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        <title>Seaport Advisory</title>
        <link>https://www.seaportre.com/blog/2012-05/</link>
        <description>Data-driven real estate insights, valuation, and strategy across Southeastern CT and Southern RI. Research-backed guidance for buyers, sellers, and investors.</description>
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    <guid>https://www.seaportre.com/blog/what-home-additions-will-net-your-the-most.html</guid>
    <link>https://www.seaportre.com/blog/what-home-additions-will-net-your-the-most.html</link>
        <author>tbray@seaportre.com (Tim Bray)</author>
        <title>What Home Additions Will Net You the Most?</title>
    <description> <![CDATA[ 
If you’re thinking about remodeling your kitchen, or finishing your basement, you probably want to get your investment back when you sell your home. But when it comes to payback value of home improvements, some are definitely more profitable than others. As a general rule, kitchen and bathroom projects usually get a nice return on investment, typically 90 or more. Things like adding rooms or finishing basements tend to pay back the least. Finishing a basement usually returns less than 50, so it’s not a project likely to show profit at selling time.


There are a number of factors that go into determining how well a project will pay back. Payback value depends a lot on the current market conditions in your area. If the market is hot and homes are selling fast, you can expect a higher payback value than you would get in a slow market. The most important factor is determining if all the other homes surrounding your home are worth more or less than yours. If homes are worth more..then your improvements may have a greater impact on value. If the homes are of lesser value then your improvements may hold little value but help in selling your home quicker due to appeal.


The type of project you do and how it fits in with other homes in the area can have a big influence on payback too. If you put your money into the wrong type of improvement, you won’t get your money back. But if you're smart about what you do, you can make money. The payback will be better on improvements that are in demand and conform to neighborhood standards. Adding a second bathroom in a neighborhood where most homes have two bathrooms will give a high return on investment. Building a large addition that makes your home twice as big as the other homes on the block probably won’t pay back very well. Likewise, the popularity of a project will factor into how much it pays back. An improvement heavily customized to your wants and needs won’t pay back as well as something more common to other homes in the neighborhood.


Another factor to consider is the cost of the improvements. If you can do the work yourself, you can save significantly on the cost of the project and greatly improve the chances of getting a good return on the investment.


The Image below is from remodeling.hw.net    Click here to see the enlarged picture below.




 

 
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    <pubDate>Fri, 04 May 2012 07:18:00 -0400</pubDate>
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    <guid>https://www.seaportre.com/blog/fundamentals-why-wont-my-property-sell.html</guid>
    <link>https://www.seaportre.com/blog/fundamentals-why-wont-my-property-sell.html</link>
        <author>tbray@seaportre.com (Tim Bray)</author>
        <title>Fundamentals - Why Won't My Property Sell?</title>
    <description> <![CDATA[ 



Over the past decade, as pricing began to inflate artificially, we were lead to believe that the real estate market was lined with gold. All of the fundamentals no longer seemed to matter. Values of commercial properties were no longer correlated to income but to projected future appreciation. Residential properties were experiencing a similar scenario where you could not lose. People were anticipating that the market would forever increase and the Market Value of their properties would do nothing but compound. Some of the fundamentals ignored were as follows:Competition: If a certain type of property is introduced to an area and begins to sell at higher than normal prices then this will cause other properties of similar caliber to be built in hopes of attracting similar results. Example: A $600k home is built and sells quickly in close proximity $250k properties. A new subdivision is then built with homes in the $600k range.


Conformity: Value is created when a property is in harmony with its surroundings. Maximum value is realized if the use of the land conforms to existing neighborhood standards.


Contribution: the value of any part of the property is measured by its effect on the value of the whole.


Example: Installing a swimming pool may not add value to the property equal to the cost.


Highest and Best Use: The most profitable single use to which a property may be put, or the use that is most likely to be in demand in the near future.


Increasing and diminishing returns: The addition of improvements to land and structures increases value only to the asset's maximum value. Beyond that point, additional improvements no longer affect a property's value. As long as money spent on improvements produces an increase in income or value, the law of increasing returns applies. At the point where additional improvements do not increase income or value, the law of diminishing returns applies. (There is an easy formula that can be used to find this threshhold)


When the bottom fell out of the market, all of these principles came flooding back and left property owners in complete shock and financial ruin. These principals are here to stay until we have some sort of artificial influence that allows us to make the same mistakes all over again. Until that time, property owners who made mistakes will be forced to hold, sell at fair market value, or walk away.


Hold on...time out This is not a perfect world...not everyone has this information, common sense, or knows the value of a dollar. Sometimes people just want what they want and are willing to pay the price. 


I completely agree. The market is imperfect no matter how much we analyze the numbers. Buyers and sellers do not have all the information that the most educated agents possess. Therefore, it is our conclusion that there are outliers that skew the numbers but they are few and far between. These outliers occur much more often in waterfront communities, vacation communities, etc. We rarely see outliers occur in residential communities that do not have a very specific draw that increases the value of land.


The issue today is not only that &quot;dumb money&quot; is hard to find, but a certain phrase in most offers that states &quot;Property must appraise at or above the purchase price&quot;. Often times we are able to fetch a purchase price greater than sales comparables woud suggest...but this phrase is making it more difficult to close without negotiating again.


There are very effective strategies used to dispose of these properties but they include intense marketing, pricing strategies, and a willingness by all parties to accept the reality of the market we are in . Do you know of a unique property that deserves special attention?


What Home Additions will net you the most?www.seaportre.com

 

 
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    <pubDate>Fri, 04 May 2012 05:53:00 -0400</pubDate>
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    <guid>https://www.seaportre.com/blog/which-waterfront-community-will-you-choose.html</guid>
    <link>https://www.seaportre.com/blog/which-waterfront-community-will-you-choose.html</link>
        <author>tbray@seaportre.com (Tim Bray)</author>
        <title>Which waterfront community will you choose?</title>
    <description> <![CDATA[ 
Which waterfront community will you choose?


Seaport Real Estate Group actively tracks over sixty waterfront communities along the Connecticut Shoreline from the seaports of Stonington to the beaches in Branford. Each of these communities offer unique attributes, amenities and property types that cater to the lifestyles of its residents. For more information about Waterfront Communities &amp; Shoreline Properties for sale in southeastern Connecticut please visit Seaport Real Estate Groups Shoreline Guide.


Find the Perfect Home at the Right Price 


When buying a home it is important to determine exactly what you want and need in order to make smart decisions. But, a waterfront home is not just any home. Special considerations need to be taken to ensure that your property will suit your lifestyle and let you enjoy the activities you love.




What amenities are you looking for: Private Beach, Deep Water Dock, Yacht Club, Tennis Courts, Golf or close to Restaurants and Entertainment?


Which waterfront communities match your requirements?


How do association fees, building restrictions and taxes compare form one community to the next?


Once you have determined your requirements... how do you find a deal?




If you are look for the perfect home at the right price Seaport Real Estate Group can help you ask the right questions, provide proprietary market analytics and make informed decisions.


Is now the Right Time to Sell?


People sell homes for a variety of reasons. We are in a Buyers’ Market and if you don’t need to sell for the next 7 to 10 years it may be worth the wait. However, if you do not have the luxury of time you need to ask the right questions and make informed decisions. Here are a couple of good questions to get you on the right track.




What kind of property do you have (style, size, bedrooms, amenities, etc.) and how does it compare to other “like-kind” properties in the market that have sold, are under contract and have not sold in the last 12 months.


How has your waterfront community preformed over the last 2 years when compared to other competing waterfront communities that offer similar lifestyles?


How do your taxes and association fees affect your chances of sale?


What gives you property a competitive advantage in the market place?


Do you really know how your property compares to other “like-kind” properties in communities like Stonington Borough, Lords Point, Masons Island, Giants Neck, Black Point, Middle Beach and other competing areas.




Understanding the competitive landscape is an important part of making informed choices. Generalized information and false assumptions often lead to misinformation and bad decisions. Good information (that can be sourced and verified) often leads to make the right decision, even under difficult circumstances. Seaport Real Estate Group can help you ask the right questions and make informed decisions about selling your home. Contact us for a free consultation.


About Us


Seaport Real Estate Group is a full service, top producing, real estate advisory team that is affiliated with William Pitt | Sotheby’s International Realty. Our market knowledge, business acumen, ability to leverage the latest technologies and professional marketing services set us apart from other agents and provides unparalleled exposure to qualified buyers. We also provide proprietary market analytics which helps our clients make informed decisions and gives them a competitive advantage in a challenging market. Proactive communication and customer service is the cornerstone of our successful business. Please contact us and let us know how we can be of service.

 

 
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    <pubDate>Thu, 03 May 2012 15:57:00 -0400</pubDate>
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