Tag Archives: Sell your Home Fast Frederick

Location Is Key

4 WAYS YOUR LOCATION CAN BOOST OR BUST YOUR HOME VALUE

Close More Deals – Qualify homebuyer leads fast and free

A few years back, “the Starbucks effect” became a legitimate term to explain the higher real estate values associated with living close to the coffee house. But being within easy striking distance of a Grande Skinny Vanilla Latte isn’t the only thing that can help boost your home value. Then again, not every location can help build equity. Chose wrong, and you could see your value drop – even if the house is great.

1. Being close to schools

The good:

 

Families seek out neighborhoods with good schools for obvious reasons. Living close to a quality elementary school is especially desirable for parents who envision walking with their young children in the morning.

From a value standpoint, a location close to well-performing schools can be a smart decision for buyers regardless of their family status. “Living near a high-scoring school can increase your home’s value by over $200,000, according to the Brookings Institution,” said AOL.


The Columbia County News-Times
The not so good:

But, being too close to a school – no matter how good it might be – may be a deterrent for some buyers, which could end up hurting your bottom line. If you’re in the path of the school pickup and drop-off, which creates considerable traffic, or directly across the street from a playground, which means there is noise throughout the day, you could have trouble when it comes time to sell. A location that is close enough to be easily accessible but out of range of the daily inconveniences is often the best option.

2. Being close to area conveniences

The good:

“The Starbucks effect” is tangible: Data has shown that, “Between 1997 and 2013, homes closer to the coffee shop increased in value by 96%, compared to 65% for all U.S. homes,” said CNN Money.

Now Starbucks has company, with a new report that shows that proximity to a high-end grocery store – namely Trader Joe’s or Whole Foods – can also raise home values considerably.

“Between 1997 and 2014, homes near the two grocery chains were consistently worth more than the median U.S. home,” said Business Insider. “By the end of 2014, homes within a mile of either store were worth more than twice as much as the median home in the rest of the country. The analysis found that 2 years after a new Trader Joe’s opened, home values within one mile went up by 10 percentage points more than homes in the rest of the city.

The not so good:

But, that doesn’t mean all area amenities boost home value. Adult entertainment spots, industrial businesses, a nearby airport that puts the home in the path of flights, and small businesses like tattoo parlors, check cashing, cash advance, or pawn shops that can be indicators of a lower-income or high-crime area can drive people away.

3. Being convenient to freeways

The good:

A location close to major thoroughfares can be a selling point since it helps homeowners cut down on the dreaded daily commute. Many suburbs require an additional 10 to 20 minutes in the car after exiting the highway. Promoting the convenience of a home closer in can help it stand apart.


USA TODAY
The not so good:

Having a car fly off the freeway onto your roof is not ideal. Neither is having to endure the daily noise, congestion, and pollution of living right next to the freeway. If it bothers you, it’s going to bother buyers when you sell. Being close – but not TOO close – is key.

4. Quiet location

The good:

A home that’s in a peaceful area surrounded by nature may be a benefit to buyers seeking a serene setting. A house that backs up to nature or is close to hiking trails can sell for more than a house in the same neighborhood that’s only surrounded by other houses.


Design rulz
The not so good

There is such a thing as too quiet…

Recent Sales

Pending Home Sales Much Lower Than Expected
buy-home-maryland

How much home can you afford?

And we have a trifecta!  All three of the home sales indicators for December have now come in positive, although the latest, pending sales, did so leaving claw marks on the scales. The National Association of Realtors® (NAR) said its Pending Home Sales Index (PHSI) eked out a 0.1 percent advance over November.  The median forecast called for a 0.8 percent increase.  Existing home sales and new home sales, both reported within the last week, had month-over-month increases in the double digits.

The PHSI, a forward looking indicator based on contract signings, registered 06.8 for the month, 4.2 percent higher than a year ago.  The index has increased year-over-year for 16 straight months.  At the same time, NAR revised its original index for November down from 106.9 to 106.7.

The December gain, tiny as it was, was only possible because the Northeast region experienced a bit of a contract signing boomlet, increasing 6.1 percent to 97.8.  The index for the region is now 15.3 percent higher than the previous December.  The region’s gain offset losses in the other three regions.

The Midwest saw a decline of 1.1 percent to 103.6, remaining up 3.6 percent year over year. Pending home sales in the South declined 0.5 percent to an index of 119.3 but are 1.0 percent higher than in December 2014. The index in the West decreased 2.1 percent in December to 97.5, maintaining a 3.4 percent annual edge.

Laurence Yun, NAR chief economist, says contract activity closed out the year on stable footing but lost some momentum, except for in the Northeast. “Warmer than average weather and more favorable inventory conditions compared to other parts of the country encouraged more households in the Northeast to make the decision to buy last month,” he said. “Overall, while sustained job creation is spurring more activity compared to a year ago, the ability to find available homes in affordable price ranges is difficult for buyers in many job creating areas. With homebuilding still grossly inadequate, steady price appreciation and tight supply conditions aren’t going away any time soon.”

According to Yun, although healthy labor market conditions will persuade more households to buy, other factors could serve to curtain overall demand in the next few months.  He cited the large post-New Year losses in the stock market and the slowing of manufacturing activity in some local areas, especially those reliant on energy production.  These could create enough economic uncertainty or even a financial inability for some to buy a home.

“The silver lining from the market turmoil in recent weeks is the fact that mortgage rates have slightly declined,” says Yun. “Buyers looking to close on a home before the spring buying season begins may be rewarded with a mortgage rate at or below 4 percent.”

NAR forecasts that existing-homes sales this year will be around 5.34 million, an increase of 1.5 percent from 2015. The national median existing-home price for all of this year is expected to increase between 4 and 5 percent. In 2015, existing-home sales increased 6.5 percent and prices rose 6.8 percent.

Rents – which have far outpaced wages in recent years – are expected to slightly slow to 3.3 percent growth in 2016 from 3.6 percent a year ago. Multifamily housing starts are expected to reach 420,000 units this year, the highest level since 1987.