Buyers and sellers rely on realtors to help them determine a homes value and strategies when pricing. While this is a large part of what we do and what we offer….it isn’t always as simple as it sounds. “Market Value” basically fluctuates with each sale….sellers generally think their home is worth more than the last sale and buyers generally think the opposite.
Every once in a while certain listings come along that really wreak havoc on what values are and how they are perceived by buyer and sellers. It’s challenging to explain to a seller that their home isn’t the same as the last sale of the same floorplan….maybe it’s location, maybe it’s upgrades and sometimes it’s just the lucky situation of a buyer simply wanting it and throwing “market value” right out the window. While things like upgrades, location and condition definitely make a difference…..sometimes things just don’t make sense.
The listings below are the perfect example of why sale prices don’t always reflect what the market value of a home is. In the summer of 2018 two Townes residence 3x homes sold within 2 months of each other. Although these homes are fairly rare to market the median price at the time would have been a little over $1,000,000. One of them was most definitely nicer than the other….it had been a model home, was slightly larger, was more upgraded and was a corner unit. The other was a very challenging sale involving a bankruptcy and the uncertainty that goes along with that. It was pretty basic and was definitely not a model home. Having said that they were the same layout at the same time on the market.
One sold way over value at $1,206,000 and the other sold under value at $899,000. That’s one heck of a difference. It goes to show you why you can’t necessarily base value, whether you’re buying a home or selling a home, just on the last sale in the community.