The Chief Executive Officer Spencer Rascoff collected real estate statistics from his database at Zillow.com of 110 million homes to find trends in real-estate pricing. Some of the findings were rather surprising.
- Homes with addresses on a “Way” sold for more than those on a “Street”, and named streets had about a two percent higher resale value than numbered streets, unless you are in NYC (where it made no difference), or the street is a Main Street, which sell for an average of four percent less. Further, streets with the words “Lake” or “Sunset” in them have about a 16% higher resale value than those that didn’t. So, it appears that the name of the street actually makes a difference in what people are willing to pay.
- Numbers in addresses also make a difference. The number 7, for some reason, has an impact. Houses with just a lone “7” sell for 1.8% higher than the estimated value, but “777” homes sell for 2.1% below. And addresses that have other numbers but include “777” (like 17778) sell for 1.8% less. So apparently three 7’s in a row is a turn-off.
- When you sell makes a difference in how long it will take to sell and how much you can get for it. In New York, at least, the worst time to sell is the second week of December and the best time to sell is March.
- Psychological pricing does in fact work. Having a nine in the thousand slot instead of a zero (449,000 vs. 450,000) actually does cause homes to sell four days to a week faster.
- The “Starbucks Effect” is real. Homes closer to a Starbucks sell for more than homes that are not. If you had two identical homes in 1997, the one close to a Starbucks would have sold for around $137,000 while the one that was not would have sold for about $102,000. For those same homes now, the one not near a Starbucks will have only appreciated 65%, while the one with a Starbucks nearby will have appreciated a whopping 96%.
- Not all renovations are created equal. The highest return on investment comes from a mid-range bathroom remodel. A $3000 remodel on a bathroom will have a return of about $1.71 for each dollar spent. The lowest return on investment is a kitchen remodel, where an investment on a major renovation of $22,000 will only get you about $0.51 for every dollar you spend.
- And finally, how the listing is worded can make all the difference in what you get for your home. Words like “unique,” “TLC,” “potential,” and “investment” could drop your sale prices by as much as seven percent. Using a word like “luxurious” for lower value homes and “captivating” for top tier homes can raise the sale price by as much as 8.2%. Also, longer and more detailed listings tend to sell for more than short and general ones do.
While some of these real estate statistics may seem odd, they are something to consider when either buying or selling a home.
For more information or to ask about our listings, contact The Doug Erdy Group today!