Do Your Own Comparative Market Analysis
Realtors often offer to provide homeowners who are thinking of listing with a Free CMA or Comparative Market Analysis. A CMA consists of determining the recent sales data for comparable homes in the area. Finding at least three comparables is ideal. If you would rather not stir up a Realtor but still want the information, it is possible in some areas to find the information online.
Don’t Compare Apples to Oranges
It is of little value to determine that a home valued at $400 per square foot sold for a certain price and compare that to your home that is valued at $285 per square foot. The price per square foot indicates replacement costs. Without even seeing the property, you can tell that the $400 per square foot home is not comparable to the @285 per square foot home. However, if you find several recent sales in your area and learn the average price per square foot, you can then multiply the cost per square foot by the number of square feet in your home and come up with possible listing price.
What is the Average Price Per Square Foot for Your Area?
In the Huntington Beach real estate market, the cost per square foot depends on the area you live in and whether you are talking about a home or a condominium. Within the last 30 days, based on recent sales data, the average price per square foot for a single-family home was $368.00 and $294.00 for a condominium.
Is Your Area Above or Below Average?
An average is, well, average, so you will not expect to see extreme deviations from this but some areas will show a slightly higher and some a slightly lower price per square foot. The area of homes with the highest rate is the West Huntington Beach real estate market. There the price per square foot for homes was $379.00 or $11 per square foot higher than average and the price for condominiums was $324.00 or $74.00 per square foot higher than the average. Homes and condominiums in South Huntington Beach were slightly lower than average showing homes at $338.00 or $30.00 lower than the average per square foot and condos at $276.00, which is $18.00 lower than average.
What If Your Home Is Overbuilt?
If all your neighbors have Formica countertops in their kitchens and you have granite; if you have a pool but no one else does; if your home is the only one with hardwood floors and solar panels, then you may not be able to get back all that you put into the home. That is the primary danger for making elaborate improvements in a neighborhood that does not warrant them. However, there are typical calculations for figuring out what kind of return on investment each type of improvement can be expected to bring. If this is the case with you, figure out a reasonable asking price for your home and then add on the appropriate amount for all of your improvements.
Rating: 5 out of 5