AmyBSells Team - Cincinnati Real Estate Blog

Amy March 25th, 2008

This morning, I was up with the birds, hoping that spring will find its way too cold and confused Cincinnati Weather. We need spring here to make our lawns and trees green, so our Real Estate can look beautiful for our promising spring market.
I was reading Real Trends Newsletter online today and thought I would share the whole article with you, along with some points I thought you might find interesting. I also wanted to point out some points that I have been sharing with you all along, since the market became not so easy to work in. As you all know, I am a realist, and a very painfully honest Real Estate Advisor. I like to try to find the positive in every situation, and we still have some reasons to be positive in this market. Let me share with you some thoughts….
This March edition of Real Trends newsletter that is attached suggested that this year, for the first time ever, the number of Realtors and associated Real Estate Professionals (Lenders, Appraisers etc) have declined. Only the Strong Survive! This has proven true in the Cincinnati market as well, as membership in the Cincinnati Area Board of Realtors dropped when our annual fees were due in January.
Interesting as well that 50% of all listings in the country are held by the nation’s top firms, listed in the article. I believe this is a true testament to BRANDING the large companies, and the internet reach of so many large Real Estate Companies. As you may recall, Remax is an international Real Estate Name, in over 60 countries on Earth! Easy exposure for your home in any part of the world. In fact, recent data shows that Remax is only behind Realtor.com and Homegain.com with the largest internet market share in the US, Based on NAR statistics.

Real Estate Auctions have become more widely used in this current market. States that were hit hard with the market value decline like Florida and California, report the use of Auctions to sell real estate up 46% from 2003-2007. Interestingly enough, the foreclosure properties are not successful at auction sales, as they report that banks are not able to take low bids or the types of hits that auctions often result in)

FORECLOSURE UPDATE:

VERY IMPORTANT INFO ON page 5 of this newsletter if you want to invest in a foreclosure! This will be another article on my blog entirely. This section of the newsletter warns of the same issues that I have previously discussed in my articles on Foreclosure and the hidden costs and the slow banks response times. The bottom line on Foreclosures, they are not good if you are looking to buy your first home, to move your family in the home, if you are looking for a good experience with ease when you purchase, or if you need a loan to purchase, if you do not have cash on hand for unforeseen emergencies. Foreclosures are still best for those that have SUPER PATIENCE, do not need to buy, and have cash, mostly investors.

Real Trends compiled a chart of all the major data sources in US Real Estate, which all 8 sources showed a decline in year over year change in the national price index, ranging from -0.3 to -10.9%.
In the markets in the US that are selling homes, they found that those selling are priced BELOW $250,000, and are “cleaned up.” Contributing to my 2008 motto: We are in a PRICE WAR and a BEAUTY CONTEST with home sales in Cincinnati.

Further, in all of the major markets, only 4% of the inventory is on the market for less than 4 months. 95% of inventory is on the market for 4-12+ months, and over half of those 95% are on the market 9-12+ months. The silver lining and positive spin on this data, is that in Cincinnati, we experience the same issues, but certain areas of the city are on the market far less than 9-12+ months! Areas like Hyde Park, Mt. Lookout and Oakley have a high demand, a good portion of housing at or below $250,000 and are experiencing about a 95-97% list to sale ratio in today’s market. In my own business, my average days on market are between 45-25 depending on the part of town, and my overall list to sale is 97%. I know that my experience and success pricing homes for the current market has directly contributed to my rapid sales and high ratios. I contribute this to experience, realistic sellers, and .
I have to agree with a statement that Forbes magazine wrote recently, that was quoted in this Real Trends Newsletter, and I will increase the size and change the font for good measure,
Greed and Impatience are the top 2 factors contributing to our current market conditions today.
Another interesting set of data regarding negative equity in homes in the US. The longer you own your home (5 years being ideal, the longer the better in this market) the more equity you have. The data was collected from 72 million owner occupied homes, suggests that
30% of homes purchased in the last 12 months have negative equity
39% of homes purchased in the last 24 months have negative equity
LESS THAN 2% of homes purchased in the last 5 years have negative equity.

What does this mean to the homeowner? Stay in that house as long as you can, especially if you have a 100% or an FHA loan with little or no down payment. You will need every bit of equity you can get! I hope that my clients recognize that I want to help them sell their homes for a gain, not a loss. The longer you own your home, the more gain we can find you, the shorter, the more likely it is that you will need to make up for the loss at the closing table. The AmyBSells Team can sell a home in any market, we prefer to help you make money, and curb any losses. In the end, we price the house for the market, not the equity position.

THE POSITIVE

The report suggests that there will be more new households created in the next 10 years, than there were in the last 10 years.
Congress has done some good things for the housing market: They increased FHA loan limits, which have helped a number of my clients, they have passed laws to deter some foreclosure increases, which helps area property values not decline, and they are creating a number of Real Estate associated Tax Credits, which encourage buyers to purchase real estate.

CONCLUSION

As a Certified Residential Specialist, selling more than 32 homes a year in a down market, REAL ESTATE IS SELLING. I tell my sellers, if you have to sell, we will get it SOLD for you, but now is not the time to have unrealistic expectations. I did not cause the market conditions, and I cannot cure it, but we must make the best of the situation. There are proven ways that my team has found to position your home for a solid SALE in a realistic time frame. Call us to help you position your home for a successful sale! We have proven results in this challenging market!

• Buyers , Financing , Foreclosures , Housing Market , Lending , Pricing , Value
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Amy March 24th, 2008

According to the National Association of Realtor’s, curb appeal sells 49% of all houses. The front of your property should be alluring enough so that a buyer and agent, driving by slowly, will actually want to stop his or her car, and get out to have a look. That is curb appeal.
Your property should also give the prospective buyer a feeling of confidence in the property. Risk is something that we all avoid when buying real estate. If the property looks like it needs improvement then that perception alone will introduce the idea of risk into the transaction. However, if the property is well cared for and has tasteful decor then the perception of risk is lessened. Simply, a nice house is worth more or will sell faster, given the market conditions.

It’s important to understand the difference between price and value. Price is the amount you are asking for the property. Value is the buyer’s perception and can be influenced by location (it’s 2 miles from my office!), features, condition and most importantly, comparison to similar homes on the market. While you can’t control all of these factors, Real Estate Opinion Expert Paul Bianchina shares some tips that, when properly attended to, can have a positive impact on value and significantly increases your chance of attracting qualified buyers more willing to pay closer to the asking price, and have your home sell in less time than competing homes on your street or in your area that could be on the market for 6 months to a year.

Some tips to achieve a positive impact on value are:

1. Perceived size impacts value, even more so than actual square footage. Open floor plans make a room feel bigger than larger spaces with smaller rooms. Showing property that is furniture free, or at reduced clutter, helps to make the space feel bigger.
2. Vacancy increases sale-ability. Property is easier to show and easier to sell, and quicker to take possession of when it is vacant at the time it is offered for sale. Evidence of problems to take possession of the property — such as encroachments, or tenants who won’t allow buyer tours — negatively impact value. Vacancy also helps the buyer walk through the property imagining ownership. Sellers should remove personal trinkets and family pictures as well as being conveniently absent during a buyer tour.
3. Cosmetics are important:
   • Fresh paint will always add more value than it costs.
   • Clean or new carpet/flooring adds more value than it costs.
   • Landscaping adds more value than it costs. At the very minimum, make the entrance area neat.
   • If you can, add some colorful flowers and new sod.
   • Staging your home with a professional is a great way to sell faster or for more money. Check out staging article and the difference it makes in totally vacant homes.
4. Take care of the obvious! The spot on the ceiling from the roof leak takes thousands of dollars from the perceived value and the offer price.
5. Condition affects value. Do a seller’s home inspection to identify and fix the problem BEFORE closing. No point holding up your check a few extra days; plus a failed buyer’s inspection could cost you the sale. Buyers will often bargain down your asking price to accommodate for property condition and repairs.
6. If you can, remodel/update the kitchen and master bathroom. These two areas have a big impact on home buying decisions. For a few hundred dollars some cosmetic upgrades can truly make a difference in the buyers perception of your home.
7. Strategic renovations impact value and your bottom line. Don’t spend more money to renovate the place than you can recapture in value on the sales price.
8. The AmyBSells Team can help you spend the right money in the right places. Sellers are not getting back 100% on their upgrades and added features in this market, so we want to be sure you are doing the repairs that make a difference (not the ones that don’t matter) and get your home SOLD faster and for the most money!

• Home Improvement , Housing Market , Improvements , Listing , Staging , Value
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Amy August 12th, 2007

The new Columbia Square will be located at the corner of Delta Avenue and Columbia Parkway in the Heart of Columbia Tusculum and has a projected cost of $24 million dollars. There will be four total buildings that comprise Columbia Square. Three of these buildings will be located on the south east corner of Delta Avenue and Columbia Parkway, near the Precinct and the Junior League of Cincinnati, both of which will remain in their current buildings. The fourth building will be on the north west corner of the intersection. This project is planned to take almost 10 years to complete in two phases. This development projects are to add 160 full-time jobs to the Columbia Tusculum and Cincinnati Communities that surround it.From what we know in the community and on the Neyer Development Website , the City and Neyer are planning eight acres of mixed use office, residential and retail space. There will be 50,000 square feet of Class A office space, 25,000 square feet of retail shopping, and 60 Upscale residential units in two separate phases and 6-12 luxury town homes. The development will also include off street parking for shoppers, residents and employees.

This type of rebirth in the Columbia Tusculum area with retail and office space will create a greater demand for housing within walking distance to the development, thus boosting the already solid return on investment of Residential Real Estate in Columbia Tusculum. Now, like it’s neighbors of Hyde Park, Oakley and Mt. Lookout, Columbia Tusculum will join in the economic boost of having a square that residents can walk to. We have seen in the other bordering areas that the housing values are stronger when Residents have squares with dining, shopping and entertainment in walking distance. I will enjoy educating potential buyers of Real Estate in Columbia Tusculum of the great benefits of Columbia Square.

What are the current demographics of Columbia Tusculum?

Slightly more than 3,000 residents live within the one square mile of Columbia-Tusculum. The neighborhood has approximately 1,500 housing units and many families with young children.

What types of housing can I find in Columbia Tusculum?

Contemporary or historical, single families, condos or double-deckers, many of Columbia-Tusculum’s homes have a common element-their vibrant colors-straight out of a box of Crayola Pastels. The “Grand Old Painted Ladies” are Victorian gingerbread homes with 3, 4, 5 or even 8 different colors! Many of the area’s older homes are perfect opportunities for restoration with their ornamental front porches, hardwood floors, solid structures and high ceilings. Add mature trees, well-manicured lawns and rolling hills, and you’ve stirred up a recipe sure to charm even the most critical home shopper.

Want to buy a home in Columbia Tusculum before the prices SKYROCKET?

Contact Amy about finding a great painted lady!

• Columbia Tusculum , Listing , Value
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Amy April 14th, 2007

Real Estate is an Investment in Mount Lookout, Hyde Park, Oakley and East Cincinnati

Cincinnati Real Estate is an exciting industry, or hobby, depending on your current occupation. For me, it is both, as I am a Full Time, Resident Realtor, with a focus on Mt. Lookout, Hyde Park and Oakley, and the East side of Cincinnati in general. As a Certified Residential Specialist as well as a Hyde Park area resident, I find the numbers I am about to show you as vital as the air we breathe. I don’t think I have been involved in a conversation in a social setting in the last two years where the Real Estate market wasn’t a large topic amongst my local friends and acquaintances, in the midst of buying or selling in this market.

It is somewhat of a buyers market still, I would venture to call it a Price Correction Period, but even with that, we are seeing great appreciation figures over 5, 3 and 2 years after purchase. Let me show you some specific information that was compiled through several MLS searches I run on a regular basis to help me and my buyers and sellers understand the current market.

This information was complied through the use of the Cincinnati MLS, creating a 90 day snapshot of the local market, and later in the article, a look 5 years back at the average increase in values over time. I hope you will find this information informative and unique, and should you have any additional questions, you can reach me. See each of these charts attached to this blog, the first pertains to the Market Analysis and is called Q1 Area Numbers, and the second group of figures can be found in 2006 Area Appreciation.

Mount Lookout Local Market Analysis and Absorption Rate

In the last 90 days the Mount Lookout market has seen 127 homes go on the market, sell or go pending. Of those 127, 35 were sold in the last 90 days, 20 are pending a closing and 72 remain for sale today. The average home sold in Mt. Lookout is priced at 466,475 and the average sold home sells for 323,932. The average home has 3 bedrooms, 2.97 bathrooms and remains on the market for an average of 73 days. 54% of the time, homes in Mt. Lookout sell in less than 30 days, at about 95% of their list price.

Let’s take a look at what these numbers mean to you, the Mt. Lookout seller. Based on the figures above, 18 homes go under contract each month in Mt. Lookout. If there are 127 people in line to sell their homes, and 18 go under contract each month, there is a 3.9 month supply of homes on the market in Mt. Lookout. This means that if no other homes come onto the market, it will take your Mt. Lookout home about 3.9 months to go under contract on the long end, 73 days average, and 54% of the time in 30 days or less, giving your home a 25.5% chance of selling in 30 days.

Hyde Park Local Market Analysis and Absorption Rate

Hyde Park remains to be the solid anchor keeping Mount Lookout and Oakley planted in strong Real Estate Values and Sales in Cincinnati. In my recent assessment of the Real Estate of these three beloved cities of Cincinnati I have always found most consistent the Hyde Park area.

In the last 90 days, Hyde Park has had 195 homes enter the market. Of these 195, 49 have sold, 26 have pending contracts, and a remaining 120 are still for sale. In Hyde Park the average list price is $466,218 almost identical with Mount Lookout, but in Hyde Park the average Sale price is $511,250. The average days on the market for these Hyde Park homes are 83 days. In Hyde Park 44% of the homes sell in 30 days or less, with 24% taking more than 120 days to sell. The average list to sale price percentage in homes selling in Hyde Park is 91%. The average Hyde Park home has 4 bedrooms, and 2.86 bathrooms.

Let me put these numbers into perspective for the Hyde Park seller. This means that of those 195 sellers, 25 of them go under contract each month. If there are 195 people in line to sell their homes, and 25 go under contract each month, there is a 4.8 month supply of homes on the market in Hyde Park. This means that if no other homes come onto the market, it will take your Hyde Park home about 4.8 months to go under contract on the long end, 83 days average, and 44% of the time in 30 days or less, giving your home a 20.8% chance of selling in the next 30 days.

Oakley Local Market Analysis and Absorption Rate

Oakley is known in the Hyde Park area as the starter home neighborhood. The average home prices are lower, but the return on investment beats both Mt Lookout and Hyde Park in a 5 year period! The homes are generally a bit smaller than the neighboring two areas, and therefore, its resident’s tend to move up to the Hyde Park and Mt. Lookout area as their families begin to grow! Not too many people desire to leave our little triangle where shopping, restaurants and parks are so convenient and friendly; you just can’t imagine living anywhere else!

In the last 90 days the Oakley market has seen 124 homes go on the market, sell or go pending. Of those 123, 42 were sold in the last 90 days, 23 are pending a closing and 59 remain for sale today. The average home sold in Oakley is priced at $197,703 and the average sold home sells for $184,368. The average home has 3 bedrooms, 1.73 bathrooms and remains on the market for an average of 71 days. 30% of the time, homes in Oakley sell in less than 30 days, at about 94% of their list price, and another 28% take more than 120 days to sell, at about the same 94% of their list price.

Taking Hyde Park, Mt. Lookout and Oakley under the same umbrella, the Oakley market is much different from its bordered areas, for the better and for the worse. In Oakley, we see more first time buyers finding some great homes with wonderful appreciation rates. The average sale at $184 is an excellent price point for the first time buyer.

Let’s take a look at what these numbers mean to you, the Oakley seller. Based on the figures above, 21 homes go under contract each month in Oakley. If there are 124 people in line to sell their homes, and 21 go under contract each month, there is a 2.7 month supply of homes on the market in Oakley. This means that if no other homes come onto the market, it will take your Oakley home about 2.7 months to go under contract on the long end, 71 days average, and 30% of the time in 30 days or less, giving your home a 36.7% chance of selling in 30 days. More people can afford the average price of the homes, therefore more people will be able to buy, and more do in Oakley!

Entire East Cincinnati Local Market Analysis and Absorption Rate

In the last 90 days the East Cincinnati market has seen 4092 homes go on the market, sell or go pending. Of those 4092, 866 were sold in the last 90 days, 618 are pending a closing and 2608 remain for sale today. The average home sold in East Cincinnati is priced at $323,651 and the average sold home sells for $226,599. The average home has 3 bedrooms, 2.56 bathrooms and remains on the market for an average of 88 days. 35% of the time, homes in East Cincinnati sell in less than 30 days, at about 96% of their list price.

Let’s take a look at what these numbers mean to you, the East Cincinnati seller. Based on the figures above, 494 homes go under contract each month in East Cincinnati. If there are 4092 people in line to sell their homes, and 494 go under contract each month, there is a 5.3 month supply of homes on the market in East Cincinnati. This means that if no other homes come onto the market, it will take your East Cincinnati home about 5.3 months to go under contract on the long end, 88 days average, and 35% of the time in 30 days or less, giving your home a 19% chance of selling in 30 days.

In the areas that I concentrate on servicing, Hyde Park, Mt Lookout and Oakley, the market data shows a shorter time to sale, as well as a higher list to sale ratio, with a higher chance of selling in the next 30 days.

Cincinnati is always a conservative city, even in the Real Estate Market

Believe me when I say these numbers are great compared to other areas of Cincinnati and the USA. The actual buyers market is defined as when the supply of homes is more than 6 months in a given market. As you will see in the Hyde Park areas including Mt. Lookout, Oakley and in East Cincinnati, we are all under this 6 month supply. This is great news, but, we are still in a depressed market. We are just smart about it.

This Real Estate market that we are in today is about correcting the abundance of appreciation we have been seeing on the homes in this area. In California and New York where Real Estate was in a tremendous boom, selling 2 bedroom 2 bath flats for $800,000 in the early 2000’s have now plummeted to $400,000 or less is in much more of a stressed market correction. Being that the areas of Mt. Lookout, Oakley and Hyde Park are one of the better appreciating areas of Cincinnati, we feel this price correction a little more than the whole of Cincinnati, similar to California and NY feel it stronger than the rest of the US. In the past, we have thrived on selling our homes for $50,000 to $100,000 more than we purchased for a few years ago, getting our price and moving on. Today, it is not that way. Experiencing our own correction, in Mount Lookout, Hyde Park and Oakley, we need to be mindful of value, we are not getting the tremendous margins of appreciation we were seeing in the late 90’s early 2000’s, but we are holding our own much better than other areas of Cincinnati. So while we aren’t making as much as we did in the past, or we would like to be making on the sale of our homes, we are still ahead of most of the 100 other suburbs in the area in our return on investment. Compare these numbers below with the 2 year return on your Proctor and Gamble stock at 14.5%, or your Fifth Third stock at -11.6% of the S&P500 up 21%, all beat by our local Real Estate appreciation!

Mount Lookout Real Estate Appreciation and Return on Investment

Mount Lookout is the #7 area in Cincinnati for return on investment over a 5 year period with 39% return, and it is #6 in Cincinnati for highest average sale price at $387,511 in 2006. Mt. Lookout’s latest 3 year return on investment percentage is a strong 32%, and in 2 years, 25%.

Hyde Park Real Estate Appreciation and Return on Investment

Hyde Park is the #10 area in Cincinnati for return on investment over a 5 year period with 33% return, and it is #5 in Cincinnati for highest average sale price at $408,247 in 2006. Hyde Park’s latest 3 year return on investment percentage is a strong 41%, and in 2 years, 12%.

Oakley Real Estate Appreciation and Return on Investment

Oakley is the #6 area in Cincinnati for return on investment over a 5 year period with 40% return (beating out Mt. Lookout and Hyde Park). But, in converse, it is #28 in Cincinnati for highest average sale price at $191,721 in 2006. Oakley’s latest 3 year return on investment percentage is a strong 29%, and in 2 years, 12

Each of these three areas are clearly a great area to invest in your home for a long or short term.

Hamilton County Real Estate Appreciation and Return on Investment

Compare the numbers for the above areas to those of Hamilton County as a whole, where the average home sale in 2006 was $181,206. The five year appreciation in the entire Hamilton county was 8% followed by 5% for 3 years and 2% for 2 years. As you can see the Mt. Lookout, Oakley and Hyde Park areas provide a better return on your investment than the whole of Hamilton County.

Amy Broghamer, an Expert Realtor, will advise you to make the best Investment based on your goals

As a Certified Residential Specialist, I am trained and educated in analyzing the market the way no part time or new Realtor knows. I not only assess the market in the ways I have shared with you today, but countless other aspects of the area and home are taken into consideration when I price a home for sale, or help a buyer decide on an offer price in this area. What all buyers want to know #1, is this a good investment of my money and time, obviously in Mt. Lookout, Hyde Park and Oakley, the answer is YES!

If you would like more information on the Mount Lookout, Hyde Park Oakley or other East Cincinnati areas, home sales, or an idea of what your home might sell for in today’s market, give me a call and I will be happy to give you specific details of your home today’s market, where ever you might be living/investing!

• Buyers , Hyde Park , Mount Lookout , Oakley , Resale , Sellers , Trends , Value
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Amy April 13th, 2007

The 2007 Annual Homearama is just around the corner in the Greater Cincinnati area. This years 47th Homearama will take place at The Vintage Club in the City of Montgomery, a development from Great Traditions Land & Development Company.

The Vintage Club is an exciting “village style,” pedestrian friendly, mixed use community with single family residential homes designed for the high-end move-up family, and empty nester buyer; and condos designed for professionals and empty-nesters. The community will be gated and feature the “Vintage Club” - a clubhouse amenity that will serve all homeowners with pool, exercise facilities and gathering room.

The annual Homearama event allows local Cincinnatians to tour homes with the most unique floor plans, decorating ideas, landscaping and furniture. Every year my clients gain great insight, examples and ideas for what they can create in their own homes to add value and style. Many of the ideas they garner from this annual event have proven to add to the value of their homes in Hyde Park and other areas of Cincinnati.

“It occurred to me after visiting last year’s Homearama how much simple window treatments add to the look and feel of a home. To me it added a level of sophistication and value that I wanted to create in my own home. Just this year I sold that home with Amy Broghamer, REMAX Unlimited and I do feel that those window treatments added to the value of our executive level home. Thanks for the tickets to last year’s show Amy, we always tell our friends and colleagues about what a great job you did selling our home.” Hyde Park Resident.

The Homearama show runs from June 9th to June 24th, General Admission is $12.00.
If you sign up for Amy’s Blog subscription you can receive 2 free tickets to this year’s Homearama:

If you are a part of the Referral Appreciation Program of Amy’s you can also receive 2 free tickets to Homearama, compliments of your trusted Real Estate Consultant, Amy Broghamer. If you have a referral to send Amy’s way, you can do so before May 15, and you will be eligible to get the 2 free tickets as well.

The deadline for the tickets is May 15th. Please email me with your current address If I did not sell you your current home! You may also call me at 513-377-3637.

Again thank you all for your interest in Homearama 2007! It is a great way to know more about Real Estate and its related improvements and features.

• Architecture , Buyers , Home Improvement , Interior Features , Value
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Amy March 27th, 2007

Very often when working with buyer clients, I find they want to know why they should be thinking about resale, before they have even purchased a home. In this economy of the 21st century people are buying and selling Real Estate on the average of 2-5 years (ages 23-40), and even more often if they are just climbing the corporate ladder and are in for many relocations in a shorter period of time. This being said, in many cities in the US, with a few in the Cincinnati area, there is little to no appreciation in just 2 years time, and depending on the market, there may be even less. It’s all about your investment. That down payment you choose to invest in your primary residence. Say you buy a home for $300K and you put (these days a rare) 20% down or 60K. That is your investment. Keep the house maintained and updated, modern and you may get more than 60K back when you sell.

Then, I begin to point out some of the finer details of the concept of resale, functionality. I encourage my buyers to look for things in homes that are appealing to a wide range of people. I will use a typical example of a half-bath on the first floor in the Hyde Park area for this exercise on resale. In Hyde Park, to have a half bath on the first floor may not be a priority when you begin looking in Hyde Park for a home. But, if you buy that home, without a half bath, and put one in if it is possible, you have just added value to your 60K investment. More importantly, you have made it more desirable to the next buyer who will always see the half-bath on the first floor in Hyde Park a huge perk, thus selling your home much faster than others. Resale!

Say you choose not to add that same half-bath, and you live there for 5 years. All of your neighbors and other homes in the similar area and price range have “updated” their homes with the modern convenience of the half-bath and you have not. Do you think your home on the resale market will sell faster and for more than your original 90K investment? In these sub-modern conditions compared to other homes that are updated in this price range, the answer would be no.

While I am not discouraging you from buying a home that needs a half-bath, or updated kitchen, or new garage, I prefer to use these outdated homes to allow my buyers to get a good price for their condition, and allow them to capitalize on these things and turn them around to become an opportunity to create some additional value when they themselves add these items to their home.

I prefer to educate my clients on the benefits of resale and keeping the home modern and maintained. Just as you are the buyer choosing your new home, would you expect to play less for a home with a 30 year old kitchen? Yes! But you could buy that home at a reduced rate due to the age of the kitchen, put your money saved into the upgrade, and make it new and beautiful, and when you go to sell, you have a fabulous kitchen that you have enjoyed while you have lived in the house, and your home will sell faster and hopefully for more money because you updated it! This concept is referred to as “Sweat equity” - making improvements yourself that hope to directly increase the value of your property. If you cannot make these necessary updates, you cannot expect to make more money when you sell the house if you have not invested yourself to modernize and maintain the house. It will also add months to the sale process for a home that has not been updated.

These things inside the home are important functionally. Now let’s look at socially. When you invest in Real Estate you need to understand where the demand is in your city. Where do people want to live and play? Buy a home there. If your goal is to have a great return on your home, buy in an area that others want to live, which will bring a faster sale for more money. If you buy 30 minutes from the city, know it will take quite a bit longer to sell the home and your margin of profit will be less, this is the rule of supply and demand.

Lastly, consider economic resale. This often parallels social in that the demanding areas usually have a higher Return on Investment, less days on the market, closer to asking price for the homes, and a higher percentage of appreciation annually.

For all these reasons, it is key to consider resale before your current home purchase, to protect your investment. That is, assuming that you want to make money on your largest asset, and sell it quickly, with the least disruption in your families lives!

If you are in the market to sell your home, and wish to talk to ME about getting the best Return on your Investment, give me a call anytime at 377-3637.

If you would like to know what you can do to increase the value of your investment in a few years when you will sell, call ME today and I will be happy to stop by your home and give you a few suggestions, give me a call anytime at 377-3637.

If you would like to buy a home with a strong Return on Investment, give me a call today and I will lead you in the right direction to turn your home into your largest asset and investment, call me anytime at 377-3637.

• Buyers , Improvements , Resale , Sellers , Value
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