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Week of August 7th - August 13th
Property Tips and Tricks
Touchpoints
Touring a home transcends visual engagement; it's a sensory journey encompassing sound, scent, and tactile sensations. Amid these elements, the significance of touch often goes unnoticed. Consider this: what's the initial act of a visitor at your doorstep? It's the grasp of the door handle and the swing of the front door. This inaugural touch molds a first impression. For potential buyers, does the door handle exude solidity and inspire confidence? When you clasp the handrail leading up the stairs, is the sensation of security present?
The good news is that attending to these nuances is straightforward. If you're prepping your home for sale, ensure handrails evoke sturdiness. If a door handle lacks a reassuring feel, consider a repair or substitution with one that provides a more upscale tactile experience. These subtle refinements can offer substantial influence, endowing buyers with a perception of luxury and fine craftsmanship from their initial interaction with your home.
Real Estate Ramblings
Counting beans: crops, cadillacs, and cottages
Below is a quick dive into the economic tapestry of Monterey County, from the fertile fields of agriculture to hospitality and tourism, as well as real estate sales. I'll briefly cover each industry's impact on the local economy.
In June 2020, a report titled "Economic Contributions of Monterey County Agriculture" revealed that the county's crop value for 2019 was reported at $4.3 billion. Monterey County's agricultural commissioner highlighted that the total county economic contribution from agriculture was $11.7 billion in 2019. Adjusting for inflation, that number amounts to approximately three trillion dollars (just kidding!).
Monterey County boasts another major industry, Tourism and Hospitality. In 2019, this sector contributed $1.6 billion to the Gross Domestic Product, with visitors accounting for $296 million in total taxes and generating $153 million in local tax revenue. This week, nearly 100,000 people are expected to gather on the Monterey Peninsula for the 72nd Pebble Beach Concours d’Elegance, filling accommodations and dining venues, and significantly boosting local spending. Car Week 2019 generated more than $67 million in regional revenue, including over $40 million in hotel earnings alone.
Although the tourism sector thrives on the Monterey Peninsula, the agriculture industry takes the lead countywide. How does the real estate sales industry compare? Over the past five years, the yearly average sales volume reached approximately $3.6 billion in Monterey County, comprising around 3,300 sales annually. With a small percentage of each sale allocated to the County, as well as fees for escrow, title insurance, and agent commissions, let's estimate a total revenue of about 6% of the sales volume, or $216 million per year.
Additional costs associated with preparing homes for sale include inspection reports, contractor services, painting, plumbing, and electrical work. There's also home staging, potential attorney fees, moving expenses, and storage costs, which can vary greatly. For the sake of a conservative estimate, let's assume an average expenditure of $5,000 per home seller, contributing another $16.5 million annually to local businesses, totaling around $233 million.
Not included in the above calculations is the seller's profit. Let's conservatively estimate that each seller earns a 5% profit after covering costs, amounting to roughly $180 million per year. The ultimate impact of sellers' profits on the local economy varies, so we won't focus too heavily on that aspect.
So, there you have it. Agriculture>Hospitality and Tourism>Real Estate Sales.
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Jonathan Balog
DRE# 01980970
Broker
M: 831.747.0310
[email protected]
Compass is a real estate broker licensed by the State of California operating under multiple entities. License Numbers 01991628, 1527235, 1527365, 1356742, 1443761, 1997075, 1935359, 1961027, 1842987, 1869607, 1866771, 1527205, 1079009, 1272467. All material is intended for informational purposes only and is compiled from sources deemed reliable but is subject to errors, omissions, changes in price, condition, sale, or withdrawal without notice. No statement is made as to the accuracy of any description or measurements (including square footage). This is not intended to solicit property already listed. No financial or legal advice provided. Equal Housing Opportunity. Photos may be virtually staged or digitally enhanced and may not reflect actual property conditions.
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