Can Your Home Value Vary By ZIP Code?

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.

Get More Home for Your Money in Less Popular Places

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 3 bed / 2.5 bath single family home will run you about $377,000 for approximately 1760 square feet. Though a similar 3 bed / 2.5 bath with nearly DOUBLE the square footage, will run an average of $289,000 in the nearby location of Spring Grove. Though you won’t be as close to the historical battlegrounds, you’ll get more home for your money in an area with significantly less tourists.

Property Values Increase with the Number of Community Features

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. This can be due to the number of schools, community parks, proximity to area attractions and the number of potential employers. ZIP code 21209 is much closer to most main attractions in Baltimore, including the ever-popular aquarium and Inner Harbor. And when it comes to employment, more people would soak up the opportunity to get paid 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.

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.

The 5 Best Housing Markets in the US

October 2, 2009

I know it sounds crazy, but YES! Despite the downward spiral of home values over the past year, there are actually major cities where current market values have been on the rise! Gathering data from Zillow’s second-quarter home value index and comparing it to the same time in 2008, it was discovered that a handful of cities seemed to be immune to the market crash!

Top Five Best Housing Markets for 2008-2009

And the winner is….

1) Boulder, Colorado

Share of Homes with Increased Value: 59.39% Median Home Value: $347,200

This great city is home to successful employers and the University of Colorado. In addition to steady jobs, this area is limited in the number of homes because of the Rocky Mountains which outline the skirts of the city and the vast amount of protected natural areas.

2) Spartanburg, SC

Share of Homes with Increased Value: 56.81%  Median Home Value: $106,900
A mere 75 miles west of Charlotte, this bounding city is the first and only city in South Carolina to be named as a Bicycle-Friendly community by the League of American Bicyclists. It is home to three major colleges and universities as well as a few major corporation headquarters including Denny’s and Extended Stay Hotels. Still it maintains the ’small town feel’ featuring historic buildings and bridges that lend great history to this small town.

3) New Orleans, Louisiana

Share of Homes with Increased Value: $53.62% Median Home Value: $148,000
It’s no surprise here that this cities market value is growing. With the impact of hurricane Katrina in 2005, the construction business has been booming. Building houses from the ground up. In addition to more jobs being created daily, this famous parish also receives federal incentives, insurance money and private investments to help restore it to it’s former glory!

4) Binghamton, New York

Share of Homes with Increased Value: 53.61% Median Home Value: $112,300

There’s a reason this city, located in upstate New York, made it to the number three spot in the nation and that is that it remained fairly dormant during the housing bubble where elsewhere prices sky-rocketed. So when bubble finally burst and most other areas saw huge pitfalls in home value, Binghamton stayed pretty level. Another big factor is the town’s University - one of the nations highest ranked public universities.

5) Fayetteville, North Carolina

Share of Homes with Increased Value: 53.23% Median Home Value: $119,800

Fayetteville is right next door to Pope Air Force Base and Fort Bragg and so it heavily relies on military families. But the town also features three colleges and universities, several museums and a historic downtown popular with tourists. Are we starting to notice a trend though with housing markets and universities…? It sounds like if you’re looking for a sure bet in today’s market… you might be best off moving to your nearest college town!

Other honorable mentions go to Pittsburgh, PA with an increased value of 48.80%, median home value of $108,700 and to Little Rock, Arkansas, increased value of 46.96%, median home value of $121,200.

What Is A Home Value Assessment?

August 28, 2009

What You Need to Know About Home Value Assessments

When trying to determine the current value of your home, there are a lot of similar sounding terms that are thrown around to help you do that. One of the most commonly confused terms is “home value assessment”. The reason for this is that it’s easily interchangeable with the term “home value appraisal”, but you might be surprised to find that there is actually a significant difference between the two.

A home appraisal is an optional service in which you pay a third party Apprasier to evaluate your home and determine the current home value. This is generally done by people looking to sell their home, get a home equity loan or those wanting to refinance their current mortgage.

A home value assessment on the other hand, is generally used to describe the process in which a local county official will assess the current condition of your home in order to determine the amount of property taxes you should pay. Therefore, it traditionally is associated with less appeal than an appraisal.

A home assessment represents a typical, or average value for a property in relation to other property values within a specific period of time. Depending on where you live, this time frame can vary from six months to two years! It is not usually associated with the current trends in the real estate market because the value of a particular property will depend on the sales of the other homes nearby . Assessments are NOT based on larger sales activity trends which you might see county-wide or within a zip code area.

Instead your assessment value will be based on typical values within your neighborhood. While the sale of a property will affect a home’s assessment, the effect will be diluted by the mass appraisal methods and results usually from within the past year. Consequently, this time lag means that the assessments of properties that have sold very recently may differ from the sale price which is generally based on appraised value and real estate market trends.

It’s also important to note that transitory elements such as neighbors who don’t mow their lawns, or are  consistantly noisy, will not affect your assessment. Whereas things like house construction, neighborhood boundaries and lot size remain relatively constant and therefore will likely play a factor in your home’s assessment.

Quick Facts

• An assessment is when the local government assesses your home value in order to determine how much property tax you should pay.

• Most government agencies do home assessments every 2-4 years, but can vary based on location.

• Home assessments are based on smaller, local areas such as your neighborhood versus larger trend tracking boundaries like counties and zip codes.

• An appraisal can be can be done by an actual Apprasier for a fee of  or by your local Realtor, usually free of charge!

• If you feel you’ve received an unfair assessment of your home, you can contact your local tax officials and contest any findings.

In the end, it’s good to know the major difference between home value assessments and home appraisals. And while there’s not a whole lot you can do to affect your home assessment, it is important to be prepared for any changes that may take place. Taxes: Just one of the many joys and responsibilities of home ownership!

Home Resale Value

August 24, 2009

We get a lot of questions from people asking us about the resale value of their homes. It’s an important part of both the buying and selling process. When shopping for a home, you need to keep in mind it’s potential resale value 5, 10, and 15 years down the road. If you’re selling, than your resale value is essentially your home’s current value.

In either case, it is always best to contact your local real estate agent. In addition to being a go-to resource for any questions about your home, you can also request a comparative market analysis or CMA. A CMA will list the sales activity in your neighborhood for up to one year. Here you can determine the percentage of homes actually sold out of all those listed and you can see the average amount of time it took for those homes to sell. If you compare your homes attributes to the similar homes on the CMA, you’ll be able to have an idea of where your home’s value will fall so long as you can avoid the emotional bias that eliminates the  objective judgment needed for your home. This, again, is where having a Realtor comes in handy.

If you’re looking to increase the resale value of your home, there are plenty of tips out there that can add value, but you want to be sure you get the best bang for your buck! Here is a list of popular renovations and their rate of return.

• Roof Replacement:

Avg. Cost = $14,000 - Rate of Return = 74% - Value at Sale = $10,360

• Bathroom Remodel:

Avg. Cost = $30,000 - Rate of Return = 75% - Value at Sale = $22,500

• Basement Remodel:

Avg. Cost = $55,000 - Rate of Return = 79% - Value at Sale = $43,450

• Major Kitchen Remodel:

Avg. Cost = $55,000 - Rate of Return = 83% - Value at Sale = $45,650

• 2nd Story Addition:
  

Avg. Cost = $110,000 - Rate of Return = 83% - Value at Sale = $91,300

• Window Replacement (Vinyl):

Avg. Cost = $10,000 - Rate of Return = 84% - Value at Sale = $8,400

• Window Replacement (Wood):

Avg. Cost = $11,000 - Rate of Return = 85% - Value at Sale = $9,350
(get more helpful information on custom window replacement from these Maryland replacement windows experts)

• Minor Kitchen Remodel:

Avg. Cost = $18,000 - Rate of Return = 86% - Value at Sale = $15,480

• Siding Replacement:

Avg. Cost = $9,500 - Rate of Return = 87% - Value at Sale - $8,265

Keep in mind these are averages and will be different based on the materials used and the styles incorporated. If you’re going for maximum return, keep your designs fairly neutral. You can add your personal style or flair by using accessories, pillows, art, etc, but you’ll want your over all design to appeal to as many buyers as possible to increase the resale value.