Many new-home buyers, realizing that their house is probably the biggest investment of their lifetime, are paying more attention to its potential resale value.
“Buyers are more savvy than ever about resale, and they absolutely understand that the only way they can successfully move up to a bigger home is to maximize the potential of their investment,” said Richard Pietranek, who is building Deer Point Trails, a subdivision of 200 single-family homes in Hainesville.
The homes at Deer Point are priced between $120,000 and $165,000.
“Buyers are realizing that by maximizing their new home’s resale potential, they can also move up at a quicker or easier pace than they hoped for,” he said.
“There are numerous options and features, if added during the construction of a new home, that will bring back a strong return on a buyer’s investment and will give the home an edge over a similar house just down the street come sale time,” said Larry Desmond, a sales associate with the Waukegan-based Century 21 Maki and Associates.
“When people are buying one of our homes, we tell them that it’s very important to remember that they’re a purchaser today, but a seller tomorrow,” said Roger Mankedick, executive vice president of sales and marketing for Arlington Heights-based Lexington Homes.
“People are more likely to have good movement stepping up from one house to another more quickly now-say every four or five or six years,” added Mankedick. “That’s a trend that has taken place in the last 10 or 15 years, and one we’ve made clear to our buyers.”
Mankedick said there are many people-particularly transferees-who live in a home for only a few years before moving.
In Naperville, for example, almost one-third of all homeowners are considered transferees, according to city records.
An increasing number of buyers have plans to move up to larger homes in a certain number of years by banking on their home’s equity and appreciation.
For example, northwest suburban buyer Anne Coble recently purchased a single-family home at Lexington’s Silver Oaks subdivision in Round Lake Beach after previously owning two Lexington coach homes (townhouses) in the last decade.
“With each move, I strongly considered the resale side of my purchase,” she said. “Like most people, my home is my biggest investment and I want to do as good as a I can with it.”
To maximize salability in the coach home she sold most recent, a three-bedroom model, she had added a ceramic floor in the bathroom, a double oven in the kitchen and a second full bathroom.
With her new two-story, three-bedroom single-family home in Silver Oaks, Coble added a number of features she thought would increase the home’s resale value if she decides to sell in several years.
For example, she opted for 2 1/2 bathrooms over the standard 1 1/2 baths.
With the home’s stairway, she chose oak railings over a half-wall on the side of the staircase. “I guess the half-wall is trendy, but I believe the oak railings will sell better because it’s a more traditional and homier look,” she said.
She also decided to add a second coach light to the front of the garage, a simple touch that gives it a more balanced look. Finally, she plans to add lots of landscaping when she takes possession of the home in May.
“The builder will put a tree in the front parkway,” said Coble. “But I’ll also add one in the back yard and add lots of bushes and flowers along the side of the garage that’s near the front door.”
There are numerous other selections that builders suggest resale-oriented buyers consider during construction.
For example, fireplaces and central air-conditioning usually are musts for resale, even if buyers don’t care for the options, said the builders. Each of the options usually runs several thousand dollars.
“Ninety-five percent of our buyers purchase a fireplace, and nearly as many purchase air-conditioning,” said Cynthia Kleronomos, vice president of Property Concepts, which is developing Lakeview Estates, a duplex and single-family home development in Oswego where prices run from $114,000 to $152,900.
“Even if you don’t care for those options and never turn them on, you still should invest the money in them,” she said. “They’re extremely appealing as far as resale and can be much more costly to add after construction.”
Buyers are also becoming more practical in favoring functional space over luxury, especially in bathrooms and kitchens.
“With bathrooms, people are starting to realize they don’t use whirlpool tubs and are just as happy with the large soaking tubs,” said Desmond. “So you’re better off putting the money for a whirlpool into a fireplace or central air.”
Kitchens are also coming down to a more practical level, said Pietranek.
“People don’t want luxurious cabinetry,” he said. “They’re getting away from the Euro-design look and getting back to the more standard wood grains-options that will be long-lasting instead of trendy.”
Even the popular two-story foyer is losing out to additional bedroom space upstairs.
“People are being more practical and believe that a fourth bedroom upstairs will better sell a home than a grand entryway,” said Desmond.
What follows, in no particular order, are additional interior and exterior options and features that real estate officials feel, when added to a new home, will better sell that home at resale time:
– Neutral decor: When purchasing a new home, buyers should consider carefully the colors they choose for paint, wallpaper, carpeting, countertops, cabinetry and tile.
“If you want to try and sell your new home in a few years, I would stay away from fad colors and stay with neutral colors such as white and beige,” said David Hoffman, president of Red Seal Development Corp., which is building the Winchester Estates townhome development in Buffalo Grove. “For example, a good, solid Berber carpet is here to stay forever.”
Desmond added, “Avoid the unusual-the mauves, the teal blues and the eggplants.”
– Bedrooms and bathrooms: The bedroom-bathroom ratio in new homes has been increasing in recent years, said Desmond, and additional bathroom space can give a home an edge.
“The rule of thumb now is, if the house has three bedrooms there are two baths, and if it has four bedrooms it has three baths,” said Desmond. “But if a three-bedroom house has 2 1/2 baths, and a four-bedroom house has 3 1/2 baths, it will be even more appealing.”
– Basements: One of the best resale investments to add to a new home, said the builders, is a basement. Depending on the size, a basement can start at less than $10,000.
“Generally speaking, you get more than your money back with a basement,” said William Maybrook, vice president of sales and marketing for Concord Development Corp., which is building the Concord Hills single-family home subdivision at Lake In the Hills.
“And, of course, it makes the most sense to put in a basement during the construction of a home,” said Hoffman.
A finished basement, however, may not be a worthwhile investment.
“Transferees are basically looking for storage,” said Maybrook. “Very few short-term buyers want to finish off the space, but they want the space.”
Along the same line, a basement prep package-where plumbing for a downstairs bathroom is added during the construction phase for several hundred dollars-also is a good investment, said Desmond. “The next family may be considering the house long term and may want to finish the basement,” he said.
– Landscaping: One of the best exterior investments a buyer can make when constructing a new home is landscaping. Such an option usually costs several hundred dollars.
“Landscaping dramatically plays up curb appeal and can make a big difference between two similar houses on the same street,” said Kleronomos. “We provide fully landscaped yards with trees and shrubs, but our buyers can put a little more into the landscaping to make the lot look even more attractive,” she added.
“Planting trees at construction provides a big payoff in five years,” said Hoffman. “Trees greatly enhance the property aesthetically and also knock dollars off air-conditioning costs.”
– Site premiums: The type of lot you choose for a new home can also pay off at resale time, said the officials.
At Concord Hills, for example, “premium lots” include those that are at the end of a cul-de-sac, that back up to a wooded area or lake, or have better access to parks or schools in a community.
“Those lots are a good investment because you’re going to have an edge when it comes time to sell the home,” said Maybrook.
“Lots that back up to a wooded area versus another home also offer more privacy, another draw for buyers,” said Desmond.
Such site premiums run $3,000 to $6,000 at Concord Hills, and $1,500 for a corner lot to $15,000 for a lake lot at Deer Point Trails.
– Brick: Another good exterior resale investment is brick. Partially upgrading a home’s exterior with brick can run between $3,000 and $6,000 at construction.
“There’s no question that from a resale standpoint, a home with masonry will have a wider appeal, especially with transferees,” said Maybrook. “There are parts of the country-Texas, for example-where masonry is an absolute given.”
“Brick has always been a big deal in Chicago because many Chicago-area buyers grew up in brick homes and feel it has the appearance of greater security,” said Desmond.
Desmond said, “I don’t believe you’d see a return on your investment for full brick around a home, but you would definitely see a return for partial brick.”
– Coming trends: There are new options emerging that will become popular in the next few years and help with resale.
“We’re seeing more undercabinet/spacesaver microwaves installed as people want more convenience in the kitchen,” said Pietranek.
Desmond and Maybrook said three-car garages are becoming a hot option.
“More and more people are looking for that extra garage space as families have multiple cars today,” Desmond said. “And that three-car garage will be a selling feature that will give a home an edge at resale in a few years.”
