San Antonio Real Estate Market Value-A Range of Possibilities


To me, San Antonio real estate market value should be describedmeasureing san antonio's real estate market range as a "Range of Possibilities" rather than a specific amount. Establishing market value is an important aspect of my representation duties for a Buyer or Seller. It is an aspect of the job that I do not take lightly.

Missing the market value range for a Seller means either setting the asking price so high as to not receive good offers or so low as to not receive adequate compensation for the Seller. (In point of fact, I've never seen a Seller set the price below market value, but it must happen, someplace.) Real estate market value is specific to the neighborhood. Even with the same builder, a D. R. Horton house in Westover Crossing may have a different value than a house in Panther Creek, even with the same floor plan.

When the market value range is missed for a Buyer, worst case, they pay more than market price for a property. If it is a property they really want, they may be willing to pay above market price, but it should be done with eyes wide open. The best advice I heard about real estate in missed market range-unbalanced situationmy early years, even before I got in the business was, "Don't over pay for a piece of real estate." That is unless you are willing to accept less for it when it is time for you to sell.

One of the challenges in real estate is helping Sellers understand how the "market" values properties. I believe the most valid value mechanism is comparison of similar houses sold in the same neighborhood over the past few months. I prefer to use the most recent three month period to get a comparison pool.If not enough sales have occurred during that time frame, I will use the past six months for the comparison pool.

I like to use the same process for Buyers and Sellers when I provide a estimate of the market value range. I prefer to use a range of value because the motivations driving the Buyer and Seller are different. Each will apply different degrees of importance to the features, location, and condition of the property. And there is no one right answer.

How do I know there is no one right answer? Compare the initial asking price of the last one hundred sales in the community with the actual sales price. It's no where near 100%.  Therefore, establishing a market price for a house is not like pricing a pizza. The price is not set in stone.

My market value range estimate is as objective as I can make it. Virtually every house has "potential". The mistake some Sellersmake is to believe the potential they see matches the needs and wants of a Buyer. When a Seller attempts to add that "potential" to the price, things get out of balance. Some Buyers do not want the hassle of buying a house and then spending on a rehab project, or worse, a money pit.


 
Be as objective as you can when establishing the Asking Price as a Seller and the Offer Price as a Buyer. We are all human and some element of emotion will creep into the deal. But if we do a good job of establishing a realistic market value range, the parties face a good possibility of reaching a deal that will work for both sides.

Are you looking for someone to help you establish the a realistic market range for your real estate goals? Let Google show you the way.

Previous Blog Posts

Speechless Sunday: Standing Up To the Heat-The Mighty Oleander
Government Is Not Business-Too Bad It's Not More Businesslike
Surprise Ending
How'd You Like a Nice Cold One
Complaints Addressed: Head On
Gated Communities in San Antonio-Part 2
San Antonio's Gated Communities: Secure But It's Not Fort Knox


My Networks:http://rlty.me/SanAntonioRealtor

Wayne Johnson
18756 Stone Oak Parkway
San Antonio Texas 78258

Coldwell Banker D'Ann Harper Realtors®
Texas Real Estate License # 0566780

wjohnson@cbharper.com

Wayne-Johnson.com

210.483.6329 (Tel)
210.483.4729 (Fax)

Texas Law requires all real estate licensees to give the following information about brokerage services: http://www.trec.state.tx.us/pdf/contracts/OP-K.pdf

©All rights reserved, August 2011, San Antonio Real Estate Market Value-A Range of Possibilities

 

 

 

21 Comments on San Antonio Real Estate Market Value-A Range of Possibilities

20 Most Recent Comments Displayed Show All

AUG
01
2011
201,840 Points Outside Blog Called Shot Master

Hi Wayne~ You always provide excellent reasons why a buyer and seller should call you for all of their San Antonio real estate goals!

I haven't seen the money pit in years! I'm going to have to NetFlix it up!!

 

Suggest! 
8:55pm • #2
AUG
02
2011
1,100,630 Points 51 Featured Posts Outside Blog Called Shot Master

Today's real estate buyer has instant access to more properties, more about those listings with image rich, copy loaded, video embedded and map generous listings to eyeball, listen to. Any time of the day, night available like a drive through. When a caller asks for a ball park value on an acre of land, or whatever property, over the same phone I tell them it depends on a slew of factors, variables about the property itself, the ones around it. And then ask them "what is a diamond worth"? They say it depends. Yes it does. You don't pull value out of the air, out of a book and requires experience, thought, data, an agent, broker, REALTOR's help.
5:36am • #3
355,728 Points 19 Featured Posts Localism Sponsor Attended Rain Camp Called Shot Master

Carl and Ceil-Thanks, I appreciate you comments.

Judi-MoneyPit is a bit over the top, and boy does the young Tom Hanks make me feel old

Andrew-That is a great word picture on the diamond.
6:04am • #4
1,309,415 Points 96 Featured Posts Outside Blog Hit Router Attended Rain Camp Called Shot Master

It's all about educating them about all their options, right?
9:18pm • #5
AUG
03
2011
1,142,810 Points 242 Featured Posts Localism Sponsor Outside Blog Hit Router Attended Rain Camp Called Shot Master

Awesome post, Wayne!  Who ELSE would anyone call when they need an agent in San Antonio?!
11:37pm • #6
762,343 Points 69 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

This is a tremendous post, Wayne.  Range of possibilities indeed.  Your clients are lucky to have you and those buyers and sellers that that don't, should
11:42pm • #7
AUG
04
2011
112,852 Points

I know who to send my San Antonio referrals to now.

 
12:36am • #8
975,855 Points 6 Featured Posts Outside Blog Attended Rain Camp Called Shot Master
There is a spot on our mls listings that allow agents to set a range for list price but have not seen it done.
12:49am • #9
300,008 Points 7 Featured Posts Outside Blog Attended Rain Camp

Hi Wayne, great post. I know some firms here in our area tried to do the market value range, but it never really took off. I'm glad it works for you there!
1:39am • #10
164,324 Points 1 Featured Post Outside Blog

This is some really good stuff- great post.
3:38am • #11
731,668 Points 15 Featured Posts Outside Blog Called Shot Master

Wayne, the important thing is that the sellers list within the range. Most sellers want to list at the top of the range and most buyers want to buy at the bottom of the range. At lease there is negotiation room within the range Good Post!
9:04am • #12
4 Featured Posts Attended Rain Camp

Great post, Wayne.  I can fully appreciate the "Range of Possibilities" statement.  As long as there are human beings in the mix, you never know what can happen.
2:02pm • #13
AUG
05
2011
590,749 Points 56 Featured Posts Outside Blog Called Shot Master

Hi Wayne, These are some great advice for those sellers and buyers in San Antonio. I believe the key is Being Objective with the Price for both the seller and the buyer.
1:21am • #14
AUG
11
2011
123,601 Points 5 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wayne: Good post! You're so right--it's not like pricing a pizza!

I also like the sound advice to sellers about trying to price in "potential." Every home has tons of potential, but buyers are paying for facts, not ideas! Pricing a home based on potential is like asking 10% more than it's worth because one day it will be worth that.

Just isn't gonna happen.

Enjoyed the post!
3:47pm • #15
AUG
12
2011
565,074 Points 75 Featured Posts Outside Blog Called Shot Master

Wayne--Fabulous way to describe the market! A range of possibilities...congrats on the feature!
10:00am • #16
390,255 Points 34 Featured Posts Outside Blog Called Shot Master

Wayne - Sounds like you are doing an EXCELLENT job assisting the buyers and sellers in San Antonio Real Estate!!
10:42am • #17
AUG
13
2011
1,653,168 Points 134 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wayne, I have always heard that you don't make money when you sell a piece of property.  You make it when you buy it. 
11:05pm • #18
AUG
16
2011
1,311,625 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wayne  I know you know real estate.  Anybody moving to San Anyonio would be wise to seek youe counsel.  I am going to suggest for feature - this is very helpful information
5:48pm • #19
1,311,625 Points 65 Featured Posts Outside Blog Attended Rain Camp Called Shot Master

Wayne  Sorry - the suggest button doesn't show up - must be an AR glitch
5:50pm • #20
AUG
26
2011
765,273 Points 2 Featured Posts Localism Sponsor Outside Blog Attended Rain Camp Called Shot Master

Great post Wayne.....price is what all the buyers are interested in......you just have to price it right!
7:42am • #21

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Wayne Johnson-San Antonio Homes For Sale San Antonio REALTOR

San Antonio, TX

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Coldwell Banker D'Ann Harper REALTORS®

Address: ATTN:Wayne Johnson, 18756 Stone Oak Parkway, Suite 101, San Antonio, TX, 78258

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