Showing posts from June, 2016

5 Ways to Over-Improve Your Home

We came across this property the other day and as appraisers immediately thought, "Over-Improvement?" We all have wonderful ideas of how we want to improve our property.  When we purchase our home, it may be perfect as it is but many times we will want to improve it. There is nothing wrong with updating or additions but be careful of over-improving your property for the neighborhood where you live.

What is an over-improvement?

"An improvement that does not represent the most profitable use for the site on which it is placed because it is too large or costly and cannot develop the highest possible land value; may be temporary or permanent.  Can be considered a superadequacy and measured accordingly in estimating depreciation " - The Dictionary of Real Estate Appraisal, 4th Edition

Basically, it is when the improvement is too large or costly and would not sell for what was spent in cost. 

Ways to Over Improve:

1. Adding Too Much Living Area-  If you add too much square fo…

Denton County Market Update

Low inventory, short marketing times and price appreciation are what we are seeing in Denton County.  Here is a more in-depth look at the market for May 2016.  Here are the key points:

It took an average of 33 days to sell a home in May.  This is one day less than in AprilThe median sale price for May is $279,500 which is up 5.5% from April and up 5.5% from the same time last year The average sale to list price ratio was 100% The number of sales, or volume was up 1.55% from the same time last yearThere is  currently only a 2 month supply of inventory.  down 4.76% from the same time last year The average price per square foot is $123 which is up 1.65% from last month and up 7.89% from the same time last year
Here are some graphs from the market data in Denton County: 
 The median sale price has increased 71.61% over this 10 year period.

 The average sale price is higher than the median sale price.

The number of REO (foreclosure) peaked at 2008 and has been experiencing steady decline s…