Lots of Sacramento buyers make the mistake of trying to figure out the market value of a home by looking at average per-square-foot prices, especially buyers for homes in Land Park and Curtis Park. But the reason that pricing per-square-foot, even on average, doesn't work in these neighborhoods is because every home is different, the upgrades vary and some locations carry heftier price tags than others. For example, in Land Park, the price difference between two very similar homes across the street from each other can vary by $100,000 or more, depending on which side of the street the home is located.
Moreover, larger square-foot homes have a lower price per square foot.
Smaller square-foot homes carry a higher price per square foot.
The average square-foot costs in any given month are entirely dependent on the number of homes that sell and their price ranges. If the sales consist of tiny homes, it will appear the price per square foot has increased. If sales consist of a few larger homes, it may appear that prices have fallen when values may have actually gone up.
Per square-foot prices show only trends and not actual market value. To determine the value of a home in Land Park or Curtis Park, hire a neighborhood specialist who can explain why a home across the street might be worth much less for a reason or why the architecture of another might make it worth more than you think. Ask your real estate agent how many homes he or she has sold in Land Park / Curtis Park before hiring that agent. You could be making a costly mistake.
I met an agent from the Bay area who came to Land Park to buy a home, and she had hired an agent from out-of-the area. After she described the home to me, I figured out which home she had bought. Did you know, I asked, that the Land Park home you bought for a bazillion dollars was on the market for $150,000 less for many months without any offers? Her eyes bugged out.
Good thing this buyer isn't planning to sell soon.
 |
|
|
Broker-Associate at Lyon RE. Selling since 1974, helping buyers & sellers in Sacramento. Land Park resident. Midtown office. Home Buying Columnist for New York Times' About.com. DRE license #00697006
Are You Talking On Your Bluetooth or Are You Simply an Insane Person Who is Talking to Herself?
Why Can't I Buy That Bank-Owned Home? - Why Some REO Lenders Won't Sell to You
The Best Little Greasy Spoon in Land Park That You've Never Heard Of
Who Says There Are No Good Deals in East Sacramento?
Ever Wonder About Priorities in a Real Estate Agent's Life?
My 2009 Real Estate Predictions and Forecast
Golden 1 Credit Union Offers Solutions for Home Sellers After Foreclosure
The Case of the Missing Title Closing Packages
The Days are Getting Shorter and Showings are Getting Longer
ActiveRain Corp. is not responsible for the accuracy of the site's content (which is written by members of the ActiveRain Real Estate Network) and does not endorse the views of the real estate agents, mortgage brokers, and others listed here.
Powered by the ActiveRain Real Estate Network
© 2009 ActiveRain Corp. All Rights Reserved
Hi Elizabeth,
Our Multiple listing service has price/sq.ft. but we really don't use it to value homes here. There are too many more variables to look at. There can be huge value differences a few blocks away.
All the best!
Hi Kevin: Sounds a lot like my Land Park and Curtis Park neighborhoods. We don't use price-per-square-foot either, but whenever I'm holding an open house in these neighborhoods, buyers will invariably ask me for the average square foot cost, which doesn't really mean anything.
It also depends on the price range. Homes that sell between $500,000 and $600,000 are priced differently per-square-foot than those above $750,000.
Elizabeth, I am glad you understand $ per sq ft and how it varies on location, amenities, size of house, etc. and can educate others on it. I am in COMPLETE agreement with all what you said and I have to educate both buyers and sellers on this.
Hi Gary: Giving our clients the information is one of the best things we can do. And I try to provide information 50 ways from Sunday, so clients can run all the numbers they want. Thank goodness that Lyon Real Estate gives its agents access to Trendgraphix, so we can show trends over the past 15 months.