Not Your Neighbor’s Place
Three Reasons Your Home Won’t Sell for the Same Price
1. Location, Location, Location
walkability, view, and street all factor into the equation
2. Upgrades Matter
appealing, functional renovations are all the rage
what’s going on in the market at large?
Here’s a common initial reply when pricing is proposed: “But my neighbor’s house sold for more.” While that may be true, location is one of a myriad of factors when determining competitive list price.
Was your neighbor’s condo on a higher floor? Does it have a better view? Identical apartment layouts bring in a premium as floor level increases and or views improve. Is your home on the corner of a busy street? Your neighbor’s place on a side street likely appealed to buyers concerned about safety or street noise.
There’s a difference between renovating to flip and renovating to occupy. Investors may do the bare minimum to achieve a high return, while end users put time and attention to detail into renovations. Case in point from a Compass Agent specializing in Brickell/Downtown, “In a time where the market was barely moving, we sold for a higher price than units on higher floors because my clients made it a home. They created more closet space and storage, adding nice built-ins in the second bedroom that were efficient without taking up much space. Improvements were calculated and added value to the home experience.”
What’s the direct, present competition? Seasonality, market fluctuations, and available inventory all play a major role. Between 2013-2015, the most recent high in our market, properties were flying off the shelves. In the 2008 downturn, prices plummeted after listings sat on the market for what seemed like forever. Circumstances are a big factor of the equation. It all comes down to timing - you can look at a comp from 2015, but you have to put it into context. Sale prices are contingent on market conditions.