Market Mansions: $500,000 Homes Packed With Comfort, Price

Granite counter tops are standard issue long before you reach the $500,000 housing market.
In the group of homes that commands half a million, you expect plenty of living space — 3,000 SF minimum. You can also expect special features — not just details like wood inlays, central vacuum and sprinkler systems — but more like in-ground swimming pools and media rooms.
When shopping in the $500,000 range in Northwest Arkansas, one can buy a lot of house. People moving to Northwest Arkansas, especially those moving from larger metropolitan areas, find their money goes a long way. Comparing the half-million-dollar home with other areas, Northwest Arkansas looks like a land of milk and honey.
Harry Simpkins, principal broker of LandQuest Realty in Rogers, said most of the $500,000 homes are newer and will be found in planned neighborhoods.
“Before the big boom about three years ago, they were building $500,000 homes right next to $100,000 homes,” Simpkins said.
Homes being built a few decades ago were fairly modest compared to today. For one, there wasn’t as much money. The economy of Northwest Arkansas was in its infancy.
Secondly, there was a different mentality. Simpkins said people made efforts to not flaunt wealth, best exemplified by founder of Wal-Mart Stores Inc., Sam Walton.
As a result, there aren’t many $500,000 homes in Northwest Arkansas from which to draw a architectural history.
While there are a few alternative styles, such as Tudor and Mediterranean the majority of homes are more traditional, classified as European style.
These homes can be identified by steep rooflines and accompanying vaulted or cathedral ceilings on the inside. Entryways are often large. The exterior could incorporate wood, but is usually masonry, using brick or stone, and often both.
Looking around Northwest Arkansas, there are plenty of homes $500,000- range.
A hunt on the Multiple Listing Service showed there are more than 500 homes available ranging from $400,000 to $600,000, and more than 200 homes from $450,000 to $550,000. A large increase from 50 to 60 homes at that price level about five years ago, said Steve Atwell, owner/broker of Buyer’s First Realty in Siloam Springs.

Northwest Arkansas Market
Atwell has a listing in Rogers, 4405 Blossom Way, that goes for $498,800.
The house sits on 0.64 acres and has four bedrooms and four bathrooms, but it’s the amenities that complete the home.
One feature that is difficult to miss is in-ground pool and attached hot tub, all surrounded by a wrought-iron fence for safety. The home offers mature landscaping, worth up to $40,000, Atwell said.
Other features in this house include the two-person whirlpool bathtub and two-headed shower in the master bathroom, recirculating hot water and a three-zone heating and cooling.
Atwell said the home is a good purchase because of the amenities. He said it’s also located in the highly-coveted subdivision The Manors on Blossom Way Creek.
In Springdale, a house at 3272 Thornbury Dr. is listed by Coldwell Banker Realtors Ron and Pat Reames.
“The welcoming atmosphere will grab you as soon as you enter this home,” Pat Reames said. “Each room invites you to see the next. You’ll find yourself smiling and truly enjoy seeing all this home has to offer.”
Again, there’s a pool — a 21-foot by 40-foot in-ground, heated swimming pool complete with fiber optic lighting and color-changing lights.
The heated living space of the home measures 3,224 SF, but the total square footage is 3,982. That leaves a lot of room for the garage — another main feature. The garage is extra deep. It’s for three-cars but it was built with room for storing a boat as well.
Ron said the house, for all the amenities it has, doesn’t put on airs though. It’s actually one of the smaller homes in the Thornbury Subdivision.
In Fayetteville, a $500,000 mortgage can fetch the house at 3497 Natchez Trace.
“When my wife and I first walked through the home, we were talking about what we’d put in each room,” said RE/MAX Realtor Adam Davis. “It’s got a real family feel to it.”
The home would fit a family with children, or even a multi-generational family, Davis said, as the house has the potential for a “mother-in-law suite.” This living area, with a bedroom and bathroom, is located in the basement. It even has its own garage. The house does have two garages, one on the main floor, and the one for the lower level.
Other features with this home include a media room with built-in cabinets for the entertainment center and a mini bar.

The Half-Million House
So why is a $500,000 home on the market? Many of the homes in this price range are new, part of the recent housing boom. For the existing homes, most people sell their homes because they are relocating, Davis said. People find a new job and move to a different market, otherwise people tend to live most of their remaining lives in these homes.
Selling a $500,000 home isn’t necessarily easy though, despite whatever amenities may come with the house. Realtors agreed that these homes may sit awhile before moving.
“A $500,000 home can sit on the market for about a year before you start getting worried,” Simpkins said.
Eventually though, someone will find these homes to be just right for them. Many people who are looking at this price range, the Realtors said, are vendors moving to the area to do business with Wal-Mart.
“There are a lot of young executives coming into the area making $100,000 a year,” Ron Reames said.
“The person buying this kind of home is probably the young exec in their mid-thirties to mid-forties, and it may be their second or third house.”
When people do move into Northwest Arkansas, they may be able to find a good deal on housing. Looking at other markets gives a perspective on how far $500,000 can go.

Out-of-Market Comparison
Using Metropolitan Statistical Areas from the U.S. Census Bureau, Asheville, N.C. is comparable in population for 2005 to the Fayetteville-Springdale-Rogers area, 392,831 and 405,101 respectively.
Realtor Eve Burton, of Beverly-Hanks & Associates in Asheville, said $500,000 offers buyers a range of homes — from a colonial home in the city to a cabin-style home with a mountain view.
Burton said a good representation of a home in the price range would be the 2,400-SF home with three bedrooms and 3.5 bathrooms. It’s two stories in a contemporary style.
It sits on 2.5 private, rolling acres with a view of the valley below.
The house features hardwood floors and two fireplaces a stonewall fireplace in the main living room and another in the basement.
Another market that is similar to the Northwest Arkansas MSA is Reno-Sparks, Nev. with a population of about 393,946. Another link is the high rate of job growth, as both Reno and Fayetteville areas are in the top 20 fastest growing job markets in the U.S. ranked by Forbes magazine in 2006.
Marci Dosh, Realtor for Krch Realty in Sparks, said a good example of a $500,000 home in Reno would be the 2,658-SF home with four bedrooms and three bathrooms. This house was built in 2005 in a stucco style. Dosh said stucco is the main style used for newer homes in her state.
The house sits on a cul-de-sac in a development that’s in a basin, giving homeowners a panoramic view of Reno and the mountains surrounding Lake Tahoe.
Other features include a three-car garage, office on the main floor, and environmental considerations with extra insulation and low-E windows.
Dosh said Reno was hit hard by a recent housing market collapse. This home, which just sold for $499,900, was for sale or 88 days. Dosh said if the house were on the market one year ago, it would have sold for $600,000 to $650,000 and wouldn’t have lasted a full day.
Reaching out farther west is Salinas, Calif. with an area population of 412,104. Still, it’s California, and people shopping for $500,000 homes get less for their dollar.
“What you’ll find is that $500,000 out here will get you little more than a dump, where in Arkansas you’d get what we call a mansion,” said Carl Flores, Realtor with ERA Steinbeck Real Estate in Salinas.
Flores said a typical house at $500,000 would be the 980-SF stucco house with two bedrooms and one bathroom.
He said it has a 3-year-old composition roof, is freshly painted and has new carpeting and vinyl flooring. Flores said the neighborhood where the house is located was “decent.” The house has a two-car garage, where the laundry is also located.
Unlike the previous cities, a $500,000 house is a starter home and is a common price level in the Salinas area.
Taking a look at a large metropolitan area, Boston, Mass., for example, shows that people from larger cities can get a little more house for $500,000.
Karen Hickman, of Gilmore Realty Inc. in West Roxbury Mass., located a typical $500,000 home in Boston.
Hickman said the neighborhood is a big influence on the $499,900 listing price. The neighborhood is a former estate, broken down into lots. Many of the houses on the same street are large brick colonials that fetch much more money.
But this cape style house offers plenty of charm, Hickman said, with lots of woodwork. It has a front-to-back living room (with fireplace) and master bedroom. It has built-in cabinets, a two-car garage and also is situated near the commuter rail.
Hickman said the house is a great value. It would have sold for $600,000 a year-and-a-half ago. She said the house would have normally sold in a couple of weeks, and there probably would have been a bidding war.