Based on estimates & median prices in the neighborhood the price falls between 500-550K.Why is this at 699K ?

Asked by Firsttimebuyer, 93105 Wed Feb 18, 2009

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This question is about this property: http://www.trulia.com/property/1074394283-647-Escuela-Pl-Mil…

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6
Steven Ornel…, Agent, Fremont, CA
Wed Feb 18, 2009
Firsttimebuyer, congratulations, you have hit on a subject that is very important, typically overlooked, and not talked about enough.

Given that a “median” is defined as “the number separating the higher half of a sample from the lower half”, this measure, as well as average-based measures, have no regard for any of the specifics you may be searching for. Also, median/average-based statistics and can be skewed by segments of market activity that do not match a Buyer's individual situation.

A Comparative Market Analysis (CMA) gives you the best representation of market price/activity/trend direction - for the specific property details you search on. A buyer should look specifically at the targeted segment of properties that match their search criteria for the information to be meaningful.

Have your Realtor set you up with an automated MLS search agent so that when a property of interest is found he/she can perform a CMA specifically on the identified property so you know if the property is in sync with the market of similar homes.

Best Regards, Steve
1 vote
Steven Ornel…, Agent, Fremont, CA
Thu Feb 19, 2009
Firsttimebuyer, you are really speaking about two different, but related, items that need monitoring:

First, we know that a CMA is the best gives you the best representation of market price/activity/trend direction -for the specific property details you search on. So, this should be set-up and reviewed periodically along with a MLS Search Agent that sends active listings as they come on market. The second part is looking at local economic metrics that give us "indicators of influence" regarding income.

Using these two tools helps one to arrive at an individual's "good time to buy."

Best, Steve
0 votes
Firsttimebuy…, Home Buyer, 93105
Thu Feb 19, 2009
Here are all the numbers I see : 1) sold in 2004 for 509K 2) recently sold home average from trulia is 673K 3) however the last home sold in Jan 09 was 616 K 4) I understand athe median price is the middle but it is still interesting that it is only 459 K for this zip code 5) 2 comparable houses are listed below 600K 6) estimate on zillow.com is 550K From all these numbers it is hard to draw conclusions. THis is the case for a lot of houses out there. So the question really is how to decide on the right price with all these numbers floating around. With the current economic situation I guess I will wait some more before making a decision. Thanks for all you input.
0 votes
Andrea Wince…, Agent, Milpitas, CA
Wed Feb 18, 2009
In my opinion, this home is located in one of the best areas of Milpitas. Although the trulia listing says the average price for a home in ALL of Milpitas is much lower than $699k. There are several factors to be considered as to the current listing price. Consumers might pay more to get their children in a better school. Prior to my buyer clients making an offer on any property, I run a comparable sales report of the immediate neighborhood to make sure we are not offering too much. The immediate neighborhood would include surrounding streets in the same development that feed to the same schools. The MLS listing on this Escuela property reads as follows:

"Gorgeous home on huge 10,000 sq.ft lot.Best part of Milpitas. Completely remodeled 4 years ago.Brazilian hrdwood floor,professional kitchen w/granite countertops,breakfast bar&stainless steel appliances.Large master bed with views of mountain.Vaulted ceiling,formal living&family rm,double pane windows,designer paint,newer furnace,new garage door,upgraded carpet& much more.Room for RV/boat parking"

It's obvious from the MLS pictures, this home appears to have some very nice upgrades.

I have not run a CMA for this particular home so I can't say for sure if it's a good deal at $699k. If you would like me to do that for you, I'd be happy to. Anyone can list their home for any price they want. Value is determined by demand. A home is only worth what someone is willing to pay for it. But, even at $699k, this home could sell for a little less (or a little more) who knows, but from the listing info, it looks really nice and on a huge lot.
0 votes
The Medford…, Agent, Fremont, CA
Wed Feb 18, 2009
Firsttimebuy:

You cannot use median prices in determining the price of a single home - you have to look at the comps for the specific neighborhood and evaluate accordingly. You have to compare like homes to like homes. This particular property is located in a newer neighborhood that is certainly one of the best neighborhoods in Milpitas. You cannot use the older homes that are close by as comparables, and if you are including those in your "median pricing", you will be way off the value.
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Web Reference:  http://www.carlmedford.com
0 votes
Roland Barcos, Agent, San Jose, CA
Wed Feb 18, 2009
Hi FTB - The median price of homes currently on the market in that area is ~ $725K and 6 months recent sales show the same thing. Why do you believe this is a $500-550K neighborhood?

Roland
0 votes
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