There is an excellent article on this subject here:
We’re often asked “How’s The Real Estate Market?”
Experienced real estate brokers know that the real estate market is all local. The news we get from the media, however, is about the national real estate market. To respond to “how’s the market?” we must look at specific, not general areas.
To get a sense of this, let’s look at an example. Say you want to know how the market is in the Park Hill neighborhood of Northeast Denver.
If you looked at the market statistics for the entire Denver metro area, the average sold price of all houses sold in 2011 was $279,858.
If you focus your search to the Denver Northeast area, the average sold price of all houses in 2011 was $226,519.
That information is interesting but cannot be applied to a specific house. When most people ask about the market, they really want to know how much their home is worth. To provide the most accurate estimate of a property’s current value we need to find gather specific information about the property (size/condition) and the neighborhood.
A good example is the property at 2315 Fairfax, Denver, CO 80207. If we did not dig deeper than looking at the market statistics for the entire Northeast area, we would be way off on the value of this home.
Searching just the homes just in the neighborhood of this one, the average net* sold price in 2011 was $386,000. That does not tell you much about the value of this home, however, since the range of prices in that specific location were in a range of $80,000 to $1,270,290! When we zero in on homes of similar size to the one on Fairfax, the average net price was only $269,162.
However, the home we are talking about has three bedrooms and two baths, 960 square feet on the main floor with a full finished basement with a one car detached garage plus the house was in great shape and showed beautifully. We sold the home for a net price of $348,500…. Significantly higher than the average net price for homes of similar size in the neighborhood. Condition, size, and sex appeal added lots of value to this property.
If you want to know what the market is like for your home, ask us for a market analysis. Market statistics, such as the zestimate you can get on Zillow, will often miss the mark! As your trusted real estate advisors, you know that we are happy to provide the most updated information available to help answer your questions about how the market is.
* The net price reduces the total price by the amount of any concessions given by the seller. Concessions may be given to make the sale (i.e. buyer asks for the seller to pay closing costs) or to satisfy objections to the condition of the property that arise as part of an inspection after contract.
Welcome to the Ideal Properties of Denver blog.