Introduction
Using real estate analysis, our goal is to sell a home that is found within the Third Ward neighborhood of Eau Claire. This area has prices that extend from $80K to around $700K for the historic homes within the area, therefore determining the fair-house value needs to be accurately based on nearby houses with similar features along with taking into account the house's overall quality. Simultaneously, the house will need to account for its primary customers to understand the market for this housing option.
The price is going to be determined based on the following qualities;
The location of the house
Value of surrounding real estate
Features found within the house (# baths / # bedrooms)
Recently sold real estate prices
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| Figure 1: Front of house |
The house being sold is located at 1111 Graham Avenue The amenities of this house are as follows:
4 bedrooms
2.5 baths
1,929 sqft
Lot size: 4,356 sqft
Single Family
Unique Features:
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| Figure 2: Living Room |
Updated Furnace in 2012
Large Living Room
This cozy four bedroom home is located in the Third Ward Neighborhood of Eau Claire, WI (Figure 3). This house is found an equal distance from the University of Wisconsin - Eau Claire campus and the historic downtown making this house a great location for enjoying parks, downtown shops, and unique restaurants. This home was built a year after World War 2 which finished in 1946 to give this house the beautiful look of the time period giving it American appeal. This house offers a great location, safety of Eau Claire, and the ability to make house improvements to one's unique style.
Location
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| Table 1 |
This house is located in one of the historic areas of Eau Claire which has been positioned perfectly between downtown and the university. It also has an easy access onto the highway about 5 minutes away. To the east up a larger ridge is more middle-end houses built around the 1960s and 70s, and to the south there is a walking trail that connects a park to the university. With the larger hill to the east and the main roads cutting a few blocks away this house offers less out-front traffic than other roads within a few blocks, and this house still offers its proximity to downtown while still being a quiet and quaint area. Some other reasons this location is positive is because there is a high quality of Life located in the City of Eau Claire. By having a 93.9 score of the living index this area is a great place to settle down and buy a home (Table 1). It is close to two major hospitals, has many hotel rooms for friends and family to come and stay, and if being bought as a property to rent out, it can rent out above the $709 average rental price due to the location of the home.
Another reason this is a great location is the crime rate within the City of Eau Claire (Table 2). The crime rate within the City is 210/100,000 people which is low for a city of this size making this a safe place to raise a family and another way to add value to the home.
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| Table 2 |
Local Housing Market
The Third Ward has some of the oldest houses found in the City of Eau Claire making it historic and beautiful. Therefore, most of the housing stock in this area is going to be old and outdated, but still competitive for the area. The houses in the Third Ward will be taken care of better due to
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| Figure 3: Map of Third Ward. |
having less student rentals compared to the area to the Northwest, making this neighborhood more in demand compared to other neighborhoods at a similar price range. Even with having the oldest houses within the area the average number of defects is less than 2 within the third ward region. This can be compared to the student area housing to the Northwest that has many parcels of defects. Therefore, the homes surrounding 1111 Graham Ave. show that the neighborhood is maintained and keep their high quality homes keeping housing prices consistent with the area (Figure 4).
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| Figure 4: Number of Defects found within Third Ward in 2010. |
The Third ward can be divided up into a few different categories of people that live in the neighborhood. It is rentals, single family homes, duplexes, three or more dwelling units and commercial. With there being few large rental units except for the ones next to Bracket Hill and the elderly living places which are far away enough for there not to be a noise complaint from that area.
Demographics
Eau Claire has a population of 67,385 according to the 2015 Census. The Dependency Ratio looks at three different cohorts:
P0-14 = Population in the 0-14 age group, also known as the Youth Dependency Ratio (YDR)
P65+ = Population in the 65+ age group, also known as the Elderly Dependency Ratio (EDR)
P15-64 = Population in the 15 to 64 age group
By using the total population data from the U.S. Census the equation can be written out as:
DR = 100 * (P0-14 + P65+) / P15-64 = (10,849 + 8,221) / 48,315 = 0.39 = 39%
Since the dependency ratio is at 39%, it can be concluded that the working age is more prominent in the city of Eau Claire. If a dependency ratio was high, those of working age face a greater burden in supporting the aging population. In this case, the dependents and the retired make up less of the total population than the working class. The largest age cohort, according to Census Data from 2015, is the 20 to 24 years taking up 15.6% of the population in Eau Claire. Eau Claire is considered a college town due to the University of Wisconsin-Eau Claire. However, people ranging in age from 25-54 also take up a large portion of the population. Eau Claire area is also a great area for families even with the University. There is many opportunities to be taken advantage of in the city ranging from entertainment to large corporation such as JAMF software and RCU headquarters.
Future Development and Attractions
Downtown Eau Claire has been known for their special events to bring people to the downtown. Eau Claire continues to find ways to bring entertainment, recreational, and cultural activities to the city. There is a plethora of indoor and outdoor activities such as music, arts, conferences and shows. These attractions include the L.E. Phillips Memorial Library, State Theater, Children's Museum, and Boys and Girls Club. Future contributions to the city will include a community performing arts center, The Confluence (Figure 5), as well as a new Civic Center and riverfront parks and trails, considering the Chippewa and Eau Claire River adds a natural attraction to the city layout.
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| Figure 5: Proposed Performing Arts Center |
The value of the riverfront will greatly increase when The Confluence is completed. With the combination between The Confluence and the newly finished Lismore Hotel, other investments in the South Barstow District will be created especially in the 200 and 300 block (Figure 6). The plan is to seek out for new and better restaurants, cafes, and bars in the different areas of downtown.
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| Figure 6: Image showing future projects. |
Eau Claire is also known for it’s many green spaces, including Carson Park, Owen Park, the Chippewa River Trail for biking and recreation activities, and most importantly Phoenix Park where Eau Claire’s famous Farmers Market is held. To continue the diversity of Eau Claire’s green spaces, a small park will be placed by City Hall and the Library (Figure 7).
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| Figure 7: Future park project. |
Suggested Sale Price
To determine the sale price for this home there are some factors that need to be taken into account. First, the price of nearby houses that have recently sold that are close in square footage and number of rooms/bathrooms. Also, the quality of the overall home needs to be taken into the equation. And finally, what the seller wants to get out of the house. These variables all factor into the final price.
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| Table 3: |
Some of the houses that have recently sold around the area are referenced in Table 3 to understand the estimated price determined for this property.
Based on these factors,the consensus was to value the house at $143,864. The price was decided based on the value of similar homes in the area as depicted above in Table 3.
Sources:
US Census: https://factfinder.census.gov/faces/nav/jsf/pages/index.xhtml
