Why do they do that? Common mistakes by your neighbors! (3)

The proof is in the pudding!

 It frustrates me to see homeowners make the same kinds of mistakes that they have been making for almost 30 years that I have been in the business. Almost every month as I am typing this newsletter, I see comparable sales come up that I know, I could have achieved a higher price for in the neighborhoods that I work. This month is no exception as I see a Casa Grande model in Rancho Santa Fe sell for almost the same price as one I sold in the same time frame except the one I sold did not have a pool. The seller probably lost around $10,000 on that transaction. I also see another Azure model with a pool listed in the mid $180’s and get about 20 offers while I sold the same   model for $202,500 and mine did not have a pool.

Here is the major difference. I work this area and have a reputation with appraisers and other agents in these particular areas. I also live in the Rancho Santa Fe area and have a vested interest in maintaining and increasing home values in this area for myself AND for my clients. That is not to say that we never have appraisal issues because that is untrue. I have appraisal issues on a regular basis. This is because we are always trying to push the envelope as far as market value goes. I am not trying to recreate the bubble by overinflating values but I feel that our values could stand to increase for most of the rest of this year without significant chance of       overinflating home values.

In Crystal Gardens, there is a huge difference between a home that is on the lake and one that is not as far as price. 

In Rancho Santa Fe, there is a difference in price between the older sections (that usually have larger lots) and the newer sections and the price is generally not higher in the newer section (although it is not very much) which is contrary to logic.

My favorite war story occurred a few months ago arguing with an appraiser and he was taking off of the sales price on my property because it did not back to a greenbelt and the comparable property did. The greenbelt the appraiser was referring to was actually the historic cemetery in Sage Creek. Personally, I do not feel that     backing to a cemetery adds value but in the appraisers mind it did. I actually lost that argument.

If you happen to live backing to one of the greenbelts then you are also aware that Saturday morning soccer games start very early and are natural travel paths for the local howling mobs of coyotes and I am not talking about hockey fans.

I also know that one of the biggest selling points used to be that the home was located “close to schools.” This may be the case but if you live next to Wigwam Creek, Corte Sierra, or Rancho Santa Fe Schools, you know what the traffic is like at dismissal times and the traffic jam at Millennium High School is legendary.

There is also an issue of knowing the school districts. I constantly warn clients buying in the area to check and double check the school district boundaries. The Agua Fria School District and the Litchfield School District in particular have several schools that are constantly at or near capacity while other schools are well under capacity. ( I know because I volunteer at the school. ) These boundaries change at the very least every couple of years and so someone buying a home to ensure their child can go to XYZ school may find out that the boundaries have changed in the year since they purchased their home.

To be successful in today’s market, an agent must be very experienced in pricing homes, negotiating contracts, presenting a logical argument for the contract price to appraisers and most importantly have a track record of fighting for and receiving the highest possible price for a home. This is critical for you as the consumer and also for your neighbors as the price you receive, directly impacts the pricing for your neighbors home as well.