Benton County Real Estate Trends

It has come to my attention that everyone seems to want to know what their home is worth in Northwest Arkansas.  While I can’t imagine why, I’ll try to accomodate. *snicker*  Home prices in Benton County in particular are not as grave as they may seem.  We are seeing a large number of price drops in Bentonville, Rogers, and Bella Vista because some homes have been on the market a long time.

Generally speaking, we’ve seen un uptrend in sales, showings, and offers in the last few months.  We’ve also seen an uptrend in for sale by owner properties which I think can be mostly attributed to the fact that people feel they have less money to spend marketing their property.  While I am not going to go into the many benefits of having a good Realtor, I will say that most of these properties end up listing anyway (something to think about if you are one of those people and don’t want to waste anymore time).

For all of Benton County there has been over 1765 sales in the past six month.  I do not guarantee that accuracy about such a number because this is MLS data (which is not perfect) and there may be sales that have not been recorded here.  Of those sales since February of this year, the average price is $189,430 with the average square footage being 2,023.  That gives us an average price per foot of $93.63.  Not too bad considering there are REO properties selling in the mid $50’s per foot.  Let’s also look at the SP/LP ratio (Sale Price to List Price) and see what you can expect to get after listing your home near market value.  Average list price was $196,647, average sale price was $189,430.  The SP/LP ratio comes out to about 96.3%.  This is expected with homes that have been on the market for a while as well as homes that are slightly overpriced.

Another encouraging sign regarding market strenth is the number of pending sales.  523 homes are pending at this time.  That means a sale should occur within the next 15-60 days and that the property has entered escrow.  That is about 30% of the sales for the past six months.

Average Days on Market for Benton County homes at this time is 154 for sold listings, and 146 for current listings.  Speaking of homes currently for sale, there are 3,697 of them.  That seems on the high side so make sure you are competitively priced when selling your home.  You should also carefully consider your marketing plan with your agent to differentiate your property from all those other listings.  Obviously price is a base consideration but you might consider agent incentives, web video, and viral marketing along with a serious internet presence.  It’s all about getting your property exposure after all.

Foreclosures, REO’s, and Short Sales, Oh MY!

Let’s just cut to the chase.  Foreclosures, repossessions, and short sale inventories are at an all time high in Northwest Arkansas and around the country.  While this is most definitely unfortunate for those homeowners going through these processes, the investor or home flipper in all of us perks up at the mention of a distressed property, hoping that there may be a way for us to benefit.

 

How do we find these diamonds in the rough and separate them from the truly atrocious properties that have so many liens and repairs that “money pit” doesn’t begin to describe them?  There is now a wealth of resources for those looking for foreclosed properties in and around Northwest Arkansas.  If you contact me directly, I’ll give you my secret stash, otherwise, you’ll have to hash it out with the rest of the dreamers out there.  I will tell you that websites like www.nwafiresale.com are popping up at a staggering rate.  While firesale is a local site, there are a host of pay sites that give you information on all types of distressed properties.  Just a few that come to mind are: www.RealtyTrac.com, www.homesales.gov, www.hud.gov, www.foreclosure.com, the list goes on.

 Working with foreclosed properties, short sales, and bank owned properties can be a harrowing experience.  I highly recommend using a realtor that at least has a few of these under his/her belt.  Preferably, you might even want to find a ‘specialist’ in the foreclosure field.  He/she will know the tricks of dealing with these properties as well as what you need to watch out for along the way.  A savvy buyer paired with a knowledgeable realtor can get some amazing deals in today’s market.  That being said, you had better do some homework before tackling any kind of distressed property.  If you don’t know what a short sale is or what REO stands for, you need to do some down and dirty research of your own.  Remember that every situation has a silver lining.  The mortgage crisis and stagnant home values have created a situation that may not be repeated for a very long time.  Why not take advantage as an educated buyer looking to make a deal.  If you have any questions you may feel free to contact me anytime.  If not me, talk to someone you trust because I cannot stress enough that these properties need to be researched, inspected, and understood thoroughly before making a move.

It’s a Sad Day for Coffee Fans in Benton County

News has come out this week that has caused some Northwest Arkansas residents to lapse into decaffeinated mourning.  Alas, Starbucks is closing THREE stores in Rogers and Lowell just weeks after announcing their 600 store closings nationwide.  While some are glad to see the coffee giant off every corner, others are not excited about the prospect of losing their morning pick-me-up and meeting spot.  As my office is just across the street from one such establishment, I thought it only pertinent to reflect on our coffee habits as a society as well as my own in particular.

Why is a $5.00 cup of coffee so appealing to us anyway?  I like to think of myself as a bit of a coffee snob and can make a pretty decent cup of joe at home when the mood strikes.  Heck, I even have a french press!  So, while I can make a $0.25 cent cup of coffee (that is usually more than respectable) at home, I, like much of the rest of America, take to the streets and order up a cup from Starbucks or Seattle’s Best or whatever the corner coffee store happens to be when the mood strikes.  Is it better coffee?  Most of the time, absolutely not.  In fact, I won’t buy Starbucks Coffee to make at home because I don’t think it has much flavor.  As an old friend used to say, “Then what’s the dill pickle?” 

I think the “dill” is (among other things) — and this is just me — that I like the luxury of going out and getting a cup of coffee.  Will McDonald’s suffice?  Heh, right.  I’d rather bring my own percolator to work.  I like the routine, the atmosphere, the camaraderie of like minds gathering to feed their addiction.  I don’t think it’s one single thing that makes me (or anybody else for that matter) spend outrageous sums of money on coffee that is simply ‘Better than the alternative.’  Don’t get me wrong, I like the coffee.  But after drinking it for years, I’m not really sure if it’s really the coffee I like or just the act of buying coffee, then drinking it.  Who can say? 

Will the world go on? Oh, I think it will.  Will I miss the Starbucks across the street?  I will, for a while.  I’m sure my additions will take me down many paths, Starbucks just being a white mocha among a sea of Arabica beans.  Hmmm.  I’m going to have to make these last few days count.  I bet these 3 stores’ sales skyrocket while they remain open.  Maybe it’s all just a ploy by Starbucks corporate to increase sales.  Time will tell.

Search Northwest Arkansas Listings with MLSEARTHview!

MLSEarthview has just been implemented for the first time in Northwest Arkansas.  Search for homes and land in Benton or Washington counties from Fayetteville and Springdale to Bentonville, Rogers, and Bella Vista using the latest satellite imagery technology and live updated real estate listings.  Currently, you can only use this search tool on my personal website www.BenSellsNWA.com/searchareahomes.  What makes this tool so glorious?  It seemlessly integrates the Northwest Arkansas MLS with google earth and google maps, allowing the user the ability to get a great visual and spatial understanding of where a home is and what is around it.  After all, Location, Location, Location!  Search by number of bedrooms, square footage, price; even street, city, and zip codes.  Additional features include an advanced search feature where you can view homes by subdivision, listing agent, acreage, year built, structure, school district, area, the list goes on!  Find new homes, resale homes, luxury listings, land, you name it.  Once you have used MLSEARTHview, you’ll never go anywhere else to search for real estate in Northwest Arkansas.  Use the link above or to the left in the blogroll to check it out today.

Fireworks Safety Should be in your Bag this 4th

Northwest Arkansas, It’s that time of year when burgers are on the grill, neighbors are in the yard, and the kids get ready for the all important 4th of July pastime, fireworks.  I figured it was about time to brush up on fireworks safety.  You never can be too careful, especially with little ones running around.  So kick back, put the grill on low, and read something that might help you keep your fingers (or an eye).

Most of the tips below are according to the National Council on Fireworks Safety.  Remember that kids really shouldn’t play with fireworks.  If you give a kid a sparkler, know that they burn at 1800 degrees, hot enough to melt gold.  Keep sparklers away from the face, clothing, and hair.

Make sure to buy only legal fireworks - those are the ones with the manufaturers label on them.

Never try to make your own fireworks.  The process is dangerous and may blow up in your face (literally).

Stay away from others lighting or using fireworks - some types, botterockets, chasers, etc., can backfire or go the opposite direction.

Light one firework at a time.  Never try to relight a dud.

Point fireworks away from homes.  If possible set them off in a mown field away from homes, trees, brush, or other flammable substances.  It is estimated that some 60,000 responses are made each year to firework related fires.

Soak fireworks in a bucket of water before throwing them away.

Never hold fireworks or firecrackers in your hand.  Never throw or point fireworks at someone.

Lastly,  always pick up the fireworks you shoot.  A neighborhood has a tough enough time keeping itself clean without all the mess fireworks make. 

Here is a great video on Fireworks safety.

Happy Fourth Everyone.

Hanover Subdivision Part of Bentonville’s Elite

Hanover Subdivision is one of Bentonville’s premier living locations.  Located in north Bentonville, off Walton Blvd. (71-B), Hanover can be reached by turning west on Ridgefield from Walton.  There are no through streets to adjacent neighborhoods, keeping the traffic to a minimum.  The home lots here are between 0.35 and .80 acres with custom lots somewhat larger, leaving the owner with an beautiful, rolling, and expansive lawn, without the headache of several acres to keep tailored.  When you drive through this subdivision, it feels quiet and formal, in a good way.  It also feels like a family neighborhood where you are likely to see kids on bikes or couples out for an evening stroll.

Current listings in the subdivision range from the low end of $385,000 all the way up to $899,000.  These Bentonville luxury listings range from $109 - $154 per square foot.

Developed in the late ninties, Hanover builders were careful to keep many mature trees and build with the natural landscape.  While some homes are less than ten years old, the neighborhood feels solid and estabilished.

As of this writing, there are currently nine homes listed on the market for sale with an additional home for sale by owner.  By all accounts, Hanover is a great place to live, raise a family, or keep an executive home. 

If this neighborhood is anywhere near your price range, I highly recommend a neighborhood preview.

  

 

 

 

 

 

 

 

Bella Vista Market Data for June

We’ve looked at Bentonville, we’ve looked at Rogers, Bella Vista can’t be left out in the cold (or the steaming heat of a Northwest Arkansas summer)! Bella Vista presents a bit of a different market environment than the Rogers or Bentonville housing markets. Bella Vista, with its many lakes, clubs, and golf courses, is a great place to live. As a side note, it also has more roads than most of Northwest Arkansas’ other cities put together. We’ve seen an explosion of new housing starts in Bella Vista in the past few years, and because of that, Bella Vista is really no longer just a ‘retirement community’. Heck, I live here with my wife and 1 month old son, and I am certainly not retired. I digress.

Here we have all of Bella Vista’s Current, Sold, Pending, and Non-listed Solds within the last 6 months up to and including 6/25/08. Of the home listings sold, the average list price was $170,331. The average sale price on those same homes was $163,644. That is a hair over 96% Sale Price to List Price ratio or SP/LP. It seems that most of the homes that have sold in the last six month in N.W.A. have been priced within 5% of their actual sale price. That’s something to keep in mind. The Average Days on Market (DOM) for a Sold Bella Vista home is 155 days.

Now, there are 719 Current listings (not including For Sale By Owner’s) on the market in Bella Vista with an average list price of $199,119 and change. Just as in the Rogers and Bentonville home price data, Bella Vista homes currently listed have a gap of nearly (this is on average) $20,000 between their current list price and their future sale price. I think we can expect some additional price drops in the near future unless market conditions change significantly.

Bella Vista is a great community with a feel and beauty that is a little different than the rest of Northwest Arkansas. It looks like now is a good time to buy in Bella Vista. If you are selling or thinking about selling you need to think like a buyer. Maybe your home is selling for a little less than you would like, but as a savvy and informed consumer, you can buy your new home at great price and a great interest rate.

Rogers Market Data for Mid June

After looking at the general market data for Bentonville in June, I thought it only prudent to give Rogers it’s fair share.  Again, this covers all of Rogers’ Current, Sold, Pending, and Non-listed Solds within the last 6 months up to 6/23/08.  Here’s the overview of the numbers . . .  There have been 598 homes sold or pending in the last 6 months.  Of those sold listings, the average list price was $226,185.  The average sale price on the same homes was $218,460.  That comes to a 96.6% Sale Price to List Price ratio.  It looks like we can infer that sellers will continue to make the adjustments necessary to sell their homes in Rogers as well as greater Northwest Arkansas.  The Average Days on Market (DOM) for a sold Rogers home is 175 days.  This figure is slightly higher than Bentonville’s DOM but that is to be expected with so much new home inventory on the market in Rogers.

 

As of today, there are 1165 Current listings on the market in Rogers with an average list price of $292,298.  The Average DOM for current listings in Rogers is 160 days.  As the statistics show, there is a gap between properties that sale (priced to move) and properties that do not (overpriced).  If the average price of current listings is $292,000 and the average sold price is $218,000, that leads us to infer that many (but not all of course) properties are priced well over their final sale price because, as we know, property prices are certainly not appreciating at the same level as a few years ago.

 

My advice to property owners in all of Northwest Arkansas is this, “If you want to sell your home, list it at a price where it will sell.”  Anything more than 5% over market value is a waste of you and your realtor’s time.  Price your property with the market and you will see results. 

 

                        

 

 

Bentonville Market Data for Mid June

It’s about time to take a look at the general market data for Bentonville Arkansas in June.  This data covers all of Bentonville’s Current, Sold, Pending, and Non-listed Solds within the last 6 months up to 6/21/08.  Let’s look an overview of the numbers . . . There have been 437 homes sold or pending in the last 6 months.  Of those sold, the average list price was $233,178.  The average sale price on those same homes was $223,928.  That comes to a 96% Sale Price to List Price ratio.  Not bad considering all of the negative press real estate is currently getting nationally.  Additionally, the Average Days on Market (DOM) was 146 days.  Remember that real estate is, for the most part, a local market phenomenon.  What happens nationally, at least with prices, does not directly affect real estate in Northwest Arkansas and Bentonville. 

 

Now, there are 674 Current listings on the market with an average list price of $298,899.  The average days these listings have been on the market is 145 days.  In summary, what all this means is that — while it is a great time to get a good deal on a home –  sellers are not giving their homes away, at least not in Bentonville.  With an average SP/LP ratio of 96%, it means that sellers and agents are getting realistic about pricing their homes, so don’t go out and expect to low ball a house you love and get an acceptance right away.  That’s about it for the quick analysis of Bentonville’s general market data.  In the coming days and weeks I’ll be focusing on specific neighborhoods in Bentonville and how they compare to the rest of the market.

 

 

 

 

Pinnacle Hills hosts Blastapalooza on Independence Day!

I think most people in Benton County and Rogers and Bentonville in particular have just about figured out that the Bentonville fireworks display that normally happens at Memorial Park every year is, alas, no longer.

The CVB or someone around town thought there was just no need for two competing events just a few miles apart on the same evening.  So, they decided to fold them together.  Bentonville has thrown $5,000 in the pot of a $20,000 fireworks blastapalooza that is sure to blow our socks off.

If you are attending the LPGA event at Pinnacle Hills Country Club then you’ve got a front row seat.  Even if you aren’t, there is some great designated parking just east of the Bank of Rogers and South of the J.B. Hunt building on Pinnacle Hills Parkway.

I know some of you out there have some strong opinions about this one way or the other.  There’s no better place to get something off your chest than right here on Northwest Arkansas Home Blog.  Keep it PG for me though (I’d like to keep this blog).  Happy Independence Day!