Is Replacing Carpet With Hardwood Always Worth It?

On January 3, 2015   /   home remodeling  
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replace carpet with hardwood

By: Michele Lerner

Thinking about replacing your floors? Especially if you have carpet, the choice seems clear: Hardwood floors are preferred by home buyers and renters across the United States.

But consider carefully whether hardwood floors are the right choice for every room in your home—and what type you might want to install for the best resale value.

As you weigh investing in your floors, you’ll need to evaluate your budget, the preferences and traditions in your community and your own personal taste. Some people only want to step on soft carpet, while others prefer hard surfaces. In some warm climates such as Florida, ceramic tile flooring rivals hardwood in popularity.

In more traditional markets, tastes still lean toward oak floors, but some owners of more contemporary homes are choosing to stain their wood floors in different colors. Other trends in hardwood include wider planks, the use of reclaimed wood or hand-scraped wood that looks antique and exotic species of wood such as hickory or walnut.

Homeowners on a tight budget also may want to look into laminate flooring, which offers the look of wood at a lower price point.

Keep in mind that people with allergies typically want a hard surface that won’t hold dust. You should also think about the care and maintenance required for your floor surface since you’ll need to take care of it for years. Hardwood flooring lasts longer than carpet, can be easier to keep clean and can be refinished.

In the end, though, the decision about whether to install hardwood or carpeting in a bedroom should be based on your personal preference, at least if you intend to stay in the home for years.

Hardwood Flooring: It’s What Buyers Want

According to HGTV, the top request of home buyers and renters when looking for a home is hardwood flooring. In fact, a study of homebuyer preferences by USA Today using data from the National Association of REALTORS® found that 54% of home buyers were willing to pay more for a home with hardwood flooring.

Installing hardwood flooring can cost between $9 and $12 per square foot, compared with about $3 to $5 per square foot for carpet—so some homeowners opt to install hardwood only in some rooms rather than throughout their home. However, carpet typically needs to be replaced if it becomes stained or worn out. Good quality carpet can last about 10 to 15 years, while hardwood can last forever.

The return on investment for installing hardwood will vary according to your market and other factors, but hardwood flooring can often help your home sell faster.

Reasons to Install Carpet

While many buyers and homeowners prefer hardwood flooring throughout their home, some people prefer carpet in the bedrooms—because they like a softer surface. When you live in a two or three-story home, carpet also helps reduce noise.

If you would still prefer hardwood floors throughout your home, you could use put area rugs in your bedroom.

This story was rewritten from an earlier version on realtor.com®.

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How to Approach Homeownership Based on Age

On December 8, 2014   /   Home Buying  
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homeownership based on age

By: Jonathan Smoke

Homeownership is a crucial component of building wealth, as seen in recent research, but it means different things for different age groups.

For example, seniors who are in the best financial situation to handle expenses after retirement are homeowners who have no remaining mortgage—they have the value of their home as a cushion in their household wealth, and they spend less on housing than seniors who rent.

Although owning a home can benefit consumers of all ages, specific homeownership strategies should differ based on your stage of life.

Here’s a summary of guidelines for approaching homeownership applied to today’s biggest generations.

Millennials

Understand the advantages of owning a home. Save for your down payment. Work on your credit score. See what you can afford to buy. Seek the advice of a local REALTOR® to advise on local demand and supply to ensure you can get a home that fits your needs at an appropriate market price. Time is on your side.

Forecasts for the economy and housing are positive, but even if there are down years in the future, your investment should outpace inflation and help you build wealth—in addition to enjoying your own home while avoiding ever-escalating rents.

To benefit most from the compounding gains of homeownership, it is best to start sooner rather than later, assuming you can afford to buy today and qualify for a mortgage.

Gen X-ers

Ensure you have a game plan to pay off your mortgage by the time you intend to retire. If you refinance to lock in lower rates, make sure you get a shorter term than 30 years.

If you were a victim of the foreclosure crisis, work on your game plan for re-entering the property ladder. You also still have time to reap the longer-term benefits—plus you are approaching your peak earning years such that shorter-term mortgages like a 15-year or 20-year loan would work. Shorter-term mortgages would enable you to retire while owning your home free and clear.

Boomers

Think about your plans for retirement and if that aligns with the remaining term on any mortgages you hold. You may also be considering retirement homes and second homes. Buying sooner rather than later will help you lock in today’s lower prices and mortgage rates while enabling you to enjoy your dream home sooner.

Plus, those young millennials you raised, taught, coached and now manage may want to buy your existing home: It’s a great time to sell.

 Jonathan Smoke is realtor.com®’s chief economist.

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6 Keys to Writing Winning Offers in a Sellers’ Market

On October 11, 2014   /   Real Estate News  
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writing winning offers

By: Anne Miller for Realtor.com

In a sellers’ market, competition can turn fierce. Standing out becomes a challenge.

In these tight markets, smart strategies can make a big difference. Money helps, of course, but so does some creative and heartfelt communication—and having the right professional in your corner.

Follow these six tips, and you’re going to find success is just around the corner … along with your new house.

1. A good agent

An assertive, experienced REALTOR® will know the market well and will move quickly to present an offer to the seller.

They’ll be able to guide you through options that may seem a little crazy in a slower market—but could prove the difference between success and more house-hunting in a tight one.

2. An earnest deposit

A substantial deposit makes a big difference.

A reasonable deposit will be about 3% of the value of the property. A seller usually takes such an offer seriously and will feel confident you are committed to stand by this offer.

This could give your offer a winning edge. Submitting a pre-approval letter with the deposit puts your bid ahead of the others by showing the seller you have serious intentions.

3. Money talks

Of course, the more cash you can offer up-front can make a difference. too.

If you can afford a 30% or 40% down payment (or more), that may tempt sellers. And, in the long run, it will save you money on a mortgage, shortening the length of your loan and the interest you pay.

Few homeowners are likely to dismiss an all-cash sale. But let’s be honest—that’s a lot of dough that most people don’t have access to.

4. Get personal

Appeal to the seller’s emotions: include a personal letter in the offer to the person selling the property.

Explain why you want to buy the house and what you particularly like about it. Be as specific as possible. Appeal to what you may know of the property history.

Perhaps it’s a historic house the sellers lovingly restored, and you plan to keep it that way—tell them. Maybe you’re looking forward to raising your children in the specific community.

Other offers will appear impersonal in comparison.

5. Speed things up

Offer to close quickly. Most sellers want to make a speedy transaction—they’ll like this.

A standard closing period is about 30 days. If you can close in three weeks instead, this could convince the seller to accept your bid—even over one that offers more money.

Another winning negotiation strategy is to waive some of the contingencies usually included in a standard contract. For example, a winning offer can be one which agrees to shorten the period the buyer has to inspect a property for lead paint contamination.

Before you agree to waive any contingencies, however, you should check with your attorney.

6. Be nice

The sellers want a few more days in the house. Consider giving that to them rent-free.

There’s a few things ideally you’d like them to fix—but if they aren’t deal-breakers, consider letting that go.

Be friendly and personable, because if you prove to be someone they don’t mind dealing with, that could tip things in your favor, too.

Confirm Your Commitment

Ultimately, the question is this: how much do you want a new home?

In a sellers’ market, you’re probably going to have to give more, in many ways.

But hopefully your perseverance will pay off—for your family, and your bank account.

Updated from an earlier version by Wendy Dickstein.

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Choose Your Flooring: Solid Wood vs. Engineered Wood

On October 5, 2014   /   home remodeling  
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wood flooring

By: Cicely Wedgworth for Realtor.com

If you are considering having hardwood floors installed in your home, you’re going to have to decide whether you want solid wood planks or engineered wood planks.

Both qualify as hardwood flooring, but they’re surprisingly different from each other.

Solid Hardwood Planks

Solid wood planks are milled from a single piece of hardwood and covered with a thin, clear protective layer that often consists of aluminum oxide, ceramic or an acrylic substance.

Typically three quarters of an inch, the thickness of solid wood planking enables it to be sanded and refinished many times throughout the life of the floor.

Because the plank is a solid piece of wood, it will expand and contract in accordance with the home’s relative humidity. To prevent warping, the home’s interior relative humidity needs to remain between 45% and 65% all year round.

Solid wood flooring is available in a wide array of wood species—including oak, maple, and black walnut as well as regional-specific choices like pecan, mesquite and others. The market also sometimes offers exotic species of hardwood from Brazil, Africa and elsewhere.

Solid wood flooring is permanently nailed to the subfloor. Because of the expansion and contraction issues, installers will normally leave a gap between the wall and the floor to accommodate swelling.

This type of flooring should only be installed in parts of the home above grade and only over plywood, wood or oriented strand board (OSB) subfloors.

Engineered Hardwood Planks

Hardwood planks classified as “engineered” feature multiple layers (typically three to five) bonded together under extreme heat and pressure.

The layers typically include a top veneer of hardwood backed by less expensive layers of plywood—although some manufacturers use substrates made from recycled wood fibers mixed with stone dust for improved durability and stability.

Because of the way engineered hardwood is processed, it is not as affected by humidity as solid wood planks are. Therefore, the product is often the preferred choice for kitchens and bathrooms or in areas where the humidity level can vary—like in a basement or a part of the house below grade, as long as a moisture barrier is placed between the subfloor and the hardwood planks.

They are also better suited for installing over in-floor heating systems.

Engineered wood planks now are being created with a tongue and groove installation method, much like laminate flooring. This enables them to be installed in a floating floor format without nails or glue.

Engineered hardwood floors are suitable for installation on all levels of the home and over plywood, wood, OSB and concrete subfloors.

Which Wood Flooring Should I Choose?

Ultimately, your hardwood choice is going to be determined by where you are planning to install the product and what you’re looking for in terms of design aesthetic.

If you’re installing hardwood flooring in a lower level of your home or in an area where moisture or high (or low) humidity might be an issue, then you’re going to want to stick with engineered hardwood.

On the other hand, if you are installing the new floor on an above-grade level and you want a traditional hardwood floor, then you can go ahead with solid hardwood.

Both types offer a beautiful finish and will increase the value of your home—as long as they are installed correctly and maintained properly over the duration of your ownership.

Updated from an earlier version on realtor.com®.

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