I sold a house to a very cool family I have been working with for a while. We’ve looked at a lot of houses and I have become pretty close to them. We always have a great time looking at houses and talking about our favorite Lexington restaurants.
But this post isn’t really about all that. I just wanted to give you the background.
This family has owned several houses before. This is the first one using me as their realtor. The last two they ended up selling for less than they paid for them. Granted, that happened to a lot of people between about 2007 and 2012. They are understandably nervous about it happening again.
While I don’t have a crystal ball to predict what will happen in the future, I told them I thought they would be in good shape with this house. Why? Because the value of their new house is right smack in the middle of the range for the neighborhood. That is always a safe place to be.
This house is in Hartland. The range in Hartland is between the low $200s all the way up to over a million. Most fall in the low $300s to mid $400s. When you think of Hartland, it is the houses in this range that pop in your head more so than the ones under $300k or over $500k. Which houses in this (or any other neighborhood) do you think would be the hardest to sell? It is the cheapest and most expensive ones. See, somebody looking at the low $200k house might be thinking that they could go to a slightly less fancy neighborhood and get a better house for the same money. The buyer in the high range for the neighborhood is thinking they might want to be in a neighborhood with more houses in their price range.
Any neighborhood has a range of values. Most don’t have as wide of a range as ones like Hartland, Chevy Chase, Ashland Park, Greenbrier, etc. Even if you are shopping in a neighborhood with a narrower range of values, you are usually best to stay away from both the lowest and highest price houses.
So I think my special family is going be just fine with the house they have picked!