Monthly Newsletter - 10/24/2024

Your home is your shelter where you make memories, a large part of your financial nest egg, and a vehicle for creating wealth. Knowing what your home is worth is empowering and important. The reasons that may come up when you need to know your home’s value can have a direct impact on your financial health. Do you need to update your insurance, do some estate, tax, or financial planning, prepare for a re-finance, line of credit, or remodel, or are you considering a move? Relying on accurate home valuations for all of these endeavors will result in the best outcome.

To estimate your home’s value, you can easily jump on a public website that will spit out a value. This is called an AVM (Automated Valuation Model). There are a handful of free ones such as Zillow, Redfin, and RealEstimate. These sites are free for the consumer to visit and are based on a unique AI-generated algorithm that is typically a recipe of tax assessment data, CPI figures, market trend data, computer-picked comparable properties, and user-submitted data. They do not take into consideration important value points such as the condition of your home, improvements you’ve made, or nuances of the neighborhood; factors that only an actual person can evaluate.

It is important to note that on all three of these free sites, the algorithm and AVM tool are funded by the advertisers on the site, which are real estate brokers and lenders who want your business. The AVM is the carrot to get you in front of these high-paying advertisers who hope you click to connect so they can convert you into their real estate client. This is unlike the relationship-based business that I foster; this is more of a “sales-y,” transactional approach. Despite the sharks in the water, an AVM is a good starting point, like dipping your toe in the pool, but don’t get bit!

Here are the current AVM (Automated Valuation Model) values for a subject home from four sources (3 free and 1 fee-based). As you can see, the values vary. If you have a need to know the value of your home, don’t rely on an algorithm. According to Zillow, their accuracy varies by 7.49%; that is a huge variation! For example, that is $75,000, either high or low, for a $1M home. Depending on what you are planning for, that inaccuracy can severely cost you.

The AVMs above vary by 58%. If you apply the average Zillow accuracy percentage, the Zestimate® above could be off by $143,000 or more. It is important in this new world of AI that we do not underestimate the power of the human algorithm. Evaluating a home with all 5 senses, experience, and expertise is critical in establishing a home’s true value. Just like AVMs that vary, it matters who you align with, too. Hungry sharks who are paying to find clients, brokers who sell real estate as a hobby or side hustle, or brokers who are not engaged can all be detrimental. Seek out a professional who is committed to their craft, a student of the market, and up-to-date on market trends when you are assessing your largest asset.

If you want more precise information, consult a trusted advisor like me. By selecting accurate, comparable properties and analyzing today’s market trends, I will provide you with a much more comprehensive evaluation of your home’s value relative to its specific features, condition, and location. Please reach out if you are interested in having me tour your home and complete a Comparative Market Analysis (CMA) so you can plan for your future with confidence.

From saunas to gyms, more people are prioritizing private, custom spaces in their homes where they can focus on routine without distraction.

Saunas & Steam Showers
A steam shower is typically a stand-alone shower stall that can produce steam without running the hot water. The shower enclosure is sealed off from the rest of the bathroom, creating a self-contained humid environment that can also be used for bathing.

A steam shower is similar to a sauna in that it promotes relaxation with heat, but these two amenities require different equipment. A sauna—even a wet sauna—begins with dry heat from a stove or rocks. Users can choose to add some humidity with steam, but it rarely passes 60%, whereas steam showers provide close to 100% humidity. Saunas also aren’t equipped to handle running water like steam showers are. Saunas get substantially hotter than steam showers do, but because steam inhibits your sweat response, steam showers will allow you feel the effects of the heat more quickly and intensely than the sauna.

A home steam shower costs about as much to install as a home sauna. Both provide similar health and relaxation benefits, though steam offers more relief for dry skin and respiratory issues. If you’re considering including a sauna or steam shower as part of a bathroom remodel, the difference may come down to personal preference and available space.

Home Gyms & Studios
Your home’s design should include more than just your personal style; it also should accommodate your hobbies and lifestyle. If you’re committed to keeping active and working out regularly, a home gym might be a necessary part of the floor plan. Being able to fit a workout in when you have the spare time during the day without having to run across town can be life-changing.

Even better is a space that is beautiful and well thought out. A functional and aesthetic space can be welcoming and energizing. Start by bringing your own personal style into the space. Maybe a rattan light fixture or a fun wallpaper. If you don’t have room for a lot of equipment, opt for pieces that are designed to be easily stored out of the way, like a walking pad that can be folded and hung on the wall instead of a full stationary treadmill. Protect your floors from damage with rubber mats. They will also help to reduce the noise of the equipment, especially if you’re on the second floor of your home.

Wellness & Hobby Spaces
Wellness rooms can be about physical wellness, of course, but they’re also about mental well-being and can encompass anything that makes you feel calm, centered, connected, and rejuvenated. More people are realizing the importance of prioritizing their physical AND mental health. A wellness space can be for many different things: a music room, meditation, library, or even a dedicated space for hobbies. Think about what your goals are before designing your retreat.

Even a small nook exclusively devoted to your wellness space can be beneficial. No matter the size of your space, start with some basic elements and then build from there with things that bring you calm and happiness.

• Add sounds of nature or aromatherapy to lift your mood
• Choose nature’s colors for your eyes to land on, such as blues, greens, and neutrals
• Clear away any distractions
• Surround yourself with plants on the ground, table surface, and hanging
• Make your space comfortable with a cozy throw

Monthly Newsletter – 10/24/2024