[5-DayForum] home valuation in MA

Bill Effros bill at effros.com
Sat Aug 4 10:01:00 EDT 2007


$99,500

Bill Effros



brentday at althor.net wrote:
> Dear Forum,
>
> Any advice on this?  Our house seems comporable to others
> that have sold between 215-300k.  If we thought it was
> worth $250k we'd list it at 124,500, but what if we
> thought it was worth $225k?
>
> Thanks!
>
> Brent
>
> On Fri, Aug 03, 2007 at 11:56:25AM -0400, brentday at althor.net wrote:
>   
>> Hi guys,
>>
>> Let me try the valuation another way and get your opinions.
>>
>> Ignoring Zillow, and going just on recent home sales in the last
>> 4 months:
>>
>>
>> 4bed 1.5 bath
>> 2100 sf
>> Lot 3844 sf
>> Year: 1880
>> $235,000
>>
>> 3bed 1.5 bath
>> 2200 sf
>> Lot 28,767 sf
>> Year: 1870
>> $305,000
>>
>> 3bed 1.5 bath
>> 1400 sf
>> Lot 10,890 sf
>> Year: 1900
>> $215,000
>>
>> 3 bed 2 bath
>> 2200 sf
>> Lot: 12,632 sf
>> Year: 1860
>> $232,000
>>
>> 3 bed 2 bath
>> 2100 sf
>> lot 13,300 sf
>> year: 1880
>> $300,000
>>
>>
>> My Home
>> -------
>> 4 Bed. 1.5 Bath
>> 2000 sf
>> Lot 26,126 sf (.6 acre)
>> waterfront
>> Year: 1860
>> $???????
>>
>>
>> Any ideas?
>>
>> Thanks so much!
>>
>> -Brent
>> On Fri, Aug 03, 2007 at 11:24:49AM -0400, brentday at althor.net wrote:
>>     
>>> Hi Bill,
>>>
>>> I'll do a search on zillow.  Glad to have your opinion.
>>>
>>> For what its worth, in the last couple months there have
>>> been home sales in my town for 3bed 1.5 bath that
>>> went for $300k and $305k.  Zillow just updated my
>>> home today and lists it at $247k (not including
>>> the improvements made).
>>>
>>> Perhaps I'm looking at it too much.  We're prepared
>>> to take much less than 250k as an offer, we're just
>>> trying to understand how to initially value it.
>>>
>>> State wide homesales for this year are -3%.  Spencer
>>> is listed as +6% however.
>>>
>>> This all is new to me...I might as well be reading
>>> tea leaves.
>>>
>>> Anybody else have an opinion?
>>>
>>> Thanks,
>>> -Brent 
>>>
>>>
>>> On Fri, Aug 03, 2007 at 11:12:34AM -0400, Bill Effros wrote:
>>>       
>>>> Brent,
>>>>
>>>> I just read your responses, and I also think you're starting to high.  
>>>> Look up some of my comments about Zillow.  As far as I'm concerned it's 
>>>> so far off at this point as to be useless.
>>>>
>>>> I doubt your home is worth $250,000.
>>>>
>>>> I would start it at $99,500.  If it's worth $250,000 you'll still get 
>>>> $250,000.  But if it's only worth $200,000, you'll still get 25 calls by 
>>>> Friday night if you advertise in the right places.
>>>>
>>>> 1.5 bathrooms for four bedrooms on a $250,000 house is a problem.  Most 
>>>> people will need more bathrooms.  Adding them will cost a substantial 
>>>> amount of money.  Especially in these times, when there are so many 
>>>> homes available, and sellers are just this side of desperation.
>>>>
>>>> Rereading my response, I might start at $74,500.
>>>>
>>>> Bill Effros
>>>>
>>>> brentday at althor.net wrote:
>>>>         
>>>>> Hi Bill,
>>>>>
>>>>> Wow, I guess I must have mis-understood the reasoning. 
>>>>>
>>>>> We live in a small town (Spencer), next to a large
>>>>> city (Worcester).
>>>>>
>>>>> Hmm, I guess maybe I should also advertise in the town
>>>>> weekly paper.
>>>>>
>>>>> I think I'm gonna go re-read your book and see where I went
>>>>> wrong.
>>>>>
>>>>> Thanks for the correction!
>>>>>
>>>>> -Brent
>>>>>
>>>>> On Fri, Aug 03, 2007 at 10:11:04AM -0400, Bill Effros wrote:
>>>>>  
>>>>>           
>>>>>> Brent,
>>>>>>
>>>>>> I just got to the bottom of your e-mail.  As noted previously, we don't 
>>>>>> know what your town is, at least we don't know if we've only read this 
>>>>>> e-mail.  Your advertising strategy sounds like the reverse of what I 
>>>>>> would recommend.  The exact people you want to reach are those in town.  
>>>>>> Even the ones who are just nosing around.  If they like what they see, 
>>>>>> even if they are not themselves the real buyers, they will send the real 
>>>>>> buyers along.  The people around town know your home is worth much more 
>>>>>> than you've asked.
>>>>>>
>>>>>> Bill Effros
>>>>>>
>>>>>>
>>>>>>
>>>>>> brentday at althor.net wrote:
>>>>>>    
>>>>>>             
>>>>>>> Hello 5-Day Forum!
>>>>>>>
>>>>>>> I'm going to be running my 5day sale next week
>>>>>>> and was hoping you'd be kind enough to give me
>>>>>>> your advice.
>>>>>>>
>>>>>>> I'll be more than happy to share my experience
>>>>>>> of the sale during and after the process
>>>>>>> with everyone.  I have also contacted other
>>>>>>> people in my state who have run a 5day sale
>>>>>>> and will report on what their methods and
>>>>>>> successes were.
>>>>>>>
>>>>>>> Since I'm running the sale next week, I need
>>>>>>> to submit the advertising soon.  I'd like
>>>>>>> your feedback.  This is in Massachusetts.
>>>>>>>
>>>>>>> Our tentative ad:
>>>>>>>
>>>>>>> MYTOWN                  BY OWNER
>>>>>>>  Waterfront. 4 Bed. 1.5 Bath
>>>>>>>  Well maintained. Active wildlife.
>>>>>>>  $124,500 or Best Offer
>>>>>>>  Inspection Sat-Sun 10-5
>>>>>>>  Will be sold Sunday Night to
>>>>>>> HIGHEST BIDDER   (555) 123-4567
>>>>>>>
>>>>>>> We will be advertising:
>>>>>>> Boston Globe
>>>>>>> Telegram and Gazette
>>>>>>> Craigslist
>>>>>>> ForSaleByOwner.com
>>>>>>> Owners.com
>>>>>>> [and a couple other free internet ones]
>>>>>>>
>>>>>>> I have read recently in the forums about the "Flyer" option.  A
>>>>>>> full page flyer copy of the adcopy included in the papers.  It seemed
>>>>>>> to get a real good response.
>>>>>>>
>>>>>>> The flyer option for the Telegram&Gazette is $85 per 1000 copies.  The
>>>>>>> newspapers total circulation is 160,000, with a discount at about $9000
>>>>>>> for a full run.  Obviously that is too much...so I wonder if doing a 
>>>>>>> couple
>>>>>>> thousand is worth it or if that might skew my results.
>>>>>>>
>>>>>>> Another option, is that the T&G puts out a Home Magazine every wednesday
>>>>>>> (this timing seems rather fortutitous).  A quarter page ad is about $300.
>>>>>>> I could pick the half of the city nearest my home or further away (there
>>>>>>> is a west and east version).
>>>>>>>
>>>>>>> Lastly, the Boston Globe has an Open House feature every friday.  Your 
>>>>>>> ad is
>>>>>>> also featured in a grid with all other open houses.  The person on the
>>>>>>> phone wasn't clear what could be included in that ad, but it did seem
>>>>>>> price and minimal data (rooms,baths) would be.  I'll get tomorrow's
>>>>>>> paper and see what it looks like.  This is only an extra $30 on top of
>>>>>>> the regular classifieds listing.
>>>>>>>
>>>>>>> So please let me know what you think of these other advertising 
>>>>>>> options.  I most sincerely appreciate it.
>>>>>>>
>>>>>>> The only other thing I would note at this point is that I am avoiding 
>>>>>>> advertising in-town.  I'm trying to hit the major real estate papers but
>>>>>>> want to avoid skewing my 25 callers with people in town that want to
>>>>>>> "see whats happening", but have zero intention on buying.
>>>>>>>
>>>>>>> Thanks so much,
>>>>>>>
>>>>>>> Regards,
>>>>>>> Brent B.
>>>>>>>
>>>>>>> _______________________________________________
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>>>>>>>
>>>>>>>  
>>>>>>>      
>>>>>>>               
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>>>>>>             
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>>>>>           
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