Home Selling in 43231>Question Details

Steve Walick, Home Seller in 43231

Fair Market price for a home in Columbus Ohio

Asked by Steve Walick, 43231 Sat Aug 25, 2007

5803 annarue pl built in 1975 cookie cutter home. 1988 house had a addition of 1400 sq ft and rest of home was gutted and re finished. Normal 1200 sq ft comps are priced at 175,000 and were asking 233,900 at 80.00 a sq ft far below the normal 98.00 for a home that is like our without the addition. How do you determine a fair asking price for a custom built home. Any suggestions would be greatly appreciated. If you look at the pictures you can see what I'm addressing here. Again Thanks for any thoughts or suggestions you can offer. steve e-mail breadconnection@aol.com

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Are there any other homes in your immediate are that have substantially increased their size? If yours is the only one, it will be difficult to find a buyer willing to pay a premium for the additional space. Buyers who are seeking homes of a certain size will gravitate to neighborhoods comprised of similar homes instead of a neighborhood of smaller homes. When a neighborhood is comprised of development style cookie cutter homes, it will be difficult to rise substantially above the homes without additions that are in excellent condition.

If there are a good handful of homes that have an addition, focus on those for both recent sales and currently on the market. Don’t follow the lead of overpriced competition, unless you want to sit on the market and keep each other company.

I probably did not deliver the message you wanted. Your opportunity to sell for highest and best is achieved by realistic positioning and marketing for your best buyer. Here is my suggestion on that:

Your buyer profile might be someone who is already living in the immediate neighborhood. The family who already lives there, and wants to stay in the same school district, wants to maintain contact with the same immediate neighbors. Sometimes that might be due to children and their playmates, schoolmates and friends. A growing family who needs more size and who is focused on your specific neighborhood. I don’t do a lot of direct mail, but a direct mail campaign to your neighborhood might be advisable. Talk it over with your Realtor. With limited knowledge, I cannot state for sure that this is the direction that I would take. It is simply a suggestion for you to discuss with your Realtor. If your property is overpriced, all the marketing in the world won't create a sale. It would be better to take a hard look at pricing, price competitively, then market accordingly.,
1 vote Thank Flag Link Sat Aug 25, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
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Hi Steve,
Thanks for your vote. In pricing, the most common mistake that sellers make is pricing too high and missing their oppty for their best buyer. By pricing aggressively to begin with, you stand a much better chance of selling at a higher price. This is counter intuitive to the thoughts of leaving room to negotiate. Attractive homes at attractive prices gain the most attention, and your best window for marketing is when you are new on the market.

I still hold on my thoughts that your buyer may be the family who really needs room and wants to stay in that neighborhood for continuity of relationships, schools, sports, etc. Another idea to discuss with your Realtor would be a special open house for your neighborhood. If I were the Realtor handling your sale, I might look into this further. Since I don't practice in your marketplace, I won't venture as far to say I would definitley do this. If I held a special open house, it might be with "invitations" in invitation envelopes. You can buy those blank at office supply stores. Promote that it is for the "neighbors" and promote that this was the builders addition that you chose. Just another thought.

Beautiful home and best of luck.
1 vote Thank Flag Link Sun Aug 26, 2007
Deborah Madey, Real Estate Pro in Brick, NJ
MVP'08
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It's always better to have the smallest, cheapest house in a neighborhood rather than the biggest most expensive. This could be your problem. I live in an area where there are widely different variations in home size and quality. Someone who builds a very large, expensive home where there are no comparable homes not only has a hard time finding someone to pay what the house would be worth elsewhere, but even if they do, if the house doesn't appraise the buyer may not be able to obtain a mortgage. Even all cash buyers tend to complain when a house doesn't appraise for what they are about to pay for it. Trust me on that one, I've had it happen!
1 vote Thank Flag Link Sat Aug 25, 2007
Steve,
I am in FL and do not know your market, but no one local has gotten to your question so I thought I'd give it a go... I pulled up your house here on Trulia. There were no recently sold comps, but other listed comps in your area are in the $169K-$190K range. Even if your square footage is more, you may have simply "overbuilt" the house. You made too many custom improvements which are beyond the norm for your neighborhood and therefore difficult to recoup on price at sale. Sorry to be the bearer of bad news, but I think you need to lower your price significantly. Again, this is simply an armchair evaluation from across the country--but, you are currently represented by a REALTOR--what does your agent say? Best of luck!
1 vote Thank Flag Link Sat Aug 25, 2007
Steve, The good news is that there is no new-build competiton in your immediate area and the market is picking back up after a 4 month lull. Creating livable square footage with a room addition was a good choice and that money will come back to you. What type of rooms were added? Bedrooms/ Baths/Family room/Den/Media Center? This will greatly affect the value of the addition when you are looking at it from a price per square foot model. Working with a Realtor that knows the area, school district, and competition will help you set a competitive price.
Web Reference: http://www.gerryoneil.com
0 votes Thank Flag Link Thu Sep 20, 2007
Comparitive Market Value-"Comps"- determine the value. If your house has something special, perhaps the person looking exactly for that might pay--but, then--will it appraise for the lender to make a loan? You have a Great Realtor and Firm; discuss it with them.
0 votes Thank Flag Link Sun Sep 16, 2007
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