Macrine and I have four relatives residing here in Northern California. Two are Millionaires(in Paper) now because they decided to purchase a house in Palo Alto and Mountain View, a few years ago.
The other two of our other relatives living in Sacramento and Benecia are now close to being Millionaires also if we consider the estimated value of their residences based on the estimates of Zillow.com as of today.
Macrine and I are the poorest based on the estimate of our residence as of today, although in terms of area ( square footage), our home is second in size and first in lot size.
Let me start with our residence. We purchased our home in June, 2003. It has 4BR and 2.5 baths and a swimming pool with 2,200 sq. ft of living space with almost 0.5 acre corner lot. We recarpeted and painted the whole house and replaced all kitchen appliances after our purchase. The purchase price in 2003 was $370,000. Today Zestimate is only $479,785. If my math is right this is only about 1.8% increase in value annually. I am still happy the estimated value did not decreased.
A family relative purchased her house in April 2001 for $234,500. It is located in the Fabulous Forty's Sacramento District- area of expensive homes. It is a small house with only 2 BR and 1 Bathroom and only has 1,379 sq. foot living space area. Last month she added a 500 sq foot deck. The Zestimate today is $750,000.
Another family relative and his wife moved their residence from Walnut Creek to Benecia in 2015. After selling their 4BR, 3BA house with swimming pool for $1 Million in 2015, they moved to a slightly bigger house in Benecia. They paid $799,000 for a 4BR, 3.5 Bathrooms house with 2866 sq.ft living space. Zillow estimate today is $890,224.
Macrine's family relative purchased a house in Palo Alto in the early 1990's. It has only 1,647 sq.ft of living space, 3BR and 2BA. This year she added a 400 sq ft. annex (a bedroom and a bathroom). She has the whole kitchen area also remodeled and the garage enclosed as another bedroom. I am not sure how much was the original price but I believe it was about $510,000. Today the house has now 5BR, 3BA and a living space of 2000 sq. ft. Would you believe the Zestimate today is $3,137,207!
Last but not least example is Macrine's another family relative purchase of a house in Mountain View. She and her Hubby purchased a 4BR, 3BA home with 1850 sq. foot in 2009 for $1,060,000. They remodeled the kitchen and dining area and add another small bedroom last year. Today Zestimate is $2,462,091.
This article ( blog) confirms the following statement that in buying a home the three most important things to consider are: Location, Location, and Location!
Note: The actual purchase price of most homes could vary from Plus or Minus 10% of the Zestimate depending on the supply and demand on a particular location and time of sale. In some location in Northern California such as San Francisco, some homes will sell over 10% of asking price/estimate.
Here's the latest predictions for the housing market for 2018 in Northern California.
https://www.mercurynews.com/2017/12/12/no-housing-bubble-in-sight-and-other-predictions-for-2018/
No comments:
Post a Comment