I have taken a close look at the community that this home is located. Using the MLS data available, I narrowed down the review to all homes in the same subdivision that have sold since 12/1/10 (just over 90 days).
4 homes have sold (since 12/1/10) that are comparable with the subject home. There was a price per square foot range of $46.69 to $59.44. The average price per square foot was $53.19. At 1504 sq ft, the prices range would be $70,221 â€“ $89,387. These homes had an average price of $79,997.
Low price per square foot: 46.69
Average price per square foot: 53.19
High price per square foot: 59.44
Low $70,221 (1504 x 46.69)*
Average $79,997 (1504 x 53.19)*
High $89,387 (1504 x 59.44)*
*Extrapolated valuations (This process takes the low, average and high prices of other homes and applies that value to the subject home. We do this by multiplying price per square foot and the square footage of the subject home.) I have found this to be a quick way to evaluate a homeâ€™s potential as compared with other sales. This is not an appraisal and I am not a licensed appraiser.
Some of the other details to consider are as follows:
Are you buying as an owner-occupant?
Are you buying to be a landlord? Or to flip.
Is the seller providing financing (seller carry)?
Is this a lease option or lease purchase?
Has the home been inspected by a licensed inspector hired by you?
This is just a start. There are so many considerations when buying a home. I am assuming you are working without a REALTORÂ®. In almost every case, the REALTORÂ® is paid by the seller and does not cost the buyer anything out of pocket. I have never been paid directly from a buyer and I have helped several hundred buyers and sellers buy and sell homes and land.
So your question is one that can have several answers. So much depends on other questions that still need to be answered. Hopefully I have helped you in the right direction. If not call me.
James S Kuttner, The Kuttner Team
7111 W Bell Rd #101
Glendale, AZ 85308