Estimating Home Value After Renovation: A Guide


Intro
Renovating a home is often a blend of creativity and investment strategy. Homeowners and investors alike may find themselves under the illusion that their property’s value will skyrocket simply by sprucing it up. However, accurately judging a home's worth after renovations isn’t as straightforward as it might appear. It necessitates navigating through various facets such as market analysis, renovation costs, and what potential buyers are looking to find.
In this guide, we aspire to strip away the misconception that renovation automatically equates to elevation in value. Instead, we’ll delve into the nuanced methodologies that can help to estimate the true worth of a property post-renovation. By dissecting different elements influencing home value, including local market trends and the specific enhancements made, we'll equip you with the knowledge needed to assess whether your investment is paying off.
Let’s embark on this journey to unveil the intricate dance of factors that contribute to home valuation.
Preface to Home Valuation Post-Renovation
Estimating the value of a home after renovations is no small feat. It’s more than just a simple calculation or flipping through a few listings. This crucial process involves combining art and science, where market insights meet the tangible impact of improvements. For homeowners and real estate investors alike, understanding this valuation is critical. It sets the stage for future financial decisions, whether it’s selling the property, refinancing, or simply assessing investment returns.
When renovations are implemented, they typically aim at enhancing livability or increasing market attractiveness. However, potential buyers may not always perceive value in the same way the homeowner does. The figures can fluctuate significantly depending on multiple factors, including neighborhood trends, quality of work done, and the overall economy.
It's essential to grasp the elements of a post-renovation appraisal. Accurate valuation helps avoid the pitfall of overestimating property worth, which can lead to unrealistic expectations when hitting the market. Furthermore, misjudging can stall sales, resulting in not only financial loss but also extended holding costs.
Despite renovation efforts, it’s common for some homeowners to carry foundational misconceptions about how renovation affects the home’s value. Knowing the reality from the myths can aid in better financial planning, allowing for more informed decisions around future projects or sales. Ignoring valuation rules can lead to potential missed opportunities or costly mistakes. Therefore, equipping oneself with the right knowledge about home valuation post-renovation is not just beneficial, it's an imperative part of the journey.
Understanding the Importance of Accurate Valuation
Accurate home valuation post-renovation serves as a cornerstone to successful investment strategies and personal resolutions. It feeds into the big picture, ensuring that a homeowner or investor is well-informed about their financial standing. Essentially, an accurate valuation can function like a compass, guiding paths toward selling, purchasing, or refinancing.
Consider the following highlights that explicate its significance:
- Investment Insight: Understanding the enhancements’ impact on value can inform future renovation decisions.
- Informed Negotiations: Those looking to sell can use an accurate valuation to justify asking prices during negotiations, cementing authority and credibility.
- Market Awareness: A well-rounded valuation takes into account current market trends, ensuring the property remains competitive and appealing.
Nevertheless, while pinpointing an accurate valuation seems straightforward, the process can be intricate. The consideration of local market fluctuations, economic shifts, and even evolving buyer preferences make this quite a balancing act.
Common Misconceptions about Home Value
When it comes to estimating home value post-renovation, a host of common misconceptions can end up clouding judgment. Here are a few that many fall for:
- All Renovations Increase Value: Not every upgrade or aesthetic enhancement translates directly to added value. For example, a highly personalized kitchen layout may not be appealing to the average buyer.
- Value Equals Cost: Just because renovations cost a significant amount doesn’t mean they will yield corresponding value on resell. This is often a bitter pill for homeowners to swallow.
- Location Doesn't Change: Many believe that renovations automatically elevate a house’s worth regardless of its location. However, changing neighborhood dynamics greatly influence valuation.
- DIY Always Saves Money: While DIY renovations can save cash upfront, poor workmanship can result in costs down the road, impacting the overall valuation negatively.
Addressing these misconceptions can empower homeowners to make better renovation choices. By recognizing what genuinely adds value based on sound market analytics and buyer preferences, they can strategize their future investments more effectively.
"Understanding the factors that influence home value post-renovation is crucial for making informed real estate decisions."
Key Factors Influencing Home Value After Renovation
Establishing the value of a home following renovations is a nuanced process. It's not just about updating the kitchen or adding another bathroom; various factors come into play that can significantly sway the perceived worth of a property. The following elements are essential to understanding why certain homes stand out in the market after renovations, and how you can leverage these aspects to your advantage.
Location and its Impact on Valuation
Location, location, location. This age-old adage rings true in real estate. The geographical setting of your home can make or break its value.
- Desirability of Neighborhood: Homes in sought-after areas close to amenities like parks, schools, and shopping centers typically command higher prices. Think if your home is near a beach or a vibrant downtown. If so, that's a gold mine for potential added value.
- Future Developments: Always keep an ear to the ground regarding upcoming projects. If a major company plans to set up shop nearby, the influx of new residents can send home values soaring.
- Safety and Community Resources: A community with lower crime rates and a good reputation will naturally draw in potential buyers. Having nearby hospitals, police stations, and community centers can further boost appeal.
"A premium location is like the cherry on top of the property sundae; it elevates the whole experience."
Quality and Scope of Renovations
You might have put a fresh coat of paint or installed the latest granite countertops, but not all renovations carry the same weight in terms of value addition.
- Materials Used: The quality of materials can greatly influence the perceived value. Cheaper choices can come off as make-do solutions, while high-end finishes can make buyers see the property as luxurious and worth the extra dime.
- Extent of Renovations: Not all improvements are viewed equally. A full kitchen remodel versus minor cosmetic changes will be assessed differently. Open floor plans and modern layouts are typically favored over closed-off spaces.
- Energy Efficiency: Features such as energy-efficient windows, proper insulation, and modern HVAC systems can be a big draw these days. Buyers are increasingly looking for homes that save them money long-term. These upgrades often lead to higher offers during resale.
Current Real Estate Market Trends
The landscape of real estate is ever-changing. Being aware of current trends can heavily affect how your renovated home’s value is assessed.


- Economy and Interest Rates: Changes in the economy and fluctuations in mortgage interest rates can directly impact how many buyers are willing to spend. A hot market might push your home’s price up, while a cooling market could result in a lower valuation.
- Consumer Buying Patterns: Be alert to what buyers are currently favoring. For example, during a pandemic, outdoor space became a hot commodity, leading many homeowners to invest in backyards or patios.
- Inventory Levels: A low number of homes for sale can mean a competitive market, boosting prices. Conversely, if you’re surrounded by many unsold homes, your recently renovated property might not shine as bright.
Buyer Preferences and Expectations
In crafting your renovations, it’s vital to consider what today’s buyers are actually looking for. Preferences can shift over time, and knowing the pulse of the market can help tailor your updates for maximum appeal.
- Trendy Appeal: Features like smart home technology, open concepts, and spacious layouts are often at the top of buyer wish lists. Staying ahead of trends can make your home irresistible.
- Lifestyle Needs: Understand the potential buyers’ lifestyles. Families might need ample bedrooms and backyards, while young professionals may prioritize close proximity to public transport and entertainment.
- Visual Impact: First impressions count—both online and in-person. A visually appealing façade and organized interior can drive interest, often leading to a faster and profitable sale.
By keeping these factors in mind, anyone looking to estimate home value post-renovation will find themselves in an advantageous position. Understanding location dynamics, the quality of renovations, market trends, and buyer expectations can streamline the valuation process, leading to informed decisions that enhance financial outcomes.
Calculating the Cost of Renovations
Calculating the cost of renovations is not just a number-crunching exercise; it's a vital aspect of understanding how renovations will affect your home's value. Whether you're sprucing up a quaint bungalow or revamping a sprawling estate, knowing the costs involved helps to frame your financial planning. When it comes to renovations, having a realistic picture of costs empowers homeowners and investors alike, ensuring that they make informed decisions that reflect their goals. Understanding both direct and indirect costs is crucial, as they can significantly influence your budget and, ultimately, the valuation of your property.
Estimating Direct Costs of Renovations
Direct costs are the bread and butter of renovation expenses. These are the costs you incur specifically for materials, labor, and necessary permits. To accurately nail down these expenses, it's best to break them into several categories:
- Materials: This includes everything from paint and flooring to appliances and fixtures. Always consider quality—going with the cheapest option may end up costing you more in the long run if they need replacing.
- Labor: Skilled labor can vary widely in cost, depending on your area's construction market. Even though DIY projects might save you some cash, it's essential to factor in the value of your time and efforts.
- Permits and inspections: Many renovations require permits from local authorities. Forgetting to account for these can lead to fines and complications down the line.
As a general rule of thumb, homeowners should aim to get at least three estimates from contractors to see a broader picture of labor costs. Sometimes, you might find a contractor who's willing to work with you for a lump sum or flat rate, which could mitigate any surprises later.
Considering Indirect Costs Related to Renovations
Indirect costs can often sneak up on you, but they play a crucial role in understanding the totality of your renovation investment. It's wise to incorporate these when assessing costs:
- Increased Taxes: After a reno that significantly boosts your home's value, prepare for a potential spike in property taxes.
- Insurance Adjustments: Once renovations are complete, your homeowner's insurance policy may need to be updated to reflect increased value and new features. Be sure to discuss any changes with your insurance provider.
- Market Time: If your renovation affects the livability of the home for an extended period, factor in the costs associated with potentially being in a less desirable situation if you must live elsewhere while the work gets done.
It's important to note that some renovations might also bring along unexpected costs, such as structural issues that might arise during the process.
"The best way to calculate renovation costs accurately is to consider both direct and indirect expenses, and always leave a cushion for unforeseen issues."
By developing a solid grasp of both direct and indirect costs, you set yourself up for a clearer understanding of how renovations can make a difference in home valuation. Building that comprehensive picture allows you not just to estimate costs effectively, but also to plan strategically for the future.”
Methods of Valuing Renovated Homes
Determining the value of a home that has undergone renovations is not as straightforward as one might think. It demands a keen understanding of various methodologies tailored for this unique context. Understanding these methods is vital, as they enable homeowners and investors to gauge the worth of their property accurately, thus informing sales decisions, investment strategies, and financial planning.
Comparative Market Analysis (CMA)
The Comparative Market Analysis, often shortened to CMA, is one of the foundational tools in real estate valuation. This method involves assessing the prices of similar properties in the vicinity that have sold recently. When evaluating a renovated home, selecting properties that have undergone similar upgrades is crucial.
Some key aspects are:
- Similar Property Characteristics: Look for properties that share comparable square footage, number of bedrooms, and amenities. If your home got a modern kitchen revamp, finding recently sold homes that also feature kitchen renovations can provide a fair comparison.
- Timeframe of Sales: Sellers often miss the boat by looking too far back in time. The real estate market can shift rapidly, meaning that properties sold years ago may not reflect current trends.
- Condition Adjustments: Sometimes, homes in a better state might sell for a premium. When pricing your renovated home, consider adding or subtracting value based on the condition compared to your chosen comparables.
Using CMA is akin to taking the pulse of the market; it gives an accurate snapshot of what buyers are willing to pay based on current trends, enabling sellers to position their homes competitively.
Cost Approach to Valuation
The Cost Approach to Valuation presents another angle entirely. This method determines the value of a property based primarily on the costs associated with replacing it. In the context of renovations, the cost approach plays a significant role, especially for properties that have unique improvements that might not have a direct market comparison.
To break it down:
- Reconstruction Costs: Estimate how much it would cost to recreate the home, considering the renovations. For instance, if you've added a new bathroom, compute the costs of materials, labor, and any associated fees.
- Depreciation: Understand that homes experience depreciation due to age, wear, and tear. This can be a tricky aspect, as appraisers have to figure out how much value has diminished over time versus the value added from renovations.
- Land Value: The value of the land on which your renovated home sits also affects the overall valuation. This assessment usually remains steady, despite the property's condition.
Employing the Cost Approach can yield a useful value estimate, particularly for properties with extensive or unique improvements that defy market comparisons.
Income Approach for Rental Properties
The Income Approach is vital when considering the valuation of rental properties, especially those that have been renovated with the intention of boosting rental income. It is predicated on the potential revenue the property can generate. Utilizing this methodology can be particularly beneficial in areas where rental properties are in high demand.


Here are some concepts to keep in mind:
- Potential Gross Income: Estimate how much money your property could rake in every month if fully occupied. For example, if your renovated property has two new bathrooms and a modern kitchen, these improvements may justify a higher rental rate.
- Vacancy Rate: No property is without its vacancies. Adjust the potential gross income by estimating a realistic vacancy rate for your area.
- Operating Expenses: Take into account ongoing costs such as maintenance, property management, taxes, and insurance. These expenses reduce the net income and should be factored in when calculating value.
Utilizing the Income Approach effectively can illuminate the financial viability of your renovated home as an investment, empowering property owners to set prudent asking prices and analyze investment opportunities.
Understanding these valuation methods not only enables homeowners to set competitive prices but empowers investors to make informed, strategic decisions in the ever-changing real estate landscape.
The Role of Professional Appraisals
In the tangled world of real estate, professional appraisals play a pivotal role in establishing a property’s true worth, especially after undergoing renovations. They are not just numbers on a page; they represent an informed estimate aimed at uncovering the actual value home renovations bring to a property. The complexities of a renovated home’s worth often require a neutral third party. This is where appraisers come into play. Their expertise adds a layer of reliability that can make or break a home sale.
When to Hire an Appraiser
Knowing precisely when to call in an appraiser can be the difference between a profitable venture and a missed opportunity. Here are a few critical scenarios:
- After Major Renovations: If you've knocked down walls and invested in high-end finishes, it’s wise to get an appraiser involved post-renovation. They can highlight the value added versus the costs incurred.
- Preparing for a Sale: Before putting your house on the market, an appraisal can help you set a realistic asking price. This avoids the trap of overpricing, which can lead to prolonged listings and price reductions.
- Refinancing: If you're considering a refinance to pull out equity for future investments, an appraisal helps delineate how much home equity you have.
- Tax Assessment Appeals: Should you disagree with the local property tax assessment following renovations, a certified appraisal can bolster your case.
"Understanding the right moment to hire an appraiser fosters informed decisions that can have long-lasting impacts on your financial future."
How Appraisers Determine Value
The methodology followed by appraisers is systematic and grounded in various factors. To grasp how appraisers compile their assessments, consider the following:
- Comparative Market Analysis (CMA): A thorough analysis is conducted using comparable properties taken from recent sales in your neighborhood. Issues such as size, age, and features are considered to gauge how your property measures up.
- Evaluation of Renovation Quality: Not all renovations share equal merit. Appraisers will notice if you used premium materials or if the work done was slapdash. This can significantly affect the home's perceived value.
- Location and Market Trends: The appraiser considers the desirability of your home's location. If you’ve done renovations in an up-and-coming area, the value can sometimes spike disproportionately compared to a similar home in a less desirable locale.
- Legal and Zoning Considerations: The appraiser also checks whether the renovations comply with local laws and codes. Properties that are in compliance often get higher values, while those with legal issues could face penalties.
- Economic Indicators: Broader economic conditions also come into play. The appraiser gauges how external factors like interest rates and local job growth can sway property values.
Understanding these elements empowers homeowners and investors as they navigate the renovation landscape. Professional appraisals offer a illuminating lens through which the value of your property can be assessed. The right appraiser becomes a valuable ally in pursuing your real estate ambitions.
Real Estate Tools for Valuation
When it comes to estimating home value after renovation, leveraging the right tools can make all the difference. In today's fast-paced real estate market, having access to advanced tools ensures that homeowners and investors are not just shooting in the dark. Understanding how these tools work can save time and help in making informed decisions about property investments.
Online Valuation Models (AVMs)
Online Valuation Models (AVMs) have become increasingly popular thanks to their ability to offer quick property estimations. These models utilize algorithms and vast datasets to provide a ballpark figure of home value. But don’t be fooled into thinking they’re the end-all.
- Speed and Cost-Effectiveness: One significant advantage of AVMs is their speed. You can get an estimate in mere minutes without the need for an appraiser. Typically for free or a low fee, homeowners gain immediate insights.
- Data-Driven Insights: These models take into account numerous variable factors such as recent sales data, neighborhood trends, and property characteristics. Information can come from public records, sales transactions, and MLS databases, making the estimated values fairly robust.
- Limitations to Consider: While AVMs are convenient, relying solely on them can lead to miscalculated expectations. They may not account for unique characteristics of your home or very localized market influences.
So, think of AVMs as a starting point, a rough sketch if you like, that gets the ball rolling. Once you have that initial figure, consider pursuing more extensive evaluations.
Utilizing Real Estate Metrics and Analytics
Utilizing Real Estate Metrics and Analytics is vital for anyone wanting to dig deeper into property valuations. Understanding these metrics can also empower homeowners and investors to argue a stronger case when negotiating sales prices or property values.
Real estate market dynamics may seem overwhelming at first, but breaking it down helps:
- Metrics Like Median Sales Price: Analyzing median sales prices within a neighborhood over time can give you valuable foresight into market liquidity—how quickly homes are selling and at what average price. This information is essential, especially if your renovations align with current consumer preferences.
- Days on Market (DOM): This is a gold mine when gauging market health. If properties in your area are selling fast after renovations, it could signal heightened demand, which ultimately fosters better valuation prospects. Therefore, tracking DOM can provide predictive insights.
- Comparative Analysis: Combine these metrics with a comparative analysis of similar properties in your vicinity. Look for key differences that could justify higher offers on renovated homes versus similar, unrenovated ones.
"The difference between a well-informed decision and a guess can be summed up in the metrics you choose to understand."
In summary, both AVMs and real estate analytics present instrumental insights into home value estimation after renovations. Embracing these tools helps craft a clearer financial landscape, allowing investors and homeowners alike to navigate their journeys more astutely.
Understanding Market Conditions
In the arena of real estate, understanding market conditions sits at the forefront of accurately estimating a home’s value after renovations. This understanding transcends just knowing whether the market is hot or cold; it’s about grasping the subtle intricacies that dictate pricing dynamics. Buyers and sellers alike must be cognizant of how market conditions interplay with home valuations, particularly after significant renovations.
A well-rounded understanding of market conditions can benefit homeowners in various ways:
- Informed Decision-Making: Knowing the state of the market allows homeowners to make educated choices about when to sell or hold onto their property. Choosing the right moment can lead to maximizing profit.
- Enhanced Negotiation Power: Those who are attuned to market trends can negotiate better by leveraging current demand and supply indicators. Understanding how other similar homes have fared in recent sales can enhance a homeowner’s position in negotiations.
- Improved Marketing Strategy: Adjusting a marketing strategy based on prevailing market trends can significantly influence property visibility and appeal. These changes can include adjusting pricing, staging, or design tweaks based on what buyers find attractive in a given timeframe.
As we delve deeper into this section, we’ll examine two major elements—supply and demand dynamics and the significance of timing in real estate, both vital for a comprehensive grasp of market conditions.


Analyzing Supply and Demand Dynamics
The classic economic principle of supply and demand holds significant weight in the real estate sector. When assessing home value post-renovation, the interaction between these two forces plays a pivotal role.
- Supply: If multiple homes are flooding the market, each vying for buyers’ attention, the competition intensifies. This could lead to modest appreciation or even reductions in overall home values. Renovations will matter less if there’s a plethora of comparable properties with similar upgrades. In contrast, a shortage of homes on the market can elevate prices, making your renovated home more desirable.
- Demand: Understanding who your potential buyers are and what they’re looking for can make all the difference. A growing population or booming economy in the area may drive demand, whereas stagnant growth could shrink buyer interest. For instance, someone who has renovated a three-bedroom house in a sought-after neighborhood may see a favorable market scenario if the area draws families.
We must remember that local market conditions can greatly sway these factors. It’s not uncommon to find neighborhoods with striking differences in how supply and demand shape home values. Remain adaptable and always do your research.
The Significance of Timing in Real Estate
Timing is often described as everything in real estate. This doctrine plays a vital role in determining how much value is gleaned from renovation projects.
- Market Cycles: Real estate terms are subject to cycles—expansion, contraction, and recovery, among others. Depending on where the market finds itself, the impact of your renovations can vary. If you’ve revamped your home during a booming market phase, you’ll likely see a more significant return versus altering the home during a downturn.
- Seasonal Trends: Even the time of year can influence market activities. For instance, spring and summer are traditionally hot selling seasons, as families prefer moving during warmer months. Thus, renovating before these peak times can increase the visibility and value of your property.
Keep in mind that the overall goal is to align your renovations with favorable market conditions while anticipating potential fluctuations.
Understanding market conditions—including analyzing supply and demand dynamics and recognizing the critical importance of timing—forms the backbone of estimating home value after renovation. When a homeowner can effectively assess these elements, they are better equipped to navigate the complexities of the real estate landscape.
Privacy, Regulations, and Disclosure
Understanding the landscape of privacy, regulations, and disclosure is paramount when estimating the value of a home post-renovation. This topic not only safeguards the interests of homeowners and buyers but also enhances the transparency of transactions in the property market. As prospective buyers delve into properties, the awareness of local laws can have a significant impact on their purchasing decisions and, ultimately, the home’s value.
Local Laws Affecting Home Sales
Each locale has its own bouquet of laws and regulations that govern the sale of real estate. These laws can affect not only the sale process but also the property’s value after renovation. For instance, certain cities may impose restrictions on specific types of renovations, such as those that alter the exterior appearance of a home.
In many regions, zoning laws dictate how properties can be modified or expanded. Understanding these rules is crucial for homeowners planning significant renovations since non-compliance can lead to fines or even require the undoing of the work done. Homeowners should be aware of:
- Building Codes: Compliance with engineering and structural standards.
- Zoning Regulations: Restrictions on land usage that may affect renovations.
- Historical Preservation Laws: These can limit changes to homes in designated historical districts.
Understanding this landscape is particularly vital for buyers. When potential homeowners are aware of the local laws, they can better assess whether any renovations align with their expectations as they navigate the home-buying process.
Disclosure Requirements After Renovation
After the completion of renovations, various disclosure requirements emerge that aim to protect all parties involved in the real estate transaction. These obligations ensure that all potential buyers receive crucial information that might inform their decisions. In most states, sellers must reveal any known defects, issues, or renovations that have altered the safety or structural integrity of a home. Key elements include:
- Renovation History: Details about major renovations and updates made to the property.
- Permits and Approvals: Documentation affirming that renovations were performed legally and meet local building codes.
- Potential Red Flags: Such as previous water damage or pest infestations that could affect a home's value.
Moreover, purchasers need to understand these requirements as they can greatly influence their understanding of a home's condition and its overall valuation. Consider this quote:
"Transparency in real estate is like sunlight on a cloudy day—it can clarify uncertainties and foster trust between buyers and sellers."
In this age of informed consumers, the ramifications of neglecting disclosure can lead to strained relationships and legal troubles. Proper disclosure nurtures a sense of trust, which can ultimately bolster the home’s value by attracting more discerning buyers who appreciate transparency.
Navigating the complexities of privacy, regulations, and disclosure not only demonstrates due diligence but also sets the stage for an informed and valuable real estate endeavor.
The End on Home Valuation After Renovation
Understanding home valuation post-renovation stands as a crucial aspect of real estate investment. It not only grants homeowners a clearer view of their financial stakes but also ensures that investors make well-informed decisions in a dynamic market. The essence of this topic revolves around grasping how renovations influence property worth and identifying the myriad factors that can sway valuations.
In this article, we have dissected the complex puzzle of estimating home values after renovations. Key elements such as location and buyer preferences play a significant role. Renovations must align with current market trends and local demand. This understanding allows sellers to set realistic price points and enables buyers to recognize value in what they are purchasing.
Moreover, we explored the methods of valuing renovated homes, emphasizing the importance of having a well-rounded approach. From comparative market analysis to the costs associated with renovations, every element contributes to an accurate valuation. Recognizing these facets not only aids in optimizing financial outcomes but equips readers to navigate potential pitfalls in the real estate domain.
"A penny saved is a penny earned; in real estate, a well-valued home is a foundation for future wealth."
Investing in a property comes with its set of risks, but having a solid grasp of how renovations affect value mitigates those uncertainties. By paving the way toward clearer expectations, a well-considered valuation process offers reassurance and direction.
Recap of Key Points
- Home valuations post-renovation are influenced by several factors, including location and market trends.
- Understanding renovation impact is essential for determining a property’s worth accurately.
- Different valuation methods, such as comparative market analysis, provide strategic insights.
- Professional appraisals can offer a trustworthy third-party perspective.
- Ongoing market conditions and buyer preferences should inform renovation strategies.
Future Considerations for Homeowners
- Be aware of changing market conditions; what applies today may not hold true tomorrow.
- Keep an eye on trends in buyer preferences, especially regarding sustainability and technology.
- Regularly update your home’s features to match evolving standards in the neighborhood.
- Consider long-term implications of renovations—will they serve personal needs or appeal to future buyers?
- Understand the financial implications of renovations in relation to your local market; it may vary significantly.
By keeping these considerations top of mind, homeowners can approach their investments with a discerning eye and adapt to the ever-evolving landscape of the real estate market.