4 minute read
Cora Carleson.................... 4
Hey Cora, I have heard that the Valley is getting more million-dollar properties, is that true? Bill Yonaire
Dear Bill, well yes and no, so there are properties that are coming up for sale that are now worth $1,000,000, but as far as “getting more”, I don’t think that’s quite accurate. Builders build what people want. The Valley has certainly become a mecca for outdoor enthusiasts, vacationing as well as just a quality place to live. So naturally, with our current increase in property values, some of those existing homes are going to head toward the million-dollar value. Builders are building more expensive homes, and there is some new construction out there that is over a cool mil, but those are more than likely presold homes, not homes that are going to be going up for sale. It’s a big chunk for a builder to take on a million-dollar speculative build (non-presold) home. Most builders need a relatively quick sale on a home of that expense. But as you know, I love statistics, so let’s look at a few stats out there and see what’s happening.
According to my stats, we have 3 months of inventory for homes $900,000 to $999,999. Anything less than six months of inventory is considered a sellers’ market. That means that even in this price range, it’s still a sellers’ market. We currently have 3 homes in this price range for sale and out of the three, one of them is pending (meaning it’s under contract and waiting to close). The offer price as compared to the listing price is 96.9%. That means that if you have a home that is currently for sale at $950,000 most likely, it will go under contract for $920,550.00.
Now this is a little different in say the $250,000 to $300,000 price range which is selling at 101.3% of asking price. So, your $275,000 home is actually selling for $278,575. But we are talking about milliondollar plus homes now so keep this info in your back pocket. Then, when all your friends start talking about real estate, you can throw that tidbit of useful information in there and, viola, you are real estate savvy!
So, what does a million dollar and over home in the valley look like? It can have many things, but usually it could have acreage, or lakefront, or large and in charge, or on an airstrip, or it could be small but have a hangar on an airstrip, or midsize and be on a canoe lake, or large on 1 acre with an amazing view or small on 10 acres and private, or large and on a recreational lake with a fast boat! You see, it can be anything, a combination of things or just one fabulous thing.
The point is that values have gone up in the Valley, people have discovered our little oasis and want to share it with us. When this happens, all those older homes built on desirable lots become more valuable. Remember “location, location, location?” Homes that were built on these lake lots that were built 20 or 30 years ago, get a facelift and they become the next million-dollar home. Homes that were built on airstrips with hangars that get new kitchens, flooring, and master bathrooms, yup, now are your million-dollar babies!
Homes that have generational living are on the rise too and those are getting right up there in price as well. Let’s go over how this works; You own a home on several acres, mom and dad are needing to live closer to family. You decide to build mom and dad a place right there on your acres (if your CCR’s allow you to do so, of course). You now have what is called a “generational living” home. Some people finish a basement and put in what we use to call “mother-in-law” apartments, but now we can only call them “In-law” apartments, I think father in laws were feeling slighted! Anyway, once you have created potential “income property”, your value goes up. As our population ages, these types of homes become more and more valuable. And it’s not just aging parents. Many families are choosing to live together. Couples that have both people working are choosing to live with mom and dad in a separate part of the home. Then Gramma and Gramps are close by, to help with kids and to share the costs of home maintenance etc. These are becoming extremely popular. It may not be for everyone, but the demand is there.
Now, you can watch for these properties, or you may have one yourself and didn’t even know it! If you want to list your home or just want a value of your home, please give me a call! 907-982-5700
