In the day and age when everyone is looking for a deal, I sometimes hear “Wow, that house is cheap what is wrong with it.” And I can’t help but chuckle a little bit.
Of course there is a reason everything is priced a certain way. All houses are priced based on location and condition. Remember a property is really only worth what someone is willing to pay for the property. If the property is really priced to cheaply, multiple offers will ensue and the price will go up to fair market value.
Things that change value on a house can be area. What are the other houses in the neighborhood selling for? An oversized home in a neighborhood may look underpriced because the price per square foot is significantly less, but if the area will only allow a certain price to be obtained then it may not really be undervalued. Look at the comparables in the neighborhood to make sure the house is not too large for the area.
How is the crime in the area? Is the neighborhood safe? I always suggest that a buyer drive the neighborhood at day and night, during the week and on the weekend to see the different activity that may be present in the area. Realtors® are bound by fair housing laws and are therefore unable to tell you if a neighborhood is safe or not. Also remember one person’s idea of safe is different than another’s. But if you do not feel safe walking down the street are you really going to feel safe sleeping there or leaving your kids home alone.
Is there a school near by or a park? Are the other houses in the neighborhood dilapidated or nicely landscaped. Does the home back up to a busy street or industrial building? All these things make people want to buy or not buy a home.
The other factor in pricing a home is that of condition. A home that smells nice and is clean will generally sell for more than one with bugs and needs repairs. If the appliances and flooring are out of date, the carpet is stained, or the bathroom has swag lights from 30 years ago, a buyer is going to discount these items from an offer. And most the time the buyer will discount the price more than the actual cost of replacement for their trouble.
If you are handy and have the tools to repair the condition of the property, you may be able to get a good deal on a house that needs some repair. But make sure you get bids or understand the true cost of repairs prior to making that commitment.
If you need help buying or selling a home, please call me, Sandi Walker 405-213-2992 or visit my website at http://www.sandiwalker.net.