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2016 New Home Values being added to Community Profiles Main Idaho Real Estate Insights

Build Iaho is adding 2015 new home sales data to community profiles. Here is what home buyers should understand.

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New Community Pricing Guides

The table includes:

  • Average Sales Price
  • Total Sales recorded (accroding to Intermountain MLS)
  • Average Price per Square Foot
  • Range of home prices in community

As a home buyer, every # is important. Knowledge is power and understanding the overall picture of the community will help you understand what you are getting for you money. We recommend reviewing all the #'s and talking to one of our agents so you understand what they mean but let's take a moment and discuss them briefly.

We include the average sales price as an overall summary of the community. This is an average so as part of your research take a closer look at total sales as well. The more sales in the community, the more solid that # is as a representation of home values in that community. For example if there are 111 sales, like Paramount, that is a lot of data so the average value in the community is very relevant. But, if there are 2 sales representing the average sales price you may want to review sales price range. If the low and high slaes numbers are relatively close together, you can have confindence in the average. But what if the low value and high value differ by $300k+?

In this scenario you should inquire about more details. One reason could be that there is a phase of luxury waterfront homes and patio homes in another phase. This is true in Legacy Community, for example. It could be that just one home is worth (or at least sold for) significantly more. As a home buyer, you would not want to be the guy who owns a home worth significantly more than other homes in your neighborhood. This would pull your value down. So, if you are buying or building a home and want to keep your value, make sure that the predominant values around your home are similar or more.

The average price per square foot is a great reference tool. You should not use this as an end all # though, we have explained 'price per square foot' several times in other posts. It is something buyers want to know but sellers do not like to het into and there are two predominant perspectives why.

  1. The Value Perspective
    Two people go shoppinmg one likes wine one likes beer. In buying a home these differences may be things like- carpet vs hardwood floors. Another could be heated floors or granite. All of these choices can affect the price per square foot but sometimes they are personal choice based on what you like and your economics.
  2. The Grocery Store Theory
    Similarly it is like going to the grocery store for food. One cart has burger, fish fillets, cereals, pop and snack cakes. The other has steak, salmon, ingredients for a cake and fresh fruit. The price per pound is very different but they both will feed one for a week. Now pretend they both represent houses but they are covered. Which one do you buy. If you know what is under the cover, that would help with your decision? What if you did not know what was under theh less expensive one, would you question the price. Imagine that is like a builder who cuts corners and tries to sell his home as the sale price or value as the cart with steak. The conclusion is that price per square foot can be very deciving.
Posted by tlangford at 2/6/2016 3:26:00 PM

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