Different Homes, Different Buyers
It may seem counter-intuitive, but just because two “For Sale” homes share the same block and are listed for the same price, doesn’t necessarily mean they’re direct competitors.
In fact, I can think of at least two scenarios where there’s virtually no overlap in the pool of prospective Buyers considering both homes.
One. Floor plan.
A home with a deluxe, Upper Level Owner’s Suite (and only a small, second Bedroom) is going to appeal to a dramatically different kind of Buyer than a home with 4 Bedrooms up (and perhaps only a hall bath).
The target audience for the former is a professional single or couple, or a household with one, young child; the latter, a family with several kids (who can all share a Bathroom ” or contemplate adding one).
Two. Condition.
Homes that need major remodels (Kitchen and multiple Baths) can be discounted as much as $150k — $200k.
Or if you prefer, homes in mint, move-in condition fetch a considerable premium.
But, at least in my experience, the pool of prospective Buyers for each type of home is discrete.
P.S.: So, when does it matter that there’s a competing home down the street?
When suddenly, there are multiple homes for sale.
Then, Buyers understandably wonder what’s going on . . . .
See also, “Home Seller Exclusion Lists: Why the “Neighbor’s Best Friend’s Son-in-Law” Usually Isn’t the Buyer“; and “Prospective Home Buyers: “What’s Up With THAT Block?!?”
