How Pumpkin Spice Lattes and Home Values Are Connected
Having access to a good cup of coffee is more important than ever, and pumpkin spice lattes are an even bigger reason to visit a coffee shop at this time of the year. What does all of this have to do with home values? There’s more to it than you realize.
The Demand for Coffee
Did you know there are more than 19,000 Starbucks locations around the world? This $15 billion company is well recognized as a must-have, especially on the daily route to and from work. For home buyers, buying a home that’s close to a Starbucks actually could be very important, and for home sellers, being close to one could raise your home value.
Don’t think that it’s true? A study by Quartz showed that, in fact, it is! They looked at the location of Starbucks locations and Zillow data to determine that, when it comes to home value, having a Starbucks close by often means a “venti-sized” home valuation is likely. In fact, Quartz found that a home near a Starbucks sold at an average of $137,000 compared to the same home without a nearby Starbucks selling for $102,000.
The study found that it's not just a Starbucks effect either, but rather a coffee effect. They found that homes close to a Dunkin’ Donuts have the same type of higher valuation than areas without them. In all cases, having a coffee shop nearby often means home values will appreciate faster than properties without one.
What Really Affects Your Home Value?
A home value is calculated based on various factors, not just where the next cup of hot coffee will come from (even during pumpkin spice season). There are plenty of other factors that play a role in determining a home’s worth. That includes the following:
Age and Condition
Your home’s age and the overall level of upkeep are big factors when it comes to home value. If you haven’t replaced a roof that's beyond its lifespan, that could degrade the value of the home. On the other hand, an 80-year-old home that’s beautifully maintained and restored can be worth much more. Most home buyers want to purchase a home they don’t have to sink a lot of money into from the start. Unless, of course, it is priced to sell with a major renovation in mind, and marketed to those willing to take on a project.
Does your home’s living room still have that '70s vibe to it? No, not the updated mid-century modern vibe. We're talking about original wood paneling on all of the walls and colorful carpet. Even if the carpet is in great condition, having numerous outdated features will negatively affect your home value. Luckily, most outdated design choices can be easily remedied with neutral paint colors, vinyl flooring, and new furnishings.
As noted, being close to a coffee shop is a part of the puzzle, but that’s not the whole picture. Oftentimes, being a few minutes to the freeway, doctor's offices or shops and restaurants can make all the difference. In Southwest Florida, of course, we highlight the distance to the beach or to the downtown shopping areas. Being near the water, or on the canal is a major draw for boaters. Location. Location. Location. That's the one aspect of your home that you cannot change and, therefore, the biggest selling feature.
The Local Market
The local real estate market doesn't always follow the national real estate market trends. For instance, the typical "peak season" for real estate transactions in northern U.S. states tends to be in the springtime. While the busy real estate season in Florida tends to be in the wintertime. Local weather events such as a bad winter storm season, a bad hurricane season, or even a tornado that only hit your community could greatly affect home values as well. This is why it's important to work with a local real estate agent when buying or selling a home.
Team Pumpkin Spice?
We hope you enjoyed this light-hearted seasonal article to break up the post-hurricane reports. In this season of Thanksgiving, we are thankful for your love and support, and for the little things that bring us joy. For some, it's pumpkin spice. As always, we're happy to get together over a cup of coffee to discuss the real estate market and how we can help you navigate this unique season we are in. Please don't hesitate to reach out to us! And be sure to let us know, are you team pumpkin spice?