NOVEMBER #4

REAL ESTATE NEWS

FOR ALL OF YOUR REAL ESTATE NEEDS
RR

2011

What Else Drives Value?

When most people think of factors that can make a house more valuable, they tend to focus on the home an upgraded kitchen or bathrooms, a master suite, a deck, a two car garage, a large yard, etc. But these factors tend to focus on the home. But what about other aspects? Looking at the broader market, what are features that can really impact a homes value? Here are four things that can help markets retain and increase home values (and thus may be good things to look for in buying a home). Good Schools: 25% of all buyers seek a home in an area with quality schools. However, in a family with at least one child, this number jumps to 48%. Studies have shown that there is approximately a 10% spread in value between a home in a school district where test scores are within the lowest quartile compared to a similar home in a school district where average test scores are in the top 25%. Parks: 17% of homebuyers choose a home because of its proximity to parks. This jumps to just over 20% for married couples and homes with children. Golf: One study showed that homes with frontage on a golf course got an average premium of 8% compared to other similar homes in the area. The same study showed almost a 4% decline in average price by just moving 1/10th of a mile from the course. On select name golf courses (i.e. a Jack Nicklaus designed course), the premium for being on the course has been pegged at over 50%. Of course, only a smaller, select demographic is willing to pay for this. Water: A pond, a lake, or the ocean regardless, a direct view of a body of water can garner significant premiums. One study pegged the average premium for a waterfront home between 90% and 130% compared to neighbors. A National Association of Realtors study showed waterfront homes sold for about 50% more than non waterfront homes.

50 perCENT Discount!

Current Owner: Rapper 50 Cent The address: 50 Poplar Hill Drive, Farmington, CT Beds: 21 Baths: 25 Square Feet: 48,515 Lot Size: 17.6 Acres Year Built: 1985 Asking Price: $9,999,999 (almost half of the original listing price of $18.5 million) Features: This expansive home has a private, gated entrance, its own private pond, an infinity edge pool (outdoor), an indoor pool, a home theatre, a gym, a racquetball court, a basketball & tennis court, a 3 story atrium, an 8 car garage, a conference room, a billiards room, and of course, its own club (complete with a bar, DJ area and lighted dance floor) It Used to Be What? The address was originally 48 Poplar Hills Drive, but fittingly, was changed by the rapper to 50.

What Are Foreign Buyers Doing?

Top 7s: Retirement Markets, Most Expensive and Cheapest Markets

Its clear that foreign buyers have been taking Best Places to Retire (based on factors such as cost of living, real advantage of a depressed US housing market, low estate prices, tax rates, and thriving job opportunities for interest rates, and favorable currency exchange rates. seniors): The purchase of houses in the United States by 1) Santa Fe, New Mexico foreign buyers has been surging. The annualized 2) Lincoln, Nebraska number is now over $82 billion per year. This is an 3) Manhattan, Kansas increase of about $16 billion compared to last year 4) Portland, Maine (see the chart below). 5) Santa Maria, California 6) Jupiter, Florida Currently, foreign buyers account for 2-3% of 7) Ithaca, New York residential real estate deals each month. However, in total dollar volume, they account for 4-5% of all Most Expensive Housing Markets (ranked by median home residential real estate purchases indicating they price): tend to buy pricier homes. Buyers were noted from at least 70 different nations last year, led by buyers from 1) Honolulu , Hawaii ($579,300) Canada and China. 2) San Jose, California ($545,000) The chart below also shows the biggest points of focus for foreign buyers. Sales in just four states Florida, California, Texas, and Arizona accounted for 58% of the sales to foreign buyers. 3) 4) 5) 6) 7) Anaheim, California ($511,800) San Francisco, California ($465,900) New York, New York ($439,300) San Diego, California ($374,800 Boulder, Colorado ($453,400)

And the Cheapest (ranked by median home price): 1) 2) 3) 4) 5) 6) 7) Youngstown, Ohio ($55,400) Lansing, Michigan ($64,400) Toledo, Ohio ($64,900) South Bend, Indiana ($68,700) Akron, Ohio ($74,900) Ocala, Florida ($75,400) Dayton, Ohio ($75,400)

Realty Funny
A large, burly man visited the pastor's home and asked to see the minister's wife, a woman well known for her charitable impulses. "Madam," he said in a broken voice, "I wish to draw your attention to the terrible plight of a poor family in this district. The father is dead, the mother is too ill to work, and the nine children are starving. They are about to be turned into the cold, empty streets unless someone pays their rent, which amounts to $400." "How terrible!" exclaimed the preacher's wife. "May I ask who you are?" They sympathetic visitor applied his handkerchief to his eyes. "I'm the landlord," he sobbed.
The information in this newsletter is not meant as legal, financial, or any other type of recommendation. Please consult a qualified professional to discuss the details of your individual situation.