DECEMBER #1

REAL ESTATE NEWS

FOR ALL OF YOUR REAL ESTATE NEEDS
R

2011

Home Sales and the Holidays

Many sellers become nervous around the holidays. Seasonal obligations such as parties, shopping, decorating, or entertaining guests can add extra stress and make it more difficult for some sellers to keep their home in a showable condition. Many sellers also dont think their home will sell over the holidays anyway (due to limited buyers). As a result, many sellers consider taking their home off the market. But is this a good idea? Most real estate agents agree that this is not a good idea. First, your home will definitely not sell if its off the market. Plus, youll be busy, but thats why you have a real estate agent. You can work, shop, cook and entertain while your real estate agent does the work. But lets look at some additional reasons that dispel the above concerns: While buyer activity definitely does slow down, those buyers that are looking are that much more serious. The holidays are often a good time for couples and families to shop for homes because everyone may be off from work and have time to look together. Many buyers specifically choose to house hunt during the winter and the holidays, believing there is less competition. Many buyers have no choice about the timing of their relocation. For these buyers (especially those with kids) trying to find a house before the new year (and January semester begins) can be a large motivator. Statistically more home relocations occur in January than any other moth. The holidays emphasize family and home. A nicely decorated home can make it more appealing. Other sellers do pull their homes off the market less inventory means less competition. You can always adjust the timing of the move in date and closing date to fit with your holiday plans. Construction (depending on the market) is more difficult in the winter so you may be competing against fewer new homes.

Current Owner: Hulk Hogan The address: 130 Willadel Drive, Belleair, FL Beds: 5 Baths: 8 full & 3 half Square Feet: Over 17,000 Lot Size: 1.5 acres Year Built: 1996 Asking Price: $8,871,527 (originally listed for $25 million in 2006 and later relisted in 2009 for $13.9 million) Features: This home includes multiple fireplaces, a gourmet kitchen with adjoining butler's pantry, a two story master suite with his and her luxury baths, and a large exercise room with an adjoining glass-enclosed spa. This waterfront property also offers a dock with two boat lifts and space for personal watercraft, a boathouse with kitchenette, a pool with a two tier waterfall, and a four room guest apartment located over the four car garage and two room playhouse. The Views: The home, located on a bluff, has views of the Intracoastal Waterway and Clearwater Pass to the Gulf of Mexico

Bad Neighbors
Bad neighbors can take many forms. Typically, in using the term bad neighbor, we envision the neighbors who have loud parties nightly, dont take care of their home, or show up on your doorstep too often. However, a bad neighbor can also be a business or a government operation. Often, these bad neighbors can significantly reduce the value of nearby homes. Here are seven such examples of bad neighbors whose mere existence can drive the value of surrounding properties down. Power Plants: The University of California at Berkeley did a study which shows that home values within two miles of a power plant can decrease between 4% and 7%. Landfills: A study completed by the Pima County Assessor's office (in Arizona) shows that a subdivision near a landfill loses 6% to 10% in value compared to a subdivision that is not near a dump. In a separate study, Robert A. Simons, an urban planning professor at Cleveland State University, concluded that if you live within 2 miles of a Superfund site (a site that the government designates as a hazardous waste site), your home's value could decline by up to 15%. Sex Offenders: Living in close proximity to a registered sex offender is one of the most talked about downward drivers of home values. A study by Longwood University's College of Business & Economics stated that the closer you live to a sex offender, the more your home will depreciate. Specifically, the research concluded that "the presence of a registered sex offender living within one-tenth of a mile reduces home values by about 9%. Even more, these same homes will take about 10% longer to sell than homes not located near registered sex offenders. Delinquent bill payers: This is most prevalent in communities with shared amenities such as a condo or townhome community. Neighbors not paying maintenance fees, homeowner fees, or their mortgage can bring down the value of the entire community. Not only does the community receive less money to use for operations, but these homeowners may neglect the appearance of their own home. Foreclosed homes: In todays environment, this is one of the biggest factors of home values. A Massachusetts Institute of Technology study determined that a neighbor's foreclosed home can slash the value of homes within 250 feet of the foreclosed properties by an average of 27%. Closed schools: In some states that are hurt by budget shortfalls, officials have been closing and/or combining schools. Unfortunately, this can negatively impact the neighborhood homes. Quality and availability of schools is such an important factor to many buyers therefore, removing a school from a neighborhood can really have a big impact. Lackluster landscaping: A Virginia Tech University study concluded that pristine landscaping can improve up the value of a home by 5% to 10%. Of course, if the landscaping is not quite up to par, itll quickly lose out on that value.

Realty Funny
When the last of their four children was about to leave home, an older couple, Steve and Diane, decided to sell their house and buy a smaller house. They hired an agent and put a for sale sign up in front of their house. A week later, a second For Sale sign appeared two doors away. Soon youll have new families on either side of you, Diane remarked to the neighbor whose house was in the middle. Were thinking of putting up our own sign, the neighbor replied. It would read: Was it something we said?
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.