Do you leap without measuring the distance? Do you buy a shoe without checking the size? Do you spend money without checking your bank account? Would you just pull your car into any old garage without making sure it was wide enough and tall enough?
People, let’s measure first.
Too often, buyers and agents alike, guess at the value of a home. “I wouldn’t pay a dime more than…” “I feel the most this place is worth is…” “My guess is…” And so the list of feeling-related price opinions goes.
The price of a home is a science though there is some art to it as well. It’s an interesting equation, in fact. What you need to know for sure to analyze, assess and measure any home price correctly is the following:
- Which properties have sold in the past 6-months in the same neighborhood or school allocation? By school allocation, we mean Elementary, Middle and High Schools (not just High School).
- In particular, if there are any, which sold homes are most similar to the subject property?
- What was the average cost per square foot for the selected group of properties?
- What was the highest sale price of the group?
- What was the lowest sale price of the group?
- From a condition and marketability perspective, which of those sold examples are most similar to the subject property?
The truth lies in those numbers. Get real and get right about that and you’ve got yourself a clear price target.
Don’t leap without measuring! Know the values. Understand the acute local market in recent months. Do your homework. Then make an offer!
Get smart, friends. Get Agent06!