Posted by: Roby Robertson | December 5, 2008

Lake Norman Real Estate;Mastering the Pricing Puzzle

Pricing a home has never been all that easy unless the home is in a development where the homes were all built at the same time and several have sold in the last year. 

Lake Norman Pricing Puzzle

Lake Norman isn’t like that at all. We have every style of home and the ages of the homes range from homes built in the 1960’s to new construction. 

The location of a waterfront homes make a difference as does what is next door to it, across the street or around the corner.

It used to be that the best practice for determining value was to find three homes that have sold in the last year that are comparable to the home being priced and are located close by.  In this current market, I have had to price homes based on the last 3 months and forget about the last year.  At the most we have to look no further back than 6 months unless we can’t find anything. 

There are not always comparable homes located in the immediate area that have sold in the last year, 6 months or less.  I have had conversations with appraisers and they also sometimes struggle to determine the value of a home because of the lack of sales.  However, they too are looking at 3 months back, then 6 months etc.

My point in this is that none of this is really a science, at least not with the type of homes we have and the state of the current market.  It gets a little easier in neighborhoods like The Point because all the homes are custom and adhere to a very high standard. However, in non-community areas the homes can come in all styles and sizes.  Consider a mobile home on the water with a tremendous view. Coming up with a value of the mobile home while looking at other waterfront properties can be trying.  There are many variables to consider.  Also, there are 4 counties that encompass the lake.  Home values vary from county to county even though they are still Lake Norman. 

Lake Norman Home Pricing

No one has invented a computer program yet that will determine the value of a home. We do use a computer and data from MLS and tax records to determine value but we also use experience and relationships with peers

Once a home is on the market we still have to look at the value every couple of months. Homes are sitting a lot longer now so when we do get sales, we have to determine how it impacts our homes value. The value of a home is still the amount of money someone will pay for it. 

Buyers need the same kind of price analysis to determine how much they should pay for a home.  We conduct similar comparisons to help buyers determine what is a fair purchase price.  I just sold a home that was priced in the $120 a sq. ft range that 9 months was $159 a sq. ft.  The most recent sales killed the current value.  This impacts both buyers and sellers and is something we have to watch.

There are some things that do not affect the value of a home, what the owner paid for it comes to mind. Also, previous sale price has nothing to do with current value and it never has. The tax assesed value of a home is also not a good indication of the actual value, so we can’t make a big deal out of a home being priced above or below the assessed value.  See Why Lake Norman Assessed Values might Not be a Good Indication of Price.

Lastly, sellers must be careful where they put thier dollars when it comes to doing updates.  Ask a professional to help you decide where you can get the most for your money.

If you have any questions about Lake Norman Real Estate,please contact your Lake Norman Agent at 704 451 7051 or by email.

See Also:

Be The First To See Lake Norman Hot New Listings as soon as they become available.

Selling Lake Norman; What would my Lake Norman Home Sell For?

Lake Norman Relocation, You Will Want to Consider It

Why Lake Norman is such a great Destination

Roby Robertson

 

Saving My Clients Thousands

Broker/Owner

 

Real Living In Style

Davidson NC

 

roby.robertson@realliving.com

www.LakeNormanRealLiving.com

 

Ph: 704 451 7051

Fax: 704 892 9766

Committed to Saving My Clients Thousands When Buying and Selling Real Estate

 

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