Question for you. A 5000 sq ft home 50 yards away from another 5000 sq ft home. One is $10 million and one is priced at $4 million. Why? Simple, one is on the beach side of PCH and one is on the hill side of PCH. How can there be such a huge price gap? So many of the neighborhoods our group handles, have price challenges because no two are alike. I have always felt the market (buyers) will determine the value of a home that is for sale. If we price a home and it is within reason, we should be able to come to terms. Just this last year we sold a 3000 sq ft home with no pool, spa or views for over $1.6 million but a mile away a home had great views, pool & spa and 3400 sq ft; we sold that one at $1.4 million. Two buyers wanted the $1.6M home and only one wanted the $1.4M. Why? Because the buyers at that moment were interested in a contemporary design versus a more traditional one. Pricing in our custom areas, despite the economy, is the most challenging aspect of our business.
This is Dave, from The McLaughlin Group, keeping it real in real estate!