Price Savvy Neighborhood
When Clayton Oakhurst residents ask me the value of their homes, it’s usually a test to see if I know what I’m talking about or them wanting a professional to confirm the value they already calculated. Most residents in this area know the value of their home within 5%. Why do they have such insight? In general, they’re an educated bunch who really care about their homes. But there is more to it.
Retirement: Primary residences are now playing a huge part in their retirement fund. So many have lost confidence in company retirement plans, stocks and other traditionaly attractive long term plans. They want something more tangible, controllable (maintenance & improvements, not market), and something they can use today while it appreciates. If their house changes in value, it directly affects the quality of life in retirement years.
Comparison: Keeping up with the Jones’ is evident in our neighborhood too. Even if houses within 2 blocks of each home are no more than 15% different in value, we still like to know where we stand.
Cash Source: The past few years have trained us to see our aggressively appreciating homes as “bank accounts” where we can draw money as long as we leave around 20% equity in the home to avoid unattractive loan conditions. Those of us that have relied on this source of money for improvements or living expenses are not going to enjoy the flattening market in 2006.
Whatever the reason for their insight, it only makes my job easier. Market educated residents that are interested in the industry keep me on my toes but also require me to do a lot less convincing when it comes time to choosing a sales price for their home.