Real Estate Blog - Appraise & Apprise - William R Hall, Alpha Valuations

May 24th, 2018 2:06 PM

Those who know me know that Thanksgiving is, by far, my favorite holiday.  That said, the summer holidays hold a special place in my heart.  Any excuse to throw on some sandals, fire up the grill (and/or smoker), and crack open a cold one and I’m a happy guy. And the patio is where the magic happens.  My patio is my sanctuary.  My Zen space.  My happy place (well, that and Elkhart Lake, WI – but more on that in another post). 

We used to have a rather large concrete patio.  Over the years, the slab had begun to deteriorate and sink, making my happy place look not so happy.  Three years ago, we had the old pad busted up and installed a 850+ SF paver patio with a built-in firepit.  And I was happy again.  But it wasn’t cheap.  And the appraiser in my head was screaming at me “What in the world are you thinking?!?  You’re never going to get that money back!”.  But the wannabe Grillmaster and Lite beer connoisseur in me screamed back “Now that’s a patio!” Guess which voice I’m more in step with now.

People often ask me what improvements they can make to their homes that will have the highest return – most bang for your buck, if you will.  The answer is almost always the same…kitchens and baths, kitchens and baths.  Boring, I know.  But it’s true.  And it’s also not that simple.  Every homeowner has different ideas and different plans for their current abode.  And so much must be taken into consideration.  How long are we going to live here?  What do we NEED to have done versus what do we WANT to have done?  How do we pay for it (that’s the big one, right?).  What level of finish do we go with?  The truth is you just need to temper your expectations with a healthy dose of reality.  Dropping $100k on a complete kitchen remodel does not automatically increase the value of your home by $100k.  If anything, you might be doing yourself a disservice.  Are your neighbors doing $100k remodels of their kitchens? No? Then maybe you shouldn’t either.  At least from a return of investment point of view.  But if that doesn’t bother you and you want that dream kitchen no matter what, then go right ahead.  As long as you keep your expectations realistic, you will be happy with the outcome.  That’s how I came to love the new patio.  I don’t care that we won’t get near the return of what we spent.  And that’s ok.  Because it’s my sanctuary.  My Zen.  My happy place (don’t be jealous, Elkhart Lake).   And I’ll be spending much of my time on my patio this Memorial Day Weekend – grilling, smiling, imbibing.   I wish you and yours a happy and safe Memorial Day Weekend. 

Thank you and make it a great day.


                                       My Happy Place


Posted by William Hall on May 24th, 2018 2:06 PMLeave a Comment

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May 16th, 2018 6:55 AM

“Life moves pretty fast. If you don't stop and look around once in a while, you could miss it.”

                                                                                                        Ferris Bueller

 

Ferris was wise beyond his years.  You never know when your life will fundamentally change, do you?  One minute you are the parent of a high school freshman, the next you’re preparing to be an “empty nester” at the age of 45. Literally. Let me explain.

Our daughter, bless her, is very bright.  She truly enjoys learning and her interests run the gamut from cooking, to swimming, to astrophysics.  While still in 8th grade, she applied to a prestigious math and science academy where the students are mandatorily boarded.  She had a very slim chance of actually getting accepted as she would basically be leap-frogging her freshman year as the school is only grades 10 through 12.  Yet, despite the odds, she subjected herself to the entire process.  Needless to say, my wife and I had mixed emotions while waiting for “the letter”.  While waiting, we spoke about the pros and cons (mostly the pros) and how everything would change.  Obviously, we would be sad about not having our only child around on a regular basis, but we would be foolish to deny our child this opportunity.  We found the “small envelope” in our mail right around the time we were expecting it.  We were relieved.  We got at least a 12 month stay.  And our good-natured daughter took it in stride.  Well this year, 12 months later, the “large envelope” was found in the mailbox.  After the initial wave of shock and tears – from a convergence of pride and sadness – we quickly accepted the fact we had suddenly become empty nesters.  Probably for the rest of our lives.

That’s how fast life moves.  Are you prepared for that?  Honestly, not many of us are.  Downsizing.  Upsizing.  Phasing.  Transitioning.  Whatever you call it, it is emotional as it defines an entire period of your life.  Nearly all of us will experience one or more of these phases during our lifetime.  Have a plan.  Or form one quickly.  Be ready.  Trust me, it can happen way sooner than you think.  Listen to Ferris. 

Thank you and make it a great day.


April 15th, 2018 9:01 AM
I know it sure doesn't feel like it, but Spring officially began a few weeks back.  And with Spring, typically, comes home buying season.  However, this year feels a little different, doesn't it?  Maybe it has something to do with the unseasonably cool weather.   Maybe not.  But what I do know is that there is very little inventory for the prospective home buyer right now.  This is good news if you are selling your home, or thinking of selling.  Not so good news if you're out there looking.  Sellers certainly have all the leverage as indicated by the fact we're back in the days of multiple offers and non-contingent buyers.  What does this mean if you're looking for a new home?  It means be wary and be patient. 

Bidding wars can be troublesome.  First of all, you are almost certainly going to overpay for the property should you win the bidding process.  Which means there is very real possibility of the home not appraising out.  With the current lack of transaction velocity, it becomes more and more challenging to support the inflated price from an appraiser's point of view.  Secondly, the only one who wins a bidding war is the seller.  You know that feeling when you buy something you've been eyeing for a while and the next week it goes on sale?  Yeah, it's like that...only exponentially worse. And involving hundreds of thousands of dollars.  So be patient.  There will be another "dream home".  And I feel it.  I feel like we are on the brink of the buying season blowing up.  Especially after conversations with brokers on a daily basis.  Each has said they've been busy the past few weeks with current deals in the works and in the pipeline.  

So relax.  The weather will eventually reflect the calendar.  And your next home just might not have listed yet.  But it will.  Thank you and make it a great day!

Posted by William Hall on April 15th, 2018 9:01 AMLeave a Comment

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