The value of a home is determined by many factors; the size of the home, the age of the home, the size and characteristics of the lot, the quality of construction, the features of the home and other factors all play a role. Comparable sales of similar homes in close proximity helps provide guidelines for current value. How well the home is marketed and will show when toured by prospective buyers is a huge factor. Buyer and seller motivation are both key factors. Understanding the relationship of all this information and how it plays into the strategy a well represented buyer, or seller, may take can make a very significant difference in what a property ultimately sells for.
Let’s look at home sales in the Jupiter Farms neighborhood in 2017. More that 200 homes closed and it would be hard to find a Jupiter neighborhood with as many different home and lot styles, quality and sizes as we find here. Sales prices ranged from $180,000 all the way up to well over a million dollars. There were homes that were brand new and some that were built almost 60 years ago. The smallest home sold last year in Jupiter Farms had only 204 square feet and the largest over 5,000 square feet. Lot sizes and locations offer almost as much differences as the homes.
One thing is certain and evaluating everything that comes together to determine true market value is not as simple as it may look in a neighborhood like Jupiter Farms. If a buyer and seller are represented by the same person one party, or both, isn’t going to do as well as they could have. Let’s look at last year’s sales in Jupiter Farms of concrete block homes built after 1995 with a minimum of 2,500 square feet and a lot size under 1.5 acres. The lowest sales price was $130 per square foot while the highest sales price came in at $245 per square foot. Paradise Sharks knows both homes very well as we represented the seller on the highest price sale and we represented the buyer on the lowest price sale.
When Paradise Sharks was working with our buyer that purchased the home for $130 per square foot our goal was to get them the very best price. It was our job. The subject home had been on the market for over 6 months. Its list price had been lowered 8 times and almost 20% from its original price of $674,900. Now, priced at $549,900 and we were able to further negotiate, sensing the time was right with a seller who had seen enough. Our buyer paid $497,000, or $177,900, below the homes original list price. You see, we were working with a buyer and our obligation was to find them the best house at the lowest price. They ended up paying $130 per square foot and we were quite pleased. Ask yourself how we could also be working with the seller as their broker and be effective in acting in our clients best interests. We couldn’t.
Just down the street, we had recently worked with a seller and our obligation in that case was to get them the highest price. We studied the market, knew the house was going to show amazingly well, because the client understood the importance of presentation and staging. We brought in our ace photographers and marketing team and put it on the market at $599,000 late one Friday afternoon. Our marketing was well received and we had 3 showings on Saturday. Each presented an offer and we had a little bidding war. Early Sunday morning our client accepted an offer of $615,000 or $245 per square foot. Later, we fielded two calls from the Palm Beach County Property Appraisers office as they were surprised, at not only the price, but the sale well above list price. Now, ask yourself how could we have worked with the buyer on this transaction and also be effective in getting our clients the highest price for their home. We couldn’t.
There is no way that a professional Realtor can effectively help a buyer get the lowest price and a seller get the highest price on the same transaction. It’s impossible. If you are getting ready to do real estate, of any kind, you need to have goals and a broker who is working in your best interest. Seeing a home advertised and calling the broker who is representing the seller is the worst mistake you could ever make. Period. Calling the listing agent just does not make sense if you really are looking to negotiate your best deal.
Paradise Sharks firmly believes in ensuring are clients are well informed. We don’t want to sell them, we want to educate them. If we can ever help educate you about anything real estate, please feel free to contact us anytime at firstname.lastname@example.org or 561.308.0175.