Bang for Your Buck Rental Property Updates

Dear Dave,

I have a rental house that needs a little updating. I’m considering working on the kitchen, but not going overboard. Do you have an opinion on the key features someone would be looking for in a modest rental? Or, are there other features that renters might find to be more important? The house is in an older downtown neighborhood and has a wide appeal to a number of different types of renters.

Thank you,

Dan - Grand Junction, CO

---

Dan,

The key to your “little updating” is making absolutely sure you do not go overboard. One of the biggest mistakes I have been guilty of making over the years is going overboard with updating both inside and out. My wife reminds me, you’re not going to live there. The tendency is to make them as nice as I can, within reason, so the renters want to stay longer and hopefully have a pride in living there. What ends up happening is, I over improve. My suggestion is to not follow my lead and make sure your updating is modest!

“Renters like the same features and finishes as buyers so figuring out what will be appealing is simple.”

Remember renters are buyers who just can’t buy. Renters like the same features and finishes as buyers so figuring out what will be appealing is simple. Kitchens and bathrooms are always a hot-button upgrade, as is new flooring and paint. If you are going to do some updating in the kitchen try making light fixture changes along with updated cabinet hardware and potentially a new backsplash. Those changes can be a nice bang for the buck return. If the cabinets are in bad shape, try painting them instead of replacing. Any changes you can make with a more contemporary vibe or a modern look is very popular right now. Another upgrade that can be cost-effective and should not be underestimated is outdoor living space. 

The addition of a back patio area or outdoor entertaining area is a very popular feature. It does not have to be extensive or expensive, but just a simple place to gather and entertain and if you are lucky it will also cut down on the yard that needs to be maintained. Outdoor entertainment or gathering areas are a great feature. As always keep in mind that flooring and paint always provide a great return on investment for any rental. All renters, but especially good renters always love to find a rental that has new flooring and paint. Just like buyers, the smell and look of new flooring and paint is very appealing and might just be the hook you need to reel them in. 

When it is all said and done, make sure that you keep it on the modest side and focus on these features to really maximize your bang for the buck return. Keep it simple and as always remember that clean and presentable are always your best renting feature and the cost of clean is VERY affordable. Hope this helps and best of luck!

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!

3 Golden Tips for Home Buyers and Sellers

Dave,

I know you have a ton of experience in real estate and you give great advice in this column every week! So I’m just curious: If you could only give one piece of advice to someone who is about to start the home buying process, what would it be? And on the flip side if you could only give one piece of advice to a home seller what would it be?

Thanks in advance for helping me sound smart the next time my friends and I talk real estate!

John, Grand Junction

---

John,

Thanks for the compliment, at least one of us can seem smart when hanging with our peeps! That is a very interesting question and one that takes some thought! I am sure that if you ask me this question in six months at least one of these will change! I am not sure I can keep it to just one thing for each, but I will try. As my friends will tell you, I am pretty verbose. As my mom used to say, he rattles like an empty wagon! With that being said, let’s tackle the buyer advice first.

For the answers here I turned to our two most experienced buyers’ agents, Jan Kimbrough Miller and Cyrie Wortmann. They both work extensively with buyers and know the buying process better than anyone I know. Remember, every agent will have varying answers, but these two are awesome! 

“Make sure you have no weak links in your team of lender and agent...one without the other is no good.”

— Jan Kimbrough Miller, Buyer Specialist

Jan’s one thing was, “make sure you have no weak links in your team of lender and agent...one without the other is no good.” Let me tell you, this is awesome advice! If you have the best lender and are ready to purchase, but have a half devoted agent, you will likely miss the perfect house. On the flip side, if you have the most aggressive agent who is Johnny on the spot, but your lender stinks and you fail the loan process then you will also miss out on the perfect house. The quality combination of your lender and agent are your key to success.

“Remember there will always be compromises. Avoid the trap of overthinking or paralysis by analysis and learn to trust your gut!”

— Cyrie Wortmann, Buyer Specialist

Cyrie has more experience than anyone on our team and her advice is equally important! “Remember there will always be compromises. Avoid the trap of overthinking or paralysis by analysis and learn to trust your gut!” Again, this is timely and sage advice. As our market becomes more and more competitive being hesitant can be the difference between getting your dream home or letting someone else get it! God gave you a gut feeling, trust it and go with it! Both of these are awesome!  

“Clean means more money and less time on market.”

— Dave Kimbrough, Listing Specialist

Ok, moving on to sellers...Since I am a listing agent, I did not solicit anyone’s advice on this answer and I will avoid the temptation of jumping on the low hanging fruit of making sure you choose the right agent! That one is too easy! My number one piece of advice would be that “clean means more money and less time on market”. Who doesn’t want more money and who doesn’t’ want to sell fast? Duh! Make sure to have your home completely dialed in and show ready. A clean house makes a wonderful first impression and the first impression is the most important. When you are dialing things in, make sure not to forget about the outside. Listen, if the inside sparkles but the outside is ugly or neglected, forget about it. Buyers will pass you by. Make sure you have the full package of inside and out ready to go! Next, remember that 92% of buyers start their search online and their first impression of your home will almost always be from your electronic footprint. If your home’s photos (both drone and still), virtual tour, website penetration, Facebook and Instagram presence are not top notch, it will cost you showings and limit your ability to sell. I see it all the time, bad photos and a lame virtual tour… there is no excuse in today’s day and age. If your home has a bad/subpar electronic footprint then you are entering a street fight with a patch over one eye and one arm tied behind your back. There really is no excuse for a poorly executed electronic presence, but you would be amazed at how bad some are. Your homes electronic footprint has to be spot on! 

Hope these help and although there are many more super important tips, these will ensure that you get off to a great start when buying or selling and also make sure you seem super smart and keen to your friends! Lastly, it is Fathers Day! Time to thank dear old dad for all he has done over the years. Remember, its hard work being a dad and none of us came with an instruction manual. Stop long enough to say “I love you” and “thanks for being my dad” and I bet by doing so it might make the day for both of you! 

Dave Kimbrough
The Kimbrough Team

Have a question? Ask Dave!

We've lowered our home's list price, but it still won't sell. What now?

Dave,

We placed our home up for sale almost 3 weeks ago. Our Realtor started out $10,000 higher than what we had suggested and what the community comps had shown. We have had 8 showings and one open house, of which she said had been one of the best she had had in a long time. After much discussion and listening to reviews, we lowered the price and even added a $2,000 concession for counters. Ours have not been updated and we wanted them to be able to pick. That was after it had been on the market for two weeks. Our Realtor has brought no one in to see the house and we are just really frustrated as to how we can help ourselves.

Debra, Grand Junction

---

Debra,

I understand your angst, but you must realize that pricing can be more difficult than one would think. It’s not always hard, but sometimes the right price can prove to be quite elusive! This is the classic “damned if you do, damned if you don’t” pricing scenario and I can totally relate with your agent. It’s our job to get you (our sellers) as high a price as we possibly can and still remain within the limits of the market. We each do our best to read the tea leaves and come up with a price that will sell quickly (I generally try to anticipate no more than 60 days on market), but also maximize your money! Keep in mind that our real estate market is, depending on the price point, moving rapidly and prices are climbing!

The scenario you have laid out is actually quite common. Your Realtor starting out $10k above some of your community comps may very well be understandable and actually responsible depending on your price range and how old the community comps used were. Let’s say your home comps out at $250,000. Let’s also assume that price range is appreciating 10% each year (this is very realistic, if not a bit conservative, given our current trend) then your home is gaining nearly $2,100 each month in value. If the comps were 3 months old and you calculate a market time on your home of 60 days, then you have 5 months or $8500 in added value...which now makes a list price of nearly $260,000 quite reasonable given the time of year and the activity in the market. And let’s be honest, as agents we run into very few sellers who are not interested in maximizing the price on their home when selling and we are clearly in a sellers’ market. Let me point out the “damned if you do, damned if you don’t” aspect of pricing. Had you put your home on the market and received 7 offers the first day (and this has also happened to me) you would likely be writing in (or at least thinking it) about pricing the home too low and leaving money on the table. No agent likes to be the one that gets 7 offers the first day and no agent likes to have only 3 showings in the first 2 weeks. It’s a fine line that we walk! 

“From what you are describing you and your agent are working together to be proactive and stay ahead of the curve on this one. You are counting your showings, listening to your feedback and reacting promptly and decisively and that is what matters at this point. ”

From what you are describing you and your agent are working together to be proactive and stay ahead of the curve on this one. You are counting your showings, listening to your feedback and reacting promptly and decisively and that is what matters at this point. Your agent has already done an open house and that shows she is willing to work to get your home sold. Remember open houses are great at generating traffic, but not great at generating contracts. Also, try not to hold it against her that she has not brought anyone to see the home, you hired her to generate traffic (regardless of who shows it) and 8 showings in 3 weeks is not great, but not horrible traffic. Sometimes my team will show one of our houses 4 out of 10 times and sometimes 0 out of 10, it's just how the numbers work out sometimes. You are on the right path!

Try to focus on what is in front of you, not what is in the rearview mirror. What has happened over the past 3 weeks is in the past, let it stay there. You have made proactive steps to get your price more in step with the market and offered a good incentive to entice potential buyers. Everyone assumes that if it does not go under contract in 3 days that something is wrong. Sometimes it just takes a little time to find the perfect butt for the saddle and a little patience, a couple deep breaths, and a good night sleep make things look better. Average days on market this year is right about 90 days! That’s average from list to close...21 days is still early in the game. Hang in there! I bet an offer is just around the corner. Remember, your outlook can change in just one showing! Best of luck.

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!

What type of backyard decking material is best for increasing my home value?

Dear Dave,

We have been considering a deck makeover and are undecided about what type of material to use for our decking. We really have no intentions of moving, however always have the “what would be best if we did have to sell?” mentality when making home improvements.What are your thoughts on composite deck material, like Trex, versus a standard redwood or natural wood decking material? I want something that is going to last, add value to my home and stand up to kids and dogs. I am leaning towards a Trex type decking, but it seems to cost a lot more.

Thanks for the help!
Joel - Orchard Mesa, CO

---

Joel,

Good question and paying attention to your outdoor living space is VERY smart. It is nice you can make this decision based on what you want and not have to make the decision based solely on what the monetary return will be. Since you are going to keep living there, then the return on your investment is not paramount and getting what you want becomes a larger part of the equation. Outdoor living space has become increasingly important and buyers will absolutely pay more money for a home if the outdoor living area is top notch and dialed in! Decks can be an awesome feature on any home, especially in Western Colorado where we enjoy over 300 days a year of sunshine. A deck can also be a huge liability to any home if it is in disrepair or in bad need of a major overhaul. Much of your decision should be based on your home's setting, price range, and your budget.

What do I mean by your setting? Your home's setting is a crucial part of deciding how far to take this endeavor. If you back up to wonderful views, a private field, the Gunnison River or Valley floor, then spending extra money will pay off and might pay off in a big way. If you have a special setting then the value of an awesome outdoor living area takes on a higher value and will become a significant selling feature in the eyes of future buyers. In turn, if you are located in a typical neighborhood setting with smaller yards and rows of fence line, then the importance of the material is less important as you are not really capitalizing on a special setting. The location of the deck on your home is also a major player in this decision. How does the deck layout in reference to the rest of your home's living space? If you have a large deck that extends from your kitchen/eating or main living room and is easily usable in the day to day and for entertaining, then the importance is heightened. If, for instance, your deck is off the side of your home and accessible only through the office then the importance is significantly diminished and I would suggest finding another feature to highlight.  

“The price point of your home is also a major player in the decision-making process. The higher the home value, the more likely the extra cost of Trex decking or more exotic natural wood will be appreciated. ”

The price point of your home is also a major player in the decision-making process. The higher the home value, the more likely the extra cost of Trex decking or more exotic natural wood will be appreciated. I have seen some amazing exotic wood and Trex wood decks that were no doubt a serious selling feature and were significant value ads, especially for those who live and covet the outdoor lifestyle. The one thing you do not want to do is overbuild or over-improve your home and the value of homes in your neighborhood. If you add a $10k deck to a $160,000 home it is not as likely you will get all that money back. In turn, if you add a $25k deck to a $400,000 home there is a good chance you can recover those costs.  

The bottom line is this, if you are looking for durability, low maintenance and can afford the larger investment then I would go with a high-quality TREX type product. Be careful of going with a copycat product, not all composite decking is created equal. If you are looking for a more budget friendly option, go with natural wood, Cedar is a wonderful choice, but expensive. Consider treating it with water seal every year or two to ensure it looks great for years to come and does not become a maintenance issue. Even if you go with a pressure treated natural wood deck and keep it maintained it will look great and last for years. You don’t have to go expensive to be fabulous, but you will have to maintain it. I hope you love your new deck and it provides incredible memories for years to come!

Dave Kimbrough
The Kimbrough Team

Have a Question? Ask Dave!