to be calmed by pale shades of blue, green and purple, as those colors aren’t distorted by their vision and promote tranquility. While these recommendations are geared toward wall color for animal hospitals, the same insight can apply to residential homes.
Homebuyers across all generations are taking interest in ways to encourage wellness for their pets around the house. But a rapidly growing portion of these pet owners-turned-homebuyers are millennials. According to the American Pet Products Association’s (APPA) National Pet Owners Survey, millennials are the largest cohort of pet owners in the U.S. And, as recently detailed by RE/MAX President and CEO Nick Bailey, at least 45 million millennials in the U.S. are a part of the ongoing pent-up demand for housing.
Subsequently, as more millennial homebuyers enter the market, it’s expected that yard space, fences, and barkitecture features alike could remain highly sought-after home elements – and even increase in popularity.
“Compared to previous markets, it seems that buyers are more vocal about the needs of their pets. Whether it is more of an acceptable social norm now or whether it is that buyers are truly more cognizant of the happiness of their four-legged family members is unclear,” Maczuk says.
“But ultimately, a home is a place that should bring its occupants joy,” she continues. “And whether they’re four-legged, feathered, or slithering, those pets are family members. When searching for a new home, it is important to find a place that fits the bill for the entire family.”
Before the Great Recession of 2008, housing prices climbed dramatically, and homes sold faster than buyers could gush, “I love that spa bathroom.” Contractors and even handy DIYers got in on the uptick by buying fixer-uppers and improving them in the quickest ways possible, selling them, and reaping the profits. Enter the real estate phenomenon of flipping.
The trend waned a bit as the housing market hit the skids, but then returned with some significant differences. Today’s flippers are more often professional investors with access to cash as banks tightened mortgage loan guidelines and available work crews, says Seth Captain, managing broker of Captain Realty in Chicago.
Read the article in REALTOR® Magazine…
MONOPOLY: So your family has decided to play Monopoly? Refill your beverage, grab a snack and change into comfortable clothes. You’re going to be there a while.
LESSON: Buying real estate is a process. There’s pre-approval for a loan, interviewing agents, searching for homes, submitting an offer, maybe submitting another offer, the home inspection, the appraisal, and final loan processing before you get the keys. Needless to say, buying a home can take some time. Instead of getting frustrated, focus on all of the great reasons you decided buying a home was right for you. Staying in close communication with your agent throughout the process will help, too.
MONOPOLY: Everyone starts the game with one corner in mind: Boardwalk and Park Place. The high-priced properties have the best returns on investments, and the players who snag them first tend to do well in the game.
LESSON: Location is often a major consideration in real life as well. Home values, your lifestyle and so much more are factors in your neighborhood choice. Work with your agent to learn all you can about the neighborhoods that pique your interest.
MONOPOLY: Baltic and Mediterranean Avenue have a bad reputation because they’re the cheapest properties on the board, but they also present opportunity. Add a few houses and hotels and your return could be bigger than the one on nearby Connecticut Avenue.
LESSON: Keep an open mind when shopping for a home. An up-and-coming neighborhood may have appeal you didn’t see before, and more value for your budget.
MONOPOLY: You’re a Monopoly mogul! You have a handful of desirable properties and a steady stream of income from your houses and hotels. Then comes the Chance card: “Make general repairs on your property – for each house pay $25, for each hotel pay $100.”
LESSON: You never know what card you’re going to draw. But unlike Monopoly, the real world has home insurance available to help you prepare for unexpected repairs and disasters. A variety of plans, customizable to any budget, are available. Some homebuyers also opt for warranties covering potential appliance issues after move-in.
MONOPOLY: Trading properties keeps Monopoly exciting. And there are no strict rules as to how a seller determines to accept an offer. Sibling rivalry, bribes involving candy or even business sense can play into a player’s decision.
LESSON: Sellers don’t always accept the highest offer. Writing a letter about why you fell in love with their home can sometimes sway their decision in your favor.
MONOPOLY: Monopoly is a game of strategy, but few players are inclined to study ways to win. What if you had a coach sitting next to you, advising how much to bid for a property, where to look next, and whether or not mortgaging a utility to buy Boardwalk is a smart idea? You would be unstoppable!
LESSON: Buying a home is an infrequent occurrence; for some it happens only once in a lifetime. Wouldn’t it be helpful to have someone on your side that is up-to-speed on laws for your state, knows which neighborhoods would best fit your lifestyle and helps you navigate a bidding war? That’s the value an experienced agent provides.
Did you know that the three most popular information sources home buyers used in the home search were:
There will likely be less competition for home buyers this spring—a widely reported index from Redfin shows a significant decrease among real estate professionals reporting bidding wars in March, compared to a year ago. Only 16 percent of offers written by Redfin agents on behalf of their customers in the first three weeks of March faced a bidding war, down from 61 percent a year ago, according to the brokerage’s index.
San Francisco, Boston, San Diego, and Portland, Ore., are the most competitive housing markets this month, according to the report. However, even in these markets, only one in five buyers faced bidding wars; a year ago, real estate agents in these markets reported that 65 percent of their buyers’ offers faced multiple bids.
Home shoppers will likely face less competition in their offers, and that may allow them more time during their house hunt.
A new report from Redfin shows that only 13 percent of offers written by agents on behalf of their customers faced a bidding war last month—down significantly from 53 percent a year ago.
“Buyers have heard the market has slowed, so now they’re trying to get all of their ‘wants,’ not just their ‘needs,’ ” says Kalena Masching, a Redfin real estate pro in Palo Alto, Calif. “They’re waiting until they find a home they can check more boxes—for instance, three bedrooms instead of two or a higher rated school. In general, they are being more judicious as they think through their purchase. Meanwhile, many sellers have not yet recognized that the market has shifted.”
The number of homes for sale has been slightly increasing in several markets, which has left fewer home buyers competing for each home. In December, the number of homes for sale had grown by 5 percent over a year ago.
Several West Coast markets continue to be among the most competitive, but many are seeing fewer bidding wars compared to a year ago. Portland, Ore.; Denver; and San Diego each saw less than one out of five offers face a bidding war, down from more than half of offers a year earlier, Redfin reports. San Francisco, Los Angeles, and Seattle posted the biggest year-over-year percentage drops in bidding wars.
Meanwhile, the least competitive housing markets in January that overall saw the fewest bidding wars were Miami (3 percent), Dallas (6 percent), and Houston (6 percent).
Source: REALTOR Magazine
What’s behind the rise in homeownership? Growing interest from millennials. Here are the 2019 millennial real estate trends you need to know about this year.
Empowered with Knowledge
First-time, homebuying millennials are much more informed when it comes to renovations, repairs and real estate process than other generations. Growing up during the development of the internet has made them very tech and research savvy and able to find ways to access important information such as listings, neighborhood reports, HGTV home renovation videos and other types of industry information on their own. In 2019, they will rely on real estate agents to share information that they can’t find online such as neighborhood developments, local market forecasts, local housing regulations and more.
Buying homes – despite rising rates
Millennials continue to make up the largest segment of buyers, accounting for 45 percent of mortgages, compared to 17 percent of baby boomers and 37 percent of Generation Xers. While first-time buyers will struggle, older millennial move-up buyers will have more options in the mid-to upper-tier price point and will make up most of the millennials who close in 2019. As their housing needs adjust over time, millennials are on track to make up the largest share of homebuyers for the next decade.
Sweat Equity
Many millennials grew up watching renovations and makeovers on HGTV, which means many of them are ready to invest sweat equity in their new home. Millennial homebuyers, overall, are more aware of the costs, work and implications of renovations than the previous generations. This is good news as interest rates rise and buyers should be prepared to settle for homes in need of TLC.
New Buying Strategies
Social media continues to impact millennial homebuying habits. They rely on online reviews to make purchasing decisions, and a strong online reputation for real estate professionals is a must in catering to this market. In fact, a recent study showed that millennials would prefer to buy a house from a real estate agent influencer over a traditional real estate agent. Showcasing a home on social media, especially on visual-heavy platforms like Instagram, is essential for appealing to millennial buyers.
Research your way to the right real estate agent who can make all the difference. RE/MAX agents are more recommended because they recommend what’s right for you and your future. Contact Jennifer today!
The frenzy of the summer real estate market has cooled by the seemingly very same breeze sweeping leaves off the trees across much of the country. But now may be a better time than ever for buyers to do their house hunting.
According to RealtyTrac and realtor.com®, October is the best time to snag a deal on a house. RealtyTrac analyzed more than 32 million sales of single-family homes and condos between 2000 and 2015, finding that those who purchased in October paid 2.6 percent below the average estimated full market value for their property.
If buyers need more reason to start or continue their home search this fall, here are five additional reasons to shop for a home now from Lindsay Szwed, an agent with RE/MAX Suburban in the Chicago area.
Managing The Real Estate Details 