Los Angeles is Number One in the Nation for Entertaining Real Estate
A ZipRealty.com study finds that more homes in L.A. are listed as “perfect for entertaining,” than in any other market in the country, and that's a reflection on both size and price.
It stands to reason that the entertainment capital of the world would also be the country’s biggest party city. That's according to a recent study done by ZipRealty.com that examined property listings using the words, “perfect for entertaining.” Los Angeles ranked first in the number of listings that mentioned the home’s outstanding entertainment features.
Denver was second, followed by Dallas, Phoenix and Houston, in that order. "These markets are temperate and generally speaking, sunny all year round," says Lanny Baker, CEO and President of ZipRealty.com. "And, since 'outdoor' property features were most frequently associated with the word entertaining, it makes sense that these western and Texas metros made the list."
One of the more fascinating aspects of the study revealed that homes listed specifically as being entertainment friendly were bigger and valued significantly higher than the ones that weren’t. The median listing price of a Los Angeles area home with the term “entertaining” in the description was $485,000, compared to $349,000 without the term. Average home square footage with the term was 2,408, compared to 2,161 without it.
"With the added appeal of being a place to entertain family and friends, we found that the median listing price of homes increased significantly when the term 'entertaining' appeared in the listing description of a property," explains Baker.
Savvy L.A. homeowners seem to be catching on. The study found that 2.67% of Zip’s listings contained the words “perfect for entertaining,” which has increased 14.24% from last year. This growth coincides with improvement in the U.S. housing market and the dwindling number of foreclosures and REOs for sale nationwide. "More people – not banks – are selling properties," Baker adds. As you can imagine, banks are less likely to tout the more frivolous features of a home.
Based on the results of the study of more than 1.7 million home listings on ZipRealty.com, common entertainment-friendly features include appealing outdoor amenities such as patios, decks, pools and a large backyard; and a larger overall, open floor plan.
"Based on the study, home sellers may be able to enhance their listing by marketing their backyard, common areas and outdoor spaces," says Baker. "Adding an umbrella, chairs and table in the backyard may add as much value as applying a fresh coat of paint to the exterior!"For homebuyers, Baker recommends being imaginative when shopping. "Keep an eye out for the outdoor spaces that haven't been utilized. If a desirable home has an empty backyard or outdoor space that hasn't been put to good use, or hasn't been marketed in the listing, you may be able to get a good deal on a house that can easily be upgraded to an entertainer's delight," he concludes.