Home Worth

Hardly a day goes by without being asked, “What do you think my home is worth?”
I understand the insecurities behind the question. The economic news reported daily is confusing. The answer to the question cannot be found in the newspaper or the Internet or Zillow or the county assessor. The answer is found in your neighborhood.

Homes values are determined by research. Whether your Realtor or an appraiser performs this research, the exercise is the same. A Realtor will compare your property to recent sales in your neighborhood. This individual will find homes that have sold in the last six months to a year, geographically close to your home with similar views, quality, size and age. The comparable properties are analyzed. Financial additions and subtractions are included to equate the comparable properties to your home. For example, if a recent neighborhood sale has a one-car garage and your property has a two-car garage, a financial addition is included to the comparable property to create the value of a two-car garage.

International and national news are important. More importantly to your home value is the local real estate market, with emphasis on “local”. Downtown Manitou properties should not be compared to Westside homes. Crystal Hills homes should not be compared to Cedar Heights properties. You get the idea.

A huge motivating factor for home sellers is the interest rate, which is currently hovering around 4.9%. The last time the interest rate was that low, we were battling a conflict in Korea. Assuming a $250,000 home valued four years ago, the exact same monthly mortgage payment today will allow a buyer to purchase a much larger home valued at $310,000.

Springtime is prime time for home sales. More properties on the market induce more buyers into the neighborhoods. If your home is a quality product, is marketed properly and is valued accurately, you will have a high likelihood of a satisfactory sale.

Mike Casey can be reached at “Homes of Manitou Springs”, 719.685.1212.

Home Sales in Manitou Springs

HOME SALES IN MANITOU SPRINGS – ANNUAL REPORT

Frequently, I am asked how the Manitou Springs real estate market is performing and my answer is usually the same, “Very well”. Hard to believe? Allow me to provide some interesting statistics, based on single-family home sales in the MLS (through Realtors):

Studying the numbers in depth provides more information supporting the chart above:

1. In 2010, almost half of the transactions (26 homes) sold for less than $300,000.
2. In 2009, exactly half the transactions (22 homes) sold for less than $300,000.
3. In 2008, more than half the transactions (27 homes) sold for less than $300,000.
4. In 2007, ten properties sold for $400,000 or more – a very high number.

The increase in home sales in 2010 was certainly impacted by President Obama’s $8,000 incentive package that expired last April. The time required to sell a home continues to increase, which makes sense in this unstable market.

Why does Manitou Springs, year after year, continue to be a solid real estate market? Appreciation (an increase in the value of property) is one answer. The appreciation rate for the last (13) years for most of Manitou Springs was 93% and Crystal Hills was 106%. These numbers are very attractive compared to neighboring communities.

Other reasons for solid sales include the downtown renovation project and downtown events that are attracting larger and larger crowds. The average home price has been reduced. The interest rates have been and are still incredibly low. The school district is a strong draw. Also, there are few vacant buildable lots so the demand will always be greater than the supply.

I have always said that homes that have been properly maintained, priced accurately, marketed aggressively will always sell, in any market.

For further information, contact Mike Casey, Owner of “Homes of Manitou Springs” or visit his website at HomesofManitouSprings.com