Big on Small or Small on Big?

With the recent building boom this article still resonates. Originally posted here August 29th, 2014

The trends in home building for middle income buyers has been larger homes on small lots. Builders have been stuffing 2200 square foot homes onto 4000 square foot lots. There is a wow factor when a prospective buyer walks into a brand new house with 2200 square feet of space and all the nice modern features.

The trade-off has been in the "real estate" portion of the deal. These gorgeous big houses had nearly no yard and a tiny so called two car garage. For the very same money a buyer could look at a 20 year old home with 1800 square feet sitting on a large 10,000 square foot lot. Sure, that house was a more dated design, but often the seller had done updates to improve the feel of the home.

So buyers that find themselves in the local market with a $250,000-$300,000 budget will face the same dilemma. 'new on small' or 'old on big'? That trend of new on small even pushed it's way into the bottom of the upper income homes. There are a great many 3500 square foot homes stuffed onto 5000 foot lots here in Clark County as well. Some of these are top quality builders cramming luxury homes onto postage stamp lots up on Camas' Prune Hill.

Buyers should consider that land is valuable. It is a major part of the real estate equation. Having a large, safe yard for children or grandchildren to play in can be most valuable. Summer parties in a real backyard are hard to beat as well. Buyers are well advised to look at a range of homes from new on small to old on big before making that final decision. There are strong merits to both concepts. Personally I am at a point in my life where a big house on a small lot would be just dandy! One should just make sure they are choosing the property that will serve them best rather then the property that offers more bling.

Builders Are Back, But is New Better?

Many home buyers may be feeling frustrated at the lack of resale inventory in the market. here in Clark County it remains a tight seller's market. There are many buyers and they seem to be preferring that move-in ready house rather than the one that needs "TLC". The builders are back and they have come with force. Dozens of new developments are underway all over the fruited plain.

For the buyer that has to have the house just so, a new home holds an advantage in that often times the buyer can choose carpets, flooring, counter tops, colors, etc. The downside is that builders are booked solid and completion times are pushing 6-7 months. New spec homes are always and option but they lose the pick you theme angle in exchange for buy me now availability.

The general theme in new homes has been big house, tiny lot. The older homes are usually found on nice big lots with 7-8 thousand square feet and go back to the 1970s and you will likely find reasonably priced homes on 10,000 foot lots.

That remains the trade off, older homes on giant lots versus newer homes on smaller lots. In general a new house will appreciate quicker in the first 5 years. When looking at newer subdivisions consider the neighborhood and price ranger. Entry level homes will often hold up better if an HOA or strong CC&Rs exist to keep the neighborhood conforming and tidy. Generally upscale developments with large expensive homes fare well with or without an HOA.

I have written in the past that sometimes buying a brand new house in an older neighborhood can backfire. Be aware of your needs and think about the future. Buying a home is a little more "permanent" than renting and will require a bit more time commitment on the part of the purchaser.

Most new home developments list their properties on the local MLS so your favorite Realtor® can still help you find your dream home, whether it is brand new or 100 years old.

Seller's Keep Your Home Cool!

It's hot outside. All across the fruited plain, this is the warmest time of year. As we begin to celebrate our great nation's independence seller's should remember that an uncomfortable buyer will stick around in the showing to soak up the nuanced greatness of your home. To put it another way, buyers are not interested in purchasing a home that feels like a sauna or steam room. For crying out loud if you have A/C use it! Buyers will linger in the glorious bounty of a cool home when the mercury outside is popping those 90s. Sellers need not cool the house to ridiculous expense. Even a setting of 78 degrees will provide a comfortable recompense in 90 plus heat.

No A/C? No problem, sellers need to follow those classic cooling tips. keep windows open till the temp starts to get warm. Then close up the house and run the furnace fan (if you have forced air) or ceiling fans, etc. In the evening when the temperature settles down, re-open the windows to bring the cooler evening air in. Furthermore, if blinds horizontal are employed in the home, angled them down towards the ground at about a 45 degree angle. (further south in California they can be at 20 degrees) This blind trick allows indirect light to enter the home but keeps direct sunlight from hyper-heating the house. On all but the hottest days this should suffice to keep the home bearable.

I know some sellers and agents are thinking it's a seller's market so why do all this effort. Buyers are still picky and they won't buy a home that makes them feel uncomfortable. Nor will they stay in the house long enough to determine if it is a good home for them. In a seller's market the same rules apply, the more presentable and attractive the listing, the more money it will yield at closing.

Happy Birthday, America! You're a spry 239 years old tomorrow.