Real Estate Information Archive

In all the recovery of the housing market, there are clear trends developing within the houses that have sold versus the homes that have not. The National Association of Home Builders (NAHB) conducted a large study to pinpoint on how having a recession followed by a recovery has influenced the lifestyle preferences of home buyers. The survey found the top three items sought for in a home are: energy star appliances, energy efficient laundry rooms, and double sink, French doors, full house technology luxury items. In contrast, buyers do not want: elevators, golf course homes, and laminate countertops.

The housing market as a whole is moving to the periphery of the city centers with only 8% looking to buy within the core of a city which is a return to pre-recession movement. During the height of the recession, urban lifestyles boomed to save in gas prices, transit time, and the living out of town expenses.

The return to the rural/suburb shift of buyer movement means we will be soon seeing a rise in current urban renters looking to buy. Stats show 60% of single-family renters plan to buy within the next five years! “demand for single-family homes, the fastest growing rental category, will be more stable than multi-family demand,” according to the survey findings.

Buyers want energy efficiency and buyers want to buy at an increasing rate beyond what the real estate market has seen in years past. This will be one heck of a year!

READ MORE

What Home Buyers Want  Buyers Want Cozy, Connected Kitchens Opinion Research Corporation Half of all Renters Spend 30% or More Income on Housing

How the appraisal system works:

When a lender needs to call upon an appraiser, he/she submits their request to the AMC, Appraisal Management Company. The AMC then finds an appraiser for the job. So what does this system allow to happen within the real estate market? The appraiser assigned is not picked by merit, accuracy, work ability, or anything like that. They are simply the next in line. As Realtor’s we can get mad and fight our way through the system of business we belong to, but we cannot let our clients see this. Instead, know that when it comes to appraisals, there are many factors that are out of your hands. Focus on what you can take care of and do that to the best of your abilities.

Here are some tips to give your client:

• Clean Up: Overgrown landscaping, soiled carpet, and other bigger-than-day-to-day messes may damage the appraisal. Keep the pets out of the way of the appraiser, trim your trees, and showcase the home you have!
• Up-Date: Sketching a plan of the house with sqft helps the appraiser get a feel of the space and if on that paper you attach a list of all the updating you have done on the home, even the little things count. Re-sealed a bathtub…ect
• Comps: Have some comps on hand. Being aware of nearby comparables allows you to know about where the appraisal should end up.
• $500 Rule: Appraisers work in $500 increments so if there is a repair from more than that amount; it will count against the property. MORE

More: http://www.carimcgee.com/real-estate-appraisal-system-broken/618/

Housing Prices Hitting Bottom

Economists have finally put their two cents in and have declared they agree that housing prices have indeed hit bottom.

Over the last three years, housing prices have been volatile. There is a loose pattern of home prices rising… rising all spring and summer and then dropping off in the fall and winter, but this year is predicted to be different.  There is no foreseeable drop to come as the seasons shift.

While the fall months likely will bring out some sort of decrease in recent home price increases, “we have a much better supply and demand dynamic” than in previous years, Mark Fleming, CoreLogic’s chief economist, told The Wall Street Journal.

Better yet, home prices are boasting their largest jump this year as compared to the last six years. Even on a micro scale, comparing today’s prices with that of this February, they have risen 9.6%.

ALL VERY GOOD NEWS. Please comment and share the predictions of the market in your area.

Source: “Here’s More Evidence That Home Prices Have Hit Bottom,” The Wall Street Journal (Sept. 4, 2012)

Tim Hart

 I have been following the Black Bull story for years.   My golf days are numbered as my passion is fly fishing, but  I know my way around a golf course and more importantly, I see some great ‘traction’ at Black Bull. 

If you don’t know the background, the owners of Black Bull gave the property back as they couldn’t make it work based on their initial investment – follow this link for details - http://www.bozemandailychronicle.com/news/article_dda73acc-3855-11df-a77d-001cc4c002e0.html

After a Chapter 11 bankruptcy filing by the developers, the property was auctioned to the highest bidder.  The winning bidder was a developer from California - Rob Schumacher -  backed by Cross Harbor Capital Group out of Boston – this is the same group that won the bid to buy the Yellowstone Club .  Both the Yellowstone Club and Black Bull are now on solid footing – see this article for details http://www.bozemandailychronicle.com/news/article_ad79635e-7934-11e0-90b7-001cc4c03286.html

Summarizing, the developers purchased 300 plus vacant lots, a club house and a Tom Weiskopf golf course for about $8.1 million.

Since Aug 1, 2011, the new owners have

• Sold 20 properties  (18 land and 2 homes)
• An additional four properties are pending (2 land and 2 homes)
• The home sales were all $500k plus - both pending and solds
• Land prices averaged about $148k – high being over $200k

The developers have been getting a pretty decent return since the bought this project and moment is fantastic.  If you would like to learn more about Black Bull or if you are in town and want a tour, I can set this up with a day or two notice.  Just e-mail me at tim@athomeinbozeman.com or call 406.570.5730. It is a beautiful project.

Tim Hart