There's Still a Market for High-End Amenities by Jim Woodard on Creators.com

Recently

Home Values Edging Up Home values increased by an average of 0.5 percent in March, compared with the previous month. However, at $146,200, the national median home value was still down 0.5 percent quarter-to-quarter and 3.1 percent from a year ago, estimated researchers …Read more. The Season for Remodeling Warm spring breezes often bring thoughts of home remodeling. This is a viable option for homeowners who need additional rooms for a growing family or to accommodate special interest activities. Remodeling activity remained relatively flat in the …Read more. ‘Bait and Switch' at Home Sale Closing One of the most frustrating times in the process of closing a home-sale transaction is at the closing table when final costs are revealed. Increasingly, those costs are substantially more than their previous estimates. In most cases, the buyer and …Read more. Number of Strategic Defaults Rising About 20 percent of mortgages are now under water, and about 46 percent of bankers surveyed by FICO expect to see the volume of strategic defaults this year exceed 2011 levels. A strategic default is when a homeowner "walks away" from his …Read more.

There's Still a Market for High-End Amenities

While new homes generally are trending downward in size and number of pricey amenities, luxury home buyers are demanding and paying for more extravagant features in their dream homes.

Steam-shower units and whirlpool baths in the master bedroom, double-height living rooms and stainless-steel appliances are becoming the norm for buyers of luxury homes, says Forbes magazine. Other popular features include bathrooms with souped-up saunas, towel warmers and heated floors.

"The move to make the home more spa-like is definitely going strong, said Suzan Globus, interior designer and president-elect of the American Society of Interior Designers, in Forbes. "One of the other trends is creating a seamless integration of technology into the home, making what we call a 'smart home.' We are also seeing an interest in creating sustainable environments."

In many cases, existing homes are being remodeled — projects that include luxury features. Before the recent real estate crash, low mortgage rates and a skyrocketing home values fueled a remodeling boom financed by home-equity loans, said Kermit Baker, director of Harvard University's Housing Studies Center. Most popular remodels were kitchens and bathrooms, he said.

While housing prices are still trending downward in many markets, owners are investing heavily in improving their homes — an estimated $160 billion over the past four quarters, according to the Housing Studies Center.

Luxury features, such as under-floor heating systems to warm chilly bathroom tiles and saunas with elaborate waterproofing and drainage systems can be expensive. Even little extras like warming drawers for towels add up. But affluent homeowners are increasingly willing to pay for such luxuries.

Some owners put high priority on environmentally friendly kitchen materials. They might use more glass and metal instead of plastic. Or they might be inclined to use U.S. Forest Service-certified wood and chemical-free glues. These materials often cost more, but many owners believe the long-term benefits are worth it.

"Today, the trend is everything green," architect Arpad Baksa said in Forbes. "It's important to people. Previously, about one out of a 100 people might have talked to me about this.

Now, it's about three out of five. One client said, 'I'm not killing the rain forest because I am trying to get one piece of exotic wood for an inlay.'"

Some owners go all out for high-tech features, such as $40,000 computer systems that connect to sensors throughout the house. They can control swimming pool temperatures and kitchen lights from a remote location, and even draw a bath from the living room. Such systems can send telephone text messages when they sense outdoor movement and enable home owners to view images taken by surveillance cameras monitoring their properties over the Internet.

Q: When will home buyers return to the market in significant numbers?

A: The housing market appears to be thawing as more buyers are finding the historically low interest rates, stabilizing home prices and tax incentives to be irresistible, says the National Association of Home Builders.

"Today's market offers an incredible opportunity with the unprecedented combination of a 40-year low in mortgage interest rates, prices returning to normal levels in many markets, and limited-time tax incentives," said NAHB Chairman Joe Robson. The number of homes under contract (pending sales) increased in March — up by 3.2 percent over the previous month.

Optimism about the housing market looks to be on the rise. A recent Gallup Poll found 71 percent of Americans believe it is a "good time" to buy a home. That's an 18 percent increase from a year ago and the highest level in four years. More potential buyers are deciding the time is right to buy.

WARRANTY WARNING

Be cautious about "guarantee" offers

I received a release from ForSaleByOwner.com, announcing a new program that "guarantees to help people sell their home with confidence." It might help some sellers, but let's take a closer look.

The plan states that if a home owner lists his property for sale with ForSaleByOwner.com but then decides it would be in his best interests to list with a full-service broker, ForSaleByOwner.com will refund the fee paid to the site when the property is sold through the broker.

Here's the catch: The home owner must list with a broker named by ForSaleByOwner.com — a broker who has agreed to pay the site a referral fee of 20 percent to 25 percent of the sales commission. ForSaleByOwner.com could potentially make considerably more money by losing a client to a broker. No wonder they are promoting their guarantee so heavily.

To find out more about Jim Woodard and read features by other Creators Syndicate writers and cartoonists, visit the Creators Syndicate website at www.creators.com.