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| Why Similar Homes For Sale Can Vary In Price By More Than $20,000 By Noel Peebles |
Similar homes for sale can vary in price by $10,000, $20,000 or even more. This can be confusing for both buyer
and seller alike.
Pricing variances are sometimes attributed to unmotivated sellers waiting for buyers willing to pay their inflated
prices. But, as many sellers discover, "what you ask and what you get" can be totally different.
Even with the same asking price, similar homes can end up selling for remarkably different prices. Again the actual
selling price can vary by $10,000 to $20,000 for what appears to be exactly the same thing.
Some sellers think that just because a home in the same block sold for X amount, they can sell their home for the
same price. As many find out, it doesn't always work out that way.
Important Home Appraisal Point
A lot depends on the buyer and the seller and how keen each of them is to finalize the transaction. In other words
how motivated is the buyer to buying and how motivated is the seller to selling? Does the seller have to sell? How
desperate is the seller? How urgent is the sale?
So, it's not uncommon to have two almost identical homes for sale, side by side, sell for radically different prices.
Seller "A" may WANT to sell and seller "B" may NEED to sell. The motivation for each is quite different, and so may
be the pricing strategies.
and seller alike.
Pricing variances are sometimes attributed to unmotivated sellers waiting for buyers willing to pay their inflated
prices. But, as many sellers discover, "what you ask and what you get" can be totally different.
Even with the same asking price, similar homes can end up selling for remarkably different prices. Again the actual
selling price can vary by $10,000 to $20,000 for what appears to be exactly the same thing.
Some sellers think that just because a home in the same block sold for X amount, they can sell their home for the
same price. As many find out, it doesn't always work out that way.
Important Home Appraisal Point
A lot depends on the buyer and the seller and how keen each of them is to finalize the transaction. In other words
how motivated is the buyer to buying and how motivated is the seller to selling? Does the seller have to sell? How
desperate is the seller? How urgent is the sale?
So, it's not uncommon to have two almost identical homes for sale, side by side, sell for radically different prices.
Seller "A" may WANT to sell and seller "B" may NEED to sell. The motivation for each is quite different, and so may
be the pricing strategies.
Then there is supply and
demand. The property
market can vary from
month to month depending
on the number and quality
of homes for sale and on
how many buyers are in the
market at any given time.
One seller may get
$20,000 more than a
similar property, simply by
selling a month earlier or
later.
demand. The property
market can vary from
month to month depending
on the number and quality
of homes for sale and on
how many buyers are in the
market at any given time.
One seller may get
$20,000 more than a
similar property, simply by
selling a month earlier or
later.
Another Important Factor In Home Appraisals
Other factors can come into play too. Like, how good are the respective buyers and sellers at negotiating the
deal? How capable are the agents? And, sometimes a buyer pays a higher or lower price depending on the
financing or settlement terms. And, then there is the property itself...
Home Appraisals Based On How The Property Stacks Up
Two homes for sale may look the same from the outside but be immeasurably different inside. One may still have
70's, 80's or 90's decor whilst the home next door may have undergone major updating and interior improvements.
There are also exterior factors that can affect the price of similar houses in the same neighborhood. For instance,
homes on primary ingress and egress streets
(the main streets that lead in and out of a tract), generally appreciate more slowly than those within the tract that
are not on primary streets. This is often because primary ingress/egress streets generate more traffic and are
therefore, generally less desirable to a buyer. Such homes for sale may suffer lower prices.
Within a tract, a home in a cul-de-sac may generate a higher price for the same reason. Less traffic is a big
attraction for many buyers. Cul-de-sacs are often like a maze and so they discourage through traffic. This can be a
big benefit for those buyers seeking residential privacy. The more benefits the higher the price!
Even a property on one side of a street can sell for more than a similar property on the other side. There are
factors to consider like sun, ease of access, privacy etc.
Home Appraisals Based On Where You Live
And, certain communities, because of their name, are more prestigious than others. As an example: parts of
Beverly Hills (in California) are divided from other communities by a street. The homes on the Beverly Hills side of
the avenue command a higher price than those in the non-Beverly Hills community across from it. The reason is
simple; Beverly Hills, is known worldwide for its high-end shopping, exclusive housing and impeccable name.
Homes for sale are priced accordingly.
Home Appraisals Based On Other Factors
Price can also be influenced by commercial or industrial developments adjacent to the tract. How desirable or
undesirable are they? An astute buyer will check a community's master plan before committing to a binding sale.
This is a must, especially if a tract (or home) is surrounded by vacant land. The community master plan (town plan)
is usually drawn up by planners within the city or county and approved by a local planning commission.
In short; before buying a home for sale, always find out what is going to be built nearby and determine how it might
impact the value of the tract. This background research will be time well spent, especially if you uncover something
that could potentially affect the value of the home for sale.
In summary: finding out why one home for sale is worth more than another, is worth the effort. This is especially so
when you consider that the purchase or sale of a home is usually the largest, single financial transaction most
people make in a lifetime.
© Noel Peebles, Market Leaders ebooks.
Other factors can come into play too. Like, how good are the respective buyers and sellers at negotiating the
deal? How capable are the agents? And, sometimes a buyer pays a higher or lower price depending on the
financing or settlement terms. And, then there is the property itself...
Home Appraisals Based On How The Property Stacks Up
Two homes for sale may look the same from the outside but be immeasurably different inside. One may still have
70's, 80's or 90's decor whilst the home next door may have undergone major updating and interior improvements.
There are also exterior factors that can affect the price of similar houses in the same neighborhood. For instance,
homes on primary ingress and egress streets
(the main streets that lead in and out of a tract), generally appreciate more slowly than those within the tract that
are not on primary streets. This is often because primary ingress/egress streets generate more traffic and are
therefore, generally less desirable to a buyer. Such homes for sale may suffer lower prices.
Within a tract, a home in a cul-de-sac may generate a higher price for the same reason. Less traffic is a big
attraction for many buyers. Cul-de-sacs are often like a maze and so they discourage through traffic. This can be a
big benefit for those buyers seeking residential privacy. The more benefits the higher the price!
Even a property on one side of a street can sell for more than a similar property on the other side. There are
factors to consider like sun, ease of access, privacy etc.
Home Appraisals Based On Where You Live
And, certain communities, because of their name, are more prestigious than others. As an example: parts of
Beverly Hills (in California) are divided from other communities by a street. The homes on the Beverly Hills side of
the avenue command a higher price than those in the non-Beverly Hills community across from it. The reason is
simple; Beverly Hills, is known worldwide for its high-end shopping, exclusive housing and impeccable name.
Homes for sale are priced accordingly.
Home Appraisals Based On Other Factors
Price can also be influenced by commercial or industrial developments adjacent to the tract. How desirable or
undesirable are they? An astute buyer will check a community's master plan before committing to a binding sale.
This is a must, especially if a tract (or home) is surrounded by vacant land. The community master plan (town plan)
is usually drawn up by planners within the city or county and approved by a local planning commission.
In short; before buying a home for sale, always find out what is going to be built nearby and determine how it might
impact the value of the tract. This background research will be time well spent, especially if you uncover something
that could potentially affect the value of the home for sale.
In summary: finding out why one home for sale is worth more than another, is worth the effort. This is especially so
when you consider that the purchase or sale of a home is usually the largest, single financial transaction most
people make in a lifetime.
© Noel Peebles, Market Leaders ebooks.
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