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Price Per Square Foot Study

Price Per Square Foot Study

Price Per Square Foot Study The first most common question I am asked as a Realtor is, “How long has this home been on the market?” This might be a valid question but it might not be. Really this question is how long and have there been any price reductions. The second most common question I am asked as a Realtor is, “What is the price per square foot?” Is this a valid question? Sure any question is valid but this one can be extremely misleading. Why? First this question is misleading because it is tied to the neighborhood. The neighborhood and city are huge dictators of price per sq ft. The average price per square foot of a detached entry level home in Laguna Niguel might run in the $350 per sq ft range but will be higher for very small detached homes or much higher for larger custom homes. I recently did a study of six months of home sales in the Regatta gated community in Dana Point. The homes in Regatta range from about 1700 sq ft to about 2400 sq ft. The condition of the homes vary greatly as some are 30 years old finishes and a few have been totally remodeled. The other huge factor in determining price is the quantity and quality of the ocean view.   The price per square foot for the Regatta community in the last six months, which included about seven sales, ranged from $517 to $760. The conclusion is that LOCATION and CONDITION ARE THE TWO MOST SIGNIFICANT FACTORS in determining the real price per square foot value...

Ron Buck, Realtor Has Home Seller’s Secret Weapon

Ron Buck, Realtor Has Home Seller’s Secret Weapon I have always said that sellers should NOT spend a DOLLAR unless it will make them TWO DOLLARS. This is a good rule of thumb. In other words be vary careful WHERE you spend your money as you prepare to place your home on the market. Search Laguna Niguel and Dana Point HOMES. FIX THE OBVIOUS – You know those items that you have been procrastinating about. The leaky faucet, old water heater, cracked window, missing screens, sticky door or lock, overgrown landscaping, etc. etc. etc. Yes we all have some of those items and it will cost you in terms of a lower selling price or a longer time on market and believe me the inspector will find them. REPLACE CERTAIN LARGE ITEMS –  This is where it gets tricky. My expertise will help you make those decisions. Many of my clients have thanked me for coming by ahead of time, before the actual market date, to help them with those decisions. Now that the prices are UP the buyers are VERY PICKY. You can always discount your price dramatically or offer concessions but that will cost you MORE in the long run than properly preparing your home for sale. Example:  A neighbor in Laguna Niguel, called me over to get advice on preparation and pricing. They did not take my advice or list with me. After eight months on the market and about six price drops the neighbor did sell at a price much less than I could have gotten for them. They neighbor said, “Ron, you were right about...

“Pricing a home to sell is NOT an exact science!”

“Pricing a home to sell is NOT and exact science”, were the words uttered by a frustrated home seller in the luxury market. I don’t understand it. This week I met with a frustrated seller in south Orange County CA. He has been through two agents, one on the low end “do nothing” but MLS and the other on the high end with “all the bells and whistles”.  NO SALE so far. He could not understand why his home had not sold and could not figure out what the right price was. I was interviewed by him a year ago and I gave him a price and some suggestions. He chose to list his home 700K over what I advised with a different company. By careful evaluation of the high end market I was able to inform the home owner that the supply of homes in his price bracket was equal to over a year and a half. In other words, if NO other listings came on the market (which is unlikely) it would take a year and a half to sell all of the existing homes in his price range. Pricing correctly is quite complicated for many reasons. What most people do not realize is that there IS A REAL MARKET VALUE which we call fair market value. The closer a homeowner prices his home to this fair market value the faster the sale will occur. The higher you price ABOVE the market value, the longer the sale time and the lower the final price will be. The real market value of your home can be improved or...