Something more important than location?

Yeah yeah yeah.  We’ve all been told by real estate professionals for years that the single most important thing when picking a house is it’s location.  I’m telling you right now that there is something even more critical than that.

Let me tell you a few things about location first.  It’s subjective.  People pick where they want to live for lots of reasons:  Proximity to main roads, their job, schools, parks, low crime, etc.  It’s always a compromise too.  One buyer may be willing to be far from parks if their kid can be in a better rated school.  Another buyer may be willing to put up with a higher crime rate if it is super close to their job…..so, one person’s great location may not be as great to other buyers.  Also, locations are sort of price dependent.  What is considered a good location for somebody with a $100k budget will definitely be a bad location for a $400k buyer.

What do ALL buyers have in common though when picking a house?  They all want as good of a lot as they can get.  In all 15 years of my career, I have never had somebody say they wanted a house that backed to a busy road, had a steep driveway, lacked privacy or had a backyard that was unusable due to a slope.

Why is the lot so important?  For starters, it is often a buyers first impression.  If a buyer tries to pull in the driveway and their car scrapes the pavement, bad sign.  If they are out of breath before they get to the front door, bad sign.  If they step out of their car and can hear New Circle Road or the Interstate that is behind the house, bad sign.  Additionally, the lot affects just about anything you do with the property.

What should you look for in a lot?

  1.  As flat as possible is the biggest thing around here.  Lexington is pretty flat.  The severely sloping lot is unusual here.  Go to Richmond or parts of Scott County and it is more common.  For what’s it is worth, nobody has ever told me they didn’t like a house I showed them because the lot was too flat.
  2. A nice view is always a plus.  If you can’t get a good view, then no view at all is safe.  We don’t have a lot of greenspace views and even fewer water views in Lexington.  It is totally okay to just have a flat backyard that backs to other houses.  I would avoid backing to anything than other houses, such as businesses, apartments or a road…..and ideally it backs to houses that are equal or higher in value than the one you’re viewing.
  3.  Get a lot size and shape that is normal for the neighborhood.  If you are looking at a house that has a tiny or oddly shaped lot unlike any other in the neighborhood, don’t buy it.  The same doesn’t always apply for lots that are bigger.  Most of the time the biggest lot in the neighborhood is the most desirable unless it is in a neighborhood where the most likely buyer will be a retiree or somebody downsizing to get away from a lot of maintenance.
  4.  I would avoid a corner lot if possible.  There are a few buyers who prefer a corner lot but most people view them as twice as much sidewalk to deal with.  Plus, most neighborhoods only allow you to fence a corner lot from the rear edge of the house, meaning that you have much less space if you want to fence it in.  (I’ve got a good friend who looooves his corner lot and will likely find out I said this…..sorry Peter!)

Want to know my absolute favorite thing about getting a good lot?  It never needs updating and never goes out of style.

 

Bluegrass market update & fun with a calculator

I’ve always been a number person.  When I was a kid, my dad gave me a calculator.  I would make pretend budgets, figure out things like compound interest, and do things like type 77345 and flip the calculator upside down to see that I spelled ShELL.

So I guess I am not surprised that I get excited when my local real estate board publishes the statistical info once a month.

It is also nice to see if my own experience is echoing what is happening in the whole market.  It usually is.

For example, I hardly show any houses any more because there is so little for sale.  I used to be out 3-4 nights a week and ALL weekend just showing houses.  Now I may show 4-5 a week and have the same amount of buyer clients……on a busy week.  There just aren’t enough houses to show people, and buyers are making fast decisions because they don’t want to lose a good house while waiting for a great one.

In Fayette Co, sales from Jan 18- April 18 are down 11% from the same period in 2017.  Listing are down 9%.  You’d think a decrease in sales would be bad, but since listings are down by a similar number, it is still a super tight market, especially in the sub $200k range.

All the Bluegrass counties have a big decrease in listings.  Most have an equally big decrease in sales too.  Makes sense.  If there are fewer houses to buy, there will be fewer houses sold.  Unless you are in Scott, Madison or Jessamine Counties.  Those places are the only ones where sales have increased from this same time last year while listings have decreased.  I know, I know.  How can that be?  This is just my gut, but I think those counties had more on the market last year that just sat and didn’t sell.

I also feel like I am spending more time in surrounding counties than I have in a long time.  When I first got into this business, there were a lot of people moving to Jessamine Co in search of a cheaper house.  But then gas prices went crazy and nobody in Fayette County wanted to leave.  Now gas is fairly cheap and people have returned to moving outside of Fayette Co again.  Jessamine County has the tightest market under $180k.  There is literally next to nothing for sale there.

Just this past March, we had a net loss of 61 households in Fayette County.  Scott and Jessamine Counties were the only ones that saw much of a gain in new households.  Yep, Fayette County folks are back at it.

I still play with my calculator a lot.  Only now I’m using it to determine what a house is worth before listing it or making an offer.  Maybe with all this extra time I have from not showing houses every night, I can figure out some new words my calculator will spell?