The Utility of “Negative” Information If the 4 Bedroom, 3 Bath 1945 Colonial three blocks away from you just sold for $650,000, that’s probably a good starting point for pricing your 4 Bedroom, 3 Bath 1945 Colonial. But what if the neighbor’s Colonial was on the market for six months at $650,000, and didn’t sell — perhaps even after dropping in price to $624,900, and...Read More
Comparing Apples and Oranges: Case Study #17 I’ve posted previously about how a slow market — combined with a relatively unique property — can bedevil Realtors and appraisers alike trying to estimate a home’s value. That’s because to be valid, a comparative market analysis must include three sales of similar properties no further back than...Read More
List Price = $800k, Tax Value = $400k As I’ve written previously, a home’s tax assessed value isn’t particularly relevant for establishing a home’s actual, what-will-it-sell-for market value. Rather, fair market value is determined by: a) scrutinizing the comp’s, or comparable sold properties, to set a list price; then b) testing it on the market....Read More
What Are They Really Worth? Put it this way: the picture of toilet paper should give you a hint. First, some background. In Minnesota, the first things that typically lead off any offer to purchase residential real estate are the Buyer’s earnest money check, and a pre-approval letter from a lender (unless the Buyer is...Read More
“What You See is What You Get” I’ve written previously about real estate teams (“Teaming Up“), and the pro’s and con’s. So it was interesting to me, during my most recent listing presentation (they hired me), to hear my now-client express a strong preference notto work with a(nother) real estate team. Their reason(s)? On their...Read More
Putting a Price Tag on Proximity to Cedar Lake A client of mine says his engineer son-in-law has done a regression analysis calculating the premium associated with proximity to Minneapolis’ Cedar Lake. His number? $11,000 per block. If that’s correct, that’s a very valuable number to have, because lots of Realtors, appraisers — and their...Read More
