Monday Market Report – The Art of Pricing a Home

Pricing a home is an art not a science.  Pricing a home is very similar to pricing other items.  For example, a music store prices a guitar based on what the market has suggested other buyers are willing to pay for a similar product.  The same holds true for the real estate market.  If a home similar to yours sells for $350,000 then a buyer in that market will likely pay a similar price.  Of course it takes market knowledge and skills to understand the nuances between each guitar or house and what the value of those nuances are to a buyer.

The art of pricing a home correctly is one of the most important skills to have in the real estate business.  Pricing a home correctly is finding the market value or range that will cause a home to sell.   It is not an easy process, especially when dealing with downtown Orlando real estate.  The eclectic mix of houses for sale in Orlando make it difficult to find exact comparable homes.  Your zestimate on zillow or looking at ”comparables” on the property appraiser site will not give you an accurate number for what a buyer may be willing to pay.  The computer generated values are generated by pulling up all data for property transfers and will include homes that did not sell in an open market situation.

Properly evaluating Orlando home values takes experience and market knowledge to get it just right.   I use similar techniques that appraisers use because I have taken extra educational courses to learn these skills to add value to my clients experience.  Knowing how to price homes helps my clients earn more money and/or sell their homes quicker.

The first step in the process is to take the closest comparable homes nearby and add or subtract depending on the different features one home has versus another.  Those adjustments are not what a seller paid for an improvement but rather what the market suggests it is worth to a buyer in the area.  It is not an arbitrary number – it takes research to determine what the proper adjustment should be.  For example, you
may have paid $25,000 for your pool but the market in your neighborhood could suggest that it is actually a negative to have a pool.  Or perhaps in your neighborhood it adds $40,000 and makes a home highly desirable.  It all depends on what’s happening in your neighborhood and directly surrounding it.  Condition makes a huge
difference as well!

Once I arrive at a value range, I know where a home should be priced to sell.  However, there are always factors such as a strange floor-plan or quirky space that can cause a home to be worth less in the eyes of a buyer.  That kind of thing you may not realize until the house has been showed a few times and you get some feedback from real buyers.  That is when a price adjustment will be necessary.  You
should price within the range to sell but be flexible if the feedback isn’t positive.  If you can address the quirky issue yourself then by all means do that.  Pricing correctly from the beginning will ensure you get top dollar.  The longer the home sits on the market the less desirable it becomes for buyers.

Learn what your home is worth today and Get Moving!
407-494-2820 

Kathryn@ThinkLiveBe.com

 

Image:  guitar on Everystock via creative commons

 

Monday Market Report – Why Buy?

Well it turns out I forgot to hit publish on this post yesterday – better late than never!

As you may have read in my previous post, Market Report – Bidding War, the Orlando real estate market has shifted.  Long gone are the days of 26,000 listings to choose from and offering $100,000 less than asking price. If you are a buyer in today’s market times are tough. That doesn’t mean it’s not a great time to buy.  It just means the strategy for offering has changed.

You might wonder why things are so tough for buyers.  Well…the listing inventory has declined about 17% since this time last year.  And it hasn’t been this low since the boom days of 2005.  The demand is extremely high, especially for homes in good condition or location.  If the level of demand we are seeing in certain Downtown Orlando neighborhoods keeps up, this strong sellers market could go on for a while longer.  It’s not just cash investors out there buying up homes - although there are many of those.  There  are mainly three types of buyers:

1.  The buyers who have been looming for the past 2 or 3 years
thinking they were going to wait until the prices hit bottom have now
realized they missed that opportunity and are rushing to get in before
prices rise much more.

2.  Investors – prices are still affordable and they are eating up
much of the inventory in good locations anticipating a high return in
the future.

3.  Regular buyers – those who are just now in a position to buy and
ready/willing/able.  Perhaps they finally have equity to sell their
home and move up or they finally have a strong job history.

So why buy in Orlando?  Even with the lack of inventory and multiple offer situations,  interest rates are still amazing and you really can’t complain about getting a 30 year loan for under 4%.  On top of that, the rental market is very strong and with increasing rental prices it can still be more affordable to buy than rent.  The housing affordability in the Orlando area is still at around 220%!  An affordability index that is over 100 means that median-income earners make more than is necessary to qualify for a median-priced home.

The key to buying in every market is to not get emotionally attached.  It’s very difficult because most of us make decisions based on emotions rather than logic.   Just remember the home you’re falling in love with…well so is everyone else.  Take a step back, be patient and be willing to offer above asking price when it is appropriate. You will eventually have a place to call home.

I don’t want to share all of my secrets; but one of my strategies lately is to look for houses that have been on the market longer than 30 days.  Those listings might be overpriced.  Get in and make an offer before the seller drops the price and then you’re in another bidding war!  Contact me today to learn more about finding a home in this challenging market.

*Stats from Orlando Regional Realtor Association

 

Who Says There’s Nothing to do in Orlando? – Adventures in Audubon Park

Looking for something fun and unique to do this weekend?  Look no farther than Orlando’s Audubon Park neighborhood.  This Saturday from 2-5:30 pm they will be having a combination scavenger hunt / trivia contest challenge!

Contact Jennifer Marvel to register!
407-212-7321
audubonparkgardendistrict@gmail.com

The inaugural British Isles Adventure Race will start at 1601 East Winter Park Road in the Audubon Park Garden District.  Teams of two or three compete to decipher clues, answer trivia questions and have a bloody good time.  Participants who compete in a UK-themed costume will receive bonus points that will help save them time.  The better the costume, the more points earned.  Use your smartphone along the way to phone a friend, look up clues, and take photos!

At the end of the challenge, each participant will enjoy a free beer, fine wine or cane sugar soda to wait out the results.  Prizes include free tickets to the 2014 Scottish Highland Games, tickets to a regular season Orlando City Soccer game, two free tickets to The Gothic Cotillion, gift certificate from Liam Fitzpatrick’s, and an APGD gift basket, with more prizes being added all the time.

After party at Redlight Redlight, beginning at 5:30.

Want to live in Audubon Park?  Search Homes today!

Image credit:  UK-London via wallyg on Everystock via creative commons

 

Monday Market Report – What’s the Value in Going Green?

Recently I had a listing which was appraised at less than the sales price. This isn’t completely uncommon in a shifting market. I recently wrote a post about what causes this discrepancy as we shift from a buyer’s market to a seller’s market. Regardless of the reason for the appraisal variances common in today’s market, one of the issues I had with this particular report was that there was no value given for the variety of Green features this home has. This energy efficient home in Orlando is rare for the area of Downtown Orlando where older homes are notorious for high electric bills!

Green technologies in a home can make a huge impact in the long term energy use and footprint a home and it’s owners have on our planet. However, the appraiser either didn’t notice the list I provided or did not associate any value to them. Going Green in your home has not completely caught on in the Orlando area as much as cities in the Northwest; but to assume there is no value is simply not accurate. More and more buyers are looking for these features in a home and are willing to pay a premium for them.

In fact, appraisers have just been provided a special addendum to accurately note the energy efficient features and add the appropriate value to the appraisal report. Yet so many real estate professionals and appraisers alike aren’t familiar with this addendum. Be sure when you’re listing your energy efficient home in Orlando that you contact an agent familiar with these Green Features and can assist you in getting all the value you can out of them!

As you consider adding energy efficient systems to your home, research cost versus value and be sure to keep all the paperwork for improvements you make so if you do decide to sell in the future you can be sure all are accounted for in an appraisal. Your home is your biggest asset – choose an expert that understands the value.

Contact me Today to learn about Energy efficient options and what they can add to your home’s value.

407-494-2820

Kathryn@ThinkLiveBe.com
Search Orlando Homes Today

 

Image credit: Leslie Science Center Nature House via Everystock via Creative Commons License

 

Go Local Wednesdays – Lodge 10 Year Anniversary this Weekend

I have a special place in my heart for The Lodge in Downtown Orlando.  If you can believe it they are 10 years old – wow I feel old!  If you have not been to The Lodge – where have you been living the last 10 years?  Congrats to the awesome guys who own this establishment on their 10 year anniversary!  

The Lodge is just a fun place to go any night of the week if you’re looking for a good beer or a stiff drink and it’s a great example of successful Downtown businesses.  The guys recently opened up another bar right upstairs called The Woods.  The new place offers a more intimate atmosphere with craft cocktails made with fresh juices and unique spirits and the beer menu is excellent as well.  Hope to attend the 10 year anniversary for this new spot in the future!

Be sure to check out the Lodge 10 year Anniversary Festivities at their Facebook Event Page or stop by and ask one of the friendly bartenders!  There’s no cover for the main bar with $2 PBRs and $3 Jagers.  The best part is the VIP Beer Garden with 16 of the Best Craft Beers available

Come Celebrate 10 Years of Debauchery! NO COVER, $2 PBR’s, $3 Jagermeisters, Get Served by Bartenders Past, a Beer Garden with 16 of the Best Craft Beers Available(Limited Space for the Beer Garden, so get your tickets asap!).  The VIP tickets are only $25!  Oh and last but not least, my favorite DJ in Downtown Orlando will be playing some old Lodge classics.

 

Monday Market – Historic Homes

If you’re anything like me, you love historic homes in Downtown Orlando.  This is one of the reasons I focus on selling in the Downtown Orlando area.  I love the charm of an older home and they just do not build them like they used to!  The craftsmanship of these homes is always in style.

I recently read a blog post on the Preservation Nation Blog (blog written by the National Trust for Historic Preservation) about how to shop for a historic house.  If you love the charm of an older home and daydream about owning one check out this post:  How to Find a Historic House!   Or start searching for your new…I mean old…home today.

If you are interested in selling your home in one of Orlando’s historic districts contact me today to learn how to market the special features and what buyers are looking for in an older home!

407-494-2820 direct

ThinkLiveBe.com

 

Image Credit:  J. Carter Brown / Kitty Kelley at Everystock via Creative Commons License

 

Monday Market Report – A Difficult Situation

The Orlando real estate market has really shifted over the last year and although we are seeing multiple offers in many situations and prices increasing slightly, there are still issues at hand.

Due to the extreme shift, appraisals in some cases can’t keep up with the active and pending prices.  Appraisers typically pull comparable sales from the last few months.  Things have moved so quickly that homes sold in the last 3-6 months may not match the listing prices and the sometimes higher than asking price offers.

This creates a situation where a buyer may have to pay over appraised value to get the home that they want because if they don’t there is probably someone else who is willing and able.  This isn’t true in every situation but it is starting to feel like the boom years and I’m not sure it’s a good thing.

All in all, we do sort of expect this high demand/low inventory scenario to keep up through the end of the year as large investor groups will continue to buy up homes and compete with primary home buyers.  Then it will probably start to fade a little as prices rise to levels where investors are no longer comfortable.

Once that happens, things will maybe return to a normal or equal market for a while.  We do still have a lot of pent up demand and inventory that will creep onto the market probably at a pretty similar rate in the future.

Don’t get me wrong I love quick offers and higher sales prices, but I think we have seen that  cannot sustain for too long before things level off or shift again.  Have you experience increasing home values in your neighborhood?  If you have been thinking of selling, now is a nice window of opportunity where you have little competition and very solid sales prices.

Contact me today for more info at 407-494-2820 or visit ThinkLiveBe.com to get a quick market analysis for free.