The irrational exuberance that once led people to pay ridiculous amounts for real estate has become irrational vulturism (I made that up) and buyers won’t buy unless they feel they’re getting a “STEAL”.
This, of course, begs the question, what exactly IS a steal and how will you know one when you see one?
Is a STEAL a house that’s priced at a certain price per square foot? Is a STEAL a house that’s been reduced by a million dollars? Is a STEAL a house that came available at a fair price on a street where houses almost never come up for sale? Is a STEAL a foreclosure?
Most realtors use the price per square foot method to develop the asking price of a house and most buyers use it to locate what they believe to be a BARGAIN. To get this, you take the asking price of the house and divide it by the heated/cooled square feet of living space.
I personally don’t believe that price per square foot tells the whole story. There are so many other variables to consider including location, quality and condition (amount of renovation/upgrades). Just because something is being sold for a low price per square foot doesn’t necessarily mean it’s a DEAL.
Take these two houses for example. One is located on a cul de sac in Ortega and the other on Riverside Avenue in Avondale. Both were very nice homes in good locations and both sold for around $390K. They had different square footages, however, so the ppsf for one of the homes was $142 and the other was only $118. Which person got a better deal? Post a comment and let me know what YOU think.
There are plenty of “deals” out there so if you’re in the market for one, call us and we’ll help you find it!
Thanks for reading — please join us next time for the state of real estate in Avondale, Ortega and Riverside!