The Great Age Divide: How the young and the older buy real estate differently and what marketers need to know about it

 Fifty-one percent of 25-34 year olds say they don't want to work with a real estate broker when buying a home and prefer getting their house hunting information from marketing materials, renderings and websites, according to a survey by Neoscape, Inc. The sentiment is even stronger among 18-24 year olds, 81 percent of whom say they do not want to work with a broker, whereas only 38 percent of people over 55 years old did not want to work with a broker.

Mobile apps are also ascendant among the young and affluent:

• 55 percent of those under 34 years old find a mobile app more influential than a broker, whereas only 14 percent of people over 55 use mobile apps.
• Nearly a quarter of people who make more than $100,000 use mobile apps.

"While technology is changing how we shop for almost anything today, we were surprised by how quickly sentiment is changing about the traditional home buying process, and it's clear that the real estate industry needs to shift how it markets property – especially to first-time homebuyers, who are increasingly urban, savvier and more independent than ever. Brokers especially need to harness technology to remain relevant with the younger demographic," said Rodrigo Lopez, chief creative officer, Neoscape.

Meanwhile, when asked what most influenced their decision when they bought a home within the last year, 85 percent of buyers of all ages said property websites, followed by word of mouth at 77 percent. Brokers and mobile apps tied for influence at 62 percent, which is why brokers need to use mobile apps differently for different age groups and income levels.

Age is not the only factor that determines a buyer's willingness to rely on a broker. Income plays a big role, as well. The more a buyer earns, the more likely they are to work with a broker. Among the affluent who earn more than $100,000:

• 64 percent reported using a broker
• 72 percent rank a broker as their most used resource when looking for a new home

The survey also showed that data becomes increasingly important for those at the higher end of the income spectrum; the heart doesn't always win out in the end:

• 94 percent use property websites to gather data when deciding to purchase a new home
• 60 percent say they think with their head over their heart
• Of those who think with their heart over their head, almost half of them (46%) make less than $50,000

Survey Methodology:

Minor Home Improvements Offer Best Return, Appraisal Institute Says

The Appraisal Institute, the nation's largest professional association of real estate appraisers, today advised homeowners to choose upgrades instead of major remodeling projects to see the greatest potential return on investment. 

"In general, simpler, less expensive projects have the best cost-to-value ratio," said Appraisal Institute President M. Lance Coyle, MAI, SRA. "With the spring home buying season around the corner, homeowners should invest in projects that are most likely to preserve the value of their homes."

According to Remodeling magazine's most recent Cost vs. Value report, only five projects saw their cost-to-value ratios rise in 2014: roofing replacement, garage door replacement, 20-gauge steel entry door replacement, vinyl siding replacement and fiberglass entry door replacement. Among projects with the biggest declines were two-story additions, composite deck additions, master suite and kitchen remodels.

Other minor projects with potential major payoffs, said the Cost vs. Value report, are mid-range and upscale garage door replacements, manufactured stone veneer, mid-range window replacements and minor kitchen remodels.

Coyle said that some homeowners might choose to fund home upgrades with tax refunds. Before calling a contractor or heading for the home improvement store, however, he said they should consider if the improvement is in keeping within community norms.

"It's possible that consumers won't be able to recoup the cost of the upgrade when the home is sold, so it's important to meet, not exceed, what's standard for the neighborhood, and to also consider expected length of time in the property," Coyle said.

He also said that making routine home repairs is essential to maintaining a home's value. A house that has been well maintained likely will have a higher value than a similar house that is in disrepair, Coyle said. For example, replacing worn out trim boards may in certain situations not add any additional value to the home, other than to preserve the value that would be likely as evidenced by sales of similar homes in the area that do not have worn-out trim boards. 

For an unbiased analysis of what their home would be worth both before and after an improvement project, a homeowner can work with a qualified real estate appraiser – such as a Designated member of the Appraisal Institute – to conduct a feasibility study.

During a feasibility study, the appraiser will analyze the homeowner's property, weigh the cost of rehabilitation and provide an estimate of the property's value before and after the improvement.

Some green and energy-efficient renovations – such as adding Energy Star appliances and extra insulation – are likely to pay the homeowner back in lowered utility bills relatively quickly. Lower utility costs also are a draw for potential homebuyers. When valuing a home, the appraiser evaluates local supply and demand for green and energy-efficient properties and features.

The Appraisal Institute offers a free, informative brochure titled "Remodeling & Rehabbing," which provides consumers with valuable advice on home improvement projects.

Stay connected with the latest news from the Appraisal Institute by following us on Facebook, Twitter, LinkedIn, YouTube and our blog, Opinions of Value.

The Appraisal Institute is a global professional association of real estate appraisers, with nearly 21,000 professionals in almost 60 countries throughout the world. Its mission is to advance professionalism and ethics, global standards, methodologies, and practices through the professional development of property economics worldwide. Organized in 1932, the Appraisal Institute advocates equal opportunity and nondiscrimination in the appraisal profession and conducts its activities in accordance with applicable federal, state and local laws. Individuals of the Appraisal Institute benefit from an array of professional education and advocacy programs, and may hold the prestigious MAI, SRPA, SRA, AI-GRS and AI-RRS designations. Learn more at www.appraisalinstitute.org.

Confidence in U.S. Housing Market On The Rise, Especially Among Renters

American renters are growing more confident in the housing market, and more than 5 million are planning to buy a home this year, according to the Zillow® Housing Confidence Index (ZHCI)i.

More than 12 percent of current renters nationwide – roughly 5.2 million – said they plan to buy in the next yearii, an almost 25 percent jump from the same time last year, when 4.2 million renters said they had plans to buy within 12 months. The ZHCI, sponsored by Zillow and developed by Pulsenomics LLC, polls homeowners and renters about housing market conditions, expectations for the future and their attitudes toward homeownership in generaliii, across 20 of the large metro areas in the United States.

Thanks to historically low mortgage interest rates and home values below peak levels, buyers can expect to spend about 15 percent of their monthly income on a mortgage payment, compared to 22 percent historically, according to Zillow researchiv. Typical renters should expect to pay 30 percent of their income to rent, compared to 25 percent a generation ago.

"As home affordability continues to look great and rental affordability looks abysmal, many current renters clearly seem to be re-thinking their attitudes toward homeownership, and are expressing more confidence in the overall housing market as a result," said Zillow Chief Economist Dr. Stan Humphries. "But while this confidence is heartening, it's important to inject a note of reality here: Not all renters who want to buy this year will be successful. Saving a down payment, qualifying for a mortgage and finding an affordable home to buy all remain formidable challenges for many."

Among all renters surveyed nationwide, 59.7 percent said they think buying a home is the best long-term investment a person can make, compared to 56.9 percent at the same time last year. This improved long-term outlook was especially evident among younger renters. Among all 18- to 34-year-old renters, 66.2 percent said owning a home was the best long-term investment, compared to 61.4 percent last year.

The index is measured on a 100-point scale, with readings more than 50 indicating general confidence. Overall, housing market confidence is rising more quickly among renters than homeowners. Among only homeowners, headline confidence rose 3.7 points year-over-year, to 70.6 in January. Among renters only, overall confidence rose 4.4 points in the past year, to 62.4. Confidence among all owners and renters rose 3.6 points, to 67.4.

Although survey respondents in most markets said they expected home value appreciation to slow in 2015, in all areas they also said they expected home value growth to exceed the rate of inflation by an average of more than 2 percent. During the past year, consumer expectations for long-term home value growth have increased. Consumers now expect homes to appreciate over the next ten years by slightly more than what is expected by experts – and at a faster rate than before the housing bubble.

"This latest increase in The U.S. Housing Confidence Index confirms that prevailing sentiments and expectations among consumers concerning their local real estate market–important economic factors not reflected in widely-followed consumer confidence indexes–continue to improve and bode well for the U.S. economy," said Terry Loebs, Founder of Pulsenomics. "Renter aspirations for homeownership are on the rise in most cities. More homeowners are recognizing restoration and growth in the value of what for most of them is their largest asset by far–their home. In every market surveyed, both renters and homeowners expect the annual growth rate of local home values to handily beat the rate of inflation within the broader economy over the coming decade. These insights should remove any lingering doubt that the U.S. housing market's foundation is now solid enough to withstand The Fed's monetary policy liftoff."     

Metro	Jan. 2015 Overall Zillow Housing Confidence Index (Measured in points on a 0-100 scale)	Change in Renter Confidence Jan. 2014- 2015 (Measured in points on a 0-100 scale)	Change in Homeowner Confidence Jan. 2014- 2015 (Measured in points on a 0-100 scale)	Number of renters looking to buy in next year
United States	70.6	4.4	3.7	5,165,618
Atlanta	66.5	4.6	4.0	130,004
Boston	66.2	1.0	4.3	34,898
Chicago	64.8	5.4	1.1	149,744
Dallas	69.7	6.8	5.4	225,821
Denver	69.1	5.7	5.0	64,739
Detroit	64.4	4.9	5.6	57,720
Las Vegas	66.3	3.3	2.5	31,117
Los Angeles	69.2	7.8	2.6	199,146
Miami	70.6	5.3	2.4	161,052
Minneapolis	66.2	7.1	2.4	49,156
New York-Northern New Jersey	66.7	1.8	6.2	241,562
Philadelphia	64.8	8.1	2.7	59,201
Phoenix	68.4	2.7	1.6	140,249
St Louis	63.8	8.3	4.0	23,721
San Diego	69.2	2.7	2.3	52,025
San Francisco	70.5	5.4	3.6	92,860
San Jose	71.5	2.8	2.5	25,411
Seattle	67.9	2.0	5.4	40,128
Tampa	65.3	0.0	4.3	46,237
Washington DC	69.2	3.2	4.0	120,252

Zillow Research

Zillow, Inc. operates the largest home-related marketplaces on mobile and the Web, with a complementary portfolio of brands and products that help people find vital information about homes, and connect with the best local professionals. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Stan Humphries. Dr. Humphries and his team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. The Zillow, Inc. portfolio includes Zillow.com®, Zillow Mobile, Zillow Mortgages, Zillow Rentals, Zillow Digs®, Postlets®, Diverse Solutions®, Mortech®, HotPads®, StreetEasy® and Retsly™. The company is headquartered in Seattle.

National Peanut Month

Profile America — Saturday, March 14th. This is National Peanut Month — celebrating one of the nation's favorite foods, and absolutely America's favorite snack nut. They are enjoyed in many ways — roasted in the shell, used in salads and stir-fry recipes, in cookies and, of course, ground into peanut butter. The idea of honoring the peanut has been a monthlong observance since 1974. Americans eat an average of more than six pounds of shelled peanuts a year, about half in the form of peanut butter. Even the shells are used in such products as kitty litter, wallboard, and artificial fireplace logs. American peanuts have a global customer base. In 2013, over $540 million worth were exported; nearly 18 percent of that went to Canada, and 14½ percent to Mexico. Profile Americais in its 18th year as a public service of the U.S. Census Bureau.

Prestigious, One-Of-A-Kind Preston Hollow Estate Hits Market With Record $100 Million Listing

The most exclusive residential real estate listing in Dallas history hit the market today asAllie Beth Allman, founder and CEO of Allie Beth Allman and Associates, announced that the 25-acre estate of Thomas O. (Tom) Hicks is officially for sale at $100 million. The listing will be featured on the Multiple Listing Service (MLS) in the coming week.

Located at 10000 Hollow Way in Dallas' most prestigious neighborhood of Preston Hollow, the estate comprises the four-story main house, a two-story formal guest house and a recreation complex with a country club sized pool, veranda and a three-story pool house with a fully equipped game room, and a full basement with a theater and media room. The buildings have more than 35,000 square feet of air-conditioned living space. The extensively landscaped grounds also include formal gardens, a large open meadow and pond, meandering creek, and extended paths and trails to explore several acres of forest that buffer the estate from its neighbors. A helipad, tennis courts, and a caretaker's house are also included with the estate. To take a photo tour of the property, please go here.

"This is the first time that the Hicks estate has been offered publicly through national real estate listing networks and marketed actively," said Allman, who sold the estate to Tom and Cinda Hicks in 1997. "This is a once-in-a-lifetime opportunity for a new buyer – only the third owner in 77 years – to acquire this magnificent property."

The original estate was built by Pio and Florence Crespi in 1938 and was designed by architect Maurice Fatio, known for perfect proportions and elegant detailing.  When the Hicks took ownership of the property, they initiated significant exterior and interior design renovations under the guidance of New York architect Peter Marino, who stayed true to the classic styling. Lighting throughout the property was commissioned by noted lighting designer Craig Roberts, and construction was completed by Dallas builder John Sebastian. 

Over a 33-month period, 250 workers, three project managers and five superintendents worked seven days a week to complete the renovations, which included extending and expanding the main house and building the guest house and recreation complex. The Hicks acquired adjacent lots to expand their acreage and create a unique park-like setting, installing expansive landscaping under the leadership of London-based landscape architect Arabella Lennox-Boyd and Dallas-based Warren Johnson.

The Dallas real estate market may never see an estate of this size and scope again, according to Allman. "Real estate investment values in Dallas are increasing as the city positions itself to become the nation's third largest metro area and international trade center. We're seeing a correlating spike in interest in luxury residential properties, especially in Preston Hollow, which is a long-cherished setting for discerning buyers who want a pastoral setting within minutes of big city attractions." Allman does not expect an assemblage of land this prestigious to ever become available again in this area.

The favorable listing price was derived through valuation of the land, which in Preston Hollow has a market value of approximately $2 million per acre and $1,200 to $1,400 per square foot for the cost of the improvements. Sebastian estimates the land and property value at $112 to $122 million, excluding expenses for landscaping and hardscaping estimated at $10 million. 

Among the array of superior amenities of the four-story home are: extensive security systems, 14-foot ceilings, a library featuring 1820s paneling from France, 17th century manganese tile in the kitchen, a conservatory, a movie theatre and a 500-bottle wine storage room. Sebastian noted that he has built other estates outside of Texas, but "nothing as timeless and captivating as the Hicks property."

The Hicks made the decision to list and actively market the estate now that all of their children are grown and have homes of their own, and to spend more time traveling and pursuing other interests.