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YES, the square footage is a lot bigger on the third. If you break it down by square footage house #1 is $198 a sq ft. House #2 is $204 a sq ft and house #3 is $206 a sq ft.So price per sq ft IS comparably close and in my opinion house #3 is a bargain compared to the others because it's renovated. Price per sq ft, house #3 is correctly priced.
Now, look at SOLD homes in the area with 2356 sq ft and see what they sold for in comparison to house #3. House 1 & 2 are comparable, but #3 is not.
"Price per square foot" is a lousy and lazy way of trying to compare houses unless the houses are the same build quality, age, style, have the same features/amenities, and are on same-sized lots in about the same area. I've watched real estate agents so moronically focused on "price per square foot" that they will come up with all sorts of schemes to justify why a house on 50 acres has a higher "price per square foot" than a similar house on 2 acres. They try to preserve the metric instead of recognizing the metric is inappropriate. "Price per square foot" is not the correct metric for comparing the houses when the "price" includes the land and house.
Did you search your current address? More likely than not, you are already living near to a sex offender.
You know, it's one of those things that I've never paid attention to, and now that I'm recently married and talking about having kids, that sort of stuff has taken more importance. I mean it was important before, but...you know what I mean? It's somewhat of a culture shock to me looking at places, and then looking at the schools nearby for a kid that may or may not go there 5-6 years from now lol.
Wife and I are house hunting and we noticed that there are 3 houses on the same street but each have a different price attached to it. They are all the same amount of acres, built the same year (1985) but one of them was renovated.
House #1: 4 beds, 3 baths, 2010 square feet. In need of work. Short sale. 399K
House #2: 4 beds, 3 baths, 2010 square feet. In need of work. 410K, although the price has dropped 50K in about a month.
House #3: 4 beds, 3.5 baths, 2356 square feet. Bathrooms were gutted, granite counters etc. It's a reno job. 485K but until I see the house in person, it's hard to tell the quality of the granite.
I live in Maryland for those wondering why everything is priced so high.
So...my wife and I are trying to schedule a visit for House #3. I'm assuming the owners set the price at 485 as a way to get back the money they put into renovating the home. However, if I'm a potential buyer, how would I go about this? It's bigger than the other two and its been renovated, but that's at a cost of an extra 86K or 75K?
My initial reaction was why are there 3 homes on the same street up for sale. And 2, if we do like this home, why should my offer be 485 if the comparable would be those 2 homes for a significantly reduced price.
I've got an e-mail to my agent saved in drafts, but I'm curious to hear thoughts and advice.
One house is a short sale so forget it's price. You have no idea the condition of the house. And price could be the bank's starting point for negotiations and they could go higher or not come down at all.
House #3 is over 300 square feet larger than #2 so yes, it's worth more. It also has an extra half bath. That's worth money as well.
This house has been renovated which means they've spent a lot time and money on it. They lived through renovations which isn't easy. Yes, their house will be worth more in most markets because it's renovated and larger. You have no idea how much renovations cost! They could have made updates to electrical and plumber - definitely not cheap. Cabinetry isn't cheap. Flooring isn't cheap unless you buy cheap crap. Granite certainly isn't cheap. If you want it, be reasonable in the offer. They can say no to you and not bat an eyelash.
THERE it is! Personally I wouldn't want to be that close to a registered sex offender if you plan on having kids! I would look elsewhere or you will be watching your kids every second when they play outside, go for walks, ride bikes, etc! It will always be stuck in your head that there is a nearby offender!
They can move at anytime. Do you check your neighborhood daily to see if one has moved in? If not, one could live next door to you and you'd never know. They come and go. And not everyone on the registry has actually molested children or young children. Do you know if everyone who goes to your grocery store, mall, WalMart, drug store, restaurants, etc are sex offenders? Probably not. Yet you still go to all of those places. Meanwhile the person in the checkout line ahead of you that you just struck up a conversation with could be a register sex offender.......then there's ones who have not been caught!
"Price per square foot" is a lousy and lazy way of trying to compare houses unless the houses are the same build quality, age, style, have the same features/amenities, and are on same-sized lots in about the same area. I've watched real estate agents so moronically focused on "price per square foot" that they will come up with all sorts of schemes to justify why a house on 50 acres has a higher "price per square foot" than a similar house on 2 acres. They try to preserve the metric instead of recognizing the metric is inappropriate. "Price per square foot" is not the correct metric for comparing the houses when the "price" includes the land and house.
Are you an appraiser, because that's a good part of how homes are appraised here. Upgrades are then priced accordingly. OP said that the homes were all built the same year.
They can move at anytime. Do you check your neighborhood daily to see if one has moved in? If not, one could live next door to you and you'd never know. They come and go. And not everyone on the registry has actually molested children or young children. Do you know if everyone who goes to your grocery store, mall, WalMart, drug store, restaurants, etc are sex offenders? Probably not. Yet you still go to all of those places. Meanwhile the person in the checkout line ahead of you that you just struck up a conversation with could be a register sex offender.......then there's ones who have not been caught!
Actually I do check quarterly and have never knowingly lived by one! I also keep good track of where my kids are and know what their doing. I'm not a new mom! I get that there are people out there that may be offenders that have not registered and I might come in contact with them, but my children are not old enough to go to the stores (or anywhere) by themselves. I'm not going to knowingly move next to one or be friends with one! I would also think the majority of people who have kids will look at the registry as part of doing their research when buying a home and it does make a difference when selling! I don't think ANYONE would buy a home knowing a registered sex offender lives on the block or within blocks. And anyone who looks up the registry can clearly see what the offender is on there for. I get that, but I'm not defending anyone on there either! Any parent who says they don't care that an offender lives next door or on their block is lying!
Here's another one we're looking at, though very similar. These two houses are next door to each other.
House #1 - 3 beds, 2.5 baths. 1,626 square feet, unfinished basement, has a deck. Hardwood flooring. Move in ready, it's not a reno job at all. Really the only things I would update are the kitchen cabinets. This sold on 6/7/2017 for $397,000.
House #2 - 3 beds, 2.5 baths. 1,626 square feet, unfinished basement, no deck. New carpets, fresh paint, granite counter tops. It appears that the bathroom sinks were updated with newer cabinets but it's not a complete renovation like the one in my opening post. The listing says "updated." And it has "gleaming" hardwood floors. Full disclosure, the granite seems to be of the one that I had at the condo I had which were decent but it's not the highest of quality. This is on the market for $429,900.
We really like house #2, the elementary school that belongs to this area is one of the best in the county so that's a huge plus. However, replacing carpet 3 bedrooms and re-painting the home might be 3 grand at the most. I fail to see how updating bathroom cabinets tacks on another $30,000. I've e-mailed my agent on this one as well, but as I have learned in this thread, I can't go by the listing price rather by the price of the houses sold. Well the one next door sold for $33,000 less. There's got to be some wiggle room here for negotiations no?
Actually I do check quarterly and have never knowingly lived by one! I also keep good track of where my kids are and know what their doing. I'm not a new mom! I get that there are people out there that may be offenders that have not registered and I might come in contact with them, but my children are not old enough to go to the stores (or anywhere) by themselves. I'm not going to knowingly move next to one or be friends with one! I would also think the majority of people who have kids will look at the registry as part of doing their research when buying a home and it does make a difference when selling! I don't think ANYONE would buy a home knowing a registered sex offender lives on the block or within blocks. And anyone who looks up the registry can clearly see what the offender is on there for. I get that, but I'm not defending anyone on there either! Any parent who says they don't care that an offender lives next door or on their block is lying!
Quarterly? heck, they could move in tomorrow and be gone in 3 weeks. Your children can just go to school and be molested and no one would know. The person may not have been caught yet. Look how many teachers get arrested for sex with students.....that just blows my mind!
If any parent says that they don't care if an offender moves in next door, they are flat out LYING.....or in a serious case of denial. I wouldn't want a goldfish around someone who molested children. Forget my kid!
Are you an appraiser, because that's a good part of how homes are appraised here. Upgrades are then priced accordingly. OP said that the homes were all built the same year.
The thing with sq. ft. it is just a small part of what is needed to evaluate a home as to value.
#3, Is priced at less per sq. ft. than the other home (short sale homes are not counted), with this home the only one ready to move in condition. Due to condition of other two homes, and their being smaller, the price per square foot really is not applicable as a judge of value.
#3 The bigger home is larger than the other two by hundreds of sq. ft. Value has to be adjusted accordingly with the other two to compensate for size difference.
#3 Has a half bath more than the other 2, so price has to be adjusted for this feature.
Condition. Price has to be adjusted for the difference in condition. We know there are problems in the other homes, and one warns not to even go out on the back deck as it is in such dangerous condition.
When agents push the price per square foot when comparing homes, it shows they have not taken a good appraisal class, and do not know how to properly appraise the value of homes. I took an appraisal class at a major university, prior to even going into the business in 1972, where I remained till I finally retired. A price per square foot in an appraisal is an incidental part of the appraisal, only determined after the things that matter are all taken into consideration, not a place to start to put a value on a home.
When you are comparing 3 homes in this situation, two with hundreds of sq. ft. less than the other 1, one in good condition, and 2 that are not in top condition, 1 has a half bath extra, so price per square foot for these 3 homes without considering the variables between them is really no way to judge value.
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