Sellers and comps

As a Realtor in Carlsbad I meet with homeowners who are ready to sell their home but aren’t aware of what affects comps that can determine a selling price. Quite often they think the sale price in the area is the only factor to use when it comes to setting the price. In a cookie cutter subdivision it’s not hard to figure out if the home for sale on your street has the same floor plan. Even with that being the case there are other factors to look at. You will have different values if your subdivision is large and some of the homes are close to the main road or a freeway and some are in a cul-de-sac. If your home looks out to the ocean and your neighbor across the street has no view then most likely it will be a substantial difference. Appraisers also factor in central A/C and heat when adjustments are made during the appraisal of value. It is more complicated then we think.

crop_sm_bathroom-stylesHere are an additional five things that affect comps that you might not be aware of.

 

1. New construction nearby: Because of low prices for lots and varying prices in home building materials, new homes can actually be cheaper and cost less per square foot than existing homes in certain areas. If there’s a lot of new construction nearby, that can affect the price for your own listing.
2. Renovations: Recently renovated homes typically sell for more than homes that haven’t been updated in a while. If you’ve recently upgraded your home—especially sought-after upgrades like the kitchen or master bath—your home should be priced appropriately.
3. Developable lots: Not all lots are created equal. Even if the square acreage is the same, a lot that’s easily developable will get a better price than a hilly or rocky lot that needs a lot of preparation.
4. Listing price vs. sale price: Whether sellers actually get their asking price depends greatly on the market. When you’re pricing your home, it’s important to look at sales prices, not just listing prices. The listing price doesn’t always accurately reflect what a home will sell for.
5. Location: Nearby amenities, safety, schools, and noise levels can vary greatly within a neighborhood. Homes in more desirable parts of the neighborhood will sell for a higher price, all else being equal.

 

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