Five Checklist Items to Include If You’re Building a New Home

For people who have decided to build rather than buy a new luxury property, the first step—as is the case in all real estate decisions—is to secure the perfect location. While this can mean completely different things depending on the market, good access to transportation and a city center and unobstructed views of whatever the area is known for—whether that’s the Empire State Building or Central Park in Manhattan, rolling hills dotted with vineyards or olive groves in Tuscany, or gorgeous sunsets over the Aegean Sea in Mykonos—are usually key.

With location settled, there are a handful of checklist items that experts generally agree every new home builder should include to ensure a high resale value. All of them, said Sandra Adomatis, a Florida-based appraiser, mean looking toward the future, in which buyers will be more tech-savvy, won’t care about what’s trendy today, and might have a different family set-up, with live-in elderly parents or post-collegiate 20-somethings to consider.

"If you want a new home to retain its value," she said, "you need to build for tomorrow’s buyer."

More:The Unexpected is Increasingly Popular for Launch Parties: Everything from Artists to Puppies

With that idea in mind, here are five rules to follow if you’re building a new home today:

Build a home that fits into its surroundings

Heather Witt, a Los Angeles-based Douglas Elliman broker, sees many developers or individuals building new homes make a mistake from the get-go that can negatively impact resale value: they forget to consider the location in which they’re building.

If there is a neighborhood known for its Spanish-style homes, for instance, steer clear of building a big mid-century modern home in the middle of it, she said. "A lot of times people are attracted to a neighborhood for its specific aesthetic," she said. "If you build outside of that aesthetic, you might lower the resale value of your home."

Monique Sofo, the vice president of strategy at Christie’s International Real Estate and author of their annual "Luxury Defined" report, added that in addition to staying true to the location, architectural provenance, meaning hiring someone who’s going to design a high-quality, timeless home, is also important for the upper echelon of luxury buyers.

"They see buying a home designed by an acclaimed architect as an opportunity to own an architectural collectible, and live in a piece of art," she said.

In many second-home markets in Europe, like the south of France, Tuscany, Venice and the Greek Islands, it’s often not possible to build completely new, so buyers instead purchase old properties and then refurbish them. But this rule applies to the renovation process, too, experts say.

"You want to retain a structure’s unique features," said Lynne Davie, a broker with Beauchamp Estates, who sells properties in Florence and Tuscany, "and never want to take away its sense of place."

In Tuscany, where there are a lot of classic farmhouses, that means restoring the exterior and interior stone features, and when possible, keeping the original beams in the ceiling, the wood burning oven in the kitchen, and terracotta on floors and walls. "As soon as you start changing these things," she said, "you take the heart out of the property."

More:Choosing the Right Second-Home Market to Invest In

Wire the property to accommodate smart home technology

Regardless of the location, every buyer wants a solid WiFi connection throughout their home, whether that’s a large London flat or a sprawling Greek villa. Most buyers are also going to want to take advantage of some smart home features, so it’s best to include that wiring from the start, experts say.

In Manhattan, Douglas Elliman broker Frances Katzen said buyers expect a fully wired home in which there are built-in speakers and a system where they can play their music from an iPhone or other mobile device; cameras and other security features that they can turn on and off and manage remotely; a Nest thermostat to manage heating and cooling, plus the ability to control blinds, the media center and other features with the touch of a finger.

Jane Gol, the president of Continental Ventures and Continental Pinewood, who is co-developing the Barn & Vine properties in Bridgehampton, New York, calls what most buyers want an "expandable smart home," meaning one that is wired for today’s systems, but able to adapt as technology evolves.

In London, the head of residential development at Knight Frank, Ian Marris, agreed that while wiring for integrated systems is an essential feature to include when building a new property, including an overly sophisticated system is not. "The system itself needs to be simple enough for the occupant to use it," Mr. Marris said.

In more remote, second-home destinations, total smart home wiring might not be possible—and its absence is not often a deal breaker, said Mirka Mikleticova, a sales negotiator with Beauchamp Estates in the south of France. But for some of her international clients, specifically those from Russia and the Middle East, lack of intelligent security systems is. "Security is a huge selling point," she said.

More:To Make a Big Sale, Staging and Photography Have To Be Just Right

Create flexible and inviting indoor and outdoor entertaining space

Experts in every market stressed the importance of building great entertainment spaces both inside and outside the home. In some places, maintaining a natural flow between the two, is also considered an essential.

For indoor entertainment spaces, experts recommend that new homes have more social and open entertainment spaces throughout the home that are multi-functional and dual purpose in nature. For instance, instead of putting in a home theater or media room, Ms. Gol prefers leaving that space open and comfortable, with oversize sofas, game tables, and a large screen TV. "You want to make this space adaptable and flexible for different users," she said.

Ms. Witt agreed, noting that she’d rather see a den you can convert to a media room, rather than a single purpose space that might only be used once a month. "If you find more than one use for the space, you’ll appeal to more buyers," she said.

Kitchens should also be built to as a more social meeting place, Mr. Marris said, with an island unit that is clear, and able to be used as an eating space, or somewhere to meet around with cocktails. "The idea is to go practical and functional," he said.

More:The ‘Flintstone House’ outside of San Francisco has finally found a buyer after two years

In the Hamptons in New York, a second-home destination, Ms. Gol prefers to build properties with a seamless transition from the indoor to outdoor living and entertaining space, she said, with expansive patio areas where people can recreate living and dining outdoors outside. In her newest properties, she’s even including underfloor heating in the outdoor patio area to provide that warm invite to get people to linger outside comfortably, even on chilly evenings.

In Mykonos, where most buyers purchase sprawling vacation villas that they refurbish, Roi Deldimou of Beauchamp Estates said that the more livable outdoor space there is, the better. That’s because poolside, on an outdoor terrace with views of the sea, is where people spend most of their day.

In Cannes, where water views are also prized, large terraces are often created for al fresco dinners, which then flow towards the swimming pool and garden. "A lot of people would sacrifice bedroom space for the entertaining areas," Ms. Mikleticova said. "Indoor and outdoor entertaining space is really a huge selling point."

More:Hotel Residences and Hotel-Condo Hybrids Often Worth the Extra Investment

Go high-end yet classic in the kitchen and bathrooms

People will always care about the kitchen and bathrooms when they’re buying a home, which is why it likely pays to take care when choosing appliances and finishes for a new build.

In the kitchen, appliances in a luxury property should be top of the line, Ms. Katzen said. In Manhattan, a Viking range and Sub-Zero refrigerator are expected, while a La Cornue range is currently considered the crème de la crème, she said. "People want name brands that show luxury and identify their home as high end," she said. "Labels make that identification."

Then, the design must meld with the high-end appliances, she said, and when you’re considering resale potential, "classic is best."

In bathrooms, two sinks, a bathtub and a separate shower is the preferred set-up to retain value, Ms. Katzen said.

While classic is also preferred in renovated properties in classic structures, kitchens and bathrooms are two places where those overseeing the project should consider introducing contemporary appliances and a more contemporary look.

More:Why A Home’s Historical Value Doesn’t Always Equal a Bigger Sales Price

Consider different families and their lifestyles when you build

Several experts mentioned that one way to ensure a solid resale value on a new build is to think about the needs of the future buyer when it comes to their family make up.

Ms. Adomatis noted that blended families are common, with step-siblings living together under the same roof, but many houses don’t accommodate their needs. She recommended separating the bedrooms a bit so that they’re not only in one area of the house, plus adding a second master suite downstairs, which could comfortably accommodate an aging parent or an older child who returns after college.

Ms. Witt agreed. "You want to build a space that appeals to different lifestyles," she said, "and works for the most buyers possible."

Ms. Gol added that this extra master suite is also a must for guests, which are common in second-home markets.

"The first-floor master bedroom gives owners more flexibility," she said. "It’s almost like having a guest house, but within your home."

More:Click for More Insights on the International Prime Property Market and Daily Real Estate News for the Luxury Home Buyer

Here is a look at other news from around the world compiled by Mansion Global:

Post-Brexit, European buyers Are Leaving London Behind

Once the largest pool of foreign buyers in posh London neighborhoods such as Chelsea and Kensington, European purchasers have largely abandoned the British capital since the Brexit vote. In the first quarter of 2017, buyers from Europe made up just 8% of buyers in prime Central London, compared to 28% in the second quarter of 2016 prior to the Brexit vote, according to numbers from Hamptons International. Meanwhile, Middle Eastern buyers buoyed by strong oil prices and the weak pound have overtaken Europeans as the area’s largest group of foreign purchasers, accounting for one in 10 sales in prime central London in the first quarter. Overall, prices in the area have dropped by 12.5% since their peak in mid-2014, according to Savills. (Financial Times)

U.K. Rents Drop For First Time in Eight Years, with London Hardest Hit

U.K. rents have fallen for the first time since the post-Financial Crisis fallout in December 2009, with London seeing the steepest dropoffs, per data from Homelet’s rental index. May rents in Britain saw an overall 0.3% year-over-year drop, with five out of 12 regions reporting declines, most notably a 3% decline in London, which Homelet called "the most substantial fall for eight years." New tenancies in the city were also down by 3%. Elsewhere, Scotland, Yorkshire, Humberside, and England’s northeast and southeast regions all saw declines ranging from 0.6% to 2.3%. (City A.M.)

More:Conservative Win in U.K. Elections Could Aid Local Luxury Market

Michael Caine’s Miami Condo Is Available For Rent or Sale

Michael Caine is looking to make some cash off of his Miami Beach condo in the city’s ritzy Apogee tower but isn’t picky whether it’s as a seller or a landlord. The 4,154-square-foot apartment is reportedly for sale for $8.7 million, but also available to rent for $29,000/month. The home also includes 2,440 square feet of terrace space, complete with a summer kitchen and views of the ocean, as well as two parking spots. Caine reportedly bought the unit for $4.07 million in 2008, and has been taking it on and off the market since 2015—at one point, it was listed for $12.9 million. (Curbed Miami)

Low Prices and Major Growth Potential Draw Asian Investors to Vietnam

With home prices in major Chinese cities out of reach, Vietnam is seeing a swell of interest from investors in Asia excited by its low prices, and a rapidly growing infrastructure and economy that could spell significant gains in the coming years. Vietnam’s real estate market has only been open to foreign investors since 2015, and developers are now allowed to sell 30% of units in each building to foreigners. Data from Jones Lang LaSalle shows that apartment prices in Ho Chi Minh city grew 6.9% in the first quarter of 2017, compared to 7.3% in Hanoi, and the company projects 8% to 10% annual growth in residential values for major cities this year alone.  (South China Morning Post)

More:House Prices Spike Around The World

Montreal Latest Canadian City To Consider Foreign Buyer Restrictions

Some politicians in Montreal are considering a push for a foreign buyer tax similar to policies in Vancouver and Toronto, as sales in the city hit record levels, and market experts eye whether recent foreign buyer restrictions in nearby Ontario have created a spillover effect into Montreal’s market. The number of residential sales saw a 15% year-over-year increase in May, while the median home price rose 6% year-over-year. (Vancouver Sun)

Canadian Building Permits Continue Their Months-Long DeclineBoth volume and values of Canadian permits continued their decline in April, with the number of residential permits issued dropping 2.5% in April. The decline is largely due to a drop in plans to build single-family homes—permits for which dropped by 8.1%, driven by a slowdown in Ontario—and construction plans for single-family properties are reportedly at their lowest levels since January 2016. Lack of supply is thought to be one of the factors in Canada’s ballooning market, and more developers are reportedly turning towards multi-family projects, rather than single-family homes, meaning fewer overall permits even as construction projects are on the rise. (BNN)

More:Vancouver Home Sales Hit Record High, While Toronto Tumbles

Japan’s Record-Breaking Land Prices Showing Signs of Strain

Following several years of dramatic land price increases, market watchers in Japan are bracing for a correction, with some institutional investors already starting to sell off assets. Land prices in Tokyo’s central Chuo ward have jumped by 51% in four years, while Osaka’s have gone up by nearly half, thanks in part to low interest rates, stimulus measures from the Bank of Japan, preparations for the 2020 Olympic Games in Tokyo, and a weak yen that has drawn in a flood of foreign investors, the number of which tripled between 2012 and 2016. An excess of supply is already on the rise, as the number of unsold new apartments and new housing for rent recently reached multi-year highs in Tokyo, while foreign institutional investors have started to become net sellers. One analyst for Deutsche Bank estimated a 20% drop in Tokyo housing prices over the next two years. (Bloomberg)

 Rising Divorce Rates Putting Increased Pressure on Hong Kong’s Housing Market

Rates of separation and divorce have increased significantly over the past 20 years as Hong Kong has continued its integration with mainland China, creating a major increase in demand for housing that’s already in short supply, an often-overlooked factor in the city’s spiraling property market, according to housing analyst Richard Wong. Housing planners didn’t anticipate the flood of divorces after Britain let go of the former colony in 1997, said Mr. Wong, and while the cumulative gross number of new domestic housing units constructed between 1976 and 1995 hit 1,267,335, in the next 19 years, only 857,378 units were built. Meanwhile, between 1995 and 2015, the number of divorces rose from 84,788 to 323,298, while remarriages jumped from 65,794 to 256,066. (Bloomberg)