REAL ESTATE The Real Estate market is booming. Q: Since the inventory is low, there must be a high demand. Why isn't my home in high demand? Dick Phelps When it's stated that, "Since the supply is down, the demand is A: high", that is an extremely simplified description of the market. Value of a home is actually determined more by a blend of four concepts: demand, utility, transferability, and scarcity. Demand is the want or desire to own the home and the necessary resources to make the legal transaction. Demand is a need combined with purchasing power. Utility is the ability of the home to fill that need or desire. Homes are in infinite style and design. Each style or design will meet the need or desire of a varying group of buyers. It is important when attempting to sell to realize that even though there is a demand for homes, is there a demand for your specific style or design. A simplified example being a two story home on a hobby farm. There is much value in the land and the home but is there sufficient utility. Does the style or design limit the type of buyer being interested? Would the steps be a challenge to older buyers? Would the extra time and work to manage a hobby farm be desirable to the buyer immersed in career and family? Would the house sell at a lower price if the added price for the additional land and outbuildings was not part of the equation? Is there a uniqueness to your home that, though desirable to you, limits the clients who might see value in that uniqueness? Today's market is booming. There are many buyers looking. The interest rates are still low improving the ability to purchase. The specter of high inflation is on the horizon. If you have considered selling or buying, this is the time. Contact me or your Realtor to determine the value of your home and arrange notification and showing current homes on the market. Century21 For Questions Contact: Dick Phelps 218-766-5263 rphelps@century21dickinson.com DICKINSON REALTORS REAL ESTATE The Real Estate market is booming. Q: Since the inventory is low, there must be a high demand. Why isn't my home in high demand? Dick Phelps When it's stated that, "Since the supply is down, the demand is A: high", that is an extremely simplified description of the market. Value of a home is actually determined more by a blend of four concepts: demand, utility, transferability, and scarcity. Demand is the want or desire to own the home and the necessary resources to make the legal transaction. Demand is a need combined with purchasing power. Utility is the ability of the home to fill that need or desire. Homes are in infinite style and design. Each style or design will meet the need or desire of a varying group of buyers. It is important when attempting to sell to realize that even though there is a demand for homes, is there a demand for your specific style or design. A simplified example being a two story home on a hobby farm. There is much value in the land and the home but is there sufficient utility. Does the style or design limit the type of buyer being interested? Would the steps be a challenge to older buyers? Would the extra time and work to manage a hobby farm be desirable to the buyer immersed in career and family? Would the house sell at a lower price if the added price for the additional land and outbuildings was not part of the equation? Is there a uniqueness to your home that, though desirable to you, limits the clients who might see value in that uniqueness? Today's market is booming. There are many buyers looking. The interest rates are still low improving the ability to purchase. The specter of high inflation is on the horizon. If you have considered selling or buying, this is the time. Contact me or your Realtor to determine the value of your home and arrange notification and showing current homes on the market. Century21 For Questions Contact: Dick Phelps 218-766-5263 rphelps@century21dickinson.com DICKINSON REALTORS