What determines my home value?
Since every home is unique, determining your home value is unique also.  However, there are several key factors that when taken together, determine your home value.

1.  Location.  You know the old saying, "Location, location, location."  Yep, the location of your home is the biggest factor in determining your home value.  Different cities have different values, and different neighborhoods have different values.  A home in a desirable neighborhood will be worth more than the same home in a less desirable location.

2.  Size.  The amount of space in your home determines your home value.  Most often we hear this concept expressed as the "price-per-square-foot" of a home.  The most important space is the amount of heated/cooled square footage in a home.  

3.  Age.  Unless a home has been considerably renovated and updated, the age will impact its value.  Older homes - with older appliances, plumbing, electric systems, and roofs are more likely to need repairs and cost more to maintain.  The value is less than a newer home where these expenses aren't incurred.  

4.  Features.  Homes with top-end appliances, premium flooring, architectural details and molding, or recreational amenities such as pools and tennis courts will have a higher home value.  Generally, an appraiser or real estate agent can estimate the value of each feature based on past sales data in the neighborhood.

5. Condition.  It obvious homes in good condition that don't need repairs will be more valuable to a buyer, and will have a higher home value.  Roofs, HVAC, and plumbing systems in disrepair will take a heavy toll on value.  

If your curious about your home value, contact us for a free valuation - 850.445.2476        

Home Sales Report:  Nationwide Sales Strongest in Seven YearsThe National Association of Realtor's issued their home sales report for December showing sales numbers that were the highest since 2006.  Median prices also remained strong.

Nationwide for all of 2013, there were 5.09 million sales, which is 9.1 percent higher than 2012.  This was the strongest home sales report since the 2006 boom when sales reached a high of 6.48 million. “Existing-home sales have risen nearly 20 percent since 2011, with job growth, record low mortgage interest rates and a large pent-up demand driving the market,” said Lawrence Yun, NAR chief economist.

Home Sales Report on PricesThe National Association of Realtor's home sales report also addressed prices.  The national median existing-home price for all of 2013 was $197,100, which is 11.5 percent above the 2012 median of $176,800, and was the strongest home price gain since 2005 when the median price rose 12.4 percent. The shrinking share of distressed home sales accounts for some of the price growth.  Ten percent of December sales were foreclosures, and 4 percent were short sales. Foreclosures sold for an average discount of 18 percent below market value in December, while short sales were discounted 13 percent.

The median time on market for all homes was 72 days in December, up sharply from 56 days in November, but slightly below the 73 days on market in December 2012.  Month to month differences in marketing time are bound to show up in home sales reports.  The important information here is that marketing time has consistently been less than in 2012, a sign that demand is stronger.

Regional homes sales reports showed good news in most areas. In the South, existing-home sales increased 3.0 percent to an annual level of 2.03 million in December, and are 4.6 percent above December 2012. The median price in the South was $173,200, up 8.9 percent from a year ago.  Source: National Association of Realtor's

Would you like a home sales report for your neighborhood?  Contact us – 850.445.2476

Good real estate market, or bad?  Yes.One of the common complaints we hear as real estate agents from would-be home sellers is that Tallahassee home sales are not good.  This is not a good real estate market, they say.  So, is this a good real estate market, or bad?  The answer is yes.

Depending on how you define “good real estate market”, defines how you view the market.  It goes like this:


It’ a Bad Real Estate Market if

• You bought your home in 2007 and are $30,000 underwater
• You live in a newer neighborhood like Dry Creek Run where homes have dropped 75% in home value since they were built in 2006.
• You live on a street with several foreclosed homes that have been vacant for 2 or more years.

It’s a Good Real Estate market if

• You live in one of the many Tallahassee neighborhoods where home values have risen 5% in the past year.
• You bought a home at the 2011 market bottom, and have made $10,000 in equity since then.
• You bought your home in the 1980s and are sitting on $100,000 of home equity.
• You see homes on your street sell in 60 days or less.

The truth is Tallahassee home prices, as an indicator of Tallahassee home values, have risen by 4 to 5% over the past year.  2013 home values are at about the same level as home values in June 2004 as measured by Freddie Mac’s Home Value Index.  Did you hear anyone in 2004 say “My home value stinks”?  I didn’t hear that either.  Yet home sellers complain about it today because they are comparing values to the bubble prices of 2006 and 2007.  So, yes, it is a good and bad market, depending on your circumstances.  One day, though, it will be a good market again… for everyone.

How fast has your neighborhood home values been rising?  Call us 850.445.2476.

One common question among Tallahassee home sellers - "When Should I List My Tallahassee Home for Sale?"  The quick answer is "Whenever you want to sell!"  But, this question really gets to another question for home sellers.  When are most buyers out looking at homes and closing on a Tallahassee home for sale?

Tallahassee Home for Sale by Date When should I list my Tallahassee home for sale?
To give you a good idea of when buyers are looking and making offers on homes, we looked at closed sales in Ox Bottom for the years 2010-2013.  Look at the graph.  On average the great number of home sales close in the last 2 weeks of July.  The second largest number of sales occur in the last 2 weeks of May.  This makes sense from the practical point of view - many buyers want to move when school is out in the summer.  Some want to close on their home in early summer so they have all summer to settle in.  Some are moving in early summer, and want to close before school starts.

So, the peak period of Tallahassee home sales close between late May and the end of July.  This means those buyers are writing offers in April, May, and June.  When should I list my Tallahassee home for sale?  You need to have your home on the market by March to get adequate marketing exposure.

Prepare now to list your Tallahassee home for sale.Contact us for a free guide - Increase your Home Value and Sale Price.  850.445.2476

3 Tallahassee Home Sale Mistakes to AvoidNow is the time many Tallahassee home sellers are planning to put their homes on the market.  Don't make these crucial Tallahassee home sale mistakes if you want to sell for top dollar!

1.  Don't -- demand too much money.  Listing your Tallahassee home too high will ensure buyers pass it by.  Faced with many choices, buyers are just itching to filter out some of the homes on their to-see list... price is the #1 filter.  Price too high, and you've made the most critical home sale mistake.

2.  Don't -- skip marketing.  Marketing can be accomplished many ways.  The critical marketing piece is how your home is presented on the internet.  High quality photos, and lots of them, are a huge part of marketing a home.  Wide angle lens shots, supplementary lighting, appropriate staging are very important.  You must also drive traffic to the websites listing your home through mailing, internet marketing and print advertising.

3.  Don't -- leave needed repairs.  Every repair a buyer sees contributes to the impression that a home is not well maintained.  Today's buyers want move-in condition.  There is no more "sweat-equity."  This is a home sale mistake that sellers often make because they get used to little things in their home that don't quite work right.  We all live with these things in our home, but buyers are less forgiving when they are making a home buying decision.

Call us for other home sale hints so you can get top dollar for your home!

Freddie Mac recently published it's Economic and Housing Outlook which identified 4 factors needed for a full real estate recovery.  Let's look at how those factors impact our Tallahassee home value recovery.

Keys to a Healthy Tallahassee Home Value Recovery1.  Low unemployment.  The Great Recession produced high and prolonged unemployment, which only recently dropped to 6.7%.  Normal unemployment is between 5 and 6% according to most economists.  The Tallahassee unemployment rate is about 6% - a little high by normal standards, but definitely on the way down.  This is good news for a Tallahassee home value recovery.  A good job market is critical for people to buy homes in Tallahassee.

Tallahassee home value recovery should continue in 2014
2.  Low Mortgage Delinquencies.  Mortgage delinquencies have been falling steadily for the past year, but they still remain high.  The historical average for delinquencies is less than 2%.  Nationwide, we are at about 5.8% and it will probably take another 2-3 years to get below 2% again.  In Tallahassee, serious delinquencies longer than 90 days are running about 3%.  Delinquencies and foreclosures will continue to drag on Tallahassee home values.

3.  Home prices consistent with income levels.  During the housing boom, Tallahassee home prices rose far faster than income levels.  This is was not sustainable.  Now that prices have come down 20% or more in most areas, we have more consistent income to price ratios.  Income in Tallahassee has been growing between 1 and 2% for the past 3 years.  Since home value appreciation is tied to income, we should expect to see a comparable rise in Tallahassee home values of 1 to 2%.

4.  Higher home sales.  During the housing bust, home sales dropped to levels not seen since the 1940s.  We have picked up considerably since 2011.  Tallahassee home sales were up about 12% annually in 2013, but still below historical norms.  Home sales are forecast to grow in 2014, and that will be good news for rising Tallahassee home values.

 

Home Value Trends in 2014
2013 was a good year for the real estate market and home values.  Home prices increased between 10 – 13% nationwide depending on the reporting source.  Tallahassee increased about 1.5%.  How will home value trends in 2014 look for Tallahassee?

Home Values Will Trend More Slowly
Most economists and real estate market experts expect home values to continue an upward trend through 2014, but at a slower pace than 2013.  Home values historically have not risen much faster than the inflation rate.  With inflation under 2%, it’s hard for home prices to sustain double-digit growth over the long term.  Look for home values growth to be in the single digits.  Clear Capital, a provider of real estate data, expects prices to grow at 3-5%.  Kiplinger, a financial adviser, forecasts growth to be 4%.  For Tallahassee, that means a typical single family home valued at $200,000 now may be worth $208,000 by the end of 2014

Economy Will Drive Home Prices One key question facing home values will be the Federal Reserve’s plan to scale back quantitative easing, and how this will affect mortgage rates.  Rising rates will put a damper on the demand for homes, and slow home price growth.  Another variable will be how fast unemployment drops in 2014.  Employment levels and wage growth are key drivers of home values.

Would you like to see how much your Tallahassee home value should increase in 2014?  Contact us for a free valuation.  850.445.2476

Tallahassee has many homes built about 20 years ago.  Why is this important? 
In Tallahassee, a roof typically lasts about that long before they need total
replacement.  Even though there may be no visible leaks causing ceiling stains
inside your home, an older roof likely has a few small leaks that can rot
plywood roof decking and truss supports.  By the time leaks become visible they
have already been there for months.  

If you want to sell your Tallahassee home, potential buyers look at an older
roof as a major repair expense, and may rule out your home as a buy.  In
addition, buyers will have a difficult time obtaining financing or insurance for
a roof that has less than 3 years of life.

 If your looking for a Tallahassee home maintenance or roofing contractor,
please call us at 850.445.2476 – we have a great preferred vendor list that we
highly recommend!

The Wall Street Journal ran an article today claiming "Housing Prices are on a Tear Thanks to the Fed."  Low interest rates, low housing supply and prices below historical norms compared to income are all contributing to sharp increases in prices WSJ went on to say.  

Cities such as Phoenix and Miami have seen big increases in home values.  We’re still waiting for big value jumps in Tallahassee, but prices have certainly firmed up over the last 6 months.  Tallahassee home values held up longer than most cities going into the crash, and it’s likely we’ll lag a bit in
seeing home values rise again

Contact us for a free home e-valuation, direct to your email.

The Case Shiller Home Price Index, one of the most respected indicators of home values, increased by 8.1% in January, its fastest rise since before the housing bust.  All metro areas in the 20-city index posted home price gains, and every city except Detroit showed accelerating gains.  

While Tallahassee home values are not included in the index, the closest metro areas did very well:  over a 1-year period Atlanta increased 13%, Tampa improved 8%, and Miami surged 10%.  Tallahassee tends to lag these metro areas in price trends by a few months, but there seems no doubt that home values and prices have moved off the bottom of a long 6-year fall.