Things To Keep In Mind When Comparing Home Prices
When people compare their house to other houses in their area or neighborhood (also known as a CMA or Competitive Market Analysis), by default they compare the following attributes:
- Square footage
- Number of Bedrooms
- Number of Bathrooms
This is a good start, but there are other features in a house you should keep in mind when you are trying to figure out the “market” price for a house.
Let’s say we have a house in Coles Crossing that is 3500 square feet with 4 beds and 3.5 baths. I may run a CMA for all houses in Coles Crossing with 4 beds/ 3 baths between 3000 and 4000 sqft. As of today, that returns me the following averages:
- $91.22/sqft list price for active listings
- $85.62/sqft sale price for sold listings over the past 6 months
Pool?
When doing a CMA, it is always a good idea to filter by “with pool” or “without pool” which is evere applicable for the particular house you are comparing.
Using the same criteria as above:
With Pool:
- $95.14/sqft list price for active listings
- $91.95/sqft sale price for sold listings over the past 6 months
Without Pool:
- $90.13/sqft list price for active listings
- $82.44/sqft sale price for sold listings over the past 6 months
3 Car Garage?
With all of the stuff people accumulate through the years, 3 car garages have become very sought after and definitely makes a difference to a home price.
With a 3 Car Garage:
- $94.98/sqft list price for active listings
- $92.55/sqft sale price for sold listings over the past 6 months
With a 2 Car Garage:
- $89.69/sqft list price for active listings
- $83.19/sqft sale price for sold listings over the past 6 months
On a Cul-De-Sac?
Living on a cul-de-sac is not going to have as big of an impact on pricing as an extra garage or a pool, but it is something to keep in mind especially in neighborhoods with families with small kids.
On a cul-de-sac:
- $94.48/sqft list price for active listings
- $86.37/sqft sale price for sold listings over the past 6 months
On a through street:
- $91.06/sqft list price for active listings
- $85.35/sqft sale price for sold listings over the past 6 months
Other Considerations
There are lots of other potential considerations depending on the neighborhood such as:
- Lake view (good)
- Golf course lot (good)
- Backs up to a highway (bad)
- Lot size
- etc
In short, there is more to look at than just square footage, bedrooms, and bathrooms when determining the market price for a house.
Here is a summary table of the CMA data used in the post.
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