What is bracketing and why should Realtors do it?

What is bracketing and why should Realtors do it?  

The method of bracketing sales is the topic I wanted to focus on today. Bracketing refers to the method of choosing sales comparables that are both inferior and superior to the subject property in various features and characteristics. For example, you may want to compare the subject to recent sales that are both bigger and smaller in square footage than the subject, not just one or the other. In addition, you could choose sales that are inferior and superior in updating or features.

The logic behind choosing comparables that are superior and inferior lies in how adjustments are made to sales. If a sale is superior to the subject property a downward adjustment is made to the sale, and if a sale is inferior to the subject property an upward adjustment is made. So let’s say you have one sale with a fireplace, while the subject does not have this feature. If the fireplace is worth $2,000 you would subtract $2,000 from the sales price of the comparable. If you have two sales that are similar to the subject in all but the two different features, one being superior and the other inferior, you can estimate the value of the subject by adjusting for the differences. In a perfect world after you adjust up on one sale, and down on the other sale, the adjusted sale price for each one would be the same, and that would be the indicated value of the subject. This is not exactly the case in the real world so there is a range in “adjusted values”.

While I usually go into such in-depth analysis as an appraiser with specific dollar adjustments, performing a simplified qualitative analysis that looks at homes that are both inferior and superior can provide a decent value estimate of the home that is based on actual market sales activity, not all realtors do. By picking a sale that is superior to the subject you know what the high end of the range is, and the inferior sale would reflect the lower end of the range. This method also lends credibility to my team and provides sales information to the appraiser. By including sales that are above and below the list or contract price I cannot be accused of trying to influence the appraiser with only the high-price sales. 

If you have any real estate-related questions you can call me at 435.602.8228, email me, or connect with me on Facebook., Twitter, or Youtube.

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

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Homestake development,

 

The planning commission already approved the Homestake development, which will create over 120 housing units in what ‘s now a parking lot behind the Kimball Arts Center and Boneyard Saloon. Homestake is a public-private partnership under which the developer is building on city land.

The commission was tasked last week with approving the development agreement so the project can proceed. But, several commissioners hesitated after getting new information about the Rocky Mountain Power substation next to the property.

The substation has come up in conversation throughout the project’s vetting by the city, particularly looking at electric and magnetic fields, or EMFs, that future residents could be exposed to.

A professional review of EMFs at the site found the readings to be “far below what is widely considered as harmful levels.”

However, a potential future voltage increase there has raised fresh concerns. Dave Gustafson, a project manager with the city’s engineering department, told the city council in February that the number of volts put through Rocky Mountain Power’s site could triple in the future.

“The approval was prior to that information," Frontero said at last week's meeting. "When that information was made available to me, I had some concerns.”

Commissioner Bill Johnson commended the developer, J. Fisher Companies, for researching the topic, but added that he was still uncomfortable.

“So while I don’t love it, they did a great job putting together a backup documentation that covers us somewhat," Johnson said. "I don’t like it, I don’t think it’s safe.”

Commissioner John Kenworthy said that in December, chair Laura Suesser refused to sign the final action letter on the project. That’s unusual; chairs sign such letters as a matter of procedure.

This week, Suesser recused herself from Wednesday’s discussion and did not respond to requests for comment.

The final action letter included in the development agreement is signed by chair pro tem Sarah Hall, who is second in command.

Hall didn’t express concerns about increased voltage when Kenworthy asked her about it at the most recent meeting.

“You don’t find any issue with the fact that we weren’t presented with the increase in the voltage?” Kenworthy asked. 

“Correct,” Hall replied.

Park City Municipal directed questions about the substation to Rocky Mountain Power. A spokesman for Rocky Mountain Power could not confirm that any voltage increase was going to happen at the Park City grid.

Commissioners said increased voltage could prompt more mitigation efforts by the developer, which could look like increased setbacks or infrastructure to serve as a buffer.

A majority of planning commissioners voted to delay a decision on the development until April, in order to do more research on EMFs. Hall and commissioner Christine Van Dine voted against the delay.

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

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Are home sellers going on strike?

 

The U.S. housing market has entered into its peak annual spring season where buyers and sellers alike get serious about their moves. 

Only this year there's something off: Not a lot of homes are going up for sale.

According to Realtor.com (see chart below), only 349,284 U.S. homes were listed for sale in March 2023. That's below the 437,270 listed in March 2022—a period that was infamous for its tight supply—and far below the 478,100 listed in March 2019.

What's going on? 

See, if someone was eager to sell their home right now in search of a new property, they'd likely be exchanging their 2% or 3% mortgage rate—one of the biggest financial perks of the pandemic—in for a 6% mortgage rate. The idea of getting a substantially larger monthly mortgage payment has a lot of would-be buyers opting to stay put. Cue fewer homes coming onto the market.

To better understand the nuances of the spring 2023 market, let's take a closer look at the latest data.

View this interactive chart on Fortune.com

That said, this pullback in new listings isn't just felt on the supply side—it's also delivering a hit to the demand side. See, if a particular homeowner decides to hold off on trading up properties, it means there is one fewer home going on the market and one fewer buyer hitting the market.

The best way to describe the housing market over the past year is a fight between tight supply and deteriorated affordability.

So do buyers or sellers have the upper hand?

Unlike the new listing total (i.e. the number of homes going on the market in a given month), the active listing total (i.e. total inventory on the market) is a better indicator for the balance in a market at any given time.

At first glance, it might be easy to assume that active listings/inventory (see chart below) is simply a measurement of supply, however, it's also very much a measurement of demand. See, if buyers pull back, and homes sit on the market longer, that can increase inventory levels (currently up 59.9% on a year-over-year basis) even if new listings (currently down 20.1% on a year-over-year basis) decline.

What's active listings/inventory telling us right now? The fact that active listings/inventory continued to decline through March suggests that sellers are once again gaining power over buyers. At least relative to the second half of 2022, when inventory was on a somewhat speedy uptick (more on that below).

View this interactive chart on Fortune.com

While buyers have seen an increase in power relative to the frenzied spring 2022 market, it doesn't mean we've shifted into a buyers' market. One of the reasons is, after all, this inventory jump hasn't taken us back to a balanced market.

In fact, we're far below pre-pandemic inventory levels: The 562,565 active listings on Realtor.com in March 2023 were 49.5% below the 1.1 million active listings in March 2019.

View this interactive chart on Fortune.com

In theory, a market with inventory above pre-pandemic levels has seen the power dynamic shift dramatically in buyers' favor. Markets with inventory levels far below pre-pandemic levels, on the other hand, have seen less of a dramatic shift.

The searchable chart below provides active listings/inventory data for the nation's 400 largest housing markets.

View this interactive chart on Fortune.com

Among the country's 400 largest housing markets, just 14 are back to pre-pandemic (i.e., 2019) inventory levels. That includes overheated markets like Idaho Falls and Logan, Utah. Meanwhile, 386 major markets are still below 2019 inventory levels.

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman Real Estate today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

 

Insure that you have the best representation when buying and/or selling in Park City. Contact Paula Higman Real Estate Park City at 435-602-8228 For a property tour and more information about Heber City and the surrounding areas.

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Structures collapse at multiple residences due to heavy snow and Ice

 According to a statement from the Park City Fire District, a garage collapsed on Gorgoza Drive, and a chimney collapsed on Norfolk Avenue.

No injuries were reported at either location. The PCFD is encouraging residents to look around their homes for snow and ice buildup.

“Please be aware of roof avalanches. Don’t take chances, keep your home and surroundings safe by clearing away the snow and ice accumulation,” said Chief Pete Emery with the PCFD.

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

 

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House Hunting with Pets

 House Hunting with Pets

Nearly 68% of U.S. households own pets. Pets share our living spaces and sometimes run our lives more than we’d like to admit, so there is a lot to consider when shopping for a new home that you will share with your furry/scaly/feathery friend. Here are some tips for house hunting with a pet in mind.

Inform Your Agent
The first thing you need to do is inform your real estate agent about your pet and what home features are important for your specific pet. That way your agent can inform you of any local ordinances or restrictions, and they can help filter your home search to properties and neighborhoods that are pet friendly.

Consider Outdoor Space

If you have a pet that enjoys the outdoors, you should pay close attention to several home and neighborhood features when looking at homes.

• Yard - Does the yard size give your pet enough room to roam? Do you have easy access to the yard, i.e., will it be easy to let your pets in and out? If the home has a pool, it should come with a gate or cover. Is there any vegetation that would be harmful to your pet? How are the sightlines - can you see your yard from your kitchen or living room?
• Fencing - Does the yard have a fence? How high is it (for jumpers)? How private is it (for barkers)? Do the gates properly latch? If there is no fence, how much would it cost for you to install one for that lot size?
• Neighborhood - Are there any busy roads nearby? Are the streets well-lit? Are there sidewalks, parks, or other suitable walking areas nearby? If your dog gets loose or your cat likes to prowl at night, will it be safe?

Check the Rules and Guidelines
If you intend to search for a home in a neighborhood that's managed by an HOA, you should identify what guidelines they have in regard to pets. It's possible that there will be a limit on the size or number of pets that can be in one household.

When rules are in place, violations can result in substantial fines, which is why it's best that you find out this information before making an offer. Many communities are pet friendly and include on-site services that are beneficial for pets.

Consider Interior Features
The interior of the home you're interested in should also be considered. For instance, does the house have a bay window or large window ledges where a cat can sit? Does the bathroom have a shower or tub that will accommodate pets for baths/grooming? As for flooring, carpets will stain easily and attract pet dander and fur. Hardwood and tile floors are preferable.

Numerous factors will play a role in your final decision when searching for the right home. As long as you inform your realtor and make sure that the neighborhood doesn't have restrictive rules against pets, you should be able to find a home that your pets love.

Mountain Living Redefined in Herriman Utah

This could be your perfect home.

 Herriman, Utah in my opinion, is poised to become one of Salt Lake Counties' most desirable and well-thought-out communities! I love to show buyers' properties in Herriman and now some of the road construction projects are completed with access to and from Herriman has improved to a mild commute to downtown Salt Lake. Draper, Sandy, and South Jordan are easy commutes. Herriman is in close proximity to Southbound I15 into Utah Co. 

Homes and subdivisions in Herriman are well thought out and the small acreage neighborhood parks are fabulous ideas and make a great match for the trail system Herriman as put into place. The City has a small-town feel that has attracted many young families. Great sporting and youth programs, and even a community man-made lake and beach. 

As a GLOBAL LUXURY REALTOR in Salt Lake County, I appreciate the value I have found in single-family homes for sale. New construction with upgrades included can be found in Herriman for 75 sq. ft and even less for not-so-new. 3 car garage and a rolling landscape seem to be the norm. Great open spaces with many homes backing parks or green areas. As Herriman's new construction and landscapes mature, Herriman will blossom. 

I believe Real Estate in Herriman will soon compare to Homes in Draper as the city of choice for many buyers. Contact me for an Updated list of Herriman fabulous properties including luxury Real Estate, Executive homes, horse properties, large acreage, townhomes, and condos located near great shopping districts. Herriman has it all!. If you are a homeowner in Herriman, contact us about selling your home! 

We find buyers and love what Herriman has to offer our clients!

Riding Trails in Herriman, Utah - Blackridge, Eric's, Rawhide, Hardlick

Regardless of price point, our team is united in their efforts to support the client, support each other, and get the job done in the best way possible. Paula Higman Real Estate is a unique team of talented and diverse individuals with a passion for success and client satisfaction.

Contact Paula Higman today and let us take this journey with you to marketing and selling your home for the best value, to the biggest luxury real estate market out there.

 

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