Home Selling in 55318>Question Details

James, Other/Just Looking in Chaska, MN

My townhome is woth about 150K right now.A new townhm across the street is going for 379K. Will this help our house value go up? In Chaska ! Thanks.

Asked by James, Chaska, MN Thu Mar 17, 2011

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Hi, James!
I saw another agent post here about this. A seller can LIST their house at what ever price they wish. What matters is what it actually SELLS for. If that place sells for close to that price, it can only bode well for you and your property. I don't know if the one that's high priced is in the same development as yours, but if it is, even better for you.
0 votes Thank Flag Link Fri Mar 25, 2011
In general having higher priced properties built around you can improve the value of your property. If the property across the street from you has been there for quite a while , and is truly worth what they are asking , your property has probably already had the impact from it having it near you. You vlaue will now move with the market. If the higher priced properties take a hit in today's market you could have some negative impact.
Web Reference: http://www.eagleresults.com
0 votes Thank Flag Link Mon Mar 21, 2011
James,

Good morning!

There are so MANY different variables that affect your question. First of all you have to remember that the home across the street is "listed" and not sold, there is a huge difference. Once it has sold you can use that value to determine whether or not your home is worth $379,000 or around that price range. Another variable is your town home, is it a similar or identical unit to the one across the road? The home across the road maybe a town home but based on the year built, builder, number of bedrooms/baths/garage stalls, and most of all square footage it could be a completely different unit than your current town home and that would affect the value of your home tremendously. I am guessing if you believe your home is worth $150,000 and the home across the road is listed at $379,000 that there are quite a few differences in your unit and the unit across the road, otherwise you are pricing your unit VERY low or the unit across the road is OVER priced.

Keep your eye on the SOLD town homes built around the same time your town home was built with similar upgrades and features. This will give you the better idea of what your town home is currently worth. Of course the best way to determine what your home is worth is to have real estate agent do a competitve market analysis (CMA) to determine the value. If you're interested in having one of these done please don't hesitate to contact me, I will perform a CMA for you at no charge and I am more than happy to answer any of your questions.

Have a great day!

Thanks - Hillary Slama
Metropolitan Home Team at Re/Max Results
952-836-6986
0 votes Thank Flag Link Thu Mar 17, 2011
It certainly won't hurt your value, but in completing a market analysis for your particular home, we would only use those that are similar in age, square footage, number of bedrooms, bathrooms...It will probably raise your tax assessed value more than it would affect the market value or appraised value of your home. Remember, your home is only worth what a buyer is willing to pay for it when you are ready to sell. Stephanie Boegeman, Counselor Realty
0 votes Thank Flag Link Thu Mar 17, 2011
With going for do you mean closing at that price or just asking that price? If it is closing for that price it will have influence on your value. However , if the seller is just asking that and it does not reflect current market conditions...it is just that..asking price. Call a local agent to find out for you how realistic this price is! Good Luck!

Marion Thacker
Keller Williams Advantage Realty
Oviedo Fl 32765
0 votes Thank Flag Link Thu Mar 17, 2011
0 votes Thank Flag Link Thu Mar 17, 2011
James,
Asking price is just that, the asking price. The sold price is the market response to that particular property and the attributes the market recognizes as having value.

Should the property across the street sell for that price and other higher end properties in your development sell for higher values than the theory is that it does help the neighborhood retain value as well as potentially add value. However, one sale does not make the market and you would need consistent higher values.

How much is determined on sales and paired sales of a properties comparable or relevant to yours verses the properties that sell for higher value. Any variable difference would be considered the adjustment for location with in the development.

Deborah Baier
Associate Broker
RE/MAX Realty Source, Inc.
0 votes Thank Flag Link Thu Mar 17, 2011
James,
Is the new home across the street identical to your own? As Aaron commented, value - particularly market value - is best established by data from recently Sold properties in your area, rather than those listed for sale.

There is an "all boats rise" philosophy with real estate in a particular area - i.e. if you have a number of homes of greater value next door, down the street or in the neighborhood it should increase the value of your property. Owning the least expensive home in the expensive neighborhood can be a plus! But you have to make certain that you're comparing apples - not apples and oranges. A new townhome with high-end finishes, appliances, and amenities might be of much greater value to a buyer than one down the street with less square footage, no updating, and looking a bit time-worn.

-Dan
0 votes Thank Flag Link Thu Mar 17, 2011
Hi James,

It won't necessarily hurt the value of your townhome, but it won't automatically make your home value rise. So much depends on condition, age, size of your home to determine value, and of course, what other townhomes in your complex have sold for recently. I would have to say that with the current market, I doubt new townhomes will increase the value of yours.

Jennifer Kirby - Broker
Kirby Fine Homes
0 votes Thank Flag Link Thu Mar 17, 2011
James,
The best way to figure out the value of your property as far as using comps is concerned is to look at sold properties not properties that are currently on the market. You never know why a person may be asking what they are for a property. If you look at properties that have recently (within the past 3 months if possible) then you will get an accurate read for what your property may be worth. If they sell this property for their asking price, then congrats to you and everyone else in your neighborhood becuase that will then be used as a comp.
Hope this helps,
Aaron Ruben
Coverstone Realty, LLC
0 votes Thank Flag Link Thu Mar 17, 2011
It should help it but it will depend how similar the condos are to each other. At least the location is about the same so it won't hurt your values.
0 votes Thank Flag Link Thu Mar 17, 2011
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