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
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.
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...
for sale may look the same from the outside but be immeasurably
different inside. One may still have 70's or 80's decor whilst
the home next door may have undergone major updating and interior
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
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.
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.
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
© Noel Peebles, Market Leaders FSBO real
Noel Peebles is co-author of the best selling
FSBO real estate book
"Home Selling Secrets Revealed."
For details http://www.forsalebyownerguide.com