Question Details

Lupe Vizcarra, Real Estate Pro in Ridgecrest, CA

How does an agent factor in a house's newness in the listing price?

Asked by Lupe Vizcarra, Ridgecrest, CA Tue Oct 28, 2008

When comparing house A and house B, all other factors being equal..if house A is x years newer than house B, would $1 per SF per year be a reasonable amount to add to the listing price of house A? Specifically, if houses A and B are 2,000 SF and house A is 5 years newer than house B, could an agent ask an additional $10K for house A? Thanks.

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Answers

5
I personally ask buyers to avoid new homes if possible. Too many "ifs."
Builders are less reliable these days. If they have a solid track record and few BBB complaints, then maybe.
You're on the right track though. The 5-year-old home will often have $5000+ in landscaping, A/C, garage finishing, etc., so be sure to consider those.
I don't you can use a set figure for price/SF/year. Some homes are built to last and are worth the same as the day they were built. I have seen 30-40 year old townhomes and condos that put the neighbors to shame in terms of construction quality.
When in doubt, talk to your local appraiser.
1 vote Thank Flag Link Wed Oct 29, 2008
First and foremost is the builder still building the same home? If he is than what is the base price minus any upgrades. So for example there is 20k in upgrades and the base price is say 200k than the home was purchased for aproximatly 220k . I know builders who are not selling that same 200k home for 30,000. under that price. Pricing a newer home has many factors. One must do there homework and take into consideration all the comperable housing in the area and remember price is the key to getting it sold. You want to be the best deal in the community .
Hope this helped.
Helene M Moore
Windermere Prestige Properties.
1 vote Thank Flag Link Tue Oct 28, 2008
LOVE how you authored your question. GREAT question. All homes are comp'd to properties like sold in past 6 months in a given area how sq. ft. is determined.

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1 vote Thank Flag Link Tue Oct 28, 2008
You can not really state it as a per square foot method as a whole without breaking down the difference between say a house with 20 yr old roof and a new house, same with electric, roof, siding, windows, well, septic, heating system and then carpets and interio condition, add or subtract for that and then you can break it down pr sq ft. hope this helps.
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Tue Oct 28, 2008
Check with your local appraiser(s) and find out the amount that is standard in your area. On the buyer agent side, take your buyer to similiar homes built by that builder at different age levels and see how they are holding up. There are many homes built 3 years ago that wouldn't hold a candle to some build 13 years ago.
0 votes Thank Flag Link Fri Oct 31, 2008
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