Home Buying in Darien>Question Details

Ashish, Home Buyer in Greenwich, CT

How do I compute the the estimated home price? What are the major factors (such as location, sqft and etc) to calculate the home price?

Asked by Ashish, Greenwich, CT Thu Nov 15, 2012

I know several sites like trulia and zillow calculate the estimated home priced. should I search recently sold homes nearby one mile area from property or something else?

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Answers

4
Hi Ashish

Happy Diwali!

Pricing a home is more of an art than a science, specially if it is a single family residence. With Condos it is easier to find like comparables in the building, and hence they usually trade in a narrower range.

Single Family homes are usually uniquely built, with unique characteristics. Pricing changed due to many factors, one of which is 'perception'. This is probably the biggest non quantifyable aspect of pricing.

When purchasing, I do a detailed comparative market analysis to arrive at the value, then always try to buy below that value. We negotiate fast and hard to obtain the best price possible for our clients.

Feel free to call me if you have questions about a particular property you are valuing, or any other real estate related questions.

I hope this helped.

Best,
Nick Gandhi
Equity Capital Real Estate
stamfordrealestate@yahoo.com
(203) 280 3838
Broker who will fight for every penny!
0 votes Thank Flag Link Fri Nov 16, 2012
LISTING PRICE
Understand that the LISTING PRICE has one primary objective, to attract attention: It is not intended to be set in stone, and in many cases it is not even a good guideline toward the SELLING PRICE.
Some Sellers believe that by setting the LISTING PRICE high, they can always come down, and people will make an offer anyway: WRONG! Buyers will just bypass the property and look at houses that are within their price range. And six months from now, the Seller will slowly start lowering the PRICE, (this is called “chasing the curve”) and Buyers will be asking the question; “What’s wrong with that house?” and “Why has it been on the Market so long?”
Other Sellers set the LISTING PRICE low, to attract multiple offers. (The correct strategy.) We are asked; “Aren’t you obligated to sell at this price if someone offers it?” The answer is probably not; for that to happen, you would first have to have only one offer, and secondly, the offer would have be exactly the same, down to the smallest detail, (please discuss this with your Realtor).
Another thought; Buyer will search for potential properties by groups; for example, $400,000 to $450,000, and $250,000 to $300,000. If your house is priced at $460,000 or $310,000, the Buyers will never see it. (something else to discuss with your Agent.)
Different Banks have different philosophies about pricing their properties: You cannot draw any conclusions without a good analysis.
Have your Realtor do a CMA, (Comparative Market Analysis) to help you determine your Offering Price. It is the surest way to determine the Market Value of the property.
0 votes Thank Flag Link Thu Nov 15, 2012
Hi Ashish -
There are many different components that influence "property value"; location, condition, sqft, etc. The real estate search engines rely on "averages" when calculating a specific properties value. Much of the data used by these websites is not current, and can therefore be misleading. As an example, does a 3 bedroom house have the same value as a 4 bedroom house in the same neighborhood? It might have a higher value depending on what is included in the offering - renovated or not, on the noisy side of the street or not, etc. As a real estate professional, we use a multitude of comparative market analysis tools that the search engines simply cannot provide, including local knowledge. This is the only way a smart, informed consumer can to make the correct judgment on property value.
Let me know if I can help you – again, no obligation!
Cheers -

Stephan von Jena
Wiliam Pitt Sotheby’s International Realty
1057 Post Road
Darien, CT 06820
203-434-8472
svonjena@wpsir.com
0 votes Thank Flag Link Thu Nov 15, 2012
Ashish,
Searching for recently sold homes in the same zip code with similiar attributes is a good way to estimate value & purchase price. Consider working with a trained professional who is knowledgeable about the local neighborhood and can access more precise information including pending sales to determine the proper offer price and future value of home.
Feel free to call me with questions.
Hannelore Kaplan
CHAIRMAN'S ELITE SALES VICE PRESIDENT
NEW CANAAN OFFICE #1 PRODUCER 2011
Mobile: (914) 450-3880
Email: Hannelore.Kaplan@raveis.com
Website: http://hannelore.vflyer.com/home/flyer/home/160844002

William Raveis Real Estate
45 Field Point Road Greenwich CT 06830
4 Elm Street New Canaan CT 06840
0 votes Thank Flag Link Thu Nov 15, 2012
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