Though it may cost more, a luxury home or apartment can offer a lot of value to its residents. However, before you can make an appropriate decision about luxury living, it helps to understand the advantages and disadvantages of choosing to live in a luxury home or apartment building.

Understanding Luxury Living

Luxury apartment complexes and homes have all of the same basic amenities as a standard residence. However, they also possess many other amenities you will not typically find in other locations. For example, many luxury buildings offer fitness centers and pool areas that residents can enjoy. Some luxury apartment complexes also offer rooftop lounge areas, many of which residents can rent for parties or other social events.

The structure of a luxury home will be composed of only the highest quality materials. The layout will be designed with traffic flow and convenience in mind, and the interior of the space will be new or recently renovated. Luxury buildings also offer superior security and service, such as an attentive staff that is ready to meet your needs at any time of the day.

Pros and Cons of Luxury Residences

Obviously, there are a lot of positive aspects to choosing a luxury home or apartment. When you live in a luxury residence, you can rest easily knowing that the security staff is keeping watch over you and your family. You can also enjoy the conveniences the residence has to offer, such as the pool, fitness center or lounge area. When you invite friends and family to your home, you can be confident that they will be welcomed by the staff and that they will be impressed by the surroundings.

Though there are a great many benefits to luxury living, there are a few disadvantages. For example, most luxury residences cost quite a bit more than standard apartments or homes. In addition, you may have trouble finding an opening in a luxury residence because many of these buildings are extremely competitive. Finally, luxury residences often have a lot of rules that residents must follow in order to maintain the atmosphere or luxury for the other guests. For example, you may not be able to hang anything on your door, or you may be forbidden from hosting noisy gatherings in your home.

Making a Decision

Choosing between living in luxury and living in a standard residence is not always easy. However, if you can afford the added expense of living in a luxury apartment or home, the benefits of doing so outweigh the disadvantages. For example, if you live in Washington, Seattle luxury living is usually preferable to living outside of the city in a standard residence. If you aren’t sure what to do, consider visiting several luxury residences in your area that have openings, along with several standard ones. Spend some time in each building, make a list of the pros and cons and make a decision based on your own personal preferences.

However, if your roof is leaking or is water damaged, then you should know that you are still putting your home and family at risk.

The Outside Getting In

Let’s say for example that one part of your roof has collapsed due to heavy snow, then the damaged part can become bigger, causing a huge part of your roof to fail. This will, of course, allow snow to come in, and when snow melts, there’ll be water damage. The same thing is true during months of heavy rain. Water could easily get in through the leaky roof.

Aside from snow and water, pests could also comein through the damaged roof. They can make their nests in your roof and bring diseases into your home.

Structure Damage

Water damages the structure of your home. It can weaken the wood structures and cause them to rot easily and quickly. If the roof isn’t fixed, then the damage can worsen until it involves not just the roof, but the surrounding structures as well.

If you have leaky roof, then water is surely dripping down the structures below. It could even seep through the structures and drip down the walls to your furniture and floor. Now, water can damage not only the walls and ceiling, but also the floor and carpets. They also smell, giving your house a musty, dank odor that is difficult to get rid of.

Health Risks

Compromised house structure and rotting wood can bring health risks. For one, rotting wood is a breeding ground for mold and mildew. Now, these are nasty things that can cause an allergic reaction to the occupants of the house. Two, if the weakened house structure collapses, then someone could easily get hurt or trapped underneath the debris.

Fire Hazard Risks

Water damage is also a fire hazard risk. After all, water can compromise the quality of the wall sockets and the electrical cords. This not only damages the wall sockets and electrical cords but also increases the risk for electrical sparks starting house fires.

Cost of Repair

If you neglect to address the leaky roof problem, then you have to prepare to pay a higher cost for roof repair and restoration, along with the cost for repairing other damages that water caused. The more extensive the damage your leaky roof caused, the more money that you have to shell out.

Taking Care of Leaky Roofs

Leaky roofs can be avoided if you know how to take care of your roof properly. You have to make sure that its drains and gutters are not clogged to allow water to drain freely; and you also have to make sure that there are no leaking spots. If you notice leaking areas, then give your local restoration company a call to stop water from further damaging your home.

Jennifer Dagnon is a home restoration and remodeling consultant who specializes in old homes. Jennifer has also contributed multiple articles to other related blogs such as Dalworth, a trusted restoration company in Fort Worth. For Dalworth Restoration contact info, you can simply visit their site.

Why is Luxury in Yarrow Point Compromising on Price?

This is really a tough one when you look at the seller profile in Yarrow Point.  Many of these home owners have the ability to carry their homes for an extended period of time, but instead, have opted to sell at a lower price point.  As whimsical as the game of luxury is, these home owners are bringing down the value of the local Yarrow Point real estate.

For instance, the ratio of sold to list price dropped by 3.3% from the first quarter of 2011.  At the same time, the cumulative days on market (CDOM) increased by 56%.

Hence, many sellers are hanging their properties on the market and waiting for buyers; a buyer pool that has been significantly diminished in the last 2-3 years.  Marketing strategies aside, there just isn’t the type of demand to sustain certain luxury markets – Yarrow Point being one of them.  Values could likely drop in certain price points.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Avg CDOM	225	359	-37.3%	225	187	20.3%	292	187	56.1%
Sold/Orig LP Diff. %	89	88	1.1%	89	92	-3.3%	89	92	-3.3%

Is there a Way Out for Yarrow Point Real Estate?

When facing this market, the trend we’re seeing in many luxury areas is to collectively remove homes for sale.  It’s almost as if sellers are deliberately removing their homes for the market in order to engender demand and drive prices upward.  Looking at 3.5 months of inventory left on the market in Yarrow Point, we could see this same method being employed.  We can expect, however, that sellers will place their homes back on the market in the summer as valuations are a little higher.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Months of Inventory (Closed Sales)	3.5	5	-30%	3.5	5.7	-38.2%	10	16	-37.5%

What Homes for Sale in Yarrow Point are Responsible for the Dismal Performance?

The poor performance has been targeted at homes between the $1 to $2 million dollar range.  Homes below $1 million have sold at over 90% of asking price with one outlier at 81%.  Oddly, homes above $2 million have also exceeded expectations with two low balls at 77% and 88%.

However, homes for sale in Yarrow Point between $1-2 million have seen suppressed selling prices with consistent numbers below 90% of asking price.  With this being the primary price range for Yarrow Point homes, sellers are parting with their homes and diminishing values through the rest of the neighborhood.

Moving forward, sellers in Yarrow Point should be prepared to hold and carry much of the inventory on the market.  In fact, removing some homes for sale would inflate demand and may foster higher prices.  In the current state, homes for sale in Yarrow Point will continue to barely break even and trend downward.

Homes for Sale in Yarrow Point Under $1 Million

Homes for Sale in Yarrow Point Between $1-2 Million

Homes for Sale in Yarrow Point Over $2 Million

Beautiful luxury home for sale in Mercer Island.

Under $1 Million in Belltown

We haven’t seen a large increase in the ratio of sold to list price for these Belltown homes because we wouldn’t expect to.  These lower-priced homes are selling above 90% of list price, average anywhere between 93 to 95%.  As a result, sellers within this price range have enjoyed a high demand and the ability to quickly find a buyer.

Interestingly, we also don’t see a drastic change from month to month in Belltown.  It would appear that the Belltown housing market is not as effected by seasonal influences as other Seattle real estate.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Avg CDOM	89	99	-10.1%	89	106	-16%	97	115	-15.7%
Sold/Orig LP Diff. %	95	94	1.1%	95	94	1.1%	94	93	1.1%

When we look at average list price to sales price, it appears buyers in Belltown are searching out quality properties and not simply searching for bargains.  Unlike Belltown, we’re seeing buyers in other neighborhoods focus on distressed and lower-priced properties.  This kind of behavior is indicative of low buyer confidence.  However, in Belltown we see high buyer confidence.

Even more impressive, we’re seeing the inventory of homes for sale in Belltown under $1 million drastically falling.  With only 2.6 months of inventory remaining, we can expect to see demand to increase dramatically into late 2012.  This demand will correspond to higher values and price points under $1 million.

A Look at Million Dollar Homes

Million dollar homes for sale in Belltown have consistently sold for under 90% of the listing price, reaching as low as 84%.  While consistency in the ratio of around 88% may show that sellers are simply pricing their homes above true market value, it also demonstrates the lack of demand for high-end in Belltown.

There are a few good indicators as the ratio of sales to list price has increased by 4.7% since the first quarter of 2011.  This change is somewhat marginal but we do see a slight uptick in April as this ratio reached 91%.  If the demand at lower price points continues to grow, we could see these properties raise the value of the million dollar home market.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Avg CDOM	156	177	-11.9%	156	144	8.3%	170	187	-9.1%
Sold/Orig LP Diff. %	91	86	5.8%	91	85	7.1%	89	85	4.7%

Changing gears to look at average list price versus sales price, luxury buyers are staying well below the average sales price.  The sweet spot for million dollar homes for sale in Belltown appears to lie somewhere between $1.5 and $1.8 million.  The average of $2.3 million, however, sees only a fraction of buyers.  We’re seeing a similar trend in other Seattle housing markets as million dollar home owners are having difficulty finding buyers.

To quickly look at the numbers, the average sales price declined by 8.1% while the average active price increased by 8.5%.  In short, we’re seeing less higher-end buyers but more inventory.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Avg. Active Price	2325	2310	0.6%	2325	2201	5.6%	2320	2220	4.5%
Avg. Sold Price	1426	1550	-8%	1426	1697	-16%	1503	1635	-8.1%

If we look at the months of inventory for million dollar homes, we could be entering a seller’s market.  With a decrease of 30.6% from the previous year to 8.4 months of inventory remaining, high-end sellers may have more wiggle room to demand higher offers.  This would allow the uptick of 91% in April to continue upward to potentially to 93-95%.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Months of Inventory (Closed Sales)	8.4	9.4	-10.5%	8.4	12.7	-33.7%	9.8	14.1	-30.6%

This is one of many luxury condos for sale in downtown Seattle as available at 1521 2nd Ave, Seattle, WA 98101.

These graphs only reflect activity through April 2012.  However, the Mercer Island housing market is already off to a pretty good start. Here are a couple notable recent sales in May.

This home sold for over asking in just 2 days. It was listed for $1,429,000 and sold for $1,550,000.

4107 83rd Ave SE, Mercer Island 98040

This home also sold in 2 days and for full price.

8320 SE 30th Place, Mercer Island 98040

This home was listed for $699,000 and sold for $774,000 in 8 days.

4650 89th Ave SE, Mercer Island 98040

This home was listed for $779000 and sold for $800,000 in 2 days.

8520 SE 76th Place, Mercer Island 98040

This graph below shows average cumulative days on market of single family homes for sale in Broadmoor. What’s noticeable is that CDOM is considerably higher in March than it was during any other month over the past 12 months- 871 days, an increase that is in line with the amount of inventory that is on the market.  Because luxury homeowners have spent a lot on customizing their homes, they are sometimes under the impression that their home is worth more than it actually is, which explains why the sales price to list price ratio between 69-93%.

The green line below indicates list prices for available homes in Broadmoor, while the red line reflects selling prices.  Keep in mind that these prices are average prices, taking into account higher and lower sales prices.

The image below helps to put the previous information into context.  We can see that in April there were 15 homes listed in Broadmoor and that there are anywhere between 0-3 sales any given month in this area.

Listed Sold Pending Sales

Based on the current absorption rate, there is approximately 15 months of inventory available in Broadmoor.

When we look at the actual closed sales in Broadmoor that have taken place in the past 6 months, we get a better idea of what is shaping the numbers that we see in the charts above. For instance, this short sale was on the market for 65 days. It was listed for $950,000 and sold for $800,500. Great buy!

1651 Windermere Dr. E., Seattle 98112

Here is another closed sale that took place in the past 6 months in the Broadmoor community. This particular sale reflects the other end of the spectrum of the market. On the market for 871 days, this home finally sold for $2,150,000 after being reduced by $150,000.

2128 Waverly Wy E, Seattle 98112

Knight Frank, a real estate consultancy firm, recently reported that the average price of high-end homes for sale in 23 large cites across the globe declined 0.4% for the first quarter of 2012.  In 2011, this same period saw a growth of 6.6%

We’ve seen this similar trend with luxury real estate in Seattle as many sellers have taken their homes off the market.  As a result, these sellers are attempting to have success in creating demand by limiting the amount of available high-end inventory.

International Luxury Property

Looking at the international scene, luxury real estate in the Asia Pacific saw an increase of around 1% in the first quarter of 2012, according to NuWireInvestor.com.  We could see a spill over effect from the Asia Pacific to Seattle as many of those real estate investors are intertwined.  The prime market for foreign investors  in Seattle would likely fall in line with current trends, keying in on luxury real estate between $1 to $3 million.

The PropertyWire.com also reported that prices in North America “…[increased] by an average of 7.7% in the last 12 months.”  From our standpoint in Seattle, it’s difficult to say whether that’s a result of demand or if more low-priced homes are being removed from the market.

Perspective in Seattle Luxury

We’ve noticed that luxury homes for sale in Seattle have consistently held ground at above 90% of sales to list ratio, while we are also seeing a seller’s market in Queen Anne.  For the most, we’ve predominately seen luxury homes above the $5 million mark leaving the market.  Mostly because the demand for these million dollar homes is non-existent and sellers don’t want to let their homes sit on the market and accumulate cumulative days on market (CDOM).

In Bellevue, we’re seeing higher-end waterfront property in Medina leaving the market while luxury homes for sale Medina between $1-3 million appears to be flourishing.  Unlike luxury in Seattle, waterfront home owners in Medina may be selling themselves short.  Many sellers are settling with values below 90% of their asking price.

There are some success stories.

Escala condos in Seattle have continued to do well and recently raised prices as they are now over 65% sold.  Escala, as well as Olive 8, has appealed to many high-end buyers looking to downsize to the condo lifestyle.  The Sanctuary has also prices by 5% in May with growing demand.

Like anything else in luxury, we’re seeing pockets of success and failure across Seattle and Bellevue.  The $1-3 million dollar range has done well while the higher-end has not.  Downtown Seattle condos have performed superbly while waterfront continued to be a mixed bag.

Number of Waterfront Homes Quickly Declining

Although Medina sellers may be doing it unconsciously,  their decision to collectively remove themselves from the housing market could be a wise.  For example, the number of waterfront homes for sale in Medina dropped 60% when looking at the first quarter for 2011.  Removing the number of homes, or supply, will build exclusivity in this real estate and drive demand.

A decision like this requires that sellers are not bound to a specific timeline but can react to the market.  If, for instance, we see home values rise in the mid-summer (which we likely will), then we will see a couple of sellers jump into the market.  However, it will be telling of seller behavior if we don’t see 8-11 waterfront homes listed in mid- summer to early fall.  This will assure us that waterfront sellers in Medina are deliberately staying out of the market.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
For Sale	5	4	25%	5	9	-44.4%	4	10	-60%
Sold	1	1	0%	1	1	0%	1	1	0%
Pended	0	1	-100%	0	1	-100%	0	1	-100%

Price Per Square Foot:  A Good Sign For Waterfront Sellers

Price per square foot is hard to measure when looking at waterfront homes.  Two homes with equal square feet but different views could be significantly different in price, and so, it’s not always easy to use this as an accurate metric.  If we look at price per square foot as an overall measurement, we see that the price per square foot increased by 37% from the first quarter of 2011.

If it’s not market conditions driving this price higher, it could be the quality of inventory.  Owners with more desirable homes, i.e. homes with a great view, could be entering the market.  This would be a good sign for buyers moving forward.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Avg. Sq. Ft. Price	875	578	51.2%	875	611	43.2%	799	611	30.7%

Sales Price a Bit Sketchy

The ratio of sales price to list price is hit or miss over the last year.  Overall, this ratio has increased by 7% from the first quarter of 2011 and is indicative of buyer and seller expectations becoming more congruent.  In some cases, we see homes selling at under 90% of the listed price while in other instances we see a sales price of over 100%.  Some luxury home owners in Medina could be deliberately pricing their home below market value in order to generate interest among buyers.  This can result in a bidding war for the luxury home and would facilitate a sales price above the listed price.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Avg CDOM	6	13	-53.8%	6	105	-94.3%	176	105	67.6%
Sold/Orig LP Diff. %	102	87	17.2%	102	86	18.6%	92	86	7%

Medina Waterfront Homes that Are Selling

Although the average listing price for waterfront homes for sale in Medina is around $5 to $6 million, most buyers are not looking in this price range.  The majority of sold waterfront homes in Medina were around the $2 to $3 million mark and is common of the current housing market for luxury Bellevue homes.

We’ll likely continue to see this niche of luxury buyers flourish while higher-end buyers pick and choose from a plethora of inventory.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Avg. Active Price	5907	5987	-1.3%	5907	5795	1.9%	5960	5795	2.8%
Avg. Sold Price	3980	1880	111.7%	3980	4500	-11.6%	2953	4500	-34.4%

Months of Waterfront Inventory a Good Sign for Medina

The months of inventory has drastically declined since 2011 and this is a good sign for waterfront property.  Minimizing the number of homes for sale will help build demand and raise prices.  Conversely, if sellers immediately throw the homes right back on the market after values start to trend upward, we’ll be right back where we started.  Sellers should take a balanced and patient approach as flooding the luxury market in Medina will hurt everyone collectively.

	Curnt vs. Prev Month			Curnt vs. Same Month 1 Yr Ago			Curnt vs. Same Qtr 1 Yr Ago
	Apr. 12	Mar. 12	% Change	Apr. 12	Apr. 11	% Change	Feb. 12 to Apr. 12	Feb. 11 to Apr. 11	% Change
Months of Inventory (Closed Sales)	5	4	25%	5	9	-44.4%	4	10	-60%