Home Selling in 07960>Question Details

Dan, Home Buyer in Westfield, NJ

Just wondering about pricing a home for sale. All of the houses in my neighborhood are of the split style and all were built around the same time.

Asked by Dan, Westfield, NJ Tue Jan 19, 2010

Some have basements and others only have crawl spaces. How much less should one price a property w/o a basement? (all else being equal; eg, similar yard size, similar updates)

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Hi Dan,

You need a competent Realtor to do a CMA of the properties 3 ways, 1) With a basement 2) Without a basement 3) and then both sets together. This would be a good way to get a general idea of what the home should be priced at. Have the raltor include all comps, closed to expired. You should be able to get in the ball game from there.
2 votes Thank Flag Link Tue Jan 19, 2010
Pavlina, an appraisal does not count below grade rooms for value, but there is definitely value given to a finished vs. unfinished basement. How it is finished doesn't matter, but from what I see in all appraisals, I consider this to be the biggest bang for you buck in upgrades. Here is a sample from some appraisals I have right now, partial finished basement vs. full finished on $730,000 property, adjustment was $20,000.
On another appraisal for a higher value, the appraiser only adjusted $10,000 for partial vs. full, but added another $10,000 for a full bath in the basement, another was $5,000 for half bath. One appraiser adjusted $10,000 for a basement that was only partially finished, vs. totally finished.
Sorry I couldn't find anyone recently with crawl space only, but my guess is $20,000. Some of these adjustments are a little subjective, but you get the picture.
1 vote Thank Flag Link Tue Jan 19, 2010
That's going to depend on your area. You need to look at what homes with basements are selling for in your area. It shouldn't be that hard to find out if most of the homes in the area are the same style and built around the same time. Look at what similar homes have sold for with basements recently and adjust accordingly.
1 vote Thank Flag Link Tue Jan 19, 2010
Good afternoon Dan,

When speaking of a group of homes in a general area it is important to note the differences. For example, if we are speaking of homes that are built by the same builder and each house boasts many of the same features (Hardwood floors, granite countertops, leveled lot, etc.) then the condition of the home is where the difference will lie. This is where you can add or subtract in order to get a more accurate feel of what price your home falls.

It is best to contact a real estate professional because we have all the tools and resources in order to assist you in the buying and selling of all your real estate needs.

Shalnee Arora
http://www.ShalneeArora.net
917.853.2313 Direct

Coldwell Banker Morristown, NJ
211 South St, Morristown, NJ
973.267.8990
0 votes Thank Flag Link Thu Jun 28, 2012
Hi Dan, Anything that impacts the size of your buyer pool will affect value and the absense of a basement will do that. no basement/crawl space is a common characterisitc among homes in the area then buyers will expect it as they consider options. Otherwise, it is surely a consideration that should be taken into account when pricing the home. A buyer I am working with just considered two split homes in neighboring Cranford, same neighborhood, one with a crawl space, the other with a full basement. The home with the full basement did not have the same level of upgrades as the one with the crawl - both priced similarly. The home with the basement sold more quickly. Having said that, both homes were priced well and moved quickly. But it drives home the point that the presence/lack of basement affects time to sell and with that likely price.

Your best bet is to have a good pricing analysis done for your home - done well it is a terrific tool in guiding the pricing and negotiations for a home. It works with the facts of the market - and as with any analysis, the results are only as good as the data that goes into it. So hire a good agent and spend some time arriving at a good price. Properties in Westfield and surrounding Union County communities are moving quicly when priced right.

My suggestion would be to take a special look at how homes in your neighborhood that have the crawl space only have performed relative to those that have the full basement. With the assistance of an agent you can tap terrific archive data in the MLS that can make the pricing analysis very rich indeed.

Incidentally, I do have several buyers interested in this area so please keep me posted on the availability of your home.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
0 votes Thank Flag Link Wed Jan 27, 2010
Hi Dan,
A similar house in a similar neighborhood should not vary that much because of a basement.
If the basement is finished, it could be worth more. Mostly, it will be the condition of the house
the location of the house, and of course the price that will determine how quickly it sells. Your
house should be priced for sale at the same price, +/- a few, as the last sold price of a
similar house. If you'd like more information, I'd be happy to help.

Sandy Fleming
Re/Max Properties Unlimited
973-539-6300
973-919-9136, cell
0 votes Thank Flag Link Tue Jan 26, 2010
You gotta get a Comparable Market Analysis (CMA) from your local realtor. The agent will use best and available comparable sales and listings to determine a price. Some agents charge for the CMA and some of them don't or you can get an appraiser to do it. It will cost you more.
0 votes Thank Flag Link Wed Jan 20, 2010
Hi Dan,

The pricing of your house should not be difficult. If there are similar properties in the neighborhood there should be some sold and active comps in the last 6 months in radius of 3ml.To appraised correctly you should compared houses with same room/bedrm/bathrm count , style and lot size. The finished basement does not increase the price significantly. When the appraiser apprised a property they are looking only the living space, no the basement or the attic.
If you are interested to know how much to put your house on the market you should contact a Real Estate Agent and he/she will be happy to do a CMA for you.
I do a BPO's( Broker Price Oppnion) for different Banks and this is the criteria I select the comps for the BPO's.

If you have questions Please don't hasited to contact me.
Good Luck!

Paulina Vaklinova
Worbucks Corporation
908-906-2122 Cell
pvaklinova@msn.com
0 votes Thank Flag Link Tue Jan 19, 2010
I agree with what Patrick and Marc said - you really need to look at the comparable sales. I will also add that in today's market it probably makes sense to price down....so if you have a half basement and it happens to be finished, position it to the price of the property that didn't have the finished basement. It is important to show value - you want the buyers to take notice and you want your property to be the next one to sell!
0 votes Thank Flag Link Tue Jan 19, 2010
Hi Dan,

First, I would try to find sales of Splits without the basements and use those for pricing. However, if they are not available, a typical Split which only has a half-basement should probably be penalized about 2-3% for not having the basement. So if a Split with a 1/2 basement (unfinished) is typically an asking price of $550,000, you might list at $535,000. Now if the basements of these homes are generally finished, an additional "penalty" is in order, perhaps another 1.5-3% depending upon the quality of the finish, more if there is an additional bath and/or a walk-out. These are rough figures, you have to fine-tune based on the specifics. Your agent, if you have one, should be able to help find the necessary sales to figure out the exact penalties.

Good luck!

-Marc

Marc Paolella
Relocation Director
Member: Worldwide ERC
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Licensed Realtor NJ
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Century 21 Joe Tekula Realtors
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Phone (direct): (973) 584-4235
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0 votes Thank Flag Link Tue Jan 19, 2010
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