There was a story of 2 men arguing over what they saw in a field behind a stump. One said it was a duck, the other a rabbit. Each thought the other was crazy! One man finally decided to walk to the other man to clearly point out what he was seeing. Upon standing at the other side, he could clearly see that his friend was right. He then asked his friend to step over to where he was standing. His friend saw that he, too, was correct. How could this be? There was both a duck and a rabbit behind the stump, but the stump blocked a particular angle of view from the other man. Perspective. What does this have to do with Real Estate? Continue reading New Market Data Shows Promise→
The leaves are just beginning to show their true colors. But as the leaves change, what can we expect for the rest of the real estate season for Highlands and Cashiers area? There will be a change, but the change appears to be normal. Sound like an oxymoron?
September 2017 saw a good number of home sales, overall. Still, it appeared to be typical for this time of year in the Highlands and Cashiers area. One of the important things in real estate is to understand the market.
The total number of “units” moved the past September was the lowest in 2 years. However, that spread is only 10 homes lower than the highest number in 2015. So was it really that bad?
Consider: The reduction in “unit” sales was just over 11% from 2 years previously. But, is that bad? Do we really expect to sell the same number of homes each year? With an average of over 1000 homes in inventory, that’s actually less than a 1% variable. One could say we’re staying on tract, somewhat.
So depending on how one looks at the numbers and what numbers they are using, they could actually use such to exaggerate a situation that actually shows itself to be somewhat normal. So what can we expect for the future?
Stability Adds Strength
When you were a kid, did you ever bend a wire back and forth until it broke in two? Either that or it got so hot in your hands you couldn’t hold onto it! The real estate market is much the same. When it’s all over the place it can lose its integrity. You never know what’s going to happen. However, in our market climate there is stability. You pretty much know what things are worth due to a consistent market. Those that purchased properties from 2006-2008 have seen the results of fast market growth and experienced its instability. Some were able to capitalize in that market, while others are still suffering.
The past few years in Highlands/Cashiers area have been somewhat predictable, as the following chart shows:
We see that the number for units of home sales for the last 4 years range about the same. These numbers rise considerably through the summer months. In fact, they more than double the number of sales in January. Then the cycle repeats itself. There is another factor to consider in these numbers.
Home sales typically take about 4 plus weeks from contract to closing. As a result, the graph may reflect a delay of about 1-2 months. What does this mean for the Seller?
We start to notice a rise in home sales about March and April. This means that those sales most likely started in January and February. This holds true to what this broker has seen through the years. People will start to back off from looking near the holidays at the end of the year, then resume their search and purchases shortly thereafter. For the Seller, this means if your house is not on the market early on you could be missing an opportunity to get your home sold. Why is this the case?
Any where from 200 – 300 homes may be off the market during the winter months. This is good news for those that are on the market, since they will have less competition. During the summer, many of these homes that were off the market will come back onto the market. Sellers will then have more to compete against. So, what homes are selling, where?
Best Places to Sell a Home
Buyers can be very particular. This is especially so with those buying a second or vacation home. This is the majority of this market share. Since this is a relatively small community anyway, the majority of buyers are seeking easy access to town, paved streets and any amenities that might be available. Homes outside of these parameters still sell, but not nearly as many, as this next photo shows:
Look closely. Can you identify the clusters? Most are near town, near a club and around Sapphire where there are amenities. True, there are homes in outlying areas. In comparison, they are very few. As you will notice, people do buy out further, but most do not. Where is your home?
If you have a home in an outlying area, you can price it the same as those near town. However, it is clear that you are less likely to have success. How do you compete?
Price. A seller must be priced to attract a buyer to outlying areas. For example, lets say you have a $300,000 home that takes 20 minutes plus to get to town. You live on a gravel road. It’s very quiet where you live. Now let’s say there’s another $300,000 home with paved streets, nice amenities for family and friends when they visit and it’s only 5-10 minutes to town. Both homes are identical, but remember, this is a second or vacation home. Now which one do you think will win out?
Pricing is everything. If your home is on the market and you’re getting little to no action, what do you think is the problem? Many like to blame their broker. They then go find another broker. Usually, the first thing the next broker will tell them, “You’ll need to adjust your price.”
HOW TO SELL YOU HOME
Price it right to sell. The Average Days On Market in this area is around 400. That is high compared with many markets, but typical in this area. This brokers ADOM is less than 200. However, this is due to the fact that my clients listen to suggestions and act accordingly. Pricing high and expecting to come down is a poor strategy. Price right and sell it. Price high and expect to hold onto it.
Buyers determine the market price, not sellers. Brokers help you to see what buyers are willing to pay. Having accurate data is huge in helping Sellers. Remember, the goal is to sell your home, not just put it on the market.
September 2017 Statistics for the HCBOR:
RECENT HOME SALES:
Total homes listed in Highlands/Cashiers MLS: 1195
Homes Sold This Month: 75
Average Unit Sales per Month/1 Year Average: 54
YOY Inventory: 22 months – Unchanged. Very high inventory.
Average DOM: 335
Average DOM (YOY): 400 – This number proves more useful to determine the DOM is relatively unchanged.
Median Sales Price: $425,000 . This is the highest median in about 2 years. This is largely due to the fact that the majority of homes sold in September were closer to this price. This could be great news for this market, showing more buyers are considering some of the higher priced homes in the area.
Average List/Sell Ratio: 93.36% – Evidence that homes are still over priced. Buyers just aren’t willing to pay the List price on homes. This makes buyers very picky about any home they choose. Brokers do well to encourage their Sellers to price closer to market value to encourage the sell of property. Also, if priced correctly, you will have to negotiate very little if any.
Synopsis: The market for this area appears stable overall. There is no increase. As such, pricing should be what the market will bear and not based upon aspirations.
21% of home sales ranged from $200,000 to $499,999.
33% of home sales ranged from $500,000 – $749,999.
12% of home sales ranged from $750,000 – $1,000,000.
5% of sales were above $1,000,000.
BUYERS: This is still an optimum time to consider the purchase of a home in Highlands/Cashiers area. There is room to bargain and there are still some great deals available. Make sure your broker is here to help you get the best deal.
SELLERS: While the market is showing itself to be somewhat stable, home sales are continuing. Talk with your broker about the best strategy to get your home sold. Let them help you see what the market is doing. Ask for supporting evidence. Brokers that tell you how they “feel” about the market may not be the brokers you want. Your broker should have the facts and figures to show you exactly what the market is doing. Ask them to share these with you.
CONCLUSION: Real estate in Highlands and Cashiers is selling. The market appears to be somewhat stable. As a result, one should not expect to capitalize on any gains. However, buyers should be able to purchase with confidence.
Selling Homes in Highlands, Cashiers, Glenville and Sapphire Area, as well as Franklin and Sylva.
This material is based upon work performed by Rick Creel, Broker. It is intended to provide an overall view of the real estate market for Highlands, Cashiers and surrounding areas of the Highlands/Cashiers Board of Realtors. It is composed of data from the HCBOR and NAR for this MLS only. Any opinions, findings, conclusions or recommendations are those of the author and do not reflect the views of any others. There can be no assurance that this information is complete, accurate, or includes all available market data; all information is subject to change. Users of this information are advised to consult with their financial experts about the interpretation and usefulness of information contained herein. It is unlawful to duplicate or distribute the information contained in these reports. For more information or to consider listing your home with an agent or buying a home CLICK HERE.
Asbestos has been around since the beginning of time. While it had been previously used in many products, it was found that some of these would release asbestos particles into the air. This created health hazards such as cancer to lung tissues and mesothelioma. As a result, fear is invoked into the minds when we hear the word, “asbestos”, and rightly so. However, one must realize that not all products containing asbestos release those particles into the air. This can be the case when buying a home with asbestos.
Friable Versus Non-Friable Asbestos
These two terms are applied when considering health risks of asbestos. It’s important to understand these terms if you’re buying a home with asbestos siding or other materials.
Non-Friable – “Category I non-friable ACM are asbestos-containing resilient floor coverings (commonly known as vinyl asbestos tile (VAT)), asphalt roofing products, packaging and gaskets. These materials rarely become friable. All other non-friable ACM are considered category II non-friable ACM.” (http://www.epa.gov/reg3wcmd/faq.htm)
According to the above information, what should one do? “Asbestos-containing materials that aren’t damaged or disturbed are not likely to pose a health risk. Usually the best thing is to leave asbestos-containing material alone if it is in good condition.” (http://www2.epa.gov/asbestos/protect-your-family#whattodo
Buying a Home With Asbestos and What to Do
So, are you considering buying a home with asbestos siding? Asbestos siding is considered “non-friable”. It is “not likely to pose a health risk.” (see above) This is especially the case if it has been encapsulated. This can be accomplished by putting vinyl siding over it, painting or other methods. As in the case of all asbestos, leaving it undisturbed is best. The same can be true with insulation containing asbestos. In fact, there are many commercial buildings that may still contain such insulation and are considered safe according to National Emission Standards for Hazardous Air Pollutants (NESHAPS)
Asbestos is a hazard, as are Electromagneitc Radiation (coming from appliances and power lines), gasoline fumes, etc. However, we have learned to live with such hazards, safely. According to the EPA Standards and Guidelines, we can handle asbestos without the need of going into a panic. Again, the safest method is to leave it undisturbed, much like we would a sleeping lion. If we feel we must do something, the EPA has several websites with information about asbestos abatement. There are also contractors trained in the safe handling and disposal of this product. However, if the home you are buying just has asbestos siding, there should be little to no concern over this.
So, if I found a house with asbestos siding or insulation would I live in it? Absolutely.
Would I be afraid to sell or buy a home with asbestos siding? No.
Would I sell a home that contained asbestos to my children or grandchildren? Yes.
Is having asbestos in the home a health risk? MDH says, “No.” (http://www.health.state.mn.us/divs/eh/asbestos/faq.html)
Should you be concerned if a home you want to buy contains asbestos? That is a personal question that only you can answer.
Asbestos is still in some products. It will not be eliminated. Still, we know gas fumes are dangerous, but we continue to pump it into our vehicles every day. The minimum exposure from such is nominal. Such can be the case with Asbestos. If you understand the difference between Friable and Non-Friable, you may well find that your home containing asbestos may not be a problem. Here are a few more resources with information on homes containing asbestos.