Alexandria, VA's restored riverfront along the Potomac has a 64.5 walk score. Photo: Zach Rudisin / Wikipedia

Common sense dictates that homes in walkable neighborhoods, with easy access to public transit, would pull higher values than houses in areas only accessible via car. How much higher?  According to a recent study conducted by the American Public Transportation Association (APTA) and the National Association of Realtors–41.6% higher.

Looking at a constellation of neighborhood characteristics, including easy proximity to light rail, easy walking access to neighborhood business districts, and smaller blocks, the study revealed higher values in the neighborhoods reported in Boston, Chicago, Minneapolis-St. Paul, Phoenix and San Francisco.

Boston was the outlier; its ‘walkable’ neighborhoods delivered home values 129% greater than less convenient neighborhoods.  For the rest, the premium ranged from 30% in Chicago to 48% for Minneapolis-St. Paul.

Furthermore, brand-new housing in those walk-friendly neighborhoods won a price premium of 4.1% to 14.9%.

If you are considering buying, a house in a walkable neighborhood will cost more, but is likely to hold its value better. And, the study found that households in these neighborhoods had significantly lower monthly transportation costs.

If you are considering selling a house in a walkable neighborhood, be sure that marketing materials locate the house in relation to key destinations, including transit stations, business districts, and key bus stops. Also include the property’s Walk score, which adds independent validation of its convenient location.

Walkable Locations Step Up Value Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: landsourcecontainers.com

Labor. Materials. Pizza?

Some costs do not fit neatly into a renovation project’s line-item budget, but if you ignore hidden costs, you will be left wondering why your wallet has sprung a leak. Prepare for these often unanticipated expenses:

1. Waste disposal. Dumping isn’t free. If you wish to have a dumpster parked on a public street, most municipalities will charge you about $50. Some local governments even require a homeowners’ insurance rider to cover dumpster-related injuries. No proof of insurance, no permit. No permit, no demolition work.

2. Child and pet care. Keep your children at a safe remove from the work zone. If necessary, hire a babysitter. Pets, too, can react badly to construction noise or to the sudden parade of unfamiliar men stomping around in steel-toe boots. Depending on the nature and duration of your project, you may choose to board your pets with a kennel (local rates vary).

Related: 7 Renovation Tips to Boost Resale Value

3. Meals of convenience. Delivery pizza and takeout Chinese food quickly lose their appeal, but if your kitchen is being renovated, your options at mealtime will be limited—and pricey. Not to mention that if you throw out all of your pantry staples that have passed their expiration date, you might spend $100 or more on restocking spices, baking supplies, and so on.

4. Landscaping. Extensive remodeling almost inevitably results in damage to landscaping: Flying shingles crush shrubs; stacks of lumber kill grass; and toxic spills destroy perennial flowers. Keep a list of the plants you must replace, so you can shop autumn sales at local nurseries.

5. Cleaning. Once work is complete, an industrial-strength deep-clean will be in order, especially if you are upgrading the home in order to sell it. According to Homeadvisor, you should expect to pay about $180 for a maid service, plus another $195 to have your carpets professionally cleaned.

For more on managing construction, consider:

Home Building Projects Estimating Checklist
2 Professionals Who Can Save You Thousands
Construction Site Living: Surviving Days (and Days) of DIY

5 Hidden Costs of Remodeling Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: npr.org

All real estate is local, but it’s national real estate statistics that dominate headlines. If you wish to identify emerging trends relevant to your market, ignore such perennially popular statistics as the number of houses selling. Instead, focus on two other key metrics:

Market inventory is the number of houses officially for sale, and how long it would take for them to sell them at the current pace. The lower the inventory the greater a seller’s advantage, as homebuyers are motivated by a scarcity of choice.

The traditional rule of thumb holds that a “balanced” market is one in which there are six months’ worth of homes. That explains why the real estate firmament shivered when Realtor.com announced in late March that the national supply of inventory had dipped to 4.7 months.

The other key metric is days on market—the median number of days that houses are officially for sale. The fewer number of days the faster-moving the market. When conditions are poor, the “days on market” (DOM) statistic stretches into months.

Related: 10 Simple Home Staging Tips Every Seller Should Know

Currently, the national DOM is 74, which is 24% lower than it was at this point in 2012, calculates Realtor.com. Translation: Houses are selling faster.

That’s all well and good, but in this erratic market, bouncing Phoenix cancels out lagging Atlanta. The most relevant benchmarks are those put forward by your state or multiple listing service (MLS).

Typically owned by consortia of real estate brokerages, an MLS collects data from individual real estate brokers and creates regional databases of listings. Find your local MLS online, and once you’ve zeroed in on the source, set up a Google alert to have local data dropped into your email inbox.

For more on real estate, consider:

Suddenly, a Seller’s Market
Bob Vila Radio: Sale-Ready Homes
 5 Market Trends to Cash In On This Year

How Stuck Is Your Market? Two Key Metrics to Track Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: shutterstock.com

All of a sudden there are not enough houses for sale to meet homebuyers’ rising level of demand. Could you pull off a fast-and-dirty flip—buying low, fixing quick, and selling in a rebounding market?

Those who have already located the market’s sweet spot—buying low and selling within six months as prices continue to climb—are enjoying average profits of $37,375 on each property, according to RealtyTrac.

But engineering such a feat truly takes as much luck as skill. Here are three factors to help you filter house-flipping fantasy from fiction:

Can you buy with cash? Real estate investors are reportedly locked in tight with agents and lenders. Because they buy in bulk and pay with cash, those investors get the best deals. If you can’t write a check for the full amount on the spot, don’t expect your offer to compete with an investor’s.

Will your local market be strong in six months? If you buy the house, fix it up, and then discover you can’t sell it, you’ll have a flop, not a flip. Since market blips rarely become major housing trends, cut through the confusion by focusing on jobs. Strong and growing employment numbers are likely to sustain a steady real estate market.

Are you sure you can make only the improvements that will support a profit? If your project budgets are usually overrun by expensive but beautiful details and add-ons, think long and hard before you tackle a project driven by cold, hard return. If the house you target is a bargain, first identify structural and systemic problems. (One big project like roof replacement might drain your potential profit.) Once the basics are sound, you’ll have to apply a will of steel to choose market-pleasing materials and fixtures that will yield the greatest appeal, even if that means forgoing the crown molding.

For more on real estate, consider:

Suddenly, a Seller’s Market?
 5 Market Trends to Cash In On This Year
Beyond Stainless: What Buyers Want This Spring

Back Flips: Is Now the Time for a Fast Turn? Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: gawker.com

At times it’s necessary to walk a fine line when remodeling. On the one hand, you want to give your house distinct appeal, but on the other hand, you should avoid making your residence so idiosyncratic (or so plain-vanilla) that it won’t appeal to potential buyers. Here are three strategies to help you stay ahead of the market:

1. Don’t trail the trends. If you strive to make your home reflect yesterday’s fashions—in other words, if you now install what your neighbors did a few years ago—you will be spending today’s dollars for an already outdated look. Instead, take your cues from cutting-edge styles. Updating your kitchen? Scour trendy expos like The Kitchen & Bath Industry Show to find what the next crop of home buyers expects to see, not what they are already tired of seeing.

Corian's "Rosemary" Solid Surface Countertop

2. Ditch tired granite. When every first-time homeowner demands granite countertops, it’s a sure sign this once-prized amenity is no longer a can’t-miss draw. Stone countertops with strong colors or a conspicuous pattern are a love-it-or-leave-it proposition for potential buyers. If a buyer doesn’t like the stone, he’ll want to replace it—and he’ll factor the anticipated expense into his purchase decision.

For widest appeal, go with a countertop material that is low-maintenance and in a neutral tone. Some new variations of marble are finished to be less porous, and marble’s delicate gray veins are a timeless classic. Also, take a good look at solid-surface materials, which come in a spectrum of colors that add a splash of style without locking future owners into a certain look.

3. Have realistic expectations on return. The value of some home improvements diminishes with time: paint jobs chip, appliances break, floors wear out. In planning renovations, distinguish the permanent upgrades—structural changes, additions, and major overhauls of heating and cooling systems—from superficial improvements that swiftly lose their luster. If you won’t be putting your house on the market for at least another five years, expect to refresh the hardest-worn surfaces.

For more on ROI, consider:

5 Smart Home Improvements? Think Again!
7 Renovation Tips to Boost Resale
Bob Vila Radio: Return on Investment

Remodeling for Resale: 3 Tarnished Trends to Avoid Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: shutterstock.com

House hunters today aren’t necessarily fixated on luxury finishes like stainless steel. They are practical and focused on function, willing to pay more for a house whose features align with their buying priorities—especially if the seller can spare them the average $4,550 that 53% of buyers spend on improvements within three months of closing.

This list of wants and must-haves, compiled by the National Association of Realtors in its 2013 Profile of Buyers’ Home Feature Preferences, shows you what to promote if you are selling a house this spring. In other words, give buyers what they want, namely:

• New appliances are worth a $1,840 bump in the offer, buyers claim
• A separate laundry room is coveted by 47%
• Fireplaces are top-of-list for 57%
• 41% of recent buyers bought houses with basements
• In-law suites
• The number one amenity is central air

The one thing buyers can’t get enough of is storage space. As part of your home staging routine, emphasize all closets and ancillary storage areas.

For more on real estate, consider:

Suddenly, a Seller’s Market?
Market Trends to Cash In On This Year
5 Savvy Upgrades That Add Home Value

Beyond Stainless: What Buyers Want This Spring Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: homeremodelingportland.org

Will your project pay off? For a trustworthy estimate, consult Remodeling magazine’s annual Cost vs. Value report to find comprehensive data you can use to gauge whether a given upgrade is likely to add home value.

The methodology of the report evolves every year. Currently, three streams of information are taken into account: typical project costs, home sale prices, and survey data from the National Association of Realtors.

Slideshow: 7 Renovation Tips to Boost Resale Value

You can’t know the exact dollar amount to be returned by a renovation you’re considering, but the report may help you locate the sweet spot between adding home value and going overboard—spending more than you’re likely to recoup upon resale.

Most useful are the regional estimates indicating the likely return for upgrades, whether routine or extravagant. Nationally, the top five high-value projects are:

• Replacing an entry door
• Replacing siding
• Replacing a deck
• Replacing a garage door
• Completing a minor kitchen remodel

This hit parade underscores the overriding caution that pervades most home improvement projects. While replacement projects return a national average of 67.6%, remodeling projects that incorporate upgrades, on average, return 59.7% of the initial investment.

For more on return on investment, consider:

Biggest Bang for Your Buck? The Bath
Bob Vila Radio: Return on Investment
5 Smart Home Improvements? Think Again!

5 Savvy Upgrades That Add Home Value Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: shutterstock.com

According to the S&P Case Shiller index, sale prices are up 8.1% for the 20 metro areas the company tracks (for the 12 months ended in January). That means it may be an advantageous time to pursue a home equity line of credit for that bigger-scale project you’ve been eyeing.

Appraisers rely on recent sales to put a value on your house, so after about a year of steady-to-increasing values, chances are that an optimistic valuation will be accepted by lenders.

Still, homeowners and lenders alike are operating with caution, says Brad Blackwell, executive vice president and portfolio business manager for Wells Fargo Home Mortgage. As in the past, two questions are of key importance today: how much can you borrow, and how should you spend your equity?

The prevailing rule of thumb is that an individual’s total home debt—original mortgage plus home equity line—should not exceed 85% of the property’s value. For a house worth $200,000 with an outstanding first mortgage of $100,000, the cap for the home equity loan will likely be $60,000.

Blackwell cautions, “don’t take out more than you can afford.” You will be paying off the equity loan with earnings, so consider current and expected financial obligations before accepting the maximum amount offered. Plot the financial parameters of the project first, then adjust its scope accordingly.

Now more than ever, traditional wisdom applies: Keep your home improvements in sync with neighborhood norms. “If you over-improve,” Blackwell says, “you won’t necessarily get it back. Typically the money you spend on home improvement will not give you a dollar-for-dollar increase. Different projects will provide different values, with kitchen and bathroom renovations and energy efficiency returning the greatest value.”

See the latest Cost vs. Value report, compiled by Remodeling magazine, for estimates on the return for various types of remodeling projects.

If you limit the amount you borrow and reign in the scope of your remodeling work, you’ll find the sweet spot where investment intersects with higher value.

For more on financing, consider:

Footing the Bills
HELOC? HEL, Yes!
FHA Financing for Renovations? Yes, But…

Measure Twice, Borrow Once: Home Equity Loan Success Home Improvement, Home Remodeling & Home Repair - BobVila.com

Illustration: activerain.com

That choking sound you hear is the echo of real estate deals not getting done, because suddenly, buyers can’t find houses they want. In markets where buyers are clamoring for properties, this spring may give sellers the rare opportunity to cut agents’ commissions, and in so doing, save a bigger slice of hard-won equity.

In late March, the National Association of Realtors blamed low valuations (dang those appraisers!) and a shortage of new homes (huh?) for a February stall in pending home sales.

One factor the NAR conveniently overlooked is the traditional 6% realty commission. With millions of homeowners owing more than their homes are worth, according to real estate data cruncher CoreLogic, that transaction cost is a burden many cannot shoulder.

Those close to the line—underwater by just a few percentage points—could be able to make up the difference by trimming the commission. Success is not assured, but it’s probably worth investigating your options. After all, 6% of the selling price likely equates to more than 6% of your actual equity or savings.

Here are three ways to turn a seller’s market to fast advantage, for less than the standard commission:

1. Hijack the real estate selling machine. The multiple listing service is a powerhouse for getting your listing in front of the 90% of buyers represented by the National Association of Realtors. Sure, Craigslist is free, but market conditions change quickly. If you are serious about selling, get your house in front of as many people as possible. Use a discount broker who charges 1% or 2% (or a flat fee) to get your house online asap.

2. Make it worthwhile for buyers’ agents. If you are handling the sale yourself, you have to win over buyers’ agents by offering to cover their slice of the traditional commission (that’d be 3%, split between the agent and his or her brokerage).

3. Throw yourself into the deal. In your listing and supplementary marketing materials, promise to use your buyer’s agent as your own buyer’s agent. This of course works best when you are buying another home locally. But if you’re moving out of town, you could still cut in the buyer’s agent on a referral fee.

Make your best virtual first impression with these tips on polishing your online listing.

For more on real estate, consider:

Is Housing Really Back?
10 Simple Home Staging Tips Every Seller Should Know
3 Ways to Polish Your Online Real Estate Listing

Suddenly, a Seller’s Market? Home Improvement, Home Remodeling & Home Repair - BobVila.com

Photo: myperfectpaintcolor.com

“Curb appeal” is real estate jargon referring to the first impression your home makes on prospective buyers. With about 90% of house hunters sifting through online listings to narrow the field of choices, curb appeal now takes place in the digital domain. Here are three ways to ensure that your online listing isn’t a drive-by:

1. Use an attractive exterior shot. Your listing’s opening photo is the money shot. Michael Seiler, founding director of the Institute for Behavioral and Experimental Real Estate, has conducted eye-tracking tests to measure how viewers scan online listings. Results show that people linger longest over the exterior shot. Only briefly do people look at the kitchen, living room, master bedroom, master bath and backyard photos. And only 41% of a listing’s viewers actually read the text description.

The implication is clear: Lead your listing with the best possible image of your home’s exterior. If working with an agent, insist on a professional photographer and have shots taken at several times of day in order to capture the house in its most positive light.

2. Pay attention to the details. If you are selling ‘by owner‘ or through a discount agency that requires you to do some of the legwork, take several digital photos and scrutinize them for details that are easily missed in real life. Spruce up the exterior for the camera—trim the bushes, touch up the trim, and paint the front door a bright or contrasting color that will pop in online photos. Then hire a pro for the glamour shots.

Apply the same strategy for cleaning up and staging interior shots. You will see things through the lens that you overlook in real life, such as the ubiquitous kitchen towel draped over the oven handle. Tidy up as much as possible, then take photos of each room from several angles. At that point, declutter, tidy, and clean again.

3. Keep the text short and specific. Finally, don’t stress over text. A different study conducted by Seiler found that stereotypical agent ‘happy talk’ doesn’t persuade buyers who want home data that can be verified.

Use specific evidence instead of generic terms. For example, write “windows replaced in 2011” and “Energy Star appliances installed in 2012” rather than “well maintained” and “new appliances.” Agents love to say that buyers purchase for emotional reasons, but Seiler’s research indicates that the facts count, especially when house hunters are creating a short list of properties they are most likely to pursue.

For more on real estate, consider:

Tax Tips for Home Sellers
7 Renovation Tips to Boost Resale
Estimating Home Value: Whose Price Is Right?

3 Ways to Polish Your Online Real Estate Listing Home Improvement, Home Remodeling & Home Repair - BobVila.com