Introduction
Throughout this Real Estate Analysis project, a currently listed house has been given as an example of what selling a home for a reasonable price entails. The report aims to connect a home located in the Third Ward historic district of Eau Claire, WI with a likely purchaser, while also using various resources to explore the housing market. Pictures and data listed below come from Zillow.com and FindtheHome.com. This report will highlight the following:
Key features of the home
Geographical location with respect to neighboring homes
Housing stock
Future expansion of the town
Suggestions for improvements to the home to increase the market value
Comparison to adjacent homes
210 Gilbert Avenue
Key Features
5 beds
1 full bath, 1 half bath
1,908 sq. ft.
Built in 1913
Lot: 4,369 sq. ft.
Fun Features
Flooring: Hardwood, Carpet, Tile
Wood burning fireplace
Abundance of windows increase natural light
2 Story Home
Formal dining room
Detached garage, 1 space
Patio deck: 3-season room, enclosed porch
Fenced yard
Full basement
Vinyl siding
HVAC
Location
Eau Claire is filled with a mixture of rich, historical neighborhoods, off-campus student housing and young families. There is an abundance of parks, trails, rivers, and bridges, coining Eau Claire as “the City of Bridges.” The charm from the Third Ward and downtown gives off a warm sense of home. Figure 1 color coordinates the distinction between named areas.
Figure 1. Map of Eau Claire, WI, illustrating the different neighborhoods.
Source: Eau Claire Comprehensive Plan 2015
Built in 1913, this home is located in the Third Ward district of Eau Claire. Outlined in figure 2 below, you can see the position of the home, not far from the Chippewa River and Owen Park. The historical location is situated between the college campus of University of Wisconsin- Eau Claire and downtown Eau Claire. The Third Ward is a neighborhood unlike others in the area due to the large number of registered historic homes. Offering a wide range of architectural design from Colonial Revival to Queen Anne, it is sure to impress anyone passing by. The accessibility to the Water Street district and downtown appeals to many.
Figure 2. Map of Eau Claire, WI specifically highlighting the Third Ward district and part of downtown Eau Claire. 210 Gilbert Avenue is shown within the neighborhood’s limits.
Source: Thirdward.org
Suggestions for home improvements
In order to increase the value of the house itself, a couple of home improvements could be made. Listed below are recommendations on what particularly would help in increasing the worth.
Adding a master bathroom with all the works
Adding another full bath or renovating the half bath to a full
Add low maintenance landscaping to boost curb appeal
Add skylights or solar panels to cut energy cost
Minor kitchen upgrade
Housing Stock
Figure 3. Housing Stock percentage based on Census Tract and Year Built
Source: 2015 Eau Claire Comprehensive Plan
The third ward is one of the oldest sections of the city of Eau Claire. As seen in figure 4, tract 17, which includes the third ward, has the smallest number of homes built between 1970 and 2012. For this reason, many of the homes in this area have a higher than average market value. This higher market value is also an indication of the structural state of the homes compared to some of the more weathered older homes in the Randal park neighborhood.
Figure 4.: Third Ward Community Profile
Source: Esri Business Analyst desktop
Based on a community profile report generated using ESRI Business Analyst software, the Third Ward has a high renter occupancy rate at 58.7%. Although not as high as tracts 11.01 and 12, which consist of the larger areas of student housing in the Randal Park neighborhood, this percentage is still higher than average. This is further illustrated in figure 5. This can be attributed to its close location to the University of Wisconsin-Eau Claire campus. 
Figure 5: Percent of renter occupied housing
Source: 2015 City of Eau Claire Comprehensive Plan
The higher than average number of renters may not appeal to individuals looking to avoid certain aspects of student life such as loud parties. However, as can be seen in figure 6, the majority of the renter occupied housing in the third ward is located in the northern section closer to downtown
.
Figure 6: Third Ward Land Use
Source: Eau Claire 2015 Comprehensive Plan
Future Development:
The city of Eau Claire is currently undergoing several major developments and the home at 210 Gilbert is situated close to many of these. One noteworthy development that has recently gone underway is the Garfield Avenue project on the University of Wisconsin-Eau Claire campus. Located less than a mile from the house site, the project will include several green spaces, riverfront seating and an outdoor amphitheatre. Expected to be completed in the fall of 2018, the site will be an ideal outdoor recreation location.
Figure 7: Garfield Ave Site Plan
Source: University of Wisconsin-Eau Claire
Another ongoing development that is slightly further away yet still within easy access is the Eau Claire Confluence center. Located downtown at the intersection of the Eau Claire and Chippewa rivers, the site will expand upon the student housing building Haymarket Landing that was opened in the fall of 2016. The future site will include a brand new fine arts center as well as an outdoor riverfront plaza. 
Figure 8: Confluence Final Plan
Source: Community for the Confluence
With 210 Gilbert street being located centrally between both of these developments, it will be a highly valuable property in the coming years. Based on the report from figure 4, the median home value for houses in the third ward district in 2021 is estimated to be just over $243,500. Following the completion of these developments, that value is likely to increase.
Demographics
The property of 210 Gilbert is located in the Third Ward, which has a population of 3455 people, according to findthehome.com. This means that 5% of the population of 67545 in Eau Claire currently reside in the Third Ward. Of those 3455 people residing there, only 40 % of the occupants are owners of the property. This is because of the large number of college aged students who reside in the Third Ward (39%) because of its relative location to the University. However the second largest age group is people under the age of 20. Some of these residents may be 19 year old college students living off campus, however it is unlikely to change the number all that much. With this being said it is likely that there are a large amount of children living with their parents in the Third Ward, suggesting that it is a suitable location for a nuclear family.
Figure 9 : Age in the Third Ward, Eau Claire, and the U.S.
Source: findthehome.com
The Third Ward is mostly low income, with 42.9% of the population making an annual income of less than $25000 a year. This comes from the aforementioned fact that the majority of the occupants are college aged, and most likely bring home a small amount of money due to being students. While the area is defined as being low income it should be noted that it is a well-educated community, with 33.9% of the population over the age of 25 attaining a bachelor degree, as seen on the figure below. With its proximity to the University of Wisconsin- Eau Claire there is a large amount of residents who are also attaining an education.
Figure 10 : Annual household income in the Third War, Eau Claire, and the U.S.
Source: findthehome.com
The Third Ward is predominantly Caucasian, with 94% of the population identifying as such. While the city of Eau Claire does have a prominent Hmong community there are less people identifying as such than in the city of Eau Claire as a whole. The language spoken at 92% of the homes is English, chiefly from the large Caucasian presence.
Figure 11 : Ethnicity in the Third Ward, Eau Claire, and the U.S.
Source: findthehome.com
The Third Ward is a bustling area with a large amount of students walking to class on an average day. While most of the commuters in the Third Ward decide to drive, it should be noted that there is a larger portion of people walking and biking than is typical in the US, or in Eau Claire. This is easily seen on an average day with many college students traveling through the neighborhood to the University.
Figure 12 : Commute methods in the Third Ward, Eau Claire and the U.S.
Source: findthehome.com
Similar Real Estate in the Area
Looking at recent sales in the Third Ward of Similar houses, with similar size, bedrooms, and bathrooms. We can see a certain trend occurring. Looking at 1622 Frederic, 510 Gilbert, and 330 Lincoln. All of these are 4 bedroom 2 Bathroom estates, of larger square footage than 210 Gilbert. Although 210 Gilbert is 5 bedroom, its 5th bedroom may be considered for different use because of a lack of space.
Of these recently sold estates two were sold for just under 200,000. Both of these houses are larger, with larger lots, and built before 210 Gilbert. Using this information it may be assumed that Zillow is overestimating the actual selling price that 210 Gilbert may be purchased for. Because of this it is important to look at similar houses in the area, and what they’re asking prices are, before moving forward with purchasing 210 Gilbert.
Figure 13 : Compared to houses sold in the last year
Now looking at real estate being sold now we have 3 similar houses. 330 Roosevelt, 1710 State, and 446 McKinley are all listed near the same asking price and are similar in square foot. As we see here there is a lot of disparity in the size of the lot, this seems to be a large factor in these houses today, as they are all comparable. 210 Gilbert has a small lot size compared to other similar houses being sold in the area. There are other options in the area which offer larger lot sizes and similar accommodations. When selecting a residence the determining factor of 210 Gilbert may be the aesthetic which it has, as it is a well-kept house. However the colonials in the area are selling for similar prices and seem to be in similar if not better shape, and are newer.
Figure 14 : Compared to houses on the market
Conclusion
We have determined that Zillow is overestimating the price and the lot size is smaller than other comparable homes, therefore we reduced it by approximately $10,000.
Suggested Sale Price : $188,000
