Don’t cut corners when selecting, updating properties.

As appreciation begins to slow and interest rates rise, making money from a fixer-upper becomes less of a guaranteed win. A key to success is doing homework about what’s a good contender to be transformed and how to avoid the biggest mistakes. Josh Miller gave up a corporate job to found GoForClose in 2019, an all-inclusive marketing agency for real estate investors and wholesalers. He cites three mistakes your investor clients should avoid:

1. Choosing the wrong right location. A property is worth as much as its location, Miller says. Look for desirable amenities like shopping, entertainment outlets, and recreation—and watch out for what Miller calls “irritants,” such as busy streets and other sources of noise. “To put it simply,” Miller says, “your best deals are those properties that are neglected and need a little TLC but are in a great neighborhood.”
2. Choosing a contractor based on price rather than quality and speed. Investors sometimes try to save a buck, says Miller, so they hire a contractor who promises to make repairs and improvements for an affordable price or at a discount. “As the saying goes: You get what you pay for, and cheap labor yields cheap results,” he says. Find someone who offers both quality and speed—so work gets done fast and is worth the expense.
3. Not crunching the numbers. Miller’s adage is that you make money when you buy, not when you sell. “Before you purchase any property,” he says, “crunch the numbers to determine if it will give you a good return on investment. Add the purchase price to the fix-and-flip expenses, include closing and carrying costs and contractor and real estate commissions, if applicable. Calculate the maximum allowable offer, and if the numbers make sense, make an offer.

Image by F. Muhammad from Pixabay

©National Association of REALTORS®
Reprinted with permission

Pandemic-era migration has caused a ripple in cities and towns across America. Will it continue?

Since the beginning of time, humans have moved from one place to the next. Mass migrations like the Gold Rush of the 1800s and the Great Migration of the 1900s were led by populations motivated by historic events, urgent needs, opportunities, and tragedy. Similarly, COVID-19 was a catalyst for movement. According to U.S. Postal Service data, the pandemic increased relocations in 2020 by more than 94,000 compared with 2019.

Many recent moves have been anything but typical. The National Association of REALTORS®’ 2022 Profile of Home Buyers and Sellers reported that the distance between the home buyers recently purchased and their previous residence, typically about 15 miles, jumped to 50 miles in 2022. Additional data showed that small towns and rural areas had the largest increase in homebuyer activity. What’s driving the change? And how can real estate practitioners pivot to navigate through it?

Something Different

After spending most of her life in New York City, Katie Krimer wanted a change of pace and scenery. In 2021, she moved to the smaller, less expensive city of Philadelphia. Not long after, a new world called.

Today, she lives on “Sleepy Goose Farm,” a nickname she and her husband coined for their 3.4-acre property in Ulster County, N.Y.

The home and attached barn, built in the 1850s, sit far back from the road, surrounded by trees. Krimer and her husband toured the home virtually. As her agent carried the camera through the grand entryway and up the wooden stairs, she knew immediately that she needed to make the move. It’s a far cry from the cobblestone streets of Philadelphia or the skyline of New York. “I knew I wanted quietness, and I knew I wanted more nature,” Krimer says.

Overall, NAR’s report found that affordability, proximity to family and more space were leading external factors for buyers. While these factors are consistent with previous years, a deeper look at one of the most lucrative groups of buyers reveals an extreme shift: Repeat buyers made major life swaps, says Jessica Lautz, NAR deputy chief economist and vice president of research. “When you look at your typical repeat buyer, they’re moving at a median distance of 90 miles,” much farther than in past research, she says. “This implies that people are looking for different things when it comes to neighborhood choices.”

According to Katrina Johnston-Zimmerman, Philadelphia-based anthropologist and founder of THINK.urban, the journey starts within.

“A lot of people felt a certain urgency for purpose in life, and to change the way they were living,” Zimmerman says of the pandemic-induced changes. “This was a cumulative and collective existential crisis. When you’re faced with something really, really up close —‘Am I happy?’—you’re forced to actually revisit it.”

Zimmerman cites the overall change in mindset from “working to live” toward more purpose-driven lifestyle decisions as a key shift.

No Longer Bound

Clearing the path for a change in mindset was the domination of the remote and hybrid work model. The virtual work-style impacted nearly 30 million workers through 2021, according to a report from the U.S. Census Bureau.

“The whole landscape of my industry has been completely transformed by COVID,” said Krimer, a licensed therapist who now works remotely.

Relatedly, NAR’s report sites that 33% of buyers listed convenience to a job as a key factor in their neighborhood choice, compared to 42% the year before. “The commute time in the laundry list of neighborhood choices has moved down the list,” says Lautz. “People’s convenience to their job is less important because you can easily work from home.”

And while migration has slowed since the height of the pandemic, NAR’s latest Migration Trends Report found that in 2022, towns like Ocala, Fla.; Tallahassee, Fla.; Charlotte, N.C.; and Savannah, Ga., continued to gain buyers and topped the list for net inward migration.

“They can work remotely, and they see Charlotte as being an incredible city to live in,” says Tiffany Johannes, CRS, GRI, general manager and broker in charge at RE/MAX Executive Carolinas in Charlotte. Buyers are drawn to the area’s affordability, entertainment, parks and quality schools. “Charlotte today sees about 100-plus people a day moving to our area,” adds Johannes, 2023 president of the Canopy REALTOR® Association.

Much of the migration has been to the suburbs and beyond. Overall, NAR analysis shows, small towns saw a 9 percentage point increase in sales, and rural areas saw an increase of 6 percentage points.

“When people move further out, it’s not necessarily just about having that extra land,” Johannes says.

Affordability was a factor even before the pandemic. And now many rural and suburban buyers are looking for places where they can have more curated and personal experiences. “They are finding value in a home that can have a workshop attached or a bigger garage, depending on what their hobbies are,” she notes.

These days, when she’s not working or renovating her fixer-upper home, Krimer finds balance through activities like painting, hiking and birdwatching. “I’m already starting to think about what landscaping stuff I can get into,” she says.

If You Build, They Will Come

Buyers like Katie Krimer are bringing new life to smaller towns, observes Chuck Petersheim, home builder and founder of Catskills Farms in Hudson Valley, N.Y.

After riding the wave of early pandemic uncertainty, Petersheim could see that buyers were investing big in outlier locations like Hudson Valley. “A little ripple became a wave, became a tidal wave … became a tsunami,” he says. Since the start of the pandemic, Catskills Farms has generated more than $40 million in sales, up from $8 million in 2019.

Areas like the Hudson Valley, once known for seasonal visitors, suddenly had a population looking to stay. According to a report from the Hudson Valley Pattern for Progress, for the first time in more than a decade, the nine-county region gained more people in 2019–2020 than it lost.

“It wasn’t clear until the following year that this was sustainable,” says Petersheim of the sprawl he first felt in 2020. But as he built for full-time residents, new grocery stores, shops, and restaurants sprang up to meet the added demand.

Other smaller or rural areas like Williamson County, surrounding the booming tech hub of Austin, Texas, are also ramping up development activities to meet the needs of incoming buyers. The area’s strong internet broadband capabilities and home affordability placed it among areas like Forsythe County, Ga.; Douglas County, Colo.; and Delaware County, Ohio, on NAR’s list of top work-from-home counties—all areas that have continued to outpace the average in their states and across the country.

“I knew I wanted quietness, and I knew I wanted more nature.”

—Katie Krimer

According to Brandy Wuensch, GRI, broker-owner of City View Realty, there’s one other benefit that makes areas like Williamson County the apple of everyone’s eye.

“For new construction in Austin, you’re looking at builds of 18–24 months, whereas in Cedar Park or Leander in Williamson County, builders were able to turn over new-construction homes in six to eight months,” she said. This opened the gates for first-time buyers eyeing new homes without the high price tag or longer build times.

That’s not all: New neighborhoods in Williamson County tout solar panels, automated home features and high-fiber cabling. And developments like the 183 Revitalization project in Cedar Park are breaking ground for mini city centers.

Adapting to the Changes

Navigating through change isn’t new to Julia Hoagland, CRE. The New York broker and leader of the Julia Hoagland Team, Compass, forged through the aftermath of 9/11, the 2008 market crash, and now the COVID-19 pandemic. “Demand doesn’t stop accruing, it just stops executing while things are uncertain,” she says.

“There will always be people who want the dynamic nature of city centers,” Lautz says, “who wants to be able to pop down to their coffee shop or walk down the block to their favorite bar.” Real estate practitioners can stay ahead by broadening their marketing approach and tapping into the benefits of technology. “Our members have beefed up their skills in how they’re showcasing homes. I do think it matters more in a transitioning market,” she says, noting that more than 60% of sellers who moved 51–100 miles from their previous residence used a different real estate agent than the one they’d used before.

The way to stay valuable is to stay in the know. “Education, education, education,” Johaness says. Also, “get clients up to speed on what’s happening in communities they’re interested in,” she suggests.

“Follow the life changes of your clients. Identify which markets people, in theory, could move to,” Hoagland says. “Reach out to brokers in those areas, and ask to set up a referral relationship. We do a lot of referral business locally, nationally and internationally because we like to help people and, also, it’s good business for us. To the extent that we can embrace the dreams of our buyers and our contacts, even if they’re not in our market, that’s going to be meaningful.”

And it might not be long before grateful buyers are knocking on her door again. “What we’re feeling on the ground,” Hoagland says, “is that people are
coming back.”

Image by Sam Williams from Pixabay

©National Association of REALTORS®
Reprinted with permission

“Houses that need updating put a pause in buyers’ minds,” says salesperson Stephanie Mallios of Compass NJ in Short Hills, N.J. “Renters usually have no idea how much it costs to make repairs, so they think in broad brushstrokes of prices—$10,000, $20,000—and start deducting from their offer.” Here are improvements that many buyers are loving today.

1. Hardwood flooring is cleaner than carpet and offers a look that can be contemporary or traditional based on color, pattern, and length and width of boards, says Chicago designer Tom Segal of Kaufman Segal Design. “Prefinished options have expanded choice and personalization, and beautiful rugs atop them add an accent and change the feel,” Segal says. Architect Steven Lee of Page & Turnbull is exploring wood laminate, luxury vinyl tile, and rigid core flooring. Another flooring trend is to keep to the same material on the main level. “Gone are the days of tile in the entryway and kitchen, carpet in the living room, and wood floor in the dining room,” says Milwaukee designer Suzan Wemlinger of Suzan J. Designs/Decorating Den. “It makes a room look disjointed and visually unappealing.”
2. Steam ovens, valued for their humidity and temperature control, are being installed in more kitchens. Boston-area kitchen designer Jodi L. Swartz of KitchenVisions now includes one in almost every kitchen she designs.
3. Built-in bookcases combine storage and style as homeowners return to reading print books rather than downloading e-books. Trade magazine Printing Impressions reported that sales of print books rose 8.2% in 2020, based on data from NPD. Carefully curated bookshelves have become handsome backdrops for Zoom calls as work-from-home routines continue. To get the right look, homeowners should consider some closed storage, how the scale works in the room, and whether they want lights, Segal says.
4. Warmer palettes—light beiges, creams, and all shades of green—are replacing stark whites and cool grays, according to designer and staging expert Kristie Barnett of The Decorologist in Nashville. “All-white and even black exteriors are still selling like hotcakes,” she says, “but they are changing the look of neighborhoods where remodels and new builds abound to the point of saturation.”
5. Chicken coops (along with sheep, goats, and llamas) found their way into more residential yards during the pandemic, says Sacramento, Calif.– based landscape designer Michael Glassman. Chickens give owners a sense of self-reliance and sustainability, Glassman says, who adds this caveat: Check what animals, and how many of them, a community permits.
    

Rustic Gives Way to Casual Chic

Bid farmhouse style adieu as modern mountain and other styles step in. The farmhouse look was overdone. “Too many embraced it literally,” says designer Suzan Wemlinger, “with shiplap everywhere, tons of rustic wood, chipped or distressed paint on everything.”

Her advice “We don’t want too much of a good thing. If it’s everywhere, it loses its impact.”

For those who want a bit of a homey farmhouse look, she suggests mixing some of its elements with modern touches. “I’ve always mixed eras and styles so that something doesn’t scream a specific look, has greater longevity, and appeals to a broader base. It’s also easier to switch items out, such as pillows, without changing the whole room,” Wemlinger says.

Modern mountain style has some of the same rustic elements as farm- house, such as beamed ceilings, dark wood, and earthy textures, while offering a more refined aesthetic. “It has some color, but also has hints of black for an updated modern, clean-lined feel. And it’s less busy,” she says. “Modern abstract art would be at home in this environment.”

Designer Kristie Barnett of The Decorologist notes other style trends emerging, based on RentCafe’s reporting of increased searches on Google(link is external): Japandi, Dark Academia, Grandmillennial, Cottagecore, and Maximalism.

Image by Mohamed Hassan from Pixabay

©National Association of REALTORS®
Reprinted with permission

How much do you know about architectural styles and features, along with their history?

You know what makes for great curb appeal— healthy landscaping, pops of color, well-executed carpentry, and an excellent paint job in neutral colors. But how much do you know about architectural styles and features, along with their history? Having a sound background in residential architecture—like what makes one Queen Anne home more authentic than another or how Doric columns belong on a Neoclassical home while Corinthian columns are historically suited for a Greek Revival—could help you snag pricier listings and give buyers insights into homes they’re viewing.

1. What features are most prominent in a Queen Anne house?

A. Steep roof with cross gables
B. Symmetrical front facade
C. Multicolored palettes

Answer: A and C. The Queen Anne style, popular after the Civil War, often features wooden “gingerbread” trim and elaborate paint jobs.

Source: REALTOR® Magazine’s Guide to Home Architectural Styles

2. What are some interesting facts about the bungalow-style house?

A. It originated in the Northeast region after World War II for returning veterans.
B. Several companies sold bungalow kits through mail-order catalogs.
C. Dormer bungalows offered the appeal of stable temperatures throughout the different yearly seasons.

Answer: B. Bungalows originated in California during the 1880s and moved eastward to the Midwest, where they remained popular until the Great Depression.

Source: REALTOR® Magazine’s Guide to Home Architectural Styles

3. What is a key feature of a Doric column?

A. A tapered shaft
B. 24 flutes in the shaft
C. A column with a base or pedestal at the bottom

Answer: A. A column is made up of a shaft, base at the bottom, and capital at the top. Doric columns are characterized by a slight tapering and 20 flutes, or grooves, running the length of the shaft.

Source: Encyclopedia Britannica

4. What are the main characteristics that give a Frank Lloyd Wright–style home its iconic look?

A. Long and flat profile with strong horizontal lines
B. Covered porches
C. Small interior rooms, each unique to give it character

Answer: A. Wright developed his Prairie-style homes to unite “man, nature, and architecture.”

Source: Chicago Architecture Foundation

5. What window style is popular today for the privacy it offers homeowners?

A. 12-by-12-inch frame
B. Glass block
C. Windows with grids

Answer: B. Used most often in lower levels and bathrooms, glass block windows are often seen in midcentury modern homes.

Source: Chicago Architecture Foundation

How Did You Do?

Five correct answers. Keep it up, and you’ll be the go-to agent in your area for architecture-loving buyers.

Three or four. You’re off to a good start. If you’re stumped by a buyer question, visit REALTOR® Magazine’s Guide to Home Architectural Styles for descriptions of more than 30 home styles and structural elements.

Fewer than three. REALTOR® Magazine’s Guide to Home Architectural Styles will have you naming dormer and roof styles in no time.

Image by Kerttu from Pixabay

©National Association of REALTORS®
Reprinted with permission

First-time buyers may not know what it takes to maintain their home. Good thing they have you.

When they experience their first leaky faucet, cold blast of air, or foundation crack, many first-time home buyers panic. Help ward off regret by connecting them with specialists and giving them a rundown of important maintenance checks.

HVAC system. It should be cleaned and tested at the start of a season—furnace in the fall and central air (or units) in the spring. Shrubbery should be kept from the AC’s outside condenser unit, says contractor Michael Kozas. Boilers should also be cleaned and hot water heaters inspected, he says. Homeowners should change filters regularly.

Exterior water and foundation. Owners should drain hoses and turn off outside spigots before winter to avoid burst pipes. Speaking of water, snow, and ice, they all can cause foundation damage. Owners should conduct a yearly check. For an unfinished basement or crawl space, that means shining a flashlight on walls, creases, and floors, says Tim Tracy of Groundworks, foundation specialists. For a finished basement, it means checking drywall for cracks or stains. Outside, topsoil should be pitched away so water won’t collect and leak into the basement, Kozas says.

Gutters and downspouts. Most home experts recommend having them cleaned in the late fall after leaves have dropped and in the spring, Rarely is this a DIY project, since climbing on a roof can be precarious.

Roof and chimney. Experts should check a roof yearly for missing shingles or holes and around flashing. The goal is to stop water and animals from getting in. Chimney experts should check for cracks in mortar when they clean a flue.

Septic system and well. Be sure the septic tank is pumped every three years or so, depending on its size and how many people reside in the house. Wells should be inspected annually.

Smoke and carbon monoxide detectors and fire extinguishers. All levels of a house should have these. The smoke and carbon dioxide detectors should be placed near each bedroom, and batteries should be replaced as needed. One fire extinguisher should go in the kitchen, and families should discuss a home fire escape plan that includes pets.

Pest control. Some homeowners like to be their own patrol service. Others want a professional to inspect every few months, both indoors and outside, since termites and carpenter ants are hard to detect, says Kozas. All owners should know what wildlife frequents their area. See illustrations of different animals’ footprints at almanac.com/content/animal-track-identification

Image by Obsahovka from Pixabay

©National Association of REALTORS®
Reprinted with permission