Real estate sales here in the primarily recreational/second home real estate market of Northen Door County has vastly improved since this time last year.  The  number of sales are up 39% which is a huge jump!  It proves that buyers have confidence in the value of Door County real estate.  Of course the present low asking prices are also quite an incentive to buy.  When the economy took such a dramatic drop in the fall of 2008, the second home market went right with it, perhaps even more so.  Here is a “snapshot” of how this real estate market responded to the economy in the total number of sales from January 1st to September 30 from 2007 through 2012:

• 1/1/2007 through 9/30/2007     371 sales
• 1/1/2008 through 9/30/2008     250 sales
• 1/1/2009 through 9/30/2009     196 sales
• 1/1/2010 through 9/30/2010     239 sales
• 1/1/2011 through 9/30/2011     226 sales
• 1/1/2012 through 9/30/2012     303 sales

You can see how this market has been effected, and how much improved it is this year. 

Both home and condominium sales are doing best in price ranges under $350,000, although several higher-end properties have sold.  The biggest change in the market is what the buyers are getting for their money, and they are getting a lot!  Therefore, buyers are not only looking at properties to use for vacations, they are looking for primary residences to use for retirement.  Door County’s year-around population is growing as buyers find out the many advantages of living here.  All in all, this is the best time for purchasing Door County real estate we have seen in decades.

Right now I really wish I had a “do-over!”  I just accidentally deleted all my previous posts on this blog — one key stroke, and not even one of those “Are your sure you . . .” questions!  So, if this is your first visit, there truly were several year’s prior postings about all sorts of real estate issues.  All gone now to cyberspace heaven!

Well, before I forcefully hit that “delete” key, I was about to add a new post; so here is what is on my mind today.  Property values.

The value of real estate is basically what sale price a property will bring on the open market.  Determining that value is far from an exact science, but is done by comparing a subject property with other “comparable” properties that have sold “recently”, usually within the past six months in the same general area.  In suburbia where there are blocks and blocks of almost identical homes that is not too difficult. 

Here in Door County it is another story.  Homes vary tremendously.  So far this year in northern Door County homes have sold for as little as $45,000 and as much as $3,490,000!  Homes that vary that much in price can be basically in the same general vicinity too.  So how do we do it?  Knowledge of the Door County real estate market and extensive experience are critical. 

Certainly the size, age, and condition of a home, the amount of land it is on, and whether it is on the shore or has a view of the water are basic elements of value.  But there is much more to consider in a home that will primarily be a vacation property because a vacation home is more of a “dream-come-true” place.  Not necessarily practical.  A place that makes a buyer feel happy, safe, and relaxed.  A place to get away to.  How do you put a value on those things? Again, the answer is experience and knowledge of the market and the buyers in this market.

When asked to list a property for sale, we begin with comparing the measurable features with other properties that have sold and with those presently on the market as well.  Then we factor in all the immeasurable features — the ones we know by experience are going to make the property special in the eyes of buyers.  Thus two homes that from a replacement cost approach are identical could vary significantly in actual market value.  It is not easy, but it is a challenge that makes my job interesting.  When I match up that special property with that special buyer is it a great feeling of satisfaction.