NOVEMBER #4

REAL ESTATE NEWS

FORALLOFYOURREALESTATENEEDS
RR

2011

What Else Drives Value?

Whenmostpeoplethinkoffactorsthatcanmakea housemorevaluable,theytendtofocusonthehome anupgradedkitchenorbathrooms,amastersuite,a deck,atwocargarage,alargeyard,etc.Butthese factorstendtofocusonthehome.Butwhataboutother aspects?Lookingatthebroadermarket,whatare featuresthatcanreallyimpactahomesvalue?Hereare fourthingsthatcanhelpmarketsretainandincrease homevalues(andthusmaybegoodthingstolookforin buyingahome). GoodSchools:25%ofallbuyersseekahomeinanarea withqualityschools.However,inafamilywithatleast onechild,thisnumberjumpsto48%.Studieshave shownthatthereisapproximatelya10%spreadinvalue betweenahomeinaschooldistrictwheretestscores arewithinthelowestquartilecomparedtoasimilar homeinaschooldistrictwhereaveragetestscoresare inthetop25%. Parks:17%ofhomebuyerschooseahomebecauseof itsproximitytoparks.Thisjumpstojustover20%for marriedcouplesandhomeswithchildren. Golf:Onestudyshowedthathomeswithfrontageona golfcoursegotanaveragepremiumof8%comparedto othersimilarhomesinthearea.Thesamestudy showedalmosta4%declineinaveragepricebyjust moving1/10thofamilefromthecourse.Onselectname golfcourses(i.e.aJackNicklausdesignedcourse),the premiumforbeingonthecoursehasbeenpeggedat over50%.Ofcourse,onlyasmaller,selectdemographic iswillingtopayforthis. Water:Apond,alake,ortheoceanregardless,a directviewofabodyofwatercangarnersignificant premiums.Onestudypeggedtheaveragepremiumfora waterfronthomebetween90%and130%comparedto neighbors.ANationalAssociationofRealtorsstudy showedwaterfronthomessoldforabout50%morethan nonwaterfronthomes.

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

Itsclearthatforeignbuyershavebeentaking BestPlacestoRetire(basedonfactorssuchascostofliving,real advantageofadepressedUShousingmarket,low estateprices,taxrates,andthrivingjobopportunitiesfor interestrates,andfavorablecurrencyexchangerates. seniors): ThepurchaseofhousesintheUnitedStatesby foreignbuyershasbeensurging.Theannualized numberisnowover$82billionperyear.Thisisan increaseofabout$16billioncomparedtolastyear (seethechartbelow). 1) 2) 3) 4) 5) 6) 7) SantaFe,NewMexico Lincoln,Nebraska Manhattan,Kansas Portland,Maine SantaMaria,California Jupiter,Florida Ithaca,NewYork

Currently,foreignbuyersaccountfor23%of residentialrealestatedealseachmonth.However,in totaldollarvolume,theyaccountfor45%ofall MostExpensiveHousingMarkets(rankedbymedianhome residentialrealestatepurchasesindicatingthey price): tendtobuypricierhomes.Buyerswerenotedfromat least70differentnationslastyear,ledbybuyersfrom 1) Honolulu,Hawaii($579,300) CanadaandChina. 2) SanJose,California($545,000) 3) Anaheim,California($511,800) Thechartbelowalsoshowsthebiggestpointsoffocus 4) SanFrancisco,California($465,900) forforeignbuyers.SalesinjustfourstatesFlorida, 5) NewYork,NewYork($439,300) California,Texas,andArizonaaccountedfor58%of 6) SanDiego,California($374,800 thesalestoforeignbuyers. 7) Boulder,Colorado($453,400) AndtheCheapest(rankedbymedianhomeprice): 1) 2) 3) 4) 5) 6) 7) Youngstown,Ohio($55,400) Lansing,Michigan($64,400) Toledo,Ohio($64,900) SouthBend,Indiana($68,700) Akron,Ohio($74,900) Ocala,Florida($75,400) Dayton,Ohio($75,400)

RealtyFunny
Alarge,burlymanvisitedthepastor'shomeandaskedtoseetheminister'swife,awomanwellknownforher charitableimpulses."Madam,"hesaidinabrokenvoice,"Iwishtodrawyourattentiontotheterribleplightofapoor familyinthisdistrict.Thefatherisdead,themotheristooilltowork,andtheninechildrenarestarving.Theyare abouttobeturnedintothecold,emptystreetsunlesssomeonepaystheirrent,whichamountsto$400." "Howterrible!"exclaimedthepreacher'swife."MayIaskwhoyouare?" Theysympatheticvisitorappliedhishandkerchieftohiseyes."I'mthelandlord,"hesobbed.
Theinformationinthisnewsletterisnotmeantaslegal,financial,oranyothertypeofrecommendation.Pleaseconsultaqualifiedprofessionaltodiscussthedetailsof yourindividualsituation.