Michael Jordan's house outside Chicago is up for auction later this month and you just have to see this video tour! There aren't many things I would change about this place. It's spectacular in every sense of the word. Does anybody out there have an extra twenty or so million dollars to blow? If so, I'll happily set you up with the auctioneers. If you get the place, I promise to visit often. It's OK, the place is huge. You won't even know I'm there.
Take a look….What do you think?
For more information, Here's a link to the home's website: Air Jordan's House
Are you a Pierce County luxury homeowner? If not, would you like to be? If you're thinking about buying or selling we should talk. My team and I have ability to replicate and expand upon some of the innovative marketing techniques used for homes like this Jordan estate. I've participated in almost half the sales over $1M in University Place since 2011. With the US Open at Chambers Bay on the way, University Place is on the verge of major exposure and high desirability. I'm ready and willing to help you make the most of the high end real estate market here in the Tacoma, Gig Harbor, University Place, and Steilacoom areas.
Want to Sell Your House This Fall?
If you're looking to sell your home this Fall you'll want to do everything you can to make your house look its best. Contrary to popular belief, Fall can actually be a great time to sell. Keep these tips in mind and you're likely to achieve positive results:
- Curb appeal. A home shopper's first impression is everything. The moment they pull up to the curb, they'll make an instant judgment. You'll want to be sure it's positive. You can begin by making sure leaves are raked, and your shrubs and bushes are pruned. Hang a festive fall wreath on your door.
- Make sure your walkway is free of leaves and debris.
- The Northwest is rainy…Be sure you have a good doormat so visitors can wipe their feet and not traipse mud and water through the house.
- Make sure gutters are free from debris and drain properly.
- Keep the house cozy. Entering a cold house could leave an unfavorable impression. Instead, set the thermostat at a comfortable temperature.
- Make sure the back yard and your roof aren't covered in leaves.
- Make sure your windows are sparkling clean.
- Keep wall colors neutral and light. A light yellow or beige will make the room feel cooler than a brick red or dark taupe.
- Let the light in. Open blinds and curtains so plenty of light can brighten up the home's interior.
- And, just like any other time of year, get rid of the clutter throughout your house. And get rid of any odors that might be a distraction.
My new obsession with HBO’s “Game of Thrones” made it so I had to share this.
One of Britain’s most historic country mansions has gone on the market for the bargain price of $3.8 million. Not bad considering the British government bought it just eight years ago and spent $6 million dollars renovating it. You’ll have to live without bathrooms though because this palace is missing its ‘throne room.’ The whole story is here.
Just more proof that buyers want updated baths! I hope you’re having a great day – Let me know if you need anything.
Would you live in a dumpster? This one has hardwood floors and stainless steel appliances. No joke!
Here are some other unusual homes. Don’t miss the one in Pullman made from used car parts. Rumor has it the President of WSU is interested. He said it would be an upgrade from campus…Kidding, of course. (Go Dawgs)
So there’s this guy named John R. Talbott. He seems like a pretty smart dude. His bio says he’s a bestselling author and former Goldman Sachs Investment Banker. He wrote a book in 2006 called “Sell Now! The End of the Housing Bubble”. That book basically said the housing market was gonna crash and it was in your best interest to get your real estate sold before it lost serious value. As we know now, he was right.
Anyway, now the guy has seriously changed his tune. Recently he penned an article that was featured on the Huffington Post entitled “Homes – Buy Now!”. The article got me thinking… I know, crazy right? My peeps are always asking how the real estate market is flowing and what the latest trends are showing. This seems as good a time as any to share the opinion of a noted expert. Take a look and let me know your thoughts… If it gets you jacked up, let me know and we’ll go find a place that can make you some money short term or long…
I have been waiting for more than five years to offer this advice. It is now time in most cities across the country to buy a new home or refinance your existing home with thirty-year fixed rate mortgage debt. And this from the author of The Coming Crash in the Housing Market published in 2003 and my 2006 book, Sell Now! The End of the Housing Bubble. Let me explain why.
Home Prices Relative to Peak Prices During Bubble
Home prices are off anywhere from 10% to more than 60% in cities across the country. There is no reason to believe that prices were “fair” during the bubble as we have seen they were largely caused by loose and aggressive lending by banks and non-banks. But, it is always better to buy at a discount rather than at a historical peak, and these seem like awfully big discounts. And by my calculations, in most cities across the country, real prices adjusted for inflation have just about come into line with where prices were in 1997, before all this crazy bank lending started, so there should be little additional downside risk by buying today. There are still some neighborhoods across the country that have not seen very dramatic declines in price, many of them very wealthy and expensive enclaves, but given the distribution of incomes lately heavily weighed toward the wealthy, these areas may never see a really large home price decline.
Home Prices Relative to Construction Costs or Replacement Costs
Homes in many cities across the country are now selling for as little as $60 to $70 a square foot. Depending on the quality of construction and the underlying land value, this represents a 50% to 65% discount to the costs you would incur if you tried to build a similar home today in these cities. While there is no guarantee that there will be a strong rental market in the short run, in the long run it just seems to make sense to buy if you can acquire assets at half or less of the cost of building them.
Home Prices Relative to Incomes and Rents
During the peak years of the housing bubble, entire cities like San Diego were seeing their homes priced on average at 11 times the area’s median family income. Such prices financed primarily with debt are by definition unsustainable. Now, because banks have pulled back on their lending formulas, homes in many cities are changing hands at three to four times average family incomes. Similarly, at the peak, houses traded at such large multiples of possible rents that it made the projects uneconomic from the start. Now, with homes trading at more reasonable multiples of rents, houses and condos can be purchased that are immediately cash flow positive in year one and enjoy all the upside of any appreciation that will occur as inflation returns.
Home Prices in Real Terms, Not US Dollar Terms
We still talk about home prices in dollar terms, which is silly because the dollar has lost 98% of its purchasing power relative to a more stable asset like gold over the last fifty years. If instead of pricing houses in dollars, we look and see what a home would cost in ounces of gold, we see that houses today are a real bargain. As a matter of fact, this graph shows that average homes, measured in the number of gold ounces it would take to buy them are now trading at forty year historical lows.
You might argue that this is because gold is priced highly today. I would argue that gold’s purchasing power has changed very little over time, it is the dollar that is depreciating and thus giving the appearance that the price of gold is rising. Actually, gold is quite stable relative to other assets and commodities and it is the dollar that is highly volatile and declining in value due to the US funding its deficits by printing dollars.
The Real Bubble – US Treasuries and Future Inflation
The real bubble out there is longer US Treasuries and 30-year fixed rate mortgages for homebuyers. With US debt equal to its GDP and equal to more than four times our government’s total tax revenues and with annual deficits of $1.3 trillion and growing, it is amazing to me that people will lend to the US for thirty years for less than 3.0% a year. Even more amazing is that individual homeowners can borrow at 4.0% (around 3% after tax) for thirty years on a fixed rate basis, some 300 basis points better than Italy which has a lot more people and makes much better shoes. Homes may not appreciate greatly in real terms over the next twenty years, but they don’t have to if inflation comes back, which is the only way the US and Europe are going to get out from under the huge debts on their countries and their banks. You may not make a lot in real terms on the house, but if inflation returns, you could make a killing on your investment as your thirty year debt becomes worth less and less in real terms. Run the numbers, but if inflation and interest rates go back to say, 7% to 8%, you could easily make eight to ten times your equity investment on the house because you locked in your borrowing costs and home appreciations historically have always correlated well with unanticipated inflation.
So, run, do not walk to your neighborhood banker and either finance a new home purchase or take out the maximum amount of money he or she will lend you on a home equity loan and buy hard assets, not financial securities, with the money. When inflation comes roaring back the only perfect hedge is to be a borrower, not a lender or investor. Shakespeare said “Neither a borrower nor a lender be,” but they didn’t have huge government deficits and the risk of future inflation back in the Bard’s time.
John R. Talbott, previously a Goldman Sachs investment banker, is a best selling author and economic consultant to families. You can read more about his books, the accuracy of his predictions and his family consulting activities at www.stopthelying.com.
This house is right across the street from the High School I attended in Lakewood, WA. It’s always been a curious house with a colorful history. It was interesting to read this article about the sale. I added some pictures from the listing.
Woman with an affinity for old homes has purchased the historical Boatman-Ainsworth House in Lakewood without even coming west to see it in person:
Story From the Tacoma News Tribune
A New Jersey woman with an affinity for old homes has purchased the historical Boatman-Ainsworth House in Lakewood without even coming west to see it in person.
Marjorie Thomas-Candau of Medford, N.J., becomes the sixth owner of the colonial home on 112th Street Southwest across from Clover Park High School.
The sale closed Nov. 4, according to the county auditor’s office, and the sale price was $280,000.
“It’s very hard to find an old home and one that’s not so expensive you have to be a millionaire to be able to afford it,” Thomas-Candau said. “That’s something that I thought was pretty lucky.”
The house is named for its first two owners. Willis Boatman, an early settler to the area, built it on his 160-acre homestead in the late 1850s. Boatman sold the property to Capt. John Ainsworth, a founder of the Oregon Steam Navigation Company, in 1878.
It was listed on the state historic registry in 1974 and the National Register of Historic Places in 1982. It was one of the first listed on the city registry of historic properties in 2003.
Thomas-Candau, an occupational therapist, plans to move to the area to be closer to family and her best friend who lives in Seattle. She enlisted the help of her daughter, who lives in Tacoma, to find her new home. She gave some criteria to assist the search, specifically requesting an old home with character and land.
She wasn’t sold on the house when her daughter first sent pictures. But continued prodding by her daughter and best friend, who both toured the house, convinced her the property was the right fit for her.
Thomas-Candau hasn’t yet visited her new home and said she won’t be moving to Lakewood for at least a year so she has time first to take care of some personal affairs. She plans to do repairs but said she doesn’t intend to make major changes to the house or property.
Thomas-Candau grew up in a farmhouse in southern New Jersey, not far from where she lives now. Her home was built circa 1860 and was Medford’s first free public school.
The Boatman-Ainsworth House’s previous owners, Craig and Margaret Gunter, passed the home to their three daughters after Margaret Gunter died last year; Craig Gunter died in 2005. The daughters, who all live outside Pierce County, said they made the difficult decision to part with the house their family owned for 40 years.
“Even talking about it brings tears to my eyes,” one of the daughters, Jeannie Gunter, told The News Tribune in September. “That home is really something very, very special.”