New Home Focus for Future Resale Gain

In the building industry we hear all the time customers asking what is the best way to gain equity quickly and see a nice return when a home is sold in the future. These are important questions and ones that builders quite frankly like hearing. These types of questions are not only buying questions but signal a buyer who wants to make a smart and educated decision. It also means that they trust their builder and their builders input. The easiest way to figure out how to see a resale gain is to start by focusing on areas of the home that are the most important to you but also future buyers. According to a recent survey three rooms have taken to the forefront for prospective home buyers 

The first and most important room to most buyers in the KITCHEN. This is a room where family gathers, holidays are celebrated, and where that home cooked meal from your mother was made. It is and always should be a focal point to the builder and buyer.

The second important piece to a new home is the MASTER BEDROOM/BATH. This is a room that is a retreat or at least should be built and presented in such a manner. This room can have great impact for re-sale. The simple things like a double vanity, soaking tub, or steam shower can make a homeowner see themselves in the house and comfortable with the home as a whole

The last area is not a room but rather a gateway to the outdoors. OUTDOOR LIVING is a must at this point in the industry. If you are building homes at some point you will have to move towards and address outdoor living with your customers. Even models that builders are constructing are calling for in the very least a paver patio. This area flows with the kitchen and with the beautiful spring and fall weather who wouldn’t want to enjoy a patio with an outdoor fireplace.

 So I hope our readers have a little more insight into what is making buyers buy and, as always, we welcome more input from you the consumer. Follow us @CSHOhio on twitter and tell us what makes you fall in love with a home!

 

Make a Smaller Home Look Like a Mansion!

A n occasional objection that we get from a client is that they do not like a garage that protrudes too far in front of the main body of the home.  It’s actually a pretty common practice and there are thousands of attractive, upscale homes that are designed this way.  But when you find a customer that doesn’t like it, they don’t want it.

Out of objection sometimes comes innovation.  Recently, a customer made such an objection and so we relocated the garage to the side of the home instead of to the front.  We connected it with a hallway across the front and created a “Drop Zone” area beside the garage for coats, boots, keys, phone chargers, etc.  But the real effect was that suddenly, a nicely appointed 2,000 square foot home now has a massive appearance!  In fact it now has the same width as a 4,000 square foot ranch that we recently built but is a fraction of the cost and size.  A simple reallocation of space produced outstanding curb appeal and the appearance of a much larger home.  What does that mean to you?  Better curb appeal and greater pride of ownership.

Watch for more actual photos as this home is built but in the meantime, here is a rendering of the front elevation.  Bet you wouldn’t have guessed this for a 2,000 sf home!  Follow us @CSHOhio on Twitter and tweet some of your creative design ideas.

Castlestone Homes – Anticipation Grows as MAME Approaches!

 This year marks the 25^th Anniversary of the “MAME” Awards.  It’s a time of tension and anticipation here at Castlestone Homes.  This is one of two annual awards programs that carry tremendous weight for members of the Central Ohio building community.  This is where the best of the best are discovered and honored.  If you are a Central Ohio real estate agent, please mark this event as a “Must Attend”.  Socialize with the elite of the building industry.  Contact the Building Industry Association of Central Ohio @ (614) 891-0575 for tickets.  We’ll let you know if Castlestone Homes is recognized.  Follow us @CSHOhio on Twitter and tweet us with any of your questions, comments or input.

Building Industry Going "Green"

Going “Green”

Today there is a lot of talk about going “green” in the housing industry. Many consumers think of green building as a fad or “doing it because everyone else is doing it”. There are many reasons to build green or implement “green” aspects into a new home. While a customer does not have to build a house that is entirely green from the flooring to the insulation there are reasons for choosing green products. This entry will show some of the green building trends that are important and useful to homeowners around the country

Solar energy has predominately been used in commercial building and is now making its way into new home construction Solar energy is a way to cut down on electricity and makes not only a great impact on a consumers wallet but also  the environment

Reclaimed products or products used and formed by recycled material is another way to help our surrounding environment, but also is now becoming more appealing to the eye. Whether it is using reclaimed wood for cabinets or flooring, to using it as a source of home insulation reclaimed products is the direction of the future

Energy efficient appliances have been around the home building industry for several years but are worth talking about now. As we have progressed through the past several years energy efficient appliances and HVAC units have become more advanced and are a must in any new home. We as an industry have a responsibility to help our environment and our customer. There is no better way to do this than to use energy efficient appliances as standard features in all homes being built.

The last category that this post will talk about is somewhat new to the industry. Roof top gardens are making their way into the market and are a great way to reduce water in sewer systems and can help prevent flooding and run-off by capturing rain water and filtering it. These gardens are seen mostly on top of commercial buildings but have been making a turn towards the housing industry. They are great for our environment and also a wonderful conversation piece with guests, friends, and family!

This is a wonderful topic and we welcome more ideas and input. Follow us @CSHOhio on Twitter and tweet some of your “green” ideas.

Mortgage Rate Watch 2012

Anyone who deals with statistics knows that there has to be sufficient data in order to make predictions.  Thanks to Freddie Mac, we have access to 40 years of interest rate data.  Starting in 1972, the Rate for the Annual Average 30 year Fixed Rate Loan was charted for each year and the information is very “telling”.

As we sit here today, we are at or near the lowest fixed interest rates in modern history.  Hey, the averaged fixed rate mortgage in 1972 was 7.38%.  What year was the worst?  1981.  It holds the record at a backbreaking average rate of 16.63%!   16.63%?!?   It was like buying a home on a high interest credit card!

So, what are we able to extract from the historic rate information?  A 40 year sampling is sufficient to predict what a “normal” market is.  With multiple economic booms and busts during this period, we know that the 40 Year AVERAGE for a 30 Year Fixed Rate Mortgage is 8.81%.  Remember that rate because that’s what a “normal market” is.  What’s that mean to you?  It means that our current low rates are likely to climb back to that level as the economy continues to improve.

So if you want to borrow money for the purchase of a home, here’s what it really means.  Suppose you are going to purchase a home and borrow $300,000.  Look at the rate vs. payment comparison for various sample years.

In the sample above, the loan amount is the same.  Only the timing, and thus the rate, was changed.

So today, as this is written, the rate is less than half of what I consider to be a normal market!  So, if you’re going to buy a new home which monthly payment would you prefer?  $4,187 per month?   Or $2,373 per month?  Or $1,424 per month?   FOR THE SAME AMOUNT OF MONEY!!!

But there are those who will try to rationalize waiting.  “Ah, if the rate goes back up, it’ll come back down.”  Or, “Ah, if the rate goes up and stays, we’ll just adjust our options and square footage.”  Let me translate that last statement.  It means that if the rate goes up and doesn’t come back down, they’ll get a smaller house with fewer options.

Bottom line, right now you can have the lowest rate, lowest price and the maximum amount of home and options.  This truly is a once in a career opportunity for us in the new home business and it’s a once in a lifetime opportunity for you, the consumer.

We believe that there has never been a better time for a new home and that that opportunity is starting to erode because prices have just started to climb.  Call us if you wish to discuss all the dynamics.  You’ll find knowledgeable professionals who are capable of help.

2012 Building Trends

In 2012 there are a number of trends that are making a splash in the housing market.  Here are a few of our favorites that we would like to share with our customers and followers.  Enjoy!

1.) Custom Cabinetry

2.) Chrome and Modern Faucets

3.) Home Technology

4.) Unique Sinks

 

 5.) Smart Showers

6.) Outdoor Living/Separate Guest Houses