AhmedWael Ab…, Home Buyer in USA, Mobile, AL

Could you please explain to me what the cause of varying prices greatly between properties have the same specifications and spaces ?

Asked by AhmedWael Abdelrahman, USA, Mobile, AL Tue Feb 5, 2013

This question was asked from http://www.trulia.com/property/3089986802-457-N-Maple-Ave-Ea…

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Roland Vinyard’s answer
People. Everybody has different ideas what their place is worth (meaning some are more realistic than others). They may have different needs for the equity they have, different reasons for selling. The second great difference can be location, a block or three away can make a large difference in the value of otherwise equivalent homes.
1 vote Thank Flag Link Wed Feb 6, 2013

The main reason of varying prices can be condition of the home and/or the homes can be bank owned or short sales and require extensive remodeling and rehab.
1 vote Thank Flag Link Wed Feb 6, 2013
Two main things: Location and Condition of the home.

In Re: of Condition-
If I were to take the property that you are inquiring about above, then I can see why it would be worth much less than a similar home in the same town; the home has no pipes!! No pipes means more work, more $$$ and time then a turn key home would require and that will always reflect itself in the listed price. I can only imagine what the rest of the place looks like.

In Re: of Location-
Take that same home and put it in, lets say Beverly Hills, and the location alone will increase the listing price SUBSTANTIALLY!! I'm not an expert in the Beverly Hills market ;-) but I can tell you that the location alone will jump the price up just for the name alone. :-)
0 votes Thank Flag Link Sun Mar 3, 2013
Location, location, location.
0 votes Thank Flag Link Wed Feb 6, 2013
As Roland briefly pointed out, home sellers have a variety of needs and reasons for selling their home. Some have no basis in reality. Others are positions of desperation.
As a home buyer, this creates an exceptional opportunity to snag the "Prom Queen" house while there is confusion in the market. Opportunity knocks but is NOT infinitely patient.

Best of success in buying your home,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
0 votes Thank Flag Link Wed Feb 6, 2013
I believe everyone's answers are good ones but you are saying each home is the same. Then if that is true, the sellers are setting the prices for their home. I wonder how much different the prices are? Is it extreme?
Why don't you call the Realtors, visit each home, then decide. If they are 'all the same' as you say, the buy the least expensive one!!! Good luck!
0 votes Thank Flag Link Wed Feb 6, 2013
The asking price of any home is determined by the seller. The actual market value of 2 homes that are the same model may differ based on the condition, amount of ugrades or recent improvements, the size of the lot, & location. However many sellers select a price based on their needs & motivation for selling. Whichever home you choose make sure your realtor shows you recent closed prices on similar homes before making an offer on the one you like.
0 votes Thank Flag Link Wed Feb 6, 2013
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