My Experience
I grew up in a little Midwestern town, but my tech career took me to California. I was finally able to afford a 2,500 square-foot home, three bedrooms, two stories, virtually no land, located in Southern California. The price was $1.350 million, but in 2006 the housing market was already in trouble and the employee relocated from this home meant his company bought the house and didn’t want to sit on it.So, I paid about $900,000 for it. I put money into remodeling it and sold it for about what I originally paid in 2019 to return to Wisconsin when my mom had become ill. My kids had gone off to college, and I just never quite fit into California. My brother used to say, “You can take the boy out of the country, but you can never take the country out of the boy.” My dad was originally a farmer, and most of us were conservative by culture and nature.
Zillow provides via email free market updates, and I was shocked to see that after five years, the market price had more than doubled!
When I read that the average home in America now costs $441,000, I remember the saying, “You can drown in the river that averages two feet deep.” So, how do we assess the housing market today? Each part of the country is unique in terms of both quality of life and home prices.
Assessing the Home Market
- Consider market value. This is the price a buyer is willing to pay for a home under current market conditions. It’s often determined by a real estate appraiser and reflects the home’s worth in the open market.
- Factor assessed value. This value is used for tax purposes and is typically lower than the market value. It’s calculated by local government assessors based on various factors, including property improvements and comparable sales.
- Use comparative market analysis (CMA). A CMA involves comparing your property with similar properties that have recently sold in the same area. This helps in understanding the market trends and setting a realistic price for your home.
- Monitor market trends. Keep an eye on local real estate trends, such as average selling prices, inventory levels, and the time properties stay on the market. This information can provide insights into the market’s direction and help you make informed decisions.
- Consult real estate professionals. Real estate agents and appraisers have the expertise and access to data that can provide a more accurate assessment of your home’s value. They can offer valuable advice based on their experience and market knowledge.
- Consider economic indicators. Factors like interest rates, employment rates, and economic growth can influence the housing market. Understanding these indicators can help you anticipate market changes and adjust your strategy accordingly.
Personalize the Home Market to Fit Your Dreams
My own view is that when you are trying to describe your dream home in terms of price, location, configuration, construction, neighborhood, local culture, and availability of schools, restaurants, hospitals, and other nearby places to go, you pursue a more focused and personalized strategy.First, think about where you envision your dream home will be. Do you prefer the vibrance of city life or a quiet location, maybe a countryside surrounded by grassy hills and nature? Or many dream of beachfront property or maybe a house in the mountains. The Californians I lived near bragged that the ocean and the mountains were each only an hour’s drive away. (They didn’t tell you about the traffic, though.)
What about the size of your dream home? How many bedrooms and bathrooms do you think you will need? Do you want a large living room, and a big kitchen, maybe a cozy and private study? Think about the layout and how the rooms are connected one to the other.
What architectural style appeals to you? Modern, minimalist design, or do you prefer the more traditional or rustic look? Consider the exterior and interior design elements, such as the color scheme, materials, and furniture.
Which unique features do you want in your dream home? This could be a swimming pool, a home theater, a nice-sized garden, library, or a gym. Maybe you want eco-friendly features like solar panels or a green roof? (These were all the rage in California.)
Try to describe the feeling you want your home to create, the ambience, if you will. Do you want it warm and inviting, sleek and modern, or do you just want calm and serene? That will mean considering the lighting, decor, and overall look and feel.
What would be the personal touches that would make your house feel like a home? This might be family photos or artwork that you love to see around you. Think about how you can incorporate your personality and interests into the design.
