The Best Time of the Year

Despite the economy, I'm looking forward to the holidays. I hope you are too.

If you're like me, you might be getting a little tired of all the negativity in the media. This month I'm going to cut through that negativity and show you something positive...

The real estate market.

Here's why...

#1 - It costs you LESS to trade up in this market.

For those of you who currently own and are considering a move, you may be getting a lot of advice that you shouldn't trade up now because you'll take too much of a hit in the transaction as your home has dropped too much in value.

Nothing could be further from the truth.

Everything in the market is relative, and it's actually the best time to move up.

Let's compare if you sold and bought six months ago vs. selling and buying today in a market that has dropped approx. 10%.

*May 2008, peak average price over the past two years vs. current stats for November 2008 for the City of Toronto.

Scenario 1 - Peak Market at 10% higher than today.

Sale Price: $543,000 Purchase Price: $760,000

Difference: $217,000

Scenario 2 - Same House, Depressed Market 10% lower than peak.

Sale Price: $488,000, Purchase Price: $683,000

Difference: $195,000

The difference to move to a new home costs you LESS in a downward turning market than in a peak market.

#2 - There is a small window of amazing opportunity in the market shift.

There are a lot of people who bought a few months ago before their home had sold. In the peak market that was a safe strategy. But now you have homeowners who HAVE to sell because they are near or past their close date and are carrying two mortgages.

This situation will not exist in the spring market because people will no longer be purchasing before they sell.

There is a lot of opportunity to get a great deal and negotiate with vendors who have no choice but to sell right now and this window will only exist for a couple of months.

#3 - Mortgage rates are incredible right now.

At the peak of the market in May, the prime rate was hanging around 4.75%. Now, the rate has just dropped to an amazing 3.5%. The posted 5 Year Closed rate for TD Canada Trust is only prime + 0.60%

Let's take a $300,000 mortgage as an example.

At the peak market, with a 25 year amortization, your payment at a rate of 5.35% would be $1,805.07 per month with a total interest cost of $241,484.

At today's market rate, your monthly payment would be $1,594.37 at a rate of 4.1% with a total interest cost of only $178,290.

Your total interest cost would be reduced by 7% over the course of 5-years.

#4 - Homes are now within reach for first-time home buyers.

The cumulative affect of lower home prices and great mortgage rates make this an amazing time for first-time home buyers.

Not to mention the higher inventory and less competition for great homes.

A 10% drop in prices translates to a 10% lower mortgage amount, so a monthly payment would be $159.44 less than in the peak market.

If you are a first-time home buyer, the real estate market is on your side for once. This is the time to make your move.

There are other considerations to think about in this market...

How can I sell my home in this market?

Pricing strategy has never been so critical.

If you are buying another home, you need to stop focusing on the magic number you could have gotten back in May. Those days are gone. Realize that you are making up for it on your buy-side.

First, your home has to be priced at value and that requires a very thorough analysis of recently sold homes and available listings within the past week and days, not just the past months.

In a changing market, historical numbers can mean nothing when pricing a home for sale today. And you have to open to staying ahead of the market activity and adjust as necessary.

Pricing above value because you think you want to leave room for negotiation is not an option. Better to turn down 3 offers than get none at all because no one will even look at an overpriced house in this market.

Other strategies to follow...

If you are considering a move in this market, I'm advising clients to follow these strategies:

1. Sell your home first before you buy, or make your offer conditional on the sale of your home. Unless of course you are fine with two mortgages.

2. Make sure your home shows incredibly well and consider having an inspection done before you put it on the market just as you would in a peak market. Do not give buyers any excuse to put in a low-ball offer or negotiate based on an inspection after their original offer.

3. If possible for both parties, try to stretch out your close date so you have plenty of time to shop for your new home.

4. Be prepared to buy just as you would in a peak market. Get your financing approved BEFORE you look at homes or put in an offer. Be ready to put a certified deposit with your offer. Even though the market has slowed down, there are still other buyers who may be looking for the same home.

5. Play it smart. The reality is that we are in tough economic times. Live within your means and consider your complete financial picture when you invest in real estate. At the end of the day, it's a solid investment that for most of us means a roof over our heads, not a statement in the mail.

The Irony

Think of the phenomenon of 'herd mentality'. We are really causing our own grief in some ways here.

Ironically, when prices are at their highest and there is the most competition for a home, people can't wait to buy and will throw thousands of dollars over the asking price just to get a home.

Now, when the market is in the favour of buyers and there is tremendous value and selection out there AND it actually costs less to trade up for current homeowners, everyone is holding their breath.

Another irony is that a lot of buyers are waiting for the market to bottom out. But no one has a crystal ball and we can't predict when that will be.

By the time it's announced that the market has bottomed out, it's already on it's way up again and all the pent up buyers who were holding off for a better deal are now in competition with each other, driving prices up.

In Summary...

I am personally excited about this market.

My clients get the opportunity to:

- Move to a better home for less

- Get amazing deals given the unique conditions of the current shift

- Take advantage of incredible financing rates

- Realize their goal of home ownership if they are first-time home buyers

I hope you forward this on to as many people as you can, if for no other reason than my determination to dispell the myths and negativity in the media that's causing a lot of people to miss out.

To find out what opportunities are in the real estate market for you, and to find out about some amazing deals, contact me today.

And if anyone tells you this is a bad time in the real estate market, tell them to call me directly :)

Best wishes for the holiday season!

Cheers,

Mark

416.728.2499 - info@markrichards.ca

Ideas for the Gift Challenged

For those of you who may need a bit of inspiration and ideas for the holiday gift giving season, we've put together a list that may just work for you.

Framed Pictures








We rarely do this for ourselves, so how great is it when someone gives you a blown-up framed photo of you, your friends or family?

It seems like it takes some time but one evening picking out favorites, a quick online print order and in-store pick up to grab some frames and you're done.

Cost? $10-30 for a frame, $0.23 - $15 for printing depending on size. Ikea has great frames with mats included starting at $6.99 for a 4x6 size.


In-Name Donations

Considering how many people in the world are less fortunate than us, sometimes the big ticket items don't sit quite right. There are some great ways to make a donation in someone's name - from donating dollars, to choosing specific items to donate.




You can donate a mosquito net through the Red Cross for just $7 and save a child from malaria.

The Red Cross - Malaria Bites







Or you can check out Canada Helps - it enables online donations for 83,000 Canadian charities. It allows you to search by interest, city and name to find the one that fits the people on your list.

Canada Helps


Shows

In a city like Toronto, there are so many great shows, concerts and events that the choices are endless.

Don't forget that many afternoon shows can be less than half the cost and it's great to have dinner afterwards instead of before and rushing to an evening show.











We saw We Will Rock You with the in-laws this past summer and we all had a blast. For a family show, you can see Chitty Chitty Bang Bang or The Sound of Music. Tickets for both shows can be purchased online at Mirvish Productions and you can get deals from just $24 a ticket.


Books & Magazines

Who isn't looking for a good page-turner? The best thing of all is they can exchange your choice if they've already read it or if it isn't their cup of tea.

Magazine subscriptions are also a great gift with big impact for not much money. Deals can be had for just $12 a year. Rogers offers it's customers a $1 per month subscription for most of it's magazines - check out Rogers Magazines.

For book ideas check out the following reviews:

New York Times 10 Best Books of 2008

Chapters Top Online Bestsellers



Create a Book







If you have a bunch of photos from a vacation or party, or just a lot of photos in general you can create a professional looking book with Blurb. You can get it produced and delivered by Christmas (choose your delivery options carefully!) and books start at just $12.95!


For Those Who Help You

For the postman, the dog walker, the babysitter etc...keep a stack of Starbucks or Tim Hortons gift cards on hand! Who doesn't want to be warmed up with an eggnog latte or a double-double?


Regardless of what you are giving, make a list, check it twice and set aside some time to shop to save yourself from the stress of the holiday season.

Cheers & Happy Holidays!
Mark

Slash Thousands Off Your Mortgage

This month, I’m sharing highlights from a recent article in Canadian Real Estate Magazine. With concerns about the economy, make the most of your investment and get ahead. Don’t take your mortgage for granted by using the following tips…

Skip the Honeymoon

Be careful of introductory offers such as low rates that reset to higher ones after a few years and cash-back offers and incentives that come with a higher interest rate. Short term gain for long term pain!

Time is Money

The best strategy for paying less interest is paying your loan as fast as you can. Most mortgages allow you to pay a lump sum of up to 25% of the original mortgage each year.

Also at each renewal the mortgage becomes an open loan, which means you can repay as much as you want without restrictions or penalties.

More Frequent Payments

In case you don’t win the lottery or find yourself with a large lump sum to put down on your mortgage, just make your payments weekly. It’s a small cash flow difference but it will save thousands on your mortgage.

With a $300,000 mortgage at 5% over 25 years, you can be mortgage-free four and half years faster and save $37,947 by simply making your payments on a weekly basis versus on a monthly basis.

Hit the Principal Early

Most mortgages allow you to pay an amount up to or equal to your regular payments that can go straight to the principal.

Switch Lenders

Shop around at renewal time but consider costs before you switch, such as appraisal fees ($150-$350), discharge statement fee ($150-$300), and legal fees ($600-$1,500).

It is well worth the effort to shop around. Half a point on a $300,000 mortgage can mean over $18,000 in interest savings.

Forgo Minor Luxuries

Consider this: A typical day of food purchases adds up: coffee and snack ($5), lunch ($12), drinks after work ($8) = $35 a day.

If you ‘bagged’ lunch and made coffee at home, assuming a savings of $20 a day x 20 days a month, you would have an extra $500 a month to put towards your mortgage.

Assuming a mortgage of $300,000 at 5% you could save $68,777 in interest and be mortgage free 9 years sooner!

In Summary

Don't take your one of your biggest investments for granted. Take a look at your mortgage today and get the most savings possible!


For more information on how you can save money on your mortgage, contact me at info@markrichards.ca or give me a call at 416.690.2181.

Market Watch - Summer Slump or the New Reality?

Although we always expect a summer slow down, many people are trying to figure out how much of it is actually the market correcting itself.

The Globe and Mail had a great market report last Friday that I'd like to share with you for some perspective...

By CAROLYN IRELAND - From Friday's Globe and Mail

August 8, 2008 at 12:00 AM EDT

Bosley Real Estate Ltd. agent Michael O'Brien is seeing houses sit on the market for two or three weeks these days. In 2007, very few houses lasted a week.

"Mind you, last year was probably a once-in-40-years kind of market," he says.

The number crunchers bear that out: Toronto's lethargic spring real estate market settled into a true summer slump in July as sales fell 12 per cent in the Greater Toronto Area.

The number of houses and condominiums that changed hands in the resale market dropped to 7,806 last month, compared with the 8,912 transactions recorded in the same month last year, according to figures released this week by the Toronto Real Estate Board.

Prices, meanwhile, remained stable. Throughout the GTA, the average price came in at $371,427 to mark an improvement of slightly more than 1 per cent from the average price of $366,012 realized in July, 2007.

In the city of Toronto, the average price was tallied at $395,342 in July to stay virtually flat, with the average price of $395,044 recorded in July, 2007.

TREB president Maureen O'Neill points out that July, 2007, was the best July ever recorded, when sales jumped an eye-popping 26 per cent over the year-earlier tally.

For the year-to-date, sales in the GTA have declined 14 per cent from the figure this time last year.

Mr. O'Brien says Toronto's real estate market is still healthy — especially compared with cities south of the border.

"Most of North America would kill to have our real estate market."

The agent, who does a lot of his business in downtown neighbourhoods such as Cabbagetown and Leslieville, says listings are reasonably plentiful, but there's no big flood of houses onto the market.

Some clients are holding off listing until the fall, the agent says, but he is advising people who want to sell to put their houses on the market because no one can predict how the fall market will shape up.

The federal government has announced reforms aimed at avoiding a U.S.-style housing price bubble. Starting Oct. 15, the Finance Department will stop guaranteeing 40-year mortgages and mortgage loans with no down payment.

Mr. O'Brien says the new rules are bound to take some potential buyers out of the market — particularly at the lower end.

At the other end of the price spectrum, he says houses listed at $2-million and above are sitting on the market longer because luxury properties are purely a discretionary purchase.

"The high end is pretty darned slow," he says. "Whenever there is a bit of economic uncertainty, the high end slows first."

Mr. O'Brien says that setting the right asking price for a property is crucial this year because many houses are not attracting multiple offers.

Last year, agents were often trying to create competition for houses by setting low asking prices and then holding offers on a specific day. About 95 per cent of them were sold on the offer night at a price far above asking, he says.

"We could underprice it considerably and the market would correct it."

This year that strategy is risky, Mr. O'Brien says. He advises sellers to list at a price they would be willing to accept or use as a starting point for negotiations with a prospective buyer.

Geon Van der Wyst, an agent with Royal LePage Real Estate Services Ltd., says buyers are cautious because they see the poor economic environment in the United States and wonder how much of the bad news will spill over into Canada.

"I like to counteract that when buyers have that mentality by saying that I still think the Canadian market is very healthy."

Mr. Van der Wyst points out that price gains in Toronto have been pretty steady over the past seven years, compared with the sudden spikes recorded in Vancouver and Calgary. Toronto's more moderate pace of growth means the market is not as susceptible to a sudden plunge, he believes.

Houses in the central core of Toronto are being bought quite quickly when sellers are not unrealistic in their asking price, Mr. Van der Wyst adds.

"I think some people are just a little bit more greedy than they should realistically be."

Across the GTA, the average price on the market has increased to 33 days from 31 days a year ago, TREB reports. Earlier this week, there were 26,543 active listings, which is a 28-per-cent increase from a year ago.

To build or not to build...is it even your decision?

It’s not necessarily your decision!

As a recent participant in a Committee of Adjustment hearing, I was reminded of how important it is to take your short and long term needs into consideration when buying a home.

I witnessed a family being declined approval to put on a small addition with several neighbours in opposition. The hearing made pretty good material for reality television, and I don’t imagine they’ll be having any street parties soon.

There were many other home owners who didn't have opponents yet they were still were declined because their plans imposed one kind of variance or another.


Here are some things to consider to save you time, money and heartbreak…


1. Find out if you need to go to the Committee of Adjustments.

Before you buy...

While no one can guarantee the outcome, a good architect can tell you if your wish list will require Committee of Adjustment approval or if it falls within standard building permits. Beware of the contractor who says 'no problem'.

When looking for an architect or designer, find someone with experience in committee applications who has fought and won for their designs. Many come up with incredible ideas that may never have a chance of being approved.

When planning...
When you submit your plans for a building permit, they will advise if you need to do a Preliminary Project Review, the step prior to a Committee application.

2. Talk to your neighbours.

Sneaking past them won’t work…they will get a letter detailing your plans and an open invitation to voice their opposition at a hearing! The most effective thing to do is to write up a petition in support of your plans with signatures and addresses.

If you find neighbours who oppose your plans, be as open as possible - show them your plans, find out what their exact concerns are and get creative as to how you can resolve them. For example, if you are extending a structure that will affect their view, you might consider offering to do some landscaping to make it a pleasant change rather just a brick wall in their face.

3. Prepare

One thing I learned is that although the board is very understanding of people who are nervous, they have little tolerance for those who are unprepared.

If your plans are complex, it may be best to have your designer or architect represent you in the hearing. Especially if you'll have to defend your plans against opponents.

If they are relatively simple, make sure you understand what variances you are affecting and the history of your street. For example, a homeowner who wants to put an addition on the back will have a stronger case if they can list the addrress of neighbours who have already done so.

4. Don't do anything ugly :)

Common sense prevails here. If you are proposing a castle-style stone monolith with 5-car parking in a sea of board and batten homes then chances are, your neighbours are not going to be all that supportive. Consider what your neighbours on all sides are going to be looking at. Your view might be great but if they are suddenly looking at a 2-storey wall instead of trees you might want to revise your design.

5. Go Metric

We learned this the hard way. After finally getting every single element of our plans together, and several trips to city hall later, we proudly put forward our application to the committee only to be told that they had just hired a new manager who decided to enforce the requirement to have all measurements in metric.

A few swear words later, I called our designer right then and there and he did not believe me. They just started enforcing it the day before we submitted our application after decades of accepting imperial. Back to the drawing board.


In Summary

Try to come up with plans that do not trigger a trip to the Committee of Adjustments, for if your intentions cause major variances to by-laws and building regulations, you'll be spending a lot of time and money for no reason.

If your plans do take you there, make sure you give yourself at least four to five months prior to when you want to start construction!


For more information, check out www.toronto.ca/building/building_permits.htm

Regards,
Mark

Bust or Balance?

The most common question I get asked these days is "Will the real estate market crash soon?".

Without a doubt the U.S. is sparking a lot of these concerns. Some reports from the financial industry and recent stock market performance are also fuelling the speculation.

I am not going to be overly optimistic but I also don't agree with the 'prophets of doom'. I hope to give you a balanced view based on the facts...

Canadian Business magazine recently published an article by Andy Holloway that offered some great insight. Consider the following...

"Unemployment is near its lowest levels ever, the dollar is near par with the greenback, and our resource-rich economy is doing well by most measures."

He shares feedback that negative indicators such as an abundance of properties on the market and the length of time they are on the market have not really started to increase. It is softening but we need to remember that the market has been in serious overdrive for a while now.

Nesbitt Burns just released a report that states:

"So far this year, national home sales are down 11% year after year, and prices are up a moderate 4.8%. The sales drop and the modest price gain are well down from years of double-digit increases, and further confirmation that the boom days are over. Notably, no city in the country has reported a price decline from year-ago levels over the first four months of the year, so the slowdown is still far from mimicking the U.S. experience.

However, we would point out that new listings have climbed more than 8% this year, even as sales have slid, pointing to “a more balanced market” according to CREA (i.e. much more of a buyer’s market), and even less upward pressure on prices looking ahead."

In comparison to the U.S...

Of course, driving a lot of the paranoia is the state of the market and economy in the U.S. With media reports of major price crashes and a glut of property supply it feels like every market is going to follow suit.

Canadian Business shares some important differences and actual facts to consider...

- More than 25% of all new U.S. mortgages were sub-prime in 2006, compared with 3% in Canada, and all high-ratio mortgages here (those with less than 20% down) are secured by the CMHC or other insurers.

- The U.S. mortgage delinquency rate was 5.8% at the end of last year, compared with only 0.26% in Canada. The States is the breeding ground of the “ninja loan” — No Income, No Job and no Assets.

They say that’s not to suggest the threat of a housing downturn in Canada isn’t real, but it’s unlikely to reach the epic proportions it has in the States.


What's been happening in the Canadian Market?

Holloway discusses some interesting market activity...

"Prices are still rising in most major Canadian markets, even if the number of sales is dropping. Housing sales in the Top 25 markets fell 5.6% to 38,365 units in February, according to the Canadian Real Estate Association.

Nationally, the average sale price rose 6.2% to $313,065, the smallest year-over-year increase since November 2004. Is that the sound of a bubble bursting? More likely it’s a long hiss, as the market loses some of its buoyancy. “It’s still a seller’s market.

Price increases should be higher than inflation,” says Warren. “But 2009 will be more of a balanced market — the first time we’ve had one since 1998.”

Focus on the market in the GTA...

Check out the latest market report from the Toronto Real Estate Board:

GTA resale housing market moderate in April, but prices up.

With 8,762 houses sold in the Greater Toronto Area, April’s resale housing activity was down seven per cent from the record 9,452 transactions from the same timeframe a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.

“The market is showing signs for a healthy 2008 compared to the diminished activity we saw in the first quarter of the year,” said Ms. O’Neill. “We continue to experience a supply and demand situation and to-date, it remains a sellers market."

Sales activity however, was markedly different in the 416 and 905 regions. With 3,467 transactions in the City of Toronto, sales were down 10 per cent from a year ago. The 905 region was down five per cent from April 2007 sales, with 5,295 homes changing hands.

April’s GTA average price was $398,687, up five per cent from the same period a year ago. In the City of Toronto, the average price was $446,781, up six per cent from last April. In the 905 region the average price increased five per cent compared to a year ago, to $367,196.

"The number of listings on the Toronto Real Estate Board’s Multiple Listing Service has increased to 24,539, up seven per cent from a year ago, which is good for homebuyers, who will find a greater range of options in the market,” said Ms. O’Neill. “With prices continuing to appreciate and increased listing inventory there are favourable factors in today’s market for consumers.”

For the full April Market Watch Report, click here.



At the end of the day...

Like most investments, a downturn in the market is the biggest issue when you have to get out. If you are planning on selling in the next year, the sooner the better is my call but you'll still hold on to solid value in the coming years.

If you are considering buying, and are not planning to flip or resell in the short term I would not feel concerned about major drops in value. And it is starting to become a more balanced market which will make the buying process more appetizing compared to the past scenarios of crazy bidding wars.

For those home owners who plan on sticking around, resist the temptation to max out the lending potential against your home.

Holloway points out that Canadians are pretty averse to debt, "Nearly four of every five Canadian homeowners say they want to pay off their mortgages as fast as possible, according to Canada Mortgage and Housing Corp. Almost 85% make weekly or biweekly payments to speed up amortizations, while a third have made a lump-sum payment against principal. "

For 2008 I would look forward to a more balanced market and greater supply of properties, which I believe is a good thing.

It's a healthy correction after the insanity of the past few years.

Regards,
Mark

For the full article "Safe as Houses?" by Andy Holloway, click here.

Dream Homes Vary by Generation

When you were born says a lot about your idea of the perfect house.

This month we're featuring an article from MSN real estate that reviews the features that appeal most to boomers, Gen X and Gen Y, plus tips on how to sell to homebuyers in each generation.

What's your dream house?

Your answer says a lot about your values and attitudes -- and may have a lot to do with when you were born. So say the authors of a new study of 1,000 home owners nationwide.

The market research company GfK Roper Reports asked participants to prioritize the amenities they'd have in their dream home -- not necessarily amenities they already have, or will have in their next home.

The different responses, from baby boomers through first-time generation-Y buyers, reflect how different features appeal to different ages and also how tastes have shifted over time.

"I think what the study reveals is very different value sets among the generations," says Kathy Sheehan, senior vice president for GfK Roper Reports.

Definite patterns emerge from the survey data, Sheehan says, and you can glean some potentially important insights -- especially if you're considering pre-sale renovations. But first, here's a review of the survey results:

Boomers - The Picture of Success

Those born 1946 to 1964, rank a state-of-the-art kitchen No. 1 on their list of must-haves, with walk-in closets, whirlpool baths, fireplaces and swimming pools rounding out the top five. They also rank a workshop/hobby studio highly. (You can see a full list of each generation's top 10 below.)



As they're becoming so-called "empty nesters," boomers think about having a private retreat that's as much gallery as home. They waited until later in life to have a grand home, and now they generally want to flaunt its many niceties -- a home where they can age (extremely) gracefully.



"It's about the show," she says, with amenities such as a grand kitchen and places to display art. In a nutshell, the boomer home says, "I've made it."









Generation X - Family-focused Informality

Those born roughly between 1965 and 1978 also place a high priority on a fine kitchen and on amenities like large walk-in closets. As these sons and daughters of baby boomers age, their aspirations for dream houses are now dovetailing with those of their parents, says Sheehan.

The reason? This generation has moved into child-rearing age, says Sheehan, and now "want stuff that speaks to organization." Their buzzword: family.

"Gen X-ers are at childbearing age," Sheehan says. "That means that Gen-X homes are about the family center. They are looking for things that help them organize and eradicate clutter and chaos."

But Gen X-ers are notably different from boomers, too, says Sheehan. For one thing, "Gen X-ers have different attitudes about family and disciplining their children."

Those different attitudes show themselves not only in how these former slackers prioritize their dream amenities, but also in how little they like the formality of boomer homes; they want a casual home, says Sheehan.

They're also much more in tune to style and design, and know exactly what they want in a home -- and are less inclined to settle for less, she says.








Generation Y - Let the good times roll

Those born after 1978 to about 1995, want a home that hollers "entertain me." Top-10 priorities include a whirlpool bath, sauna/steam room and entertainment center. "All of these things are about fun," says Sheehan.

That might explain why gardens and workshops don't make an appearance on the Gen-Y list.

And they're clearly not yet worried about accommodating children. This generation is emerging socially, and wants amenities that enhance that aspect of its life. So instead of a place to hunker down, Gen-Y homeowners "might be more interested in the home as a social hub," says Sheehan.


Technology is also second-nature to this generation. They're completely wired. So a Gen-Y home, more than any other, will practically hum with electronics.


Top dream-home amenities vary in importance by generation:

Baby Boomes (born 1946-1964)

1. State of the art kitchen
2. Large walk-in closets
3. Whirlpool bath
4. Fireplace
5. Swimming Pool
6. Workshop/hobby studio
7. Patios, porches and decks
8. Garden
9. Game/billiard room
10. High-tech entertainment cener

Generation X (born 1965-1977)

1. State of the art kitchen
2. Larke walk-in closets
3. Fireplace
4. Whirlpool bath
5. Swimming pool
6. Patios, porches, decks
7. Game/billiard room
8. Garden
9. Gym/fitness room
10. Workshop/hobby studio

Generation Y (born 1978-1995)

1. Whirlpool bath
2. Swimming Pool
3. Game/billiard room
4. Large walk-in closets
5. Fireplace
6. State of the art kitchen
7. Sauna/steam room
8. Gym/fitness room
9. High tech entertainment center
10. Patios, porches and decks

Source: GfK ROPER

Some common ground

So, how immutable are these traits, anyway? Observers say attitudes about homes do change as people enter different stages of their lives: Witness the Gen X-ers who want high-end kitchens now that they're nesting, just like their boomer parents before them.

But the study turned up somewhat unexpected results, too. For Gen X-ers, "It's a little more surprising that their values seem to be staying with them as they age," says Sheehan, mentioning attitudes such as informality.

"There might be life-stage changes, but the values will remain consistent." Another is the Gen Y embrace of technology. That shouldn't be expected to dissipate, either, she says.

Perhaps most interesting to home owners renovating with an eye toward selling their home are the features the generations agreed were important. Walk-in closets made an appearance in the top three on all three generation's lists, for example.

And those state-of-the art kitchens ranked No. 1 for both boomers and Gen X-ers -- and made a not-so-shabby appearance at No. 6 for the Gen-Y set. Other features cracking the top five for all three generations:

• Whirlpool baths
• Swimming pools
• Fireplaces

Target buyers -- carefully

You can harness all this info to make your home more attractive to homebuyers. But do proceed with caution: Just because you live in a neighborhood that's hot with the Gen-Y crowd doesn't mean you should run out and install a Jacuzzi, say real estate agents; a hot tub is a bad return on investment now and forever. Pools aren't much better.

Do not to make dramatic changes in your home just in hopes of attracting buyers. "What's most important is having a nice, clean property in an in-demand area," Hehman says.

Yet there are some situations in which you might consider targeting your home renovations -- say, if you live in one of those increasingly popular 55-and-over communities, or in an area that's getting hot with young professionals.

To gauge the type of buyer you're likely to attract, pay attention to your surroundings: Are you in a high-dollar district? Chances are good you'll have a boomer buyer. Gen-Y buyers, meanwhile, often want to be closer to the social scene and public transportation -- or else out on the fringes where new homes are cheapest.

You should know basic facts about your neighborhood, such as whether you're in a good school district and the general ages of people who've recently bought in the area.

For those of you comfortable with targeting specific buyers, here are some expert tips for luring boomers, Gen X-ers and the Gen-Y crowd (that fall well short of installing a Jacuzzi).

Luring Gen Y

Don't fear color.

The age-old rule is to banish any hue from a house about to be sold. But plain-Jane white is often too drab for Gen Y. Some clients see plain white walls and they say, 'Man, that just sucks, because now we’ve got to come in and paint.'"

Instead home owners should repaint in what the industry calls "builder's beige." "It adds a lot to the house; it's better than just solid white," he says, and "they can live with the beige for a while."

Get unconventional.

This generation likes untraditional floor plans, informality and flexibility in a layout. Anything that a homeowner can do to emphasize that -- adding furniture that moves around on rollers, putting the formal dining set in a shed out back when the house is being shown -- may add appeal.

Also, get creative with what personal property you're willing to include in the listing price. Instead of the typical washer and dryer, some buyers have negotiated for the previous owner's elaborate, built-in home theater system to be included in a full-price offer.

Get wired.

Gen Y is plugged in to the Web, all the time. Your home better be, too -- and with a fast connection, even if it's an older home.

Add an office.

Transform someplace in the home (even a nook) into an office -- even if it's just a few shelves and a desktop. Everyone works from home these days. Show a Gen-Y homebuyer where he or she can, too.

Grabbing the Gen-X buyer

Think kitchen.

Because the kitchen is the focal point of the Gen-X home, you should spend your remodeling money there before, say, the bedrooms, advises GfK Roper Reports' Sheehan.

One way to freshen up a kitchen without spending thousands is to refinish the cabinets. Popular treatments are glazing, crackling and sand-through finishing that gives furniture a worn appearance. It's minimal cost but gives that home an updated look. Just look at a catalog like Pottery Barn for evidence of its popularity.

Color (again).

Gen X-ers like a lot of color, a little bit of bling, a little bit of pizzazz. That doesn't mean you should paint your bedroom purple, but do something intriguing that will make a room memorable for a younger visitor.


Hooking the Boomer Buyer

Think about art.

Since boomers often have fine items and this generation is often big on display, ask yourself where and how you can create a space -- perhaps in the living room or entrance -- where a future homeowner could show a piece of artwork.

Update with care.

Boomers do love grand kitchens and bathrooms. But "it's very tricky -- how are you going to pick out the right tile?" asks Hehman. So proceed with caution if you must update those areas in anticipation of selling your home, he says. Make somewhat neutral choices among luxury items -- white Carrera marble in the bathroom, for example.

Consider universal access.

As you renovate your bathroom, add touches that seniors will notice and need when they look at the house later -- grab bars in the bathtub, a higher toilet, a step-in shower rather than a bathtub.

More ideas.

Lever door handles (easier for arthritic hands to handle than knobs) when you replace door fixtures, and pull-out shelves in places like the pantry (easier for bad backs to reach).