The information a homeowner in pricey neighborhoods needs in properly pricing their home is a combination of statistics and ‘the story’. The following is a demonstration of this mix taken from a current ‘Opinion of Value’.

Recent sales of homes above the $3M mark near your home were limited, but within the 3/4 mile radius, while light, they were sufficient to determine a most probable market value, thus I stuck to the immediate vicinity for the evaluation. (often we need to expand a search, particularly in the true luxury market).

In a challenging market, the PRICE PER SQUARE FOOT COMPARISON APPROACH is a useful analysis for understanding the shifting values. This per square foot information is provided here as a footnote only to provide a description of how the market has changed.

In all price ranges in the market area of Kentfield, Larkspur and Ross the average price per square foot in 2007 (162 sales) was $792. In 2009 (59 sales) the per square foot average is down 17% at $659.

In the $3M+ price range Kentfield, Larkspur and Ross during 2007 the average price per square foot on major home sales (homes over $3M) was $1005. The only 2009 Kentfield sale in this category was 22% less than 2007 at $781 per square foot.

The stories behind the recent sales provide some illustrations of the market activity in the upper reaches:

  • AAA is bank owned.

  • BBB, a short sale, has had three offers, two after an escrow fall apart at $4.7M. It came back on the market at $4M and is in escrow.

  • XXXX came on the market and was immediately met with three offers.

  • YYYY, a pre-foreclosure property, received an offer after a $500,000 price reduction and is due to close shortly.

  • ZZZZZ received offers after a $500,000 price reduction. It has had a total of three offers.

Interesting, isn’t it, that three of the five properties that recently sold have a bank participation component!

Posted by:Tom Verkozen