Looking Out From the Garage

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We all know that there is no second chance to make a first impression.  That saying almost couldn't be more overused.  But it is still true.  I drive up to homes for the first time with buyers on an almost daily basis.  I listen to them as we approach the house.  I listen to them as we park in front or in the driveway.  I listen to them as we walk up to the front door.  I listen to them as I access the lockbox and open the front door for the first time.

I hear a lot of the same comments...  It doesn't cost an arm and a leg to freshen up the outside of the house, but you do have to be strategic.  These are the things to concentrate on.

• Driveway.  Clean it up.  If you have a pressure washer, it might be a good way to spend a Saturday morning.  If there are oil stains, there are a few tricks you might try.  I have also had success with a paste made out of powder laundry detergent.  I wet the area, apply the paste, letting it sit for a while.  I use a stiff pushbroom to scrub it in... then rinse it off with a LOT of water.
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  Keep the Grass Cut. So easy, and it is something that about half of the foreclosures I see don't have done enough.  Since it is something you should be doing anyway.... it really isn't costing more.  And you never know when the right buyer is going to show up.  It is an easy way to seperate your home from the foreclosure up the street.

• Pinestraw, Mulch and Edging.  A few bales of pinestraw or bags of mulch can really make the landscaping look fresh.  Keeping the lawn neatly trimmed, with nice edging goes a long way.  A few fresh flower plantings can push it over the top.
• Front Door.  Make it the best it can be.  If it is painted, a fresh coat of paint is cheap and VERY important.  If it is stained wood, clean it up and consider refinishing it.  Buyers, and their agent will be standing outside of the front door for a couple of minutes while the agent opens the lockbox to get the key.  The buyers WILL be looking at the house while they stand there.
• Clean up Outside.  There are places that we never think about... spiderwebs under the eaves, junk in the HVAC Outside Unit, junk in the gutters, keep the rear deck or patio swept.
• Last thing...  Clean the outside of the Windows.  Windex makes a sprayer that screws onto your garden hose.  Clean out the spiderwebs and get rid of last winter's grunge... it will brighten the inside, too.  Buyer love that.

It isn't about creating perfection, just making sure that your home is seen in its best light.  Everything here can be done on a Saturday.  Of course, some of it is continuing maintenance.  But, if you can sell quickly, then it will be worth it.

Related articles

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Just last week I wrote a post highlighting the results of the Remodeling Magazine's Cost vs. Value study.  And in this month's Realtor® Magazine, the newest results are published.  The reason I like this particular study is that it breaks down the results by region.  It would be great to break it down further to metro area... and then maybe ZIP code... and possibly subdivision... or even street... but that isn't happening.  Region is good.

The numbers for the Southeast are interesting. The Top 5 Renovations for Return on Investment (RoI) are:

• Mid-range entry door (steel) - 135.5%
• Mid-range garage door - 91.6%
• Upscale siding (fiber cement) - 85.4%
• Mid-range basement remodel - 79.4%
• Upscale windows (vinyl) - 77.9%

There are a few things to note here...  This is based on average costs and conditions.  Obviously, if there are extenuating circumstances, the RoI could be more or less.  If you are able to do work yourself, the RoI could be much greater.  One of the assumptions here is that a contractor would be hired to do all work.

So, let's look a little deeper...

Mid-range Entry door (steel) - 135.5% The average cost on this renovation is $1098 and the increase in value is $1488.  It is worth noting that a fiberglass door adds more value ($2117), but because of the significantly higher cost ($3348), yields a poorer result (63.2%).  This goes to show that it may be more prudent to NOT splurge.  Much of this is due to "Neighborhood Norms".  If most of the neighborhood has steel doors, and you add a high end wooden or fiberglass door, you might not get the same result as going to a nice steel door.  That isn't to say that using a good grade of steel door wouldn't be wise... powder-coated and rust resistant units will likely maintain their value better than low-bid doors that aren't quite as nice.

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Mid-range garage door - 91.6% This is a tough one.  The article suggests that an uninsulated, single wall door without windows could provide the highest RoI.  However, adding windows doesn't add tremendously to the cost (maybe $200 on to the stated cost of $1178), but might add a little to the projected RoI ($1079).  Insulation and windows come down to preference and usage.  Those of us that use the garage for more than just a place to park a car really like the additional benefit of an insulated door and windows for natural light.

Upscale siding (fiber cement) - 85.4% The cost of this renovation was averaged at $13,106.  That assumed 1250 square feet of siding, and an average amount of trim.  The Added Value for the fiber cement siding came up to $11,197.  Again, we need to look to what is in the neighborhood, and what is on the house.  Changing out wood siding in good condition won't yield the same result in a neighborhood with brick homes as getting rid of wood siding in bad shape in a neighborhood with lots of homes already upgraded to fiber cement.

Mid-range basement remodel - 79.4% I almost hate to include this one... In my experience, it is rare that a finished basement adds significantly to the value of a home.  It seems that the buyer is always looking for it to be finished differently that the seller has finished it.  However, the existence of a basement DOES add significantly to the value of a home.  The average cost and return from the article are $57,627 and $45,757... which means that you will still be upside-down by almost $12k after doing the renovation.

Upscale windows (vinyl) - 77.9% I was a little surprised about this...  I don't normally think of vinyl windows on upscale homes, but there it is.  The cost was $12,878 and it added a value of $10,027.  There wasn't any additional information regarding style or number of windows for the survey, so I can't comment on that... however, I would assume that the windows would be wood on the inside (stain-grade) with heavy vinyl on the outside.  This would allow for low maintenance while keeping the style of wood inside.  I would also assume that the windows were low E glass and at least double paned.

A couple of important notes...

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  If you have the capability of doing the work yourself, it can make doing the work financially worthwhile... depending on how much you value your labor.  If it will take 50 hours for you to complete a renovation, and you are saving $500 by doing it yourself, is it worth it for you to "make" $10/hour for your time?

• Even more that the numbers bear out nationally, in the South Atlantic Region, the renovations that have the best payback all have to do with "Curb Appeal. Doors, windows, siding, garage doors...  The only one that snuck in there that doesn't belong seems to be the basement.  This goes to show that buyers want to be 'wowed' from the moment they step out of the car.  To get sold quickly and for the highest price, curb appeal is key, now more than ever.  You can get down in the gutter and fight it out with the short sales and foreclosures, but many buyers are looking right past those for homes that are "ready to go" rather than "ready to work on".
• The biggest change, and one that didn't make it anywhere on the list, can be had for little money.  The RoI would be off the charts...  Paint. If your walls are dingy, get out the rollers and paint the interior.  Use modern colors and do the job right.  For just a couple hundred dollars in materials, the value of your home can go up by thousands of dollars.  The impact is HUGE.

Related articles

• Flashback Friday... Getting the Most for Your Renovation Dollar (lanebailey.com)
• It doesn't pay to remodel your home (money.cnn.com)
• Finished or Unfinished Basements... (lanebailey.com)
• 2009-2010 Best Value Home Renovation Projects (bargaineering.com)

Return on Investment for Renovations on LaneBailey.com

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Do you know anyone that just likes to throw time, money and energy at a home renovation project, without a care for the value added?  I sure don't.  In fact, almost everyone I know is looking for ways to maximize the value of the dollars they spend renovating.

Last year, I wrote about a study from the National Association of Realtors® which detailed the average costs and RoI (Return on Investment) for various renovations.  It was even broken down by region.

I'll give you the spoiler...  Replacing the front door actually is the winner, and by a wide margin.  The correct replacement averages an RoI of 146.8%.  It makes sense, since curb appeal is a major selling point, and first impressions are greatly affected by the front door.

One thing to keep in mind, though...

Renovate to fit your lifestyle and taste...

Don't ignore resale value, but understand that almost nobody will have exactly the same tastes.  I'm always saddened when I see people renovate their whole house just before putting it on the market.  The $20k, $30k, $50 or more that they sunk into the house becomes worth half or less in resale value.

So, do the work and then live in it to get enjoyment from it.

Updating can be a slightly different story, but I would still counsel not to wait until sale time to get the work done.  Do it, enjoy it and then sell it...

Jump in the Flashback machine and look at the original post...  146.8% RoI for a real Estate Improvement?

Related articles

• It doesn't pay to remodel your home (money.cnn.com)

Renovation Return on Investment on LaneBailey.com

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I had the opportunity to sit in on REData Center's presentation about the state of the Gwinnett County Real Estate Market for the 3rd Quarter at NAMAR (Northeast Atlanta Metro Association of REALTORS) on October 18th.

One of the findings that was presented wasn't a shock to me, but it was a shock to some of the other real estate professionals that were there.

Finishing a basement doesn't really add to the value of the home in the eyes of a buyer...

I know that there are all sorts of news stories about the RoI (Return on Investment) of basement finishes... among other things.  Generally, they seem to give the seller credit for between 30 and 50¢ for each dollar spent.  This might be true in the case of appraisals, but doesn't hold true for purchases.

In my experience, in talking with buyers and helping them prepare offers on homes, I have found that the basement is VERY important, but that the finish doesn't really impact the price that buyers are willing to pay.

The space represents potential.  Often, the potential is "squandered" by the home-owner... meaning that they put in a media room when the buyer would have preferred bedrooms, or bedrooms when the buyer would have preferred a media room.  Or they put in drop ceilings when the buyer would have preferred dry-wall... or any of a number of options.

The bottom line is that I would NEVER advocate for a home-owner to NOT finish their basement because of future plans to sell, but I WOULD caution them that they should do it because it fits THEIR needs and lifestyle.  Don't expect it to pay back financially, but rather, expect it to pay back in the enjoyment of your home.

*another difference between appraisals and Comparative Market Analyis...*

Related articles

• Gwinnett County, GA, Market Report, August 2010 (gwinnettgarageguy.com)
• Sugar Hill, GA, Market Report, August 2010 (lanebailey.com)
• Norcross, GA, Market Report, August 2010 (lanebailey.com)
• Buford, GA, Market Report, August 2010 (lanebailey.com)
• Duluth, GA, Market Report, August 2010 (lanebailey.com)
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from LaneBailey.com

I just wrote a post a few minutes ago about 'The Bandwagon' and all of the folks climbing on-board to trash a book based on its title. 

But there is something else that has been bugging me... 

There is a disregard for DiYers that I see all too often.  It comes from agents, inspectors and others.  There is an assuption that if the home owner does ANY repair to their home, it will be sub-standard, not up to code, poorly executed and solely for the purpose of killing kittens and puppies. 

I am a car hobbyist.  I do a LOT of my own work, and I have spent a good deal of that time correcting the work of professionals.  And of course there is the time I have spent arguing with technicians and service advosirs about exactly what needed to be repaired. 

It isn't that I am perfect... it is that they aren't either.  And there is something else...  There are a LOT of bad professionals.  There certainly are some great ones, but plenty that just don't give a turd for the quality of their work... do it fast, cheap, get paid and get out. 

But the home owner often has another motivation... not doing it again.  There is usually pride in their ownership, too.  Of course, if they are selling the home, then maybe that doesn't play as large of a role.  But I have seen a lot of home owners going to great lengths to make sure that the home they delivered exceeded the expectations of the buyers.  Just as I have seen sellers of collector cars search out that last little part for the buyer... even though they didn't have to do it. 

Mom always said something else...  Don't Assume...

Recently, there was a post about a book here on Active Rain.  The book was about tips and tricks that pros use while remodeling and repairing homes.  Honestly, I'm not crazy about the title... 

But, reading through the comments, one might draw the conclusion that the book was purely evil. 

How to Cheat at Home Repair

Like I said, not crazy about the title...  But, the title doesn't tell the whole story.  Here is a short except from the book:

Here’s another situation where a panic response will lead to misery and unnecessary expense: the times when you need to call in a professional to perform repairs around the house. At a minimum, you want to have on hand the names and contact information for a handyperson, a plumber, and an electrician—professionals whose backgrounds you’ve already checked. If you just flip open the telephone book and pick the first name that sounds  professional—or the first company with an impressive display ad—you’re in deep trouble. Your odds of getting good work at a reasonable price that way are very low. When you do your research and find repair professionals that you’re comfortable with, it’s wise to treat them like family, pay them fairly, and pay them promptly. For more on hiring professional help, see chapter 13.

The section is called Build a Support Staff. That sure isn't bringing the evil.  OK, there is a mention of 'nose oil' and duct tape.  Of course duct tape is designed for ducts... not ducks, so there is actually a place for it in lasting home repairs.  And nose oil is something that I employed on more than one occasion to rescue damaged negatives as both a photographer and photo store manager.  Still not evil. 

When you have to drive a lot of screws into wood, the friction from the screwdriver can leave your hand raw or even blistered.  Making screws easier to drive is simple.  Keep an old candle in your toolbox just for this purpose.  When you have to drive a screw, rub the candle against its threads first, lubricating the metal.  This makes the screw easier to turn and saves the hands a lot of pain.  If you don't have a candle handy, soap will work well, too (but with greater potential to get messy).  Or spritz the pilot hole for your screw with spray lubricant.

I have not read the whole book, and I am sure that there are things in the book that I will disagree with.  I read the portion of the book available through Books.Google.com.  I don't have the book, and I doubt I would run out to get it... but there are some good tips in it for those that might not be really experienced in home repair. 

But that isn't the point... 

The point is that it is easy to villainize the book because of its title... especially for those of us in the real estate business.  It doesn't take an inspector to recognize some of the pure crap that most of us have witnessed... poorly done repairs, cover-ups and camouflage.  But before sentencing the writer to the 7th level of Hell, it might be a good idea to actually do a little research. 

I guess the part that bothered me was 'The Bandwagon' and the fact that EVERYBODY was on it, and nobody seemed willing to find out what they were talking about...

Two years ago I wrote a blog post called “Incrementalism“…  It is actually a favorite term among a small group of my friends.  We coined the term in regards to Jeep modifications.  Instead of doing the work over and over, but just a little at a time, causing a tremendous amount of laber of spending WAY more money, just go full in the first time.

Of course, there are a few reasons to build a Jeep (or a sports car or a tow rig or anything else) a little at a time… especially as one is learning the ropes.

But, in many cases having a plan can save a LOT of time and money.  And not cutting important corners can save even more.  In fact, I have sometimes sold my modifications for pretty good money as I upgraded.  Going with a cheap alternative might have actually cost more money…

But the post is actually about real estate and building…

Check it out..

Right now there are several areas of North Georgia, including Gwinnett County, that are issuing rebates for 'water saver' toilets.

While this might not be terribly exciting, it is pretty cool... especially when combined with a deal at Costco on one of the listed toilets...

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The Duluth Costco has a dual flush (4L/6L) model available for $99.65, including tax.  It is eligible for a $100 rebate.  It isn't listed as being available on Coscto.com, but the store had 25+ toilets a couple of days ago.  I do not know if they will be restocked, or when.

There are some specific limitations, so check that out on the linked website PRIOR to buying the toilet if you are counting on the rebate.  The goal is to reduce water consumption, so it is aimed at older homes with older toilets.  There is also a limit of two rebates per household... but honestly, the toilet is a pretty good deal BEFORE the rebate.

And since it comes with a seat and wax ring, there is no need to buy anything else to install as a replacement.

The only thing missing is a porcelain recycling program.  I haven't been able to find an active recycling program for the porcelain.  There are some organizations that may accept the old toilet, but it is for re-use... kind of defeating the purpose of replacing it to lower water consumption.  In fact, it is a requirement of the rebate that the toilet not be re-used.

Just as an aside, our old toilets used 5 gallons per flush... the new one only uses about 1.1 gallons for most flushes.

Good luck!

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Even the best new construction garages I've found are lacking... but one day a builder will come along and turn out a proper garage.  In the mean time... until builders start coinsulting me about these things... here is a list of things that you should be ready to correct. 

• Electrical outlets - Three is not enough.  For some reason, many builders seem to want to put one outlet on each wall.  That isn't enough for ANYONE that is going to do anything in the garage.  For a two car garage, seven 110V outlets would be better (two on each side wall and three on the back wall).  Add one more for a three bay garage, and three more for a four bay garage (all on the back wall).  If you really want to amp it up, add one more above each bay for a cord reel and drop-light. 
  
• 240V outlets - The number is three... two would be ok, but three would be better.  Welder, air compressor, plasma cutter, wood-working equipment.  Actually, for a wood-worker, three would be a minimum. 
  
• Cabinetry - Nice garage cabinetry would set one builder apart from EVERYONE else.  The cost would be a couple thousand dollars, tops... but it would make a significant impact on the presentation of the property.  Even if it were just displayed in the models and offered as an option, it would help the builder stand out. 
  
• Lighting - How many times do I have to say that a 60 watt bulb (or a 18W CFL, which is WAY inadequate) over each bay is NOT lighting?  It doesn't take that much to change that over to a few 4' shop lights.  Again, it would really set a property apart. 
  
• A sink - Either have a mud room just inside from the garage (tile floor, please) or a laundry style sink in the garage.  It is indispensible for a clean-up before entering the house.  Not only will the car guy appreciate it, but the wife of the car guy will appreciate it.  The plant enthusiast will appreciate it, too.  in fact, anyone that cleans up after someone that gets really dirty will appreciate them being able to knock off a layer before the touch anything inside. 
  

Now, if we are dreaming... 

• HVAC - The garage needs a dedicated system.  We don't want to send welding smells or gas or anything else into the house.  We also want to be able to easily turn it off or have a different temperature from the house. 
  
• Compressed Air Lines - One of the absolutely essential tools for a car person is an air compressor.  And the air gets used all over the shop.  Dragging hoses everywhere is annoying... but having a nearby air oultet is wonderful.  We add them...  It would be nice to have the plumber put copper air lines in the wall before the sheetrock goes up... 
  

As the garage gets bigger, some of these get more important, others get less important.  And of course, the demographics can have a lot ot do with it.  Detached garages need more equipment than attached garages. 

If you are a builder around Gwinnett County... call me.  We'll talk.  If you are a buyer around Gwinnett County, GA, and you are a car person, call me... I know what you are looking for.

Spring is busting out all over Lilburn, GA.  The usual signs are plain to see, and if you are missing them, the pine pollen will be here soon to make sure you see spring everywhere... 

Of course, there are a few things that you need to do in order to prepare for spring. 

• Change the Smoke Detector batteries if you didn't do it with the time change. 
  
• Change the air filter on your HVAC.  Depending on your filter media, it usually needs to be changed at an interval between 30 days and 30 months.  The 1" thick (often blue) filters need to be changed after about 30 days.  The 4" thick filters usually go about 3-4 months.  As they get loaded with dust, they stop flowing as well... and can lead to the lines freezing up when it gets hot out. 
  
• Tune that lawnmower.  In addition to the oil change, it isn't bad to replace the spark plug and air filter.  Sharpening the blade is a good idea as well.  Hopefully, you used a fuel stabilizer back in the fall.  Otherwise there might be some varnish in the carb that reduces performance.  Same goes for the leaf blower, edger, hedge trimmer and chainsaw.  
• Give the house a good cleaning... outside.  Get someone to pressure wash the outside and the driveway.  This is also a good time to see it there are any issues that need to be taken care of... caulking, painting, gutter repairs or cleaning. 
  

You probably kow the drill.  That spring honey-do list can be long, but it is way better to take care of it now, rather than when it is 100 degrees outside.  There are also some lawn things that should get done... 

• Doing a spring 'Weed & Feed' isn't a bad idea.  It might be a little late for a pre-emergent crabgrass killer, but a post emergent may do the trick. 
  
• Don't go nuts trimming hedges quite yet.  Azaleas and other flowering bushes aren't quite out yet (but they will be soon).  If you cut those back, they won't be able to flower.  However, if you cut them back as the flowers start to die, they will flower again next year... and probably even more...  Smae goes with fruit trees... if you cut them back now, they won't bear fruit. 
  

And because this is a glorious time in this part of Georgia, open those windows and enjoy the mind days before the pollen gets out of hand.  It is a great time to get out in the yard or garage and get some things done...  It isn't cold, and it isn't hot... And if you run across a bunch of stuff you don't need to trip over anymore... it is also a perfect time for a garage sale.