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Tag: San Francisco

Does Walkability Affect Home Values?

When potential home buyers are surveyed about the amenities and features they most desire in their new home and neighborhood, walkability is often high on the list. Having a house within walking distance to parks, shops, restaurants, schools and jobs is consistently coveted by buyers but not all that commonly found. In fact, a recent analysis found less than 2 percent of active listings had a Walk Score of 90 or higher. So, if walkability is so rare, does it affect a home’s price? In short, yes. The data showed an average increase of $3,250 per Walk Score point, though the effect was more pronounced in some areas than others. For example, in San Francisco a more walkable neighborhood increased a comparable home’s value by $187,630, while in Phoenix a similar increase in walkability only added $15,700 in value. There was even one area where proximity to businesses and services wasn’t a boost to home values. In Orange County, Calif., a walkable neighborhood had little to no effect on values due to a preference for privacy. Still, with 46 percent of older buyers and 56 percent of Millennials saying they’d prefer to buy in a walkable community, these homes – if you can find one – will more than likely be selling at a premium. More here.

Walking

True Value: How A Home’s Worth Is Determined

When a home is appraised, the appraiser sizes up the property’s features and, based on similar houses that have recently sold in the area, determines the current value of that particular property. Because they are professionals who are evaluating properties every day, appraisers are among the first to recognize price fluctuations in the local real-estate market. This may account for the gap commonly found between a home’s appraised value and the current homeowner’s expectation of what their home is worth. Naturally a homeowner who is looking to sell or refinance their home will hope their appraisal comes in as high as possible and, because of this, homeowners will often overestimate the value of their property. In fact, according to a recently released survey, homeowners overestimate their homes’ value by an average of 2 percent. It isn’t always bad news, however. According to the survey, homeowners in some cities actually underestimate the value of their home. Denver, San Francisco, Dallas, Portland, Boston, Los Angeles, Miami, and Las Vegas were among the cities where appraised values exceeded homeowner expectations. More here.

Dollar Signs

 

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