Home Buying in Dublin>Question Details

BuyinInDublin, Home Buyer in Dublin, CA

Is 2300 SQFT house in Castello (Dublin) community worth 850K?

Asked by BuyinInDublin, Dublin, CA Sun Jun 9, 2013

We have been looking for a SFH in Dublin - San Ramon area for the last 6 months. Now, we are at the top of waiting list in Castello and are offered a 2300 SQFT home for 850K. The prices have gone up by around 100 K in last 5 months due to limited inventory. We really like the house, but not sure if it is worth 850K. Any comments / opinions are appreciated.

Help the community by answering this question:

Answers

8
Amy’s mentions that there are other Dublin homes on the market for less that may be comparable in size. BUT…if these are not NEW homes the comparison fails. New homes will almost always sell for more than resale homes.

Carl had hit the nail on the head with his question: “Do you want the house?”

If you are buying because you want a fine place to live for many years to come I think you should put your apprehensions aside, make the best deal that you can and buy the house that fits your family’s needs.
2 votes Thank Flag Link Sun Jun 16, 2013
To be honest, this type of question is really irrelevant in the current market. The question should be, "Do you want the house?" Or, will this be a home you can comfortably live in for years and, during that time, will it meet your needs in a satisfying way? If yes, then pay what you need to pay to get it. If not, look elsewhere.

In the current market, value is VERY subjective - it's really what anyone is willing to pay for a home that meets their needs, NOT what someone else paid for the same house up the block a year ago. Or even 5 months ago, for that matter.

The market is in still going up - if you want a home, you have to pay current values and play by current rules. Or, you can always take the chance and sit the market out, hoping it will turn downwards at some point. Problem is, when will that be? How much will it go down? Or even more important, how much higher will it go before it dips a bit in a market correction ... and will it dip as low as current values ...
2 votes Thank Flag Link Sun Jun 9, 2013
Thanks Carl!
Flag Sun Jun 9, 2013
It is not worth!....they were at 650K just a few months ago!...and prices are definitely going down! don't believe in bad Realtors trying just to sell, instead of giving honest advice to their clients...
1 vote Thank Flag Link Thu Sep 12, 2013
You may want to read this blog by Steve Harney of Keeping Current Matters. He provides a chart of what it will COST to buy now versus later. It isn't merely the cost of the house, but what it will cost to buy the house and the monthly cost of mortgage.

http://www.kcmblog.com/2013/06/10/buying-a-house-is-now-the-time/

Good luck to you.
1 vote Thank Flag Link Mon Jun 10, 2013
That does seem a bit high based on comps. However the property is brand new and a home in this market ( very low inventory ) are worth what someone is willing to pay. There are 5 other homes in Dublin right now for example between 740K and 850K from 2400 - 3000 sq, feet. you need an agressive agent who knows how to get an offer accepted or just wait it out.
1 vote Thank Flag Link Sun Jun 9, 2013
Hi BuyinInDublin,

The "worth it" question:
Whenever I see a "is it worth it" question on Trulia the Poster is basically concerned about over-paying and this is why a Realtor® CMA is a good idea to understand the "worth" of a subject property. However, buying is also based on qualitative aspects that are many times difficult to convert to $$, but must be done. Only you can apply these values.

The "worth it" answer:
In my opinion, the answer regarding worth is only finalized once the property is later sold by the Buyer. In fact, since the future is unknown, this really comes down to how long you will occupy the new home; the longer the period of ownership, the less likely you will find yourself in a net negative position. Only when you sell property will you finally know if it was all "worth it".

Some stats to consider:

The Castello pricing is at $370 psf (without upgrades I assume). Here are "pricing stats" for the Dublin and San Ramon areas:

Concentrating on Dublin (sf range 2100-2500; listing date 4/1/13 to present), current Actives (5) listings are averaging $325 psf; Solds (2) are at $367 psf; a $6.9K pricing delta you may or may not consider significant.

Switching to San Ramon (sf range 2100-2500; listing date 4/1/13 to present), current Actives (9) listings are averaging $360 psf; Solds (11) are at $347 psf; a $52.9K pricing delta.

You might find the following of interest as well:
"Why You Do Need a Realtor® When Buying From a Builder"
http://docs.Steven-Anthony.com/BuilderRealtorAgent.pdf

-Steve
1 vote Thank Flag Link Sun Jun 9, 2013
Thank you Steve!! This information is really useful...
Flag Sun Jun 9, 2013
The best thing to do is have your agent do a comparable market analysis to see what it would be worth on the open market. Factor in the location, upgrades, and trends in that area.

Think about it another way --- if you're not paying cash, note that interest rates are expected to go up.

So the cost to buy ---- down payment, and the monthly mortgage payment --- should also factor in your determining if it's worth $850K to you or not.
1 vote Thank Flag Link Sun Jun 9, 2013
You're welcome
Flag Sun Jun 9, 2013
Thanks Pacita!
Flag Sun Jun 9, 2013
The "Value" of a property is determined when a ready and willing Buyer put his money up:
Up to that point, everything is OPINION.
If it is worth $850 to YOU, then it is worth $850.
1 vote Thank Flag Link Sun Jun 9, 2013
Thanks Ron for your answer. Yes, you rightly said, everything is an opinion. I am just trying to figure out if there are going to be more people who also think that the house is worth 850 :-)
Flag Sun Jun 9, 2013
Search Advice
Ask our community a question
Email me when…

Learn more

Copyright © 2015 Trulia, Inc. All rights reserved.   |  
Have a question? Visit our Help Center to find the answer