http://3oceansrealestate.com/blog/wisdom-of-crowds-meets-real-estate-introducing-my-currencycom.html Commentary on the real estate market of the San Francisco Bay Area Sat, 13 Mar 2010 18:45:15 -0700 http://wordpress.org/?v=2.8.4 hourly 1 http://3oceansrealestate.com/blog/wisdom-of-crowds-meets-real-estate-introducing-my-currencycom.html/comment-page-1#comment-19484 wendy kandasamy Fri, 02 Feb 2007 02:56:31 +0000 http://3oceansrealestate.com/blog/wisdom-of-crowds-meets-real-estate-introducing-my-currencycom.html#comment-19484 Just my 2 cents — Using the traditional valuation model for real estates, the “comp” for comparable homes, I guess the value to be in the low $1.4M range. The comp that I am using is 281 Creekside which is just a few houses down on the same side of the street. There were no less than 11 offers when that house sold for $1.27M in August ‘06. Adjust upwards for condition (~$50K) and larger (and more usable) lot size (~$80K), this puts the value at $1.4M. The value is “seasonally adjusted” to be about 10% higher (for spring market), then the value would be closer to $1.5M! The “collective” will bunch up ~$1.35M. Desperate buyers will know to go higher just to leave the pack. If the property has over 10 offers, it’ll probably shake out over $1.43M. The new owner knew that they would have to overpay what most buyers are willing to pay. The amount of over payment is what most buyers would like to keep as low as possible. So, the most serious buyer should use the collective intelligence model to predict the lower end of the selling price, not actual. Personally, I hope it goes as high as possible since this sale would be a fabulous comp for mine! Just my 2 cents —
Using the traditional valuation model for real estates, the “comp” for comparable homes, I guess the value to be in the low $1.4M range. The comp that I am using is 281 Creekside which is just a few houses down on the same side of the street. There were no less than 11 offers when that house sold for $1.27M in August ‘06. Adjust upwards for condition (~$50K) and larger (and more usable) lot size (~$80K), this puts the value at $1.4M. The value is “seasonally adjusted” to be about 10% higher (for spring market), then the value would be closer to $1.5M! The “collective” will bunch up ~$1.35M. Desperate buyers will know to go higher just to leave the pack. If the property has over 10 offers, it’ll probably shake out over $1.43M. The new owner knew that they would have to overpay what most buyers are willing to pay. The amount of over payment is what most buyers would like to keep as low as possible. So, the most serious buyer should use the collective intelligence model to predict the lower end of the selling price, not actual. Personally, I hope it goes as high as possible since this sale would be a fabulous comp for mine!

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