More homeowners say they plan to renovate their homes this year, and they are increasingly planning to take advantage of higher home prices and use their home’s equity to complete the renovations, according to Bank of America’s “2021 Homebuyer Insights Report: Home Improvement and Equity Spotlight.”

As home prices surge, more homeowners are tapping HELOCs to make significant home improvements. Gen X homeowners (ages 44 to 56) are the most likely to report using HELOCs for home improvements, the survey finds.

“Greater reliance on the home as both a workspace and a family center has led many owners to tailor their homes to their needs,” the report says.

The majority of respondents said they’re approaching their home improvements as a way to bring greater enjoyment to their living space (67%)—more so than seeking to increase their home’s value (33%). “Traditionally, home improvement projects have been measured through the lens of return on investment, but we’re seeing that the emotional connection to one’s home is just as important,” says Ann Thompson, specialty lending executive at Bank of America.

Remodeling Trends

The survey uncovered several trends with home improvement projects, including:

• Greater modernization: Many homeowners are taking on home improvement projects because they want to bring their homes up to date or need to replace dated areas of their homes. The median age of a U.S. owner-occupied housing stock is 39 years, according to the National Association of Home Builders.
• Fixer-uppers are OK: About 42% of younger home buyers surveyed say they would prefer to buy a fixer-upper and improve it over time than to purchase a home that’s move-in ready.
• DIY is trending: Many homeowners are taking a do-it-yourself approach to some of their smaller house projects, such as painting or upgrading hardware and fixtures. Fifty percent say they’ve learned how from watching videos. Nearly 40% say they were inspired by TV shows such as HGTV to do more DIY projects in their home. Younger adults are the most likely to do DIY. Nearly three-quarters of younger homeowners between the ages of 18 to 43 say they’ve completed DIY work around their house.
• Sustainability is important: Younger generations tend to value sustainability features the most. Half of younger generations want to add solar panels (51%) and energy-efficient appliances (48%). On the other hand, only one-third of older generations want to add solar panels (33%) and energy-efficient appliances (36%).

National Association of REALTORS®
Reprinted with permission

One of the first steps before listing a home for sale is often clearing the clutter. But that can be tough for homeowners, who may already be overwhelmed with the prospects of moving, let alone going through all their items and deciding what stays and goes.

The National Association of REALTORS® announced on Thursday a partnership with 1-800-GOT-JUNK that offers real estate pros discounts for themselves or their clients in hauling away clutter from homes. The discount is offered within the REALTOR Benefits® Program. 1-800-GOT-JUNK will be offering $50 off full-service junk removal services to NAR members and their families. REALTORS® can also extend the benefit to their clients. The company provides full-service residential and commercial junk removal services, including hauling away bulky items like mattresses, furniture, appliances, exercise equipment, and more.

Find more resources for helping your clients clear the clutter.

Clean, Declutter, Discard: Make a House Shine for Resale

Purging belongings can be an arduous task for sellers. Share these 13 decluttering tips with your clients to help them prepare their homes for sale.

Making Space for Self-Storage

Vacant outlets in prime locations are gaining a new life, fueled by brisk housing markets. Here’s how you and your clients can use them wisely.

4 Steps to Clutter-Free Listings

Help sellers understand how cutting down on furniture and accessories in their homes will both help them simplify their lives and get the best listing price in the shortest time period.

Get Professional Organizers for Your Sellers

The value of home stagers is widely known, but hiring a professional organizer could better target what your clients need and become the service that will set your company apart.

What to Do With All That Stuff

Decluttering makes staging, selling, and moving easier—and less costly. As selling and spring cleaning seasons kick into high gear, create a toolbox of local solutions to help clients shed their unnecessary stuff.

National Association of REALTORS®
Reprinted with permission

Home renovations have been surging during the pandemic, and homeowners aren’t shying away from major redos either. More than half—55%—of more than 2,000 U.S. homeowners recently surveyed reported making substantial improvements to their homes that they believe will boost their home’s value, according to a July survey commissioned by Selective Insurance and conducted by The Harris Poll. That marks a 25% increase in large-scale home improvement projects reported by homeowners compared to its December 2020 survey results.

The South leads the nation in home improvement projects, the survey found.

Respondents reported the following three “major” home improvement projects since the beginning of the pandemic:

36% are renovating a room/basement/attic

• 9 Basement Revamp Mistakes to Avoid
• Staging Tips for Sprucing Up the Basement
• Bring Out the Best in Basements

12% are adding a new room

• When Home Additions Hurt and Help Resale
• Garages: Not Just for Cars Anymore
• The Sky’s the Limit for a Habitable Attic

17% are adding a pool/hot tub

• Restore a Pool in 5 Steps
• The Pandemic Pool Frenzy Continues
• Where Pools Command Highest, Lowest Premiums

Watch Insurance Coverage

The survey found that many homeowners are updating their insurance as they upgrade their homes. Among homeowners who improved their homes during the pandemic, only 23% said they hadn’t updated their insurance coverage; another 10% were unsure.

“Every home renovation project is unique, but every homeowner needs to protect their investment from future loss,” said Allen Anderson, senior vice president of personal lines at Selective. He urged homeowners to evaluate their coverage needs—particularly after a renovation—and update their insurance to reflect their renovated home’s full replacement value.

National Association of REALTORS®
Reprinted with permission

Feather, a technology startup providing a sustainable furniture rental solution for home staging projects, emerged Wednesday as the winner of the third annual Pitch Battle at the National Association of REALTORS®’ 2021 Innovation, Opportunity & Investment Summit in Dallas.

Twelve startups bringing innovative solutions to the commercial and residential real estate marketplaces competed in the “Shark Tank”–style battle, which was hosted Tuesday by Second Century Ventures, NAR’s strategic investment arm. The contestants, representing companies in the U.S. and U.K., presented four-minute pitches to more than 400 conference attendees, including venture capitalists, technology executives, innovators, brokers, and real estate professionals. The Pitch Battle was also live streamed to thousands of virtual attendees.

Feather helps consumers and real estate pros find luxury furnishings and home decor quickly without upfront costs or the commitment of traditional retail. Jay Reno, founder and CEO of Feather, made the case to a panel of judges that his company offers a sustainable model that enables homeowners to change their style, budget, or design needs in an affordable manner. Reno noted that Feather’s mission is to empower real estate pros and their clients not only to stage and sell faster but also to enjoy their homes while reducing waste. Feather is a 2021 REACH company. REACH is NAR’s technology accelerator. It operates globally, helping promising commercial and residential real estate technology start-ups launch into real estate and adjacent verticals.

At this year’s iOi, the in-person and virtual attendees also were able to vote on their crowd favorite. With more than 1,200 votes cast, the honor was bestowed upon Otso, a company that provides A-rated insurance coverage for lease security. Osto is a 2021 REACH Commercial company.

The iOi Summit, which NAR launched in 2018, is in its third year after being postponed in 2020 due to restrictions associated with the coronavirus pandemic.

“This year’s iOi Summit delivered on the promise to highlight trailblazing products and ideas,” NAR CEO Bob Goldberg said in a statement. “Feather is a worthy winner whose furniture rental service is indeed impressive and will no doubt contribute to both the residential and commercial sectors—and support REALTORS® and their clients—for years to come by making the home staging process more efficient.”

As the Pitch Battle victor, Feather will receive a prize package that includes $15,000, the official Pitch Battle trophy, a booth at the 2021 REALTORS® Conference & Expo in San Diego, an exclusive opportunity to confer with the Second Century Ventures executive team, and coverage in national media.

National Association of REALTORS®
Reprinted with permission

Downsizing can help owners cut costs, particularly homeowners’ insurance. Downsizing from a full-sized home to a tiny home—often 400 square feet or less—could save homeowners 52% a year on the cost of insurance alone, according to a new study from ValuePenguin.

Even in the most expensive states to insure a tiny home—like Oklahoma—homeowners could save more than 68% in buying coverage for their home than on a standard-size, 2,100-square-foot home, the study finds.

View the chart below to see the breakdown of the average costs to insure a tiny home and how much cheaper it is compared to a standard-size home.

National Association of REALTORS®
Reprinted with permission

The laser-fast building style is winning over buyers with promises of greater affordability, energy efficiency, and resistance to natural disasters.

Press print for a home. More consumers are warming up to that idea. Sixty-six percent of more than 3,000 consumers—and 75% of millennials, in particular—say they’d consider living in a 3D printed home, according to a new survey released by realtor.com®.

3D printed homes have been touted for offering greater affordability, energy efficiency, and better resistance to natural disasters over the past year. They also make it much faster to build a new home.

“Over the past decade, as the homebuilding industry focused mainly on the upper end of housing, expecting younger generations to favor renting, the price of construction has pushed new homes out of reach for many first-time home buyers,” says George Ratiu, senior economist at realtor.com®. “With the largest generation in U.S. history embracing homeownership, and the pandemic accelerating the move toward suburban markets, new home construction plays a pivotal role in meeting the growing demand.”

The technology is advancing and 3D-printed homes can help reduce the cost of new construction and increase the number of available homes at a more affordable price point, Ratiu says. They “will help to restore balance in this strong seller’s market,” he adds.

Thirty percent of survey respondents believe that 3D printed homes will eventually replace traditional methods of homebuilding.

3D homes have gained greater buzz over the last year. Sixty-three percent of recent buyers say they’ve heard of 3D home printing technology.

The biggest factors that would persuade consumers to purchase a 3D printed home, according to the realtor.com® survey respondents:

• Lower cost: 54%
• More energy efficient: 51%
• More resistant to natural disasters: 42%
• Faster to build: 41%
• More customizable: 39%
• Produces less waste than traditional building methods: 32%

For those who were more unsure of the technology, these are the main factors holding them back, according to the survey:

• 36% want to wait and see how the technology pans out over time
• 22% say they prefer the aesthetics of a traditional home
• 22% believe it won’t last as long
• 18% say they don’t want their home to look exactly like their neighbors’ homes

“While there have only been a small number of 3D printed homes sold to date, as the technology continues to advance, we could see it add more affordable homes to the housing market,” Ratiu says. “For the rising generations of digital natives, new building technology may provide a sustainable bridge toward homeownership.”

National Association of REALTORS®
Reprinted with permission