Archive for March, 2008
Are We Turning the Corner on Housing?
March 24th, 2008 categories: Chico Real Estate
With bad news about the economy, housing, the weak dollar, and the war, seemingly constant of late, any bit of good news seems to be “really good” news when we hear it. Such was my sense this morning when I heard that sales of existing homes actually INCREASED in February.
According to the National Association of Realtors, sales by homeowners rose 2.9% last month. My initial reaction was… “phew”, this could be the kind of news that gets people feeling positive and engaged once again. My second reaction was, “Shoot. I missed my opportunity to seem really smart and insightful by pronouncing that, ‘Now’ is the time to jump into the real estate market and grab some great deals”. I still believe that to be the case… but, don’t seem nearly as smart or insightful telling you that in light of this report. If only I had gotten to it yesterday..
Well, all may not be lost. I, like most people are hungry for “good news” and will grab onto any bit of it like a drowning victim to a life raft…even if that life raft is a .99 cent store plastic inner-tube. We should be careful to look at the full picture and view the good news, and the bad, in context of the whole story. There seems to always be a bit of both.
In this case, the bad, or… not so good… is that home prices dropped nationally a record year-over-year 8.2%. Ouch. But, remember what I said about context. This price reduction, while painful for many, did spur an increase in sales activity that may be getting us closer to where we need to be in order to turn the corner on this market.
So, I choose to look at this report in a positive light and do believe that if you have the resources to pull the proverbial trigger on real estate, now is the time to do it. Even if prices were to experience some further reduction in price, if you are buying for the right reasons and the fundamentals are good, you should be comfortable with the decision you make to act now. In a couple of years, you will probably look like the smartest person in the room, because you took advantage of great rates and low prices and you didn’t sit on the fence waiting for everyone else to figure it out. They say, “timing is everything”, and by the time everyone else gets off the fence and back into the market, the best opportunities may have passed you by.
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Chico Market Report 3/19/2008
March 20th, 2008 categories: Market Report
Currently, there are 403 active Single Family Residential homes and 43 condos listed in Chico, CA, ranging in price from $104,000 to $1,499,900.
100 homes and condos are currently pending sale.
Since the beginning of the year, 113 have sold with an average list price of $407,555. The average list price of those that have sold is, $346,233. The average sale price of those sold is, $331,577.
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“BB King”, California’s Best Realtor?
March 20th, 2008 categories: This and That
What I discovered on-line the other day, stunned me.
I was checking out the competition on-line the other day. I do that occasionally. What I stumbled upon, as I bounced around real estate link after real estate link in google, was truly stunning. On one particular random site, was a testimonial quote from someone, who I can only presume is, or was a client of, the particular Chico Realtor he was hyping. For now I will refer to this local agent as, “BB”…you know…to protect the innocent and what not.
As it turns out, according to the testimony, BB is “the Best Realtor in California”.
Wow! I thought… this is amazing. What an astonishing revelation. This guy is the “king” of California real estate (think of the film, American Beauty). And therefore, it would only be appropriate to call him, “BB King”.
Mystery solved.
I guess I had better pack it in and get to searching those job classifieds for a new career. So, as I was cleaning out my desk and dialing the DRE, it dawned on me… How can this guy possibly know who the best Realtor in California is? I mean, has he done business with every single one of the 500,000 or so, licensed real estate agents in CA to reach that conclusion? And, does that mean that his reign is limited the state line? If so, one would have to conclude that there is some better agent in some other state (sorry, southern California). I know… hard to imagine. We need to send out some delegates and get this thing figured out.
Now, BB King (the real BB King), is arguably the greatest blues guitarist of all time and deserving of that recognition. The mere fact that I don’t have to explain to you who he is, speaks to this truth. Now, our “BB King”, on the other hand… well, I just don’t know. I mean, he does seem to be pretty good at what he does. But, “the Best”? Maybe so. I don’t know. What do you think?
Run with it, BB. You may have your new tagline here. Hail to the King!
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Range Pricing-What, When, and Why?
March 20th, 2008 categories: Real Estate 101
What?
Range Pricing, also known as Value Range Pricing and Value Range Marketing(tm), establishes, as it’s name implies, a set value range for asking price, i.e. $445,000 to $495,000. And, because this approach does not reflect a specific price point, such as, $485,000, as is more common to what the consumer would expect, this approach has its critics. But, it has many proponents as well. At the very least, it does bring up questions.
Why?
The answer is really quite simple. To attract as much “action” (prospective Buyers) to the property in the fastest period possible, with the ultimate goal of generating a bonafide offer that results in a sale. That is what the Seller wants and it is what they expect their real estate agent to help them achieve. O.K. That makes sense, right?
But, why would the value range approach accomplish this task faster than “traditional” pricing?
The idea, again, is that the more traffic a home gets, the faster it will sell. By attracting Buyers at the lower end of the range, this goal, in theory, is accomplished. And, value range pricing is designed to attract a larger pool of qualified Buyers than would typically be looking at a set priced listing by getting Buyers in the door who are qualified to purchase at both ends of the range.
The critics perspective is that no one would offer more than the lower end of the range. And, that seems like a valid point, even to me. But, in areas where this approach is popular (particularly in the San Diego area), the numbers seem to show that they do.
Like many other agents-especially in this region, I have grappled with the validity of this approach as a tool to marketing property.
What I have concluded, is that there are circumstances that it could be beneficial. And, other circumstances that it would not. First, because this approach is relatively new to our area (Chico, Paradise, Oroville, etc.), explaining the concept to folks who have never heard of it, could be difficult and, could result in confusion in the market place, which would not be good (it can be tough to break new ground).
My other concern is that, in my opinion, the Seller should genuinely and seriously be willing to consider all offers in a particular range and treat all offers on their face. So, if an offer comes in at the lower end of the range, the Seller should be in a position to accept it. They certainly don’t have to. But, they should be willing to engage the Buyer just as they would if they were to receive an offer on a traditionally priced home. Otherwise, it could easily be perceived as a, “bait and switch”, that could result in damaged reputations, wasted time, and perhaps even delay in the sale of the property.
When?
A good example might involve the pricing of a newly contructed home that has numerous “non-traditional” upgrades and amenities that are not common to the market. However, neither the front or back yards are landscaped. It is located in a developing area of unique homes. So, price is difficult to determine. The lower end of the range is very near the bottom of other sold comparables in the area. The high end, is below others. The owners are motivated and facing a declining market and willing to deal at the bottom end of the range if other terms of the offer are strong. These could be things like, cash offer, short escrow, large deposit, etc. But, they would also be willing to provide a buyer things like credits for closing costs and landscaping, if an offer were to build those items into the range price, hopefully, appealing to a greater pool of Buyers with a variety of circumstances.
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74 Tuscan Dr.
March 20th, 2008 categories: Pick of The Week
You need to see this, “Pick of The Week” home, if you are even considering buying a home in this price range. This house is truly like no other, for all the right reasons. Uncompromising quality, energy efficiency, custom detailing, sustainable materials, functional, open floor plan, and numerous high end and thoughtful finishes. We thought of just about everything!
I am one of the member owners of this home. So, I know what went into the building of this house and am very proud of what we have accomplished. And, I think that if you see it, you will see why.
The home is located in the gated Blue Oak Terrace Subdivision of estate homes about 8 miles above Chico off the Skyway, and just below the town of Paradise. The verdant 2.3 acre lot features terrific views and plenty of room to roam.
This craftsman was designed and constructed with great attention to this classic American architectural style. The 2,805 square feet of living space (not including the 3 car garage) features 3 bedrooms and office/den, 2.5 baths, a “formal” living room, huge laundry, formal dining, and spacious kitchen open to the living room for that great room feel.
Extra attention was spent on floor plan design and layout. The floor plan is both open and private with a split master bedroom design. 9 and 11 foot ceilings with an expansive vaulted ceiling in the master suite, create a wonderful sense of space. The home is oriented such that it receives morning sunlight in the kitchen and living rooms and shade and protection from the heat on the rear patio and backyard in the afternoon. As well as, gaining fantastic views in multiple directions, front and back.
Energy Efficient and “Green” features: Energy bill for November/December was $10.77!
1. State of the art hydronic Radiant Floor Heating provides natural heat rise from the floor and eliminates noise and air borne allergens and dust often created by conventional systems. Most important is that it is extremely energy efficient and comfortable. The 3 zone control allows operation and adjustment of different areas for maximum benefit and comfort. I don’t think you will find this upgrade in any other spec home. The initial investment is substantial. But, the long term benefits and savings will be enjoyed for years to come. Additionally, the system is supported by a more conventional energy efficient split HVAC system for both A/C and Heat. Although, you probably won’t use it for heat. The radiant system works that good. Two zero clearance concrete framed fireplaces provide efficient, attractive options as well.
2. Windows. And, lots of them. High quality Fiberglass framed (superior to typical vinyl found in most homes), low-E glass Milgard Windows provide additional comfort and energy efficiency.
3. 2×6 construction provides for thicker, stronger and more efficient insulated walls.
4. The tank-less water heater and boiler system create continuous on demand hot water.
5. Stained concrete floors, warmed by the radiant heating system, are considered a “green” alternative and are both, sophisticated and practical.
6. The carpet in the bedrooms and Office/Den were special ordered for their environmentally friendly qualities.
7. Bamboo floors in the living and family rooms are also a top choice for green building because of their renewable aspects and attractive appearance and feel.
8. Low VOC (Volatile Organic Compounds) interior paint reduces harmful chemicals in the home.
9. Concrete counter-tops are about as sustainable an alternative that is available and provide for endless design options that produce a beautiful and functional product that is totally custom to the job. They are extremely labor intensive and, for that reason, are an expensive upgrade that is hard to find, especially in a spec house. And, we’ve got ‘em everywhere (except the pantry, which is an attractive alternative).
Structure. The slab foundation in both bolted and pinned to the tuscan rock beneath it, providing maximum strength and stability and is superior to the alternative foundation poured on compacted soil. 2×6 exterior framing, capped by a “lifetime” dimensional composition shingle roof. (The trusses are designed to support tile, if someone wanted that option down the road.) Extra thought and investment went into raising the garage nearly level with the rest of the home, unlike many others in the area that require a landing and numerous steps to negotiate to go from garage to house. Also, “no step” threshold into master shower, perfect for everyone.
Style and Design. These are the features you will notice. The quality here is top grade and in keeping with the craftsman style. Chrome plumbing fixtures, amber glass doorknobs, chrome hinges (4 per interior door), sophisticated lighting, designer paint colors, vertical grain fir exterior doors, hickory cabinets with “no slam” hinges and sliders, drawers that pull out all the way, tasteful tile choices, pot-filler above the six-burner Jen-Air range, Thermador convection oven with microwave and warming drawer, and really much more… And, the free standing toilet with chrome wall mounted flush and the above fill self-cleaning champagne bubble-jetted tub are certain to surprise and impress you and your future guests! Priced to sell, at $698,000.
Contact me with any questions or, for a private showing.
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