Wednesday, February 18, 2015

The power of 9

There could be an advantage to listing your home with 9 near the end of the listing price rather than rounding to the next thousand.  The reason is what is known as the left-digit effect in price cognition.  

You don't normally see the new blender priced at $80.00, it's more likely to be priced at $79.00 or $79.99.  This is a strategy that has been proven to be good in real estate as well.

Strange as it might seem, a recent study in major cities found that houses with prices ending in "9", like $849,000 rather than $850,000, sold an average of 4.2 days faster and for $2,175 more.  Even though the asking price was lower, these houses sold for more money.
It's one of those strange facts that doesn't make sense, but can possibly make a bit more profit for you when you go to sell.

More on The Left-Digit Effect in Price Cognition here.

For more on listing your home, Get Jack.

Friday, February 13, 2015

Consider Going Up With Renovations

A recent study shows an interesting return on investment when adding finished living space to a home. 

Homeowners who added space by going up increased the value of the home much more than homeowners who renovated going down for the added living space.  The details of the Zillow study reveals basement renovations returned only 48 cents for every dollar spent, while adding a storey increased value by $1.02 per dollar spent. 

It may not be possible to add another full storey to a home, but often adding dormers and opening up an attic area is quite possible and could be a much better investment than the basement project.  

As with any renovation it is always advisable to consult with a  qualified contractor to get a complete overview for your home.

Monday, February 9, 2015

Location, location, location

It might not be all about location, but remembering location, location, location is still some of the best advice.  Case in point is this mobile home that listed for $1.1 million.
A 79-year-old fisherman who purchased a modest, third-acre lot in the Hamptons on New York Long Island paid just $300 for the piece of land in 1956. The fisherman then placed a 700-square-foot, one-bedroom mobile home and shed on the property and has lived there ever since.
Little did the fisherman know when he purchased the land, but he hit the jackpot. The tiny piece of land and single-bedroom trailer home is now with an astonishing $1.1 million. What makes Richard Lester’s land and mobile so valuable? His neighbors.
The home is locate just one mile away from the ritzy Indian Wells Beach. The property is surrounded by huge homes owned by the rich and famous. In fact, Lester can boast neighbours that include Jerry Seinfeld and Paul McCartney.