Now that Jillian has selected her final 4 bachelors, we thought we’d see what kind of bachelorette pads we’re on the market in each of the final 4’s home towns.

Here are our Top 4 Bachelorette Pad Picks:

1. Kiptyn from Encinitas, California

$1,375,000 - 805 Hermes Ave Encinitas, CA 92024

2. Ed from Chicago, Illinois

$1,349,900 - 2545 North Burling Street Chicago, Illinois

3. Wes from Austin, Texas

$1,100,000 -  5005 Red Bluff Road Austin, Texas 787702

4. Reid from Philadelphia, Pennsylvania

$749,000 - 929 South 2nd Street Philadelphia, PA

Looking forward to next weeks episode…….

A few days ago, (in part 1 of 2 articles) I discussed “How to Value Real Estate“.  Today (part 2 of 2) is focused on how to accurately price your property.  So if you are thinking of selling in West Chester, Fairfield or Cincinnati-these basics apply.

Most (but not all sellers) sit down at a listing appointment waiting to hear the “suggested list price” from their realtor or from whoever is helping with sale.  Realtors will go through a “macro” view- the area in general and work their way down to a “micro” view of your specific subdivision or complex.  The report will show active listings, pending sales and closed sales of properties that are comparable to yours.  The closed sales should be recent- no more that 6 months old (preferably 90 days or less) and should reflect data from the multiple listing service as well as a check of online county records- catching any sales not handled through the MLS.

Because we are in a “different market” sellers also need to see average sales prices for the last 8 years for comparable properties.  The decline (or increase) is the rate of depreciation (or appreciation) that has occurred should be taken into effect when considering pricing the property for the current market.

Seller’s View:
Mr. & Mrs. Seller paid $202,00 in 2004 for the 4 bedroom, 2.5 bath, 2 story in Fairfield.  Since the purchase they’ve redone the landscaping, resurfaced the deck, new carpet and new paint throughout.  Figuring in appreciation (2% per year) raises the price to (roughly) $220,815 + carpet $7,000 + paint $1800 + deck $2100 + landscaping $2300 = $234,014.  Then most sellers add another 10% to cover “stuff and commission which brings the list price up to $257,415.

But wait, the last 8 years of sales in Fairfield instead of a 2% per year value increase-since 2004 (t0 2008) there was an overall 8.1% decrease (depreciation) in average sold prices. 

So Mr. & Mrs Seller need to rethink their math, deduct for depreciation and only look at true remodeling investments as adding some value.  The deck, paint, carpet and landscaping may improve curb appeal and add sparkle to inside-but sellers cannot expect to recoup the money spent taking care of their property. In Fairfield there are currently 32 single family  (4 bedrooms, 2.5 bathrooms, 2 story) active listings in the Multiple Listing Service of Cincinnati.  14 have sold/closed in the last 6 months.  The absorption rate (# active listings/ avg # sold each month) equates to an almost 14 month supply of inventory.  Sellers need to ask themselves where do they want to position themselves to attract offers from the next buyers coming into the marketplace.

Buyer’s View:
To Meri and Beri Buyer the question becomes…”What is the difference between this 4 bedroom and that 4 bedroom and is it worth the price difference?

It’s a fairly simple formulae that becomes complicated when emotions are involved.  Trouble understanding the right listing price versus your listing price- step back and put your “buyer” hat on. 

Still struggling to come up with the value- call or email.

(part 1 0f 2)  

Are there 3 different ways to value real estate?

When I started in the business (20+ years ago) there was a funny comic depicting how the seller, buyer and appraiser looked at properties.

How the seller valued the property…

What the buyer saw…

…and finally how the appraiser valued the property.

At the time 75%+ of the financing was FHA and appraisers were sticklers about condition of the property.  In effect, every sale had 2 inspections- one by the home inspector and then another one by the appraiser.  We (seller, buyer and agents) worked through the issues and deals closed. 

Value of real estate is in the eyes of the buyer.

Today, we are dealing with a “different” real estate market, however establishing a price on a property is still reflective of the 20+ year comic….seller’s value, buyer’s value and the mortgage appraisal.  Lots of sellers utilize purchase price + appreciation + investment in property = list price.  Buyers are often more sophisticated and arrive at value by comparison shopping….how does this 4 bedroom, 2.5 bath, 2 story differ from the one down the block?  Finally the appraiser is the least subjective following fairly stringent guidelines when appraising a property. 

 (stay tuned for part 2 of 2 )

How should seller’s come up with a “List Price” for their property?

Related Article:   What Do Buyer’s Really Know

Hyde Park Blast was awesome.  Great weather, lots of bikers- just a great place to be on Saturday.

Sadly-the answer is no!

Recently U.S. News & World Report magazine looked at areas with strong economies, low living costs, and plenty of fun things to do to identify this year’s best places to live. Supposedly the editors reviewed more than 2,000 locations nationwide, considering such factors as sales taxes, housing prices, average number of children per square mile, proximity to healthcare, and the availability of educational institutions. 
 
According to the article the 10 cities honored as Best Places to Live are (listed alphabetically):
 
   1. Albuquerque, N.M.
   2. Auburn, Ala.
   3. Austin, Texas
   4. Boise, Idaho
   5. Durham, N.C.
   6. La Crosse, Wis.
   7. Loveland, Colo.
   8. San Luis Obispo, Calif.
   9. St. Augustine, Fla.
  10. Upper St. Clair, Pa.
 
Source: U.S. News & World Report Article

If you are curious about cities in Ohio (or any other state) Link to State search on US News and World Report for detailed information.

Let’s take out the crystal ball and predict housing future for greater Cincinnati, West Chester, Mason and surrounding communities.

Currently the real estate markets in Butler, Clermont, Hamilton and Warren Counties is below in both sales volume and number of units sold.  The good news is the number of pending sales continues to creep up -ever so slightly.

If you are looking for at resales (single family or condos) there is plenty of inventory to chose from….but if you are moving into town and want to by a newly built single family home- there aren’t many available.  Builders are not building a huge number of homes and waiting for buyers to come along.  The condo market, especially in the city, has a good supply of new construction available.

So while we are not breaking any sales records, the signs are pointing in an upward direction.  Mortgage rates are still low (not as low as last month), the supply of housing stock remains steady.  Most important of all is the stability of the area’s economy- some businesses are struggling but we have not seen massive corporate layoffs.

The question every buyer has is “what will my home be worth in 2 or 3 years?” and with the new world of real estate the better question might be- do I want to make this purchase if I break even or lose 2-3% if I sell in 2-3 years?

Recently Business Week published an article “Where Will Housing be in 2012?” which highlights several markets (unfortunately our market is not included) and the Cincinnati Enquirer covered an USA Today article about housing starts.  Lots of people are digging into the numbers trying to predict the future of real estate.  From my perspective it is fairly simple- low mortgage rates equal good time to buy and sell.  As rates increase fewer buyer qualify for mortgages…..so fewer properties are sold.

If you are thinking about jumping into the market and need some help-call or email.

All of a sudden I realized I had become become the gatekeeper of my mom’s house.  Thankfully, not forever, but long enough to realize that long distance ownership for real estate and managing somebody another person’s day-to-day tasks is not that easy.

Healthy parent(s) are wonderful, especially ones who have planned well and made sure to move assets into trusts, add somebody else’s name to the checking and savings accounts and left all the information where you can find it. 

However a recent medical emergency highlighted that while mom was prepared for anything…I was not.

So here it goes- if you become temporary custodian of a single family home several hours away do you know the names and phone numbers of:

• Landscapers
• Utilities
• Newspaper
• Neighbors
• Account numbers/addresses for typical credit card bills
• How to work the sprinkling system
• Can you find the set of house keys you were given 15+ years ago 

I think you can see where this is going. 

My suggestion to you is to start planning now- just in case you need to address any or all of the issues in addition to managing an empty house.

Your suggestions and comments are always welcome.

Make sure you head to Village Green in Fairfield tomorrow for the Village Green Fine Arts Fair.

Saturday from 11-5…lots to do and see.  Parking available all around the Village Green are

According to the Multiple Listing Service of Greater Cincinnati, the sales volume for single family homes for 2009 is still below 2008.

Questions or comments-call or email.

 According to the Multiple Listing Service of Greater Cincinnati,  May stats for condos- still behind 2008-but not losing any ground. 

Questions- call or email.