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The Most Deceptive Home Buyer Tool – Price Per Square Foot

The Most Deceptive Home Buyer Tool – Price Per Square Foot

The Most Deceptive Home Buyer Tool – Price Per Square Foot Most home buyers have two questions.  The first is, how long has it been on the market? The second is what is the price per square foot? Why do I think the price per square foot is sometimes deceptive? How can a mathematical division problem be deceptive? Isn’t it straight forward? Most people are using price per square foot as a universal factor.  They seem to want all homes to fall within their bracket or they feel the price is out of line. Seems straight forward, right? Let’s look at this tool. 1. It is OK to start with price per square foot.  A starting point for analysis. Make sure you compare apples to apples. Use the apples in the same barrel – tract or neighborhood. 2. The smallest home in the tract will have the highest price per square foot.  Any neighborhood, which is a planned unit development or a single builder tract has a small variety of models. Some smaller, some medium and some large. You will find that the smaller homes have the highest price per square foot and the largest model has the lowest price per square foot relative to that neighborhood. Here is an example; in 2014 I sold a the smallest home in a tract in Laguna Niguel which also happened to be one of the smallest detached homes in the city. The property was nicely remodeled and brought $450 per square foot. Three months later I sold a five bedroom home with a three car garage in the same subdivision which...

Home Sellers In OC Must Sell Three Times for a Closing

Home Sellers in the OC Must Sell Three Times for a Closing This principle applies in any area and any market.  What in the world am I talking about? First a Home Seller must sell to the RE AGENTS. Why? Because agents know the home values in their area of expertise and you must win them over to get the agents to bring their valuable clients. The home owner attracts agents through the proper marketing on the MLS system plus broker open houses, electronic advertising and word of mouth. As a home owner you want to get the real estate agents excited. Secondly a Home Seller must sell to the Home Buyers. Why? Because buyers are highly educated by the internet and first hand experience. Home buyers are searching on line when they are supposed to be working or sleeping. Home buyers are hitting all the open houses and in some cases are better educated that the agent holding the open house. In short buyers are obsessed with finding a home. Sometimes they are even obsessed with the process. Oh, yes, they are the ones with the money. Thirdly a  Home Seller must sell to the Appraiser.  Why? Because appraisers have access to all the known sales in the area. Yes, every home is unique. Even the exact model match will have different lots, different elevations and different finishes. Hopefully the appraiser will see the value as well. In the cities of Laguna Niguel, Dana Point, Also Viejo and Mission Viejo in South Orange County CA cash buyers make up anywhere from 20% to 35% of the buyer market...