Home Buying in 02124>Question Details

Josef Godlew…, Real Estate Pro in Boston, MA

Because areas within a zip code, such as 02124 in Dorchester vary from restored turn of the century Colonial,

Asked by Josef Godlewski, Boston, MA Thu May 15, 2008

Victorian, Queen Anne homes that are very desirable with large lots to densely built triple deckers that have less appeal, median prices seem to skew true value from one area to the next. How do buyers evaluate price, if an average is based on all kinds of homes and neighborhoods from poor stock to landmark architectural homes?

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Are you the Joe Godlewski that is an agent with William Raveis in Boston? If so, why are you calling yourself a "Home Buyer" instead of a "Real Estate Pro"?
Web Reference: http://www.bowenboston.com
0 votes Thank Flag Link Sat May 17, 2008
Josef,
You really need to compare apples to apples and rely less on "average" or "median" values in diverse neighborhoods like Dorchester. As an appraiser, when I'm valuating a beautifully restored Queen Anne, I will only compare it to similarly restored comparable properties RECENTLY SOLD. It's all about the recently sold comparables. Focusing on average values will not give buyers a true picture of a home's worth in neighborhoods like 02124 because there are so many different types of properties.

Granted, if the Queen Anne I am appraising on Fairfax Street (for example) is surrounded by homes of lesser values and the closest comparable property is over one mile away, then location absolutely plays into it. In general when evaluating values of unique properties in diverse neighborhoods, buyers need to pay much less attention (or no attention) to neighborhood averages and dig down deeper and really compare apples to apples.

Remember, at the end of the day the true value of a property is only what someone is willing to pay for it, and the current market data will tells us generally what that value is.

Hope that helps,
Mike Lefebvre
Appraiser-Reator
0 votes Thank Flag Link Thu May 15, 2008
Josef,

When determining price in making an offer or establishing a listing price, the average or median is only a minor portion of the discussion. A comparative market analysis takes only homes which are as identical as possible to the "subject" property. If there aren't any which have been sold recently the average or median prices are only considered to "adjust" the prices of older sales.
Web Reference: http://www.gregkiely.com
0 votes Thank Flag Link Thu May 15, 2008
You need to look at comparable sale and listings of comparable properties. Also it helps to know the ins and outs of the various neighborhoods. There is a lot of information on the web but if you want to get into analysis believe it or not an experienced realtor will have better access to data and a better understanding of pricing. Automation will only take you so far, then you'll need an experienced human.
Web Reference: http://www.provestre.com
0 votes Thank Flag Link Thu May 15, 2008
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