Average Home Values Based on Zip Code Locations
March 11, 2010
Areas with neighboring zip codes often have differing price ranges when it comes to home value. Factors that play a role in the differences can range from anything like the number of schools to the number of tourist attractions in the areas.
Zip Codes Near Historical Attractions
It’s expected that homes in places with more attractions, such as Gettysburg, will draw more prospective buyers than the nearby Spring Grove. Many more people have heard of Gettysburg; most of us learned about the battles in middle school. Real estate in this area, then, will cost you much more money than homes found in Spring Grove, a lesser known borough.
In Gettysburg, the average single family home with three bedrooms and two and a half bathrooms will run you about $377,000 for approximately 1760 square feet. Though the average home with these same features will run you $289,000 in the nearby location of Spring Grove, the average square footage is significantly higher at a whopping 3577. Though you won’t be as close to the historical battlegrounds, you’ll be gaining more land for less money in an area with significantly less tourists.
Zip Codes Close to Aquatic Attractions
Some people prefer less populated areas. If an area has a smaller number of residents, it may be more difficult for you to find a home that’s reasonably priced. For example, Baltimore, MD, has a high number of residents. However, the city is broken down into a number of zip codes. In one zip code, 21209, homes with three bedrooms and two and a half bathrooms are more expensive than those with the same characteristics in the 21207 zip code region. One reason for this is because 21207 has many more schools, including nine elementary, compared to 21209 which only has two. 21209 is much closer to most main attractions in Baltimore, including the ever-popular aquarium and Inner Harbor. More people are interested in these, and many would soak up the opportunity to feed rare fish all day rather than slop together fish sandwiches at the local fast-food restaurant.
When comparing prices and looking to save money, your best bet is to look at homes in the 21207 region. The average cost of a three bedroom, two and a half bathroom home is around $208,000. That includes an average of 1700 square feet! In 21209, you’re paying more for the same structure and square footage because of the closer access to well-known attractions. The average home in this area will cost you around $292,000.
Can you base a home’s value strictly on the location of zip code regions? Not always. It’s always important, though, to consider the types of attractions within the area where you’re hoping to purchase a home before you decide you’re unwilling to pay the asked amount.
Why Should I Share Buyer’s Feedback?
January 24, 2010
It’s not uncommon among real estate agents to question the idea of a buyer’s agent sharing the buyers’ feedback to the listing agent after a showing. Some would argue that it’s not their responsibility or they can’t remember the specifics about the property in question, and for some, they feel they simply can’t take the time unless the buyer wants to put in an offer. But paying attention to and sharing a buyer’s feedback can actually help you in the long run.
It can be extremely frustrating for the listing agents because such information would be extremely helpful to get the home sold. But, if the buyers or the buyers’ agent isn’t leaving feedback it can leave sellers frustrated not knowing why their home isn’t selling. So…. what are the benefits of you taking the time to give feedback?
My Ideal Home Is Not…?
When you’re working with a client, you can offer better service by continually learning and adapting to what turns them on and off about a home. Why? Because you’ll have a better idea of that perfect home. Yes, you know the basics, location, number of bedrooms, bathrooms, square footage etc. etc. But it’s going to be the things they DIDN’T tell you that will keep them from putting in an offer. The more you know about what they like and dislike, the more apt you are for find the one home they fall in love with the moment the step inside.
The Golden Rule
And since you have the information handy – you should pass it onto the listing agent. Striking up a conversation with them means that you’re being a better agent for your buyer by building your network of influence. This helps you down the road because if you’re willing to help out another agent, chances are they’ll do the same for you. Sharing information about your buyer’s reaction will ultimately help a listing agent sell more quickly and when the time comes and the roles are reversed – you too could find the information handy. It’s about making yourself known and useful.
With the economy the way it is today, people are sometimes hesitant to give without the guarantee of getting something back, but this isn’t rocket science. It’s just taking a few minutes of your day to offer help to a fellow agent. You’re not handing them your business, just offering a hand.
2010 Emerging Trends – Compact Communities?
December 31, 2009
So here it is… New Years Eve. As 2009 draws to an end, and agents, buyers and lenders all vamp up for the new year… I found myself pondering what it has in store on the real estate front. In doing so, I found an interesting post by The City Fix called “The End of the American Exurbs and the Death of Sprawl?”
In it, it talks about a shift that began happening even before (and in part because of) the financial and real estate crisis of 2009. It states that communities across the US are compacting themselves. What once were new and lively suburban areas, are now littered with empty homes largely due to the fact that Americans are moving inward. We’re seeing a greater desire for smaller, more practical homes and shorter commutes. The article quotes from the Urban Land Institute’s Emerging Trends in Real Estate 2010 annual report, who had some interesting observations including specifics on the types of homes that are being snatched up and what developers might expect to see in 2010.
Keep in mind, that these trends are – simply put, good guesses for what the New Year has in store. We’re not seers or soothsayers, but this article seemed interesting to me and gave me some insight as to how I might critique my business plan for 2010. Still, nothing is set in stone, so be flexible, be prepared for whatever may come your way and from all of us at GetMyHomesVale.com, have a very safe and happy New Year!
Seattle Agent Marlow Harris On Niche Website Marketing
December 9, 2009
Every now and again we are introduced to an agent who is doing something outside of the norm with their internet marketing. We believe that Marlow Harris is one of those agents.
Marlow works in the Seattle real estate market and the internet is responsible for more than 30% of the closings she has. As a matter of fact, Marlow had a 1.7 million dollar sale that her website was responsible for.
“The buyer didn’t even see the house. She was from over sees and found my website online. About 30% of my sales come from strangers I’ve never met,” said Marlow in her seemingly permanent upbeat tone.
So what’s so unique about what she’s doing? It’s the fact that Marlow has more than 5 websites that all focus on differnet niches. NorthwestModernHomes.com is focused on providing information to people when they’re looking for modern homes in the Northwest. If you’re looking at information on living in the Seattle area, Harris has established SeattleDreamLiving.com. SeattleUrbanCondo.com focuses on Condos within the boudaries of the city itself. The most “outside of the box” in our opinion is NorthwestGreenLiving.com, where she talks about eco-friendly building and homes, an extremely hot topic these days.
The most important site to Marlow? SeattleDreamHomes.com for sure. This is where she has focussed most of her link building efforts. Building links to a website is one of the most important things that make it rank higher. It certainly generates a considerable amount of traffic with it’s more than 1,045 (as of this post) highly searched terms ranking in the top 20 in google. This is a feat that most agent don’t achieve.
So, what can agents learn from Marlow? We think she says it best, “use the internet in ways that are attractive to a variety of people. Create sites that different niche groups will find value in, and they’ll find value in you.”
Find a Home You’ll Love on a Budget You’ll Like
November 25, 2009
With low home prices and record low interest rates, many buyers are jumping into the market and whether your a first time buyer, or a seasoned market veteran, we all have a budget. The key is to not let anybody tell you that you can’t afford to be choosy when looking for a home to buy. You are unique. And no matter what advice you receive – it’s important you get as much on your checklist as possible. Obviously, we may not get everything – so use the list below to determine what’s most important to you.
TYPE OF HOME
Single Family:
- Pros: Good appreciation. Land for gardening, outdoor entertaining. More privacy.
- Cons: More expensive than the alternative. More maintenance.
Condos, Townhomes and Cooperatives:
- Pros: Less expensive. Generally newer so less repairs are needed. No exterior maintenance.
- Cons: Less privacy. Nosier due to common walls, floors and/or ceilings. Sometimes no private yard or outdoor space.
New Build:
- Pros: New homes won’t need repairs. You can customize many cosmetic features and even the entire layout of the home.
- Cons: Generally new homes lack attention to detail and finer craftsmanship. Can look like many other homes in the area.
Fixer:
- Pros: If you’re handy with tools, you can get a great deal and customize your home. You can keep the style and details of an older home, but add modern upgrades.
- Cons: Even the most experienced contractors come across money pit fixer uppers. You may think most problems are superficial, but once you dive in… the fixes start to unfold and cash runs really low… really fast.
LOCATION
Suburbs or Country
- Pros: Generally are less expensive per square foot and newer. More home for the money.
- Cons: More time spent driving into town or city. Further away from entertainment options that are located in the city.
Urban
- Pros: Close to multiple potential employers. Usually within walking distance to theaters, restaruants and schools. You may find more architechtuall differences and diffinetive styled homes.
- Cons: Nosier. Higher crime rates. Smaller homes.
Cul de sac:
- Pros: Quiet. Very little traffic. Highly desired by families with children.
- Cons: Less privacy. Nosey Neighbors.
Corner Lots:
- Pros: Few neighbors. Larger lots and more visibility.
- Cons: More traffic noise. Vulnerable to vehicles jumping the curb. My personal pet peeve: Kids trespassing through your yard as a “short cut!.” And you’ll have more sidewalk to shovel when it snows.
LEVELS
Single Story:
- Pros: Easy wheel chair access. Great for those with medical conditions. Easier to clean.
- Cons: Nosier if living space and bedrooms are on the same floor. Smaller yard due to the square footage of the house itself.
Two + Story:
- Pros: More living space on a smaller foundation. Less noise transfer. Appealing to families.
- Cons: More trips to carry things up and down stairs. More difficult to clean (think dual vacuums) and maintain consistent temperatures on each level.
Split-Levels:
- Pros: Can be less expensive than traditional two story home. Higher ceilings on main living area. Downstairs family room and bedrooms can breakup noise levels. More square footage than one story.
- Cons: Less storage space. Stairs are inevitable when carrying groceries or taking out trash. Kitchens tend to be smaller. Upper levels are always similar in layout.
INTERIORS
Number of bedrooms:
- Pros: Most common request is three bedrooms, which will result in higher resale value.
- Cons: Two bedrooms appeal primarily to first time home buyers, seniors or single people, however, don’t count them out if an extra den will work for your space requirements.
Number of Bathrooms:
- Pros: One bath homes are often less expensive than multi-bath homes.
- Cons: Most people prefer more than one bath. (Note: Don’t pass up on a one bath home if there is room to add a second. Sometimes, it’ll cost less to add a bathroom, than it would to buy a two bath house.)
GARAGE SPACE:
Attached:
- Pros: Cheaper to build. Convenient for bad weather like rain and snow.
- Cons: Noise level. Automatic openers can be noisy in addition to cars or work shops in the garage. Some people consider and attached garage to be an eyesore.
Detached:
- Pros: Can be tucked away, out of site. You can customize the size for your own personal use. Quieter.
- Cons: More expensive to build. Inconvenient in case of bad weather. Longer walk to carry items to and from the house.
These are just some of the considerations that home buyers face when shopping for a home. Other considerations have to be made like which special amenities are must haves, and which one you can do without. Also think about the utilities that are available to you like whether you can use cable, DSL or satellite and when it comes to plumbing… can you settle with a septic tank or cesspool instead of a sewer? The bottom line is that you can ask for advice as much as you want, but ultimately, this will be YOUR house and you need to wait until you find one that fits your needs, your budget, AND your wishes!
Happy Shopping!
Obama Signs Homebuyer Tax Credit Extension
November 9, 2009
Housing Tax Credit Extension is Passed
It’s official! On Friday, November 6th, 2009 – President Barack Obama has signed a $24 billion economic stimulus bill that gives tax incentives to prospective homebuyers. In a rare bipartisan agreement, the US House of Representatives have voted 403-12 to extend and even expand the homebuyer tax credit.
The extension will now last until April 30th, 2010 and amount of credit is $8000 (or $4000 if married but filing separately). In addition to the extension, the bill will also include a tax credit for current home owners as of December 1st, 2009 to April 30th, 2010. The credit amount is $6,500 (or $3,250 if married, but filing separately).
Similar terms and conditions will still apply. For example: the homeowner must have used the home as a principal residence consecutively for 5 of the previous 8 years and the home purchase agreement must be signed no later than April 30, 2010, however the purchaser will have until July 1, 2010 to close. Income restrictions were also raised and are now listed at $125,000 if single, or $225,000 if married. The bill also includes a limitation on the purchase price of the home – up to $800,000.00
The White House released a statement which says the new law also includes tax credits for struggling businesses and unemployment extensions and will build upon the stimulus package from last February for $787 billion. It is their hope that this tax credit will help struggling families (many of whom have suffered job loss within the past year) avoid foreclosures on their homes.
Think Before You Buy
October 15, 2009
When Should I Buy A House?
With this year bringing record lows to home prices, many renters out there are wondering if this is the right time for them to buy. Afterall, the appeal is certainly there. The idea of owning something brings a sense of pride that only home ownership can and you have the possibility of earning equity in the future. This can help fund future retirement, pay for college tuitions and much more.
Today, the dream of home ownership is accessible to more people than it typically has been in the past. However, not everyone is ready for home ownership. There are a lot of things to conisder before taking that first stip towards home ownership. Buying a home can be a great experience, but it is always a large responsibility, so you really need to stop and consider whether or not it’s a responsibility that you’re willing to take on right now.
As you contemplate the many decisions ahead, here are some simple and basic questions to ask yourself as you begin to think about being a home owner:
Am I Ready and Able to Settle Down?
The term “settle down” doesn’t need to imply that you’re ready to be married, have kids, buy a puppy and plant petunias in the yard! It’s is perfectly acceptable to buy a home, live there for a couple years and sell. However, you do need to decide if your lifestyle is condusive to home ownership. Do you travel frequently for work? If so, you might not be home enough to a) enjoy your home and b) keep up on the general maintenance it requires. Speaking of maintenance, are you savvy when it comes to fixing things? As a renter, any problems noticed are investigated and resolved by the landlord. As a home owner, you have to know WHAT to fix, before you can make arrangements to GET it fixed.
Can I Afford a Home of My Own?
Let’s be frank, with today’s prices, it is possible to arrange a mortgage payment that is less than what some people are currently paying in rent. BUT the consequences for failing to make a mortgage payment are much greater than being late on your rent check. You’re credit is on the line. You also have to consider that in most rentals – some portion of utilities are being paid. As a home owner, this will fall on you. Water, sewer, trash collection, gas, electric, etc. etc. In addition to these, see above. Don’t forget about the cost of maintaining your home. What would you do if a seemingly perfectly good water heater breaks? Can you afford to fix this?
The recession and the housing crises have been difficult on everyone. If you’re one of the many people struggling to make ends meet – you should probably hold off for a while. Now, I certainly don’t want to scare anyone away from pursuing their dream of home ownership, but rather make it will be an enjoyable and profitable experience.
If you think you are ready to own a home, GREAT! Do some research. Find a great Realtor and a lender that will work for you. Make sure that you educate yourself on the numerous options out there and what will work best for your situation.
Electing for Lower Home Value?
October 6, 2009
Local Elections Affect Home Values
You know it’s election season when the yard signs start to pop up on every street corner, sometimes multiplied two, three, even four times for the same person. Some people pay attention to local elections and campaigns, others do not. But it may be wise to review some of the candidate’s history, especially if you’ve noticed a slight dip in your current home value.
The process of housing development approval falls upon these soon-to-be-elected city officials, but is rarely dependent upon factors such as supply and demand. As the supply of homes rise, it must be met by correlating demand. If not house values fall. It seems like an obvious concept, but judging by the nations current market – many were oblivious to this notion.
During one of the fastest appreciating real estate markets in history, local governments justified their seemingly endless approval of residential development projects by citing the increase in city revenues and the jobs that were created. Unfortunately, these affects didn’t last long and were soon eradicated by the concept of supply and demand. Once buyers’ demand could not keep up with escalating home prices, numerous builders began to reduce the prices of their homes in order to compete with one another. This caused housing prices to begin falling.
Home values began to drop so rapidly that foreclosures became the only viable option for many borrowers as selling or refinancing became impossible since all the equity in their homes had been wiped out by this excessive competition. Soon foreclosures began to flood the market driving supply up even further. Home builders were then forced to reduce their prices even further to now compete with banks that were offering their foreclosed homes for much lower prices. All the while the values of homes caught in the cross-fire were diminished to astonishingly low levels and the fear of continuous declines in housing prices kept buyers on the sidelines and the demand at historical lows.
Much of this could have been prevented by simply assessing the local statistics (population growth, income levels and current supply) before handing out the rubber-stamp approvals. In doing so they might have learned that supply was quickly outpacing demand.
On the brighter side, not all major cities have fully succumbed to the devastating market crash. Those cities that have traditionally regulated housing supply by more intensely scrutinizing proposed developments have managed to lessen the blow.
Still those candidates seeking office are now adopting smarter principals for their campaigns’ when it comes to residential development. It will then be our job to ensure that they maintain their pledge as lead the way to a once again thriving economy.
What To Consider Before Refinancing Your Home Mortgage
September 19, 2009
Should You Refinance Your Home Mortgage?
Refinancing a home mortgage is only worth the effort if the resulting refinanced loan helps you avoid foreclosure, if it is sustainable AND if it reduces you total home loan costs.
During the market boom, the main reason people sought to refinance their loan was to take advantage of any home equity. Homeowners refinanced loans to get a higher principal and use the extra money for things like debt consolidation, buying a new car, paying their child’s tuition, or preparing for retirement.
Today, however, with the downturn of the economy and the bust of of the housing bubble, refinancing has now become a means to avoid foreclosure – ever since the Obama administration’s Making Home Affordable program for those whose mortgages are currently owned by Freddie Mac or Fannie Mae.
Under this program, your mortgage lender gives you a loan refinancing estimate. This shows your new monthly payment, new mortgage rate and the total amount you’re going to pay over the number of years specified in your contract.
Keep in mind that many people, after reviewing the payment and terms of the refinanced loan, find that it is NOT an improvement over the original. This is because you can’t simply compare monthly payments to monthly payments, especially if your original loan is an adjustable rate mortgage or ARM. In ARM refinancing, your monthly loan payment will always increase if you convert to a fixed higher rate. It may seem that the new rate is higher because you were given the option to only pay the interest of the loan, but ultimately the fixed higher rate would enable you to sustain the loan.
Therefore, refinancing for an ARM can be good if it’s expected to reset to a much higher rate in the next few years. It will help you sustain payments in the long run and will also help cut interests costs because of the record drop in rates right now.
So, if you’re currently at a fixed rate and you’ve been making payments for several years, look carefully at the full terms and conditions of any new loan. You just might be increasing your total loan cost, rather than lowering it.
A New Look for New Home Buyers
September 16, 2009
Ushering In A New Generation of Home Buyers
I was recently browsing the Internet and searching for various topics when I came across an image of an article – so I started scan it up and down and low and behold – it was about the new changes in the housing market! Thus my interest was intriuged and I began to read on. What I liked about this article was that it has a different take on some of the changes that will or have taken place. It wasn’t about the financial mess that we’re in and I thought it provided an interesting view point on the new face of real estate.
“Housing the NeXt Generation”
No author’s name was given, but the article featured Generation X or the “lost generation” and the affect they’re going to have as the now mid-20 to early-30s group starts the housing hunt! It compares this generation to that of the baby boomers (essentially, their parents) who once wanted large suburban homes, to Generation X’s more contemporary and urban lifestyle.
The unnamed author believes that the “Xers” will, over time, dramatically change the housing culture by requesting differing styles from builders than that of their parents. According to this post, it will be things like ‘Homes with cozy and intimate rooms’ siting that Xers generally want smaller families than that of baby boomers and will require less spacious and more practical rooms.
They will also request homes that are ‘pre-wired for computer and video transmissions.’ As the new tech-savvy generation grows up along side laptops, faxes and Internet, having appropriate access ports in each room will be very important. They also list features such as low-maintenance, high quality, and have a greater taste for fine details and classical architecture in addition to green designs.
In short, we will eventually see less new homes in the suburbs, of which the supply is plentiful, and more new high rise condos and renovated warehouses popping up in the metropolitan!
You can read the full article at Medina Count Home Builder’s Association.