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Surprising Real Estate Facts

  • The Starbucks Effect: Take two identical homes; One near Starbucks would have sold for an average of $135,000, while the same home without a Starbucks would have sold for $100,000. Fast-forward almost two decades: the average US home appreciated 65 percent to $170,000, but the property next to Starbucks skyrockets 96 percent to $270,000.
  • All renovations are not created equal: The greatest return for your investment is a mid-range bathroom remodel, a $3,000 job that returns $1.71 for every dollar spent. The worst home improvements for value are kitchen remodeling and finishing a basement. A top-of-the-line kitchen reno will cost you $22,000, and you’ll only get about $0.51 back for every $1 you spend.
  • Use the right words in a listing: Avoid “unique,” “TLC,” “investment” and “potential” — these could lower sale prices by as much as 7 percent. But words like “luxurious” for bottom-tier homes and “captivating” for top-tier homes could add 8.2 percent to your home’s value. Longer, more-detailed listings often sell for more.
  • The worst time to sell is the second week of December (listings sold for 2.8 percent less than average). The best time is March, when homes sold faster and for 2 percent more.
  • Seven is an unlucky number. Homes with “777” as their address sell for 2.1 percent less than their estimated value; house numbers that just include 777 (such as 17779 Main St.), sell for 1.8 percent less. Oddly, houses with just 7 as their number sell for 1.8 percent more than the estimated sale price.
  • Psychological pricing works. Listings with a nine in the thousand digit ($450,000 vs. $449,000) sell anywhere from four days to a full week faster.
  • Female agents tend to sell homes faster and for higher prices.

 

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