Key Variables: Type of School, Buyer Characteristics Homes on busy streets typically fetch a discount. Is there an equivalent discount for homes located across from a school? (which, in a way, is really just a subset of “busy street” — call it, an “intermittently busy street”). I’ve never seen formal data on this, but I’d guess...Read More
Three Factors How much do you discount for a one-car garage? The short answer: “it depends.” Specifically, I think that the three most important variables are: One. What is the surrounding housing stock like? In close-in, older Minneapolis neighborhoods, many homes have one car garages (still). Detached, one car garages. When that’s the standard, the...Read More
Not Just Price Tag, Scope of Work Discounting for a home’s “vintage” condition is inherently subjective. Some Buyers don’t want to tackle anything more challenging than painting a Bedroom (if that). Others ” especially if they have contracting skills (or access to them) ” are up for remodeling the Kitchen, Bath’s and anything else that...Read More
Calculating Premiums & Discounts in a Comparative Market Analysis (“CMA”) How much value do Realtors and Appraisers assign to an upstairs Laundry when estimating a home’s fair market value? The honest answer is, I’ve never seen it broken out as a specific adjustment, with a corresponding price tag (or even range) assigned to it. That’s...Read More
The Art of Comp Selection One of the trickier home features to account for in a Comparative Market Analysis (“CMA”) is a busy street. For a family with little kids, a busy street may very well be a deal breaker ” in which case the discount is theoretically infinite. At the other extreme, an investor looking...Read More
Dream Home? Maybe Not, But Dream Price Everyone in real estate (and many outside of it) knows the phenomenon: homes on busy streets turn over more often. The explanation is self-evident, right? The occupants get tired of the traffic and move on. That may certainly be true, but as a Realtor, I see another, economics-based...Read More
