Time to Install Solar Hot Water

In the late 1970's when the Solar Hot Water Panels went on the White House we were getting back to a technology abandoned only a few decades earlier. Only a few short years later we would abandon this renewable energy technology again. I'll avoid a discussion of the politics here but suffice to say that fossil and nuclear energy companies didn't (and don't) like competing with the most infinitely renewable energy source (which falls freely on our heads and roofs!). Will we as a culture work aggressively now to put solar hot water technology on all of our homes and workplaces? The economics are so beneficial and easy to comprehend. The carbon output reduction is so simple to calculate. The planetary need is so obvious. The need for jobs in manufacturing and installation is so necessary at this time. Why wouldn't we do this? To learn more I recommend starting with the information at this link:

http://www.motherearthnews.com/Alternative-Energy/2003-10-01/Save-With-Solar-Hot-Water.aspx

Let me know if you decide to do it!

Real Estate & Global Warming

It seems like alot more people are thinking about what will happen as global warming starts to yield changing weather patterns and potential rises in sea level.  In a place like Maine, this is probably something we need to start thinking about in terms of real estate.  In fact, last fall the Natural Resources Council of Maine issued their findings about what sea level rise could mean for Maine over the coming years.

This topic came to mind when I saw a BBC story about the Dutch, ever-ahead of everyone else on this topic by necessity; they are, after all, a nation that has been focused on "holding back the sea" for centuries.  But there's an acknowledgment that the dykes are not going to be able to hold back the water for ever.  A new "neighborhood" of amphibious homes, capable of gently lifting off from the ground and riding with a 13 foot sea level rise, are in high demand.  Water and electricity are "pumped" in through flexible pipes.  These homes are attracting international attention, even garnering visits from New Orleans officials eager for alternatives to Katrina's disastrous outcome.

Every industry has to adjust to changing world conditions, be they economic, cultural, technological or - in this case - climatological.  Let's see how real estate navigates these waters.

What's a Man Cave Worth?

I'm not sure if this trend is really going to catch on, but according to the Boston Globe, the potential for a "man cave" could be a highly sought after property feature. What is it?  Well, the idea is that guys need a place to go and be, well, guys.  Or to put it more clearly:  "Dingy basements, chilly garages, a beat-up den, or even an over sized mud room, the "man cave" is a designated area in a home for all things mannish -- or, boyish, depending on your view. Mythologized in beer commercials broadcast during weekend football games, the man cave is a place where guys are free to smoke cigars, fart, yell at the TV, or indulge in other guy-like activities."

Even Chicago area real estate broker Mark Nash acknowledges that "Caving is huge."  Who knew?  Home Depot is reporting a sales increase in larger-than-normal storage sheds to be used more for "entertainment" rather than for storage.

So build yourself a man cave and maybe - just maybe - you'll be increasing the curb appeal of your property.

David Whitten - Not a Spelunker Yet

Remodelling Costs Continue To Rise

The Associated General Contractors of America have released some interesting data about the cost of construction materials that might make today's budget for next year's project quite inaccurate.

In fact materials have been increasing in price more than twice as fast as consumer inflation!  According to the Wall Street Journal "the AGC expects construction material costs to rise faster than overall prices during the next six to 12 months, if not as rapidly as they have in the past year."

So make sure to build in a double-inflation factor on any planning you do for 2007 projects!

Real Estate Staging: Before & After

Paula Jalbert, a recent addition to the Whitten Properties team, is not only a stellar real estate agent, she also offers professional real estate staging services.  You know all our clients are going to benefit from this service! 

The data shows that properly staged homes sell in fewer days and they sell for a higher price than non-staged properties.  It's a common practice in other parts of the country that is only beginning to pick up steam in Maine.  Of course we want to make sure Whitten Properties listings have all the advantages they can have in the current market.

Here are some great "before and after" shots of Paula's staging work for a Whitten Properties client...

The bedroom...

• It is extemely important to have a comprehensive sales and marketing strategy for every property being sold.  To us, staging has become a standard part of that strategy.

The dining area... 

Give us a call if you have any questions about the benefits of staging.

David Whitten,

We're Staging Southern Maine Real Estate

Massive Appliances

Apparently there is a trend happening in America toward super-sizing all kinds of appliances.  According to the Wall Street Journal this is especially true with refrigerators and stoves.  While Maine doesn't always follow the same trends as other parts of the country, this is still an interesting development.

As energy prices continue to challenge consumers, it is ironic that sales of energy-consuming appliances are growing (even as sales of many SUV's are lagging).  We have to remember that electricty in our area is often powered by coal, gas and oil-fired generation plants (and to some degree by hydro and wind, though only a small percentage right now).  Home owners would do well to buy quality, durable right-sized appliances for their home that take energy consumption and future price increases into account.

Expect Growing Condominium Demand in Maine

There are several reasons why condo demand will grow in the not-so-distant future.  Those reasons are really the same ones that have always been there, it's just that more people (read:  baby boomers) are about to act on those reasons. 

• As land costs increase, one way to obtain an affordable home is buy in a high-density area.  That has definitely happened in Portland as many single family homes evolved into apartments and have now been condo-ized.  We're also seeing a significant number of in-town Portland condo development projects these days - no doubt in anticipation of this coming demand.
• As people near retirement, condos and "condominium neighborhoods" become more attractive:  less maintenance, more community, less isolation.

These factors, combined with a growing dislike of long commutes and high fuel prices, means that the chances are 50/50 you'll trade your single family home for a condominium in the next few years according to some industry experts.  In many parts of the country it's not uncommon to have a 1 or 1.5 hour commute each way to work.  That has generally not been the case in Maine, but even a 30 or 45 minute commute in bad weather can be enough to cause rural residents to consider an in-town location.

What's In and Out with Homebuyers in 2006

Mark Nash over at Broker Agent News does such a good job with this article, that I'm just going to republish it in its entirety. 

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The majority of full-time real estate agents hear a lot of feedback every day all year from homebuyers as they visit potential resale and new construction homes.

They wonder why builders, developers and home-sellers add finishes or upgrades that say "cheap" or "soon-to-be-out-of-date", in addition to owners who think the laminate wood-grained kitchen cabinets look fine.

Old standbys like solid oak hardwood floors might not be on the design edge, but quality and durability out sell trendy any day in residential real estate. After a year of property showings in 2005 and eight previous years with homebuyers as well as requests from consumers after the review of "1001 Tips for Buying and Selling a Home" in The New York Times, I've compiled a list of home runs and strikeouts for those looking to sell to homebuyers in 2006.

What's In

• Smaller square footage homes. After years of sprawl, new construction buyers want less space with better finishes.
• Quality kitchen cabinets. With the kitchen/greatroom the center of family living, buyers today are looking at furniture style cabinets.
• Bamboo wood floors. It could overtake maple as the favorite light-colored wood flooring in 2006.
• Wall space for flat screen TV's. Specify power and cable boxes close to locations where homebuyers want to place the latest in visual technology. The popular location for installation in new construction is over the fireplace.
• Multiple and high-powered phone lines. With modems, dsl, wi-fi moving into mainstream use, tech-savvy homebuyers want "wired" homes.
• Separate shower stalls and bathtubs in master bathrooms. The growing divide among "soakers" and "showers" is increasing. Not having one of each in a master bath could quelch a purchase.
• Built-in home stereo systems are a must-have for many audiophiles. Wireless hasn't quite made the pre-wired audio system home obsolete, at least not in 2006.
• Balconies and decks wider than 3 feet. Homebuyers want usable outdoor space. Big enough for a bistro table and chairs and a couple of pots for container gardening.
• Guest parking. With the rise in condominiums, lofts and zero-lot line subdivisions, homebuyers want their guests to have a hassle-free experience when they arrive at their new home. Buy or lease an extra space for family or friends.
• Dog Parks. Dogs and home ownership go hand-in-hand. The new way to meet neighbors in the hood is to interact with them at the dog park. Before buying a home, check out the nearest one.
• Ranch or one level homes. The baby-boomers are discovering their utility in droves.
• Second Homes. The baby-boomers are also keeping this market segment strong. Demand for second homes was still on the upside in 2005, but if primary home demand weakens, the second home market will historically follow.
• Seller give-backs. With a more balanced market in most metro markets, requests by buyers to pay closing costs have increased, and some sellers are paying them.
• Carbon Monoxide detectors. Home inspectors red flag homes that have only smoke detectors. Inexpensive and lifesaving, install one on every floor of a home before opening to homebuyers.

What's Out

• The real estate bubble. It's a correction with a soft decline in prices.
• Ebony-stained hardwood floors. You're better off tearing it out than trying to sand the ebony out to refinish.
• Single-rod closets. Buyers want the most storage in the least amount of space. Organizers accomplish this.
• Dark rooms with small windows. Natural light can overrule a lot of other problems in a home.
• Wallpaper. Buyers never have the same taste as decorators. Take it down (carefully) and paint.
• Builder grade light fixtures and interior fixtures used outside. The right fixtures say quality to buyers.
• Mid-century awnings on exterior windows and doors. Buyers want to let the sun shine in.
• Mirrored backsplash's in kitchens and everywhere else. Mirrored walls and ceilings say 1980's hedonism.
• Commitment (strong, bold trendy) colors. They look great in magazines, but as one buyer said to me "I don't live in a magazine".
• Gas grills that need their own tank. Buyers prefer the gas piped from the house so they don't have to replace tanks.
• Dropped ceilings. It might have updated a bungalow in the 1950's, but buyers want as much vertical space as possible.
• Flipping. Increasing inventories of unsold homes is increasing, signaling weakening demand by all buyers. If you are holding properties to flip, prepare to place them on market after the holidays.

On the Way Out

• Stainless steel appliances. Word-of-mouth says the cleaning requirements aren't for everyone.
• Laminate flooring that looks like hardwood. Not only can buyers tell it's not wood, the noise it makes with high-heel shoes is the deal killer during property showings.