The Open House

It's a great debate among Realtors and those who have a home to sell; to do an open house or not?  I must say, I have flip flopped on this one.  Those that believe in the value of  an open house are strong believers.  It's a great marketing tool, it's gets the word out, it's an opportunity to show the house to prospective buyers.

Those opposed are typically opposed for one reason...nosey neighbors!


But what about nosey neighbors?  Here's what happened to me recently.  I held an open house for a new listing (check it out if you like, great house!).  I had five neighbors come through the house (along with other interested parties).  One set of neighbors gave me tons of historical information about the house, including insight into an upstairs bathroom!  Another set of neighbors talked about the great neighborhood and what drew them to the area.  All this information added to the arsenal of information I could now pass on to prospective buyers!

The neighbor next door went a step further.  She came to the open house.  She dropped by again later with a friend.  During the second visit, she told me that she had put a link to the home out on her Facebook page.  Wow!  She was marketing the house!  She has a vested interest in who moves in next door to her!

So here's the thing about nosey neighbors.  They know people, too.  They may have a co-worker, family member or friend looking for a new home.  The power of word of mouth marketing can't be discounted here.  And the wealth of information I gathered while visiting with these neighbors was priceless.

Will the efforts of the nosey next-door neighbor sell the house?  Who knows?  But it only takes one buyer and the more people who know your house is for sale, the better.

Add Value to Your Home With Landscaping

Does landscaping add value to your home?  I get this question a LOT!  Landscaping is a big word.  Intimidating, almost.

In actuality, it's not so scary and like most DIY projects, it just takes a bit of research and planning. If you're finding it intimidating you might want to invest in a good professional design and save by doing the installation yourself. A good design ensures that your investment in plants and labor are well spent. Gardening is one of the most popular hobbies in the U.S. today - it's very rewarding, therapeutic and great exercise.         

There is definitely an art to landscaping.  Color, texture, structure and plant placement all come into play in a well-designed garden.  The key is to start small.  Don't try to tackle the whole yard in one fell swoop!  Walk or drive your favorite neighborhood and determine the style you like. Take pictures.  Take notes.  This is a case where it's OK to steal from your neighbor!

Once you have your ideas, start with a small area and add additional areas as the years pass.  For information on plant selection, the UW Extension Service, Olbrich Botanical Gardens and area landscaping companies can provide a wealth of information and they are always happy to help!  You tube can be a great resource for gardening tips when produced by reputable gardeners.

So back to the question: Does landscaping add value to your home?  Absolutely!  Studies at Texas A&M and Florida suggest anywhere from a 10 percent to 30 percent return on investment.  And just think of all the exercise you'll be getting!  Happy gardening!

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"Relists" Sell With Lower Prices

So what's happened in Sunset Village, Westmorland and the Dudgeon-Monroe neighborhoods in the last month?  All three of these areas continue to be highly sought after.  The homes that have sold in the last month have been on the market for only a short time before an accepted offer came in and the majority of them sold for more than 90% of their final listing price.

I did find something interesting this month that hasn't surfaced in past months.  Several of the homes that sold in May in each of the neighborhoods were "relists".  By that I mean they were on the market last fall and didn't sell.  The sellers took the homes off the market for the winter and relisted them in the spring.  To a buyer, they appear to be new listings.  The other factor these "relists" altered when they went back on the market was the listing price.  In every case, the price was lower in the spring than when it was listed last fall.  In a few cases, the price was significantly lower.  On average, the most recent list price was 89% of the original list price last fall.  Quite a difference when you think about the added taxes, mortgage payments and utility bills that the sellers may have escaped had they been priced correctly last fall.

So now those houses have sold.  And it looks at first glance as thought they sold quickly for nearly the asking price.  My question is this: would they have sold at the lower price last fall?  Perhaps.

But here's the real takeaway in my mind: if you are buying a home make sure that your realtor knows the market.  Really knows the market!  Have them look closely at the listings and dig a little deeper to find out a little history of the property.  It could pay off!

See a synopsis of sales in May by neighborhood  below:

SUNSET VILLAGE:

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
322 Falles Ct.	244,900	244,900	235,000	96%	96%	12	12
126 Merlham Dr.	319,900	309,900	287,000	90%	93%	142	20
4206 Bagley Pkwy.	309,900	309,900	290,000	94%	94%	17	17
Average Total	$258,233	$288,233	$270,667	93%	94%	57	16.3333

WESTMORLAND:

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
4026 Birch	267,500	267,500	262,000	98%	98%	16	16
576 Park Lane	269,900	269,900	270,000	100%	100%	2	2
Average Total	$268,700	$268,700	$266,000	99%	99%	9	9

DUDGEON-MONROE:

Address	1st Price	Last Price	Sold Price	SP/FP	SP/LP	Cum. Days of Market	# Days From Last Price Change Until Offer
1816 Keyes Ave.	350,000	350,000	350,000	100%	100%	1	1
2116 Monroe St.	449,900	354,900	354,000	79%	100%	175	11
710 Edgewood Ave.	399,900	399,900	374,500	94%	94%	42	42
Average Total	$399,933	$368,267	$359,500	91%	98%	73	18

Until next time...

Buy? Rent? What's a Buyer to Do?

I have a friend who was referred to me by another friend.  This new friend is relocating to Madison from a smaller town out of state.  She is excited and anxious about the move.  While she is starting a new chapter in her life, there are still many uncertainties. 

As she familiarizes herself with the area, we have looked at several homes in several different Madison neighborhoods.  A couple have been possibilities, others not so much.  But we continue to look.  A few weeks ago she asked me about the market in the future.  If she purchases now, what will her resale value look like in a few years?

Hmmm.  It's a good question.  Of course, no one knows the answer, but indications are that housing prices will begin to climb.  For a buyer, that means their value will increase, as well.  Steve Harney, a national real estate expert expects the market to look completely different in a few months time.  And in a few years, he expects home values to appreciate by nearly 10 percent. 

Other national real estate experts are saying the same thing.  A recent Wall Street Journal article stated that "With home sales starting to improve, and with prices now possibly forming a bottom, real estate could well be the asset class that represents the best low-risk buying opportunity out there today." (Market Watch, 1/2011).  And in March, Barbara Corcoran, the national real estate expert who often appears on the Today Show, said "We have a regular real estate miracle happening.  We not only have record low prices, but we also have cheap money."

For buyers, it's a great time to purchase a home.  Interest rates remain low and there is inventory to choose from, which keeps home prices lower than 8 or 10 years ago.  I believe it's a great time to purchase a home, but the decision lies with the individual, not with me.

For my referral friend, we continue to look.  And when she finds the house in the neighborhood she wants and most importantly is comfortable with making a decision to purchase, we'll be ready. 

The Story of Assessments

Some friends of mine were recently talking about, questioning actually, their home assessments.  Property taxes paid each year are based on the assessed value of your home.  These friends were concerned about their assessment versus their neighbors' and they were questioning how assessments were determined.


A call to the city assessors office provided some answers.  According to Scott Matthews, Madison is unique in that there are 11,000 parcels that are assessed each year.   Obviously, not all of these 11,000 are individually assessed.  For the most part, the assessments are done on a mass basis, by neighborhood.  


The process involves research into building permits that have been pulled (inspectors have seen these homes), the prices of homes that have sold in the last year, and in more recent years the listing prices of homes that are currently on the market.  From this research they can gather a pretty good snapshot of "comparables".   "Comparables" are homes that are virtually the same in terms of size, structure and amenities (number of bedrooms, number of bathrooms, etc.).   Based on this research, a value is reached and an assessment is assigned to each individual home within the neighborhood.  This is a process similar to what a real estate agent or independent appraiser compiles for home buyers and sellers.  


Matthews points out that individual homeowners can request to have their assessment looked at more closely.  This is generally done through the appeal process when property tax bills are sent out in the spring.  It typically involves a city assessor taking a tour of your home.


Your tax assessment is really just that.  A value on your home in order to assess a tax.  The value of a home is more closely aligned to an appraisal.


A reduction in the tax assessment of your home will only affect you if you plan to sell your home in the next few years.  Typically your assessment doesn’t have much effect on market value – as in some markets the assessment is undervalue (as was the case  a few years ago) and now, in many cases the assessment is actually overvalued.  A lot of homes are now selling for at or below assessment, not because the assessment is too high, but rather because that's what the market will bear.


Here's the bottomline: the value of a home is actually based on what a buyer feels the house is worth, in addition to what an independent appraiser decides the house to be worth.