Real Estate Rescue. Tracy McLaughlin
on him, “Right, how many homes in Marin have indoor pools?” followed by a long pause so my response could set in. “There’s a reason. People don’t value indoor pools—and the conditions they create with the steam and water—in an area that overlooks a bay with year-round gentle weather.” Just because something is unique or rare, that doesn’t make it valuable. The market must value it.
While there’s no one-size-fits-all plan for living spaces, in the current market, the concept of an “open plan” living space has become the standard in home design. The days of compartmentalized rooms divided by doors and walls are gone, supplanted by a desire for open, connected living in a space that feels bigger.
The great room of this home in Belvedere, California, is an excellent expression of a beautifully designed open floor plan. Millennials, families, and empty nesters will all be attracted to the perfectly proportioned rectangular living space that accommodates informal dining at the kitchen island, more formal dining just off the kitchen, and a useful and relaxing living space adjacent to the fireplace. The scale of the furniture not only makes the room look larger, but also shows prospective buyers how they will live in the house. The message here is that spaces do not have to be big to be highly valued. The concept is applicable to most homes by creating a big, open great room, even if you have to remove a wall or two to do this.
Buyers want clear sight lines and a great room combining the kitchen, family room, and dining area, so they can interact with guests from the kitchen, watch the kids while they play, or have the whole family together, even if engaged in separate activities.
“Open plan” might spark images of grand, cavernous spaces, but the design is not limited to large homes. An apartment or cottage can combine multiple purposes in a tight space if the areas are clearly defined.
| Checklist—Living SpaceIs the home’s central living area a large, rectangular space with high ceilings? What is the scale of the home? Does the rest of the home have high ceilings, and do the spaces feel large and open? |
Finishes
Finishes are design elements that are usually attached to structural elements of a home, like walls, ceilings, and floors. Paint, flooring, appliances, countertops, and light fixtures are the dominant finishes in a home. The look and feel of the finishes can enhance or undermine market demand and desirability.
A home’s finishes must align with what buyers desire. The level of finishes should also be commensurate with the pricing tier of the asset. A more expensive home will necessitate higher-end finishes. The brand and expense can be adjusted; it’s the look and feel that’s critical for resale.
Young buyers, in particular, place a premium on finishes. They want to walk into a space and feel like it’s new. Accustomed to a fast-paced, always-plugged-in lifestyle, they have less downtime. Unlike previous generations, they are less likely to enter with a vision to remodel a home and a willingness to credit the seller for its positive attributes. They will severely discount an outdated home because all they can see is what you didn’t do. They want to turn the key, unpack their suitcases, and get back on email.
| Checklist—FinishesA prudent seller will frequently flip through design magazines to be aware of what buyers and consumers want. |
Indoor-Outdoor Living
Indoor-outdoor spaces are in high demand and can add significant value to a property. Home buyers want a flowing design that erases the lines between the interior and exterior of the home. Almost every home aspires to connect with nature.
Gone are the days of simply having a table on the patio and throwing a few foldable chairs on the grass. The area formerly known as the “backyard” has evolved into another living space. People want to extend their homes into the outdoor spaces and bring more natural light inside, without the costs associated with expanding the square footage of their home.
If you are in a view-driven market, the highest valuation will be given to the “magical 1, 2, 3, 4 sequencing”: a large, open great room that leads to a flat outdoor entertaining space that leads to a pool that leads to a view. The great room should have a focal point, a place your eyes are drawn to when you enter the space and, ideally, there should be a second focal point outside.
The principle of creating a visual point of interest off the main living space is not dependent on having a view or a pool. Whether you have a small terrace in an urban apartment or an expansive yard, having a focal point outside helps make a visual connection between the interior and exterior spaces. Highlight the best feature. Pick one point of interest in the outdoor living space on which to focus. It could be as simple as a tiny, vertical herb garden suspended from a wall, or a rectangular table with a bench and two chairs that push up against a balcony railing.
In the Home Trends Design Survey, the American Institute of Architects reported that requests for indoor-outdoor living increased for the sixth consecutive year in 2017. Seventy percent of the five hundred architecture firms sampled said there has been a rise in homeowners who want outdoor living space incorporated into the design of their homes.
The right landscaping on any property, whether an urban town home with a balcony and a greenbelt or a sprawling estate with rolling acres in the suburbs, impacts the valuation as well. According to a study by the University of Michigan, attractive landscaping increases a home’s value by 5 to 7 percent.14 The respondents to the study across seven states ranked sophistication as the most important element of landscaping—ideally a balance of large deciduous trees, evergreen plants, and hardscape.
Landscaping is an all-or-nothing game. You don’t bandage Landscaping. If you put new elements amidst the old, the valuation gets discounted. A homeowner should either update the landscaping or leave it alone, but not muddle in between.
In most areas, a smaller, flat pad is valued higher than a larger, upslope property because families drive the market and they want an accessible, level area.
| Checklist—Indoor/Outdoor Living |