Property Q&A in Aurora>Question Details

Linda, Both Buyer and Seller in Missouri

Why have so many homes in this area sold so far below their value?

Asked by Linda, Missouri Sat Jan 3, 2009

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This question is about this property: http://www.trulia.com/property/1067839352-2778-S-Killarney-W…

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7
Both answers are good,The Buyers determine the Value and what they are selling for now is the Value not what the previous sales price or County Assessments were.
1 vote Thank Flag Link Sat Jan 3, 2009
Hello Linda,

The value is only what a Buyer is willing to pay for a house. It's supply and demand, there's a lot of homes currently available in The Conservatory and lots of them are bank owned homes. I am not sure what happened that so many people lost them. It could be that many of them lost their jobs or they might have had adjustable rate mortgages that adjusted higher then they could afford. I've shown a lot of home in The Conservatory this week to a possible Buyer. From the eyes of a Buyer like this one, there's hundreds of homes in her price range in the entire metro area. She's going to buy the most she can get for her money. She's struggling between getting a large house in The Conservatory which she feels is very far East and being a newer neighborhood the trees haven't had a chance to grow so when looking out the windows all you see is lots and lots of houses. Then she compares it to buying an older home in a neighborhood where the trees have grown and there's not so many to choose from. She won't get as large of a house in the mature neighborhoods and she may have to do some updating. Decisions, decisions, decisions. So if you're thinking about selling your home, think about what the buyer is looking for. Make your home the most comfortable, inviting home in your neighborhood and most important...price it right. The homes in The Conservatory are gorgeous and my best guess is that the prices will come back up when the jobs come back.

Sandy
1 vote Thank Flag Link Sat Jan 3, 2009
Short answer
Supply and demand
Web Reference: http://ralphandtricia.com
0 votes Thank Flag Link Thu Jan 8, 2009
Linda,

Another thing about this area that no one has mentioned is that there are a ton of new home communites in Aurora which creates a lot of supply. When interest rates increase and lending policies tighten, it means that the demand for homes will go down. That is why so many new home builders in Metro Denver are packing up. Their overhead is just too high and they cannot survive. Aurora has been known for it's lower prices of new homes (although there are plenty of communities that are higher priced). If you are looking in Aurora and especially for a newer home - you will find it!

If you would like a more detailed analysis of this neighborhood, Aurora, and Metro Denver; I will be happy to send you one.

Leslie Heldenbrand
720-283-5978
Leslie@LeslieHeldenbrand.com
0 votes Thank Flag Link Tue Jan 6, 2009
Job loss, upside down mortgages, people want to sell before prices decline to where they are in upside down mortgage..A lot of reasons, but Mark is right you are asking about a specific neighborhood so you need to find as much information as possible on that neighborhood and anything that might influence prices..Then you will have a better foundation for making a wise decision..If you need help finding information please come back and ask.

Good luck, Dunes
0 votes Thank Flag Link Sat Jan 3, 2009
Hello Linda,

While the other answers below are great they are not being as specific to the neighborhood. The Conservatory where this home is located is a Newer Neighborhood and was built very fast. Many of the Homes were sold to Unqualified Buyers during the Heat of the ARM and Interest only loans and that caused a ton of foreclosures. This neighborhood is also competing with a new Subdivision called Becon Point. Beacon Point homes were in the same price range as the Conservatory was but in a much better location. For the same price you could buy the same home with Mountain and Water views with a less than 2 minute drive of the new Southland's Shopping center. The School district that the Conservatory was placing into is also a reason for the less value. Although I can not tell you one district is better than another you can research this on your own. Just compare Cherry Creek Schools to Aurora Public and you will have a better understanding on that issue. I sure hope this helps with your question and have a great day!

Mark Kinslow II
0 votes Thank Flag Link Sat Jan 3, 2009
Hi Linda,

Homes values are determined by what buyers are willing to pay for them. It is the demand that dictates value, and not perception. If you are trying to ask why homes in the area are selling far below their list price, it is simply because they are being listed above their true value.

Ben
0 votes Thank Flag Link Sat Jan 3, 2009
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