Property Q&A in 94702>Question Details

Linda Meldman, Home Buyer in Berkeley, CA

Is $565,000 a fair price for this property?

Asked by Linda Meldman, Berkeley, CA Sat Jan 31, 2009

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This question is about this property: http://www.trulia.com/homes/California/Berkeley/sold/2656758…

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Linda, the lot is small, and that area of Berkeley, it is street by street, house by house. I would say that if this house is in excellent condition and the houses in close proximity are really nice - and the house is in move in or almost move in condition, then $525,000 is a fair price. If you cannot find out the condition of the house (if the seller has not had it inspected by a structural pest control company and a general contractor), if the roof is not able to be verified as having 10 or more years of life in it, and if the heating system is old or a floor or wall furnace, this home will need those upgrades to take it into the price range above 500,000. Negotiate! Liz
0 votes Thank Flag Link Sun Feb 1, 2009
The old adage is that a property's value is based on how much a buyer is willing to pay for it.

And in real estate, the guiding rule has been "location, location, location." However, as the market shifted, it is also about "price, price, price."

In the face of looking and growing number of foreclosures and short sales, we have found homes that have been trashed, stripped of anything and everything that can be re-sold (appliances, heating/cooling units, copper). As such, although some homes may look virtualy undisturbed outside, it could be a total wreck inside. So the third factor must be the condition of the property. Has it been upgraded, or is it in state of disrepair?

As such, the value of the property is measured based on location, price and condition.

What a Comparable Market Analysis will show you is how much homes similar to this property are worth (based on how much they sold for). But that analysis is merely the first step, and won't be the ONLY factor in pricing this property. Physical inspection of the property is necessary.

Good luck!
0 votes Thank Flag Link Mon Feb 2, 2009
Hi Linda,

You really need to have your agent work with you and show you the comps. It is not easy for agents on Trulia to give you a fair price without seeing the property. I hope you are working with an agent.

Meena Gujral
Help-U-Sell Achievers Realty
0 votes Thank Flag Link Mon Feb 2, 2009
Linda, have your Realtor run a Comparative Market Analysis (CMA) to determine this!

A CMA gives you the best representation of market price/activity/trend direction - for the specific property details you search on. Generalized stats are easier to come by, but that doesn’t mean they should be used to make one of the most important financial decisions of your life.

Best, Steve
0 votes Thank Flag Link Sat Jan 31, 2009
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