You Might Adjust for That

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You Might Adjust for That

• Frank Lucco, SRA, CRP
• Managing Director
• Accurity Qualified Analytics

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Thinking Outside the Grid
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Energy efficiency
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Saving Energy Inside and Out

• Solar panels arent always considered the most
  aesthetically pleasing
• Solar shingles can also be used which have the
  appearance of standard shingles but function the
  same as large solar panels
• Spray foam insulation fills cracks and crevices
  better than traditional fiberglass

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Saving Energy Inside and Out

• Energy-efficient HVAC systems with regular
  maintenance will help cut down on energy bills
• Smart appliances fridge, washer, dryer will
  help save energy, water, and money

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Photovoltaic Panels

• Photovoltaic (PV) systems convert sunlight
  directly into electricity
• PV systems are most common in Arizona,
  California, and Hawaii
• Approximately half a million homes use PV systems
  as a source of power in the U.S., with about 32
  of the total PV systems in the U.S. added in 2013

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Photovoltaic Panels

• According to a December 2013 Lawrence Berkeley
  National Laboratory study
• 24,705
• Average price increase for homes sold with a
  typical 3.1-kilowatt PV system
• 5,911
• Sale premium for each 1-kilowatt increase in
  generating capacity
• 2,411
• Sale price decrease each year that a system ages

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Light Bulbs

• Described by The Daily Green as one of the
  easiest changes someone can make, with some of
  the quickest payback period and best ROIs.
• According to HGTVs Kitchen Cousins the two
  biggest savings are thermostats and light bulbs.
• Adding motion sensors or dimmer switches can also
  decrease energy expenses

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Windows

• Marvin, Anderson, Pella, Gulf Coast - 2,000 each
• No Name - 200 each

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SMART HOME
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Broadband Speeds

• Young people this is a make or break feature
• Fiber optic, high speed, upload and download
  speeds

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Technology

• Media
• Digital
• Remote Control
• Kitchen Equipment
• Whole House Generator

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EXTERNAL influences
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Nasty Neighbors

• Nasty neighbors can hurt home values by as much
  as 10-the New York Times
• A nasty neighbor, cranky neighbor or sloppy
  neighbor can bring down property values and it
  tends to be outside of your control

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Schools

• Location in a good school district can be a prime
  factor for families buying a home
• School district can be so important that many
  families will take out riskier loans or otherwise
  stretch their financial situation
• Owners may stay in homes long after theyve
  outgrown them to stay in desirable districts

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Schools

• Sometimes buyers will pay more for a home in a
  good public school district because its seen as
  offsetting costly private school tuition
• According to a study by Zip Realty best property
  values often correlate with the best school
  districts
• Strongest correlation was seen in cities like
  Chicago, Denver, Los Angeles, Orlando, Phoenix,
  Sacramento, San Diego, San Francisco

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Spite Houses

• Generally built to annoy or as a form of protest
• Dating back to the 1700s, reasons for spite
  houses can include
• Wreak havoc and protest local authorities
• Feuding neighbors
• Familial strife

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Spite Houses
Aesthetic Protest
Purple House, Lubbock, TX
Equality House, Topeka, Kansas
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Spite Houses
Obstruct neighbors view
The Alameda Spite House, Alameda, CA
Skinny House, Boston, MA
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Foreclosures

• Foreclosed properties can sit vacant for extended
  periods of time, even years
• Sitting vacant, yards become overgrown, houses
  fall into disrepair or can become inhabited by
  stray animals or squatters
• If a neighborhood becomes increasingly full of
  run-down foreclosed properties, the neighborhood
  can become blighted

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Foreclosures Health Effects

• The stress of going through a foreclosure is
  self-evident, but what about living next to a
  foreclosed home?
• A new study by the Harvard Center for Population
  and Development Studies suggests living adjacent
  to a foreclosure can elevate blood pressure
• Add another foreclosure within 100 meters and add
  an additional 1.71 millimeters or mercury in
  systolic blood pressure

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Foreclosures Health Effects

• The study also suggests not just blood pressure
  may be impacted, but also increased alcohol
  consumption and minimal weight gain - typical
  health effects of stress
• Neighbors can become stressed, worrying that the
  neighborhood may be in decline
• That stress can also increase when youre living
  within the 100 meters and trying to sell your own
  home

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Blight

• Generally characterized by neighborhood, city, or
  other market area falling into disrepair, decay,
  or deterioration
• Common in many cities across the country and
  globally especially common in areas still
  suffering the effects of the Great Recession
• Blight is a common problem that may not always
  have interested parties pursuing solutions

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BlightThe Problem
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BlightAn Aesthetic Solution
A new company offers a novel solution
life-size, realistic decals of doors and windows
that can be adhered to plywood
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Economic incentives and disincentives
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Economic Incentives

• Grants and tax break programs, particularly for
  energy efficient improvements
• Grants for first-time home buyers and affordable
  housing candidates

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Economic Disincentives

• Increased flood insurance premiums
• Restrictions on rebuilding, renovating or
  remodeling
• Property Taxes

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High end homes
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High End Homes

• A study by Redfin and Grammarly suggests that
  listings written in complete sentences and
  without spelling or grammatical errors sell three
  days faster and are 10 more likely to sell above
  the list price
• Elsie de Wolfe, credited by some as the inventor
  of Interior Design as a profession, described
  moldings, light-openings, door-handles and hinges
  as the unconsidered things that make or mar your
  house. One could surmise this is particularly
  true for high end homes.

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High End Homes Over 20 million

• A study by Zillow indicates the median
  sale-to-list price ratio is 72 for homes listed
  at
• 20 million or more
• According to Zillows analysis, approximately 50
  of the homes demonstrated at least one price
  change compared to 36 of inexpensive homes
• Quantity and quality of comparable data often
  leads pricing to be more of a guessing game

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High End Homes

• Top important luxury features for both luxury
  home owners and non-luxury home owners are view
  and a chef's kitchen.
• 20 million or more
• 40 of luxury homebuyers are willing to go over
  their budget as opposed to 29 of non-luxury
  homebuyers

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Listings
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Technology

• Smart phone technology has put the power to
  search, view, and even buy homes, literally in
  the buyers hands
• Instead of pre-recorded virtual tours online, a
  video call can give a buyer a real-time video tour

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Technology

• A study by Realtor.com shows that more than 50
  of all listing page views happen on a mobile
  device
• Users on mobile devices on average submit five
  times as many inquiries as Web users

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What's a word worth?

• According to an article in the Wall Street
  Journal there is a 1 increase on average, in the
  sale price when positive opinion words are added
  to a listing, according to a study
• Words like beautiful and fabulous can boost the
  sales price

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Selling Turnkey Properties

• According to zip Realty a turnkey sale describes
  selling a property that doesn't require any major
  repairs or renovations 
• Nationwide, listings billed as turnkey are 3.1
  more expensive than listings without the term

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Turning off buyers

• Biggest mistake is not getting the home in the
  best possible condition
• Various odors, outdated fixtures and appliances,
  displaying personal items and having sellers hang
  around the house during the showing along with
  poor curb appeal and clutter can have a
  disastrous outcome on the potential offers. 

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Bless Our Happy Home Sale St. Joseph Statues 

• According to an article in the Wall Street
  Journal from 2009 to 2010, when home prices were
  stagnant, the number of sales of St. Joseph
  statues slightly more than doubled
• When home sale prices began to creep back up, St.
  Joseph statue sales dropped

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A Whiff of Welcome Home" 

• Buying real estate involves a lot of factors
  location, price, etc., but how about smell?
• Developers are creating custom scents to sell
  high end luxury condos, this goes well beyond
  baking fresh cookies or a loaf of bread
• Should there be a scent dispensing machine in
  your condo project?

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Bidding for a House Strategies That Win 

• According to national real estate brokerage
  Redfin, 44 of winning offers were all cash
  making that one of the most successful ways to
  come out of it ahead of others
• Other successful strategies include waiving
  appraisals, inspections and submitting a
  personalized cover letter 

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Word Play for Agents-WSJ 

• Using local terms sells real estate 
• According to Redfin, local customs are important,
  replacing stove with range, powder room with
  half-bath and study with office can make a big
  difference if those terms are common and
  customary for your region  

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How a Dual Agent Affects Sales Price 

• Dual agency sales that occur in the first 30 days
  of a listing contract sell for a roughly 18
  premium because agents may be able to more
  efficiently match the property with the right
  buyer if they search within their own network 
• On the other hand dual agency sales in the last
  30 days of a listing contract sell at about 6
  discount 

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The New Old Home 

• Psychic comforts of yesterday-selling the new old
  home 
• Selling a new authentic old house can be seen as
  a psychic comfort of yesterday, a concept of the
  past that's happier and less disposable than life
  in 2014. Supposedly, people have this visceral
  memories of their grandmothers house. Memories
  are an underrated idea in terms of making people
  feel comfortable 

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Staging Your House for a Quick Sale  

• According to a real estate agent with Martha
  Turner Properties, the interior of the home needs
  to be de-cluttered and re-arranged for maximum
  space and light. You may need to rearrange
  furniture and pack up some personal belongings 

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The Popularity of Trees  

• According to a recent article over 5 of current
  listings in the US are on streets with tree
  names. Median listing price of homes on Oak
  Street is 187,000 for Cherry Street is 169,900 
•  Homes with actual trees can boost the sale price
  of a property 

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The Popularity of Trees  

•  Research done recently found that homes with
  street trees sold for 7,130 more on average and
  1.7 days quicker then houses without trees
  planted between the sidewalk and the street.

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Tricks

• As of May, a Redfin study of 37 major
  metropolitan markets showed that 58 homes sold
  above list price when there was a published offer
  deadline
• The same study also indicated DOM averaged 31
  days compared to 61 days on listings without
  published deadlines
• Deadlines can push buyers who are on the fence or
  otherwise delaying to make a decision and take
  action

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Pets

• Pet odors are an obvious turn-off, but even just
  the presence of an animal at a showing can turn
  away buyers
• For stubborn sellers who do not heed their
  agents advice, it is crucial that the listing
  provides that an animal is on-site.
• Agents also suggest another reminder at the door
  or other clearly visible location before a showing

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Pets

• Pets are a distraction from buyers wanting to
  pet them to being afraid to barking
• Barking, or any loud noises, can impede
  discussion and viewing making it difficult to
  focus on the positive aspects of the home
• Remove evidence of pets from the home for best
  results from the usual bedding, bowls, and toys
  to photos and refrigerator magnets

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Buyers Personality

• Know the buyer's personality as it can impact the
  final negotiation and price
• Aggressive-procrastinator-perfectionist-investor

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Photos

• Everyone knows a picture is worth a thousand
  words this is especially true for home listings
• Brokers may spend hundreds of dollars for
  high-end photography to set off their listing
• In the hottest markets, where buyers can make
  offers without even seeing the home, photos
  become even more important than usual

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Photos

• The best photographers make the home look even
  better in pictures than in person
• Photographers will get the frame just right,
  avoiding power lines just above the roof for
  example
• Dusk or twilight shots can be popular favorites,
  with some photographers calling it the magic
  hour

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Photos

• Similar to pets, personal belongings in the home
  can distract buyers and have them thinking more
  about the homeowners than the home
• Photographers may add a blue sky in the
  background if it was cloudy or replace the brown
  grass with green
• While they often use tricks, it should never rise
  to deception

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viewpoints