Determining An Offering Price on a Property in a Neighborhood

How does one determine an offering price in a neighborhood?

Start 5% below asking price?

Start at the tax assessed value?

Start at the price the seller paid, adjusted per market changes since that time?

Start $1K lower than the list price for every day it's been on the market?

Start at full price if it's a new listing and you think it will sell quickly?

Many or all of these strategies are likely to lead you astray.

In theory -- you should be willing to pay approximately the same price as other buyers have paid for approximately similar homes in the recent past.

For example....

• Buyer A paid $250K for a 3 BR, 2 BA, 1800 SF, circa 2000 home
• Buyer B paid $255K for a 3 BR, 2 BA, 1850 SF, circa 2001 home
• Buyer C paid $245K for a 3 BR, 2 BA, 1750 SF, circa 1998 home

When you then are considering a new listing of a 3 BR, 2 BA, 1800 SF, circa 2000 home -- it would seem reasonable to think that you'd likely pay between $245K and $255K.

Of course, there are a variety of other extenuating factors that can affect this pricing:

• Garage vs. no garage
• Basement vs. no basement
• Updates vs. no updates
• All SF above grade vs. some SF in the basement
• Level lot with large yard vs. steep lot with small yard

So -- how does one best research what homes are selling, and at what prices?

I'll remind you of -- HarrisonburgNeighborhoods.com.

On this handy new website, among other things, you can find a three year history of the sales prices in each of 34 neighborhoods in and around Harrisonburg. 

I hope that HarrisonburgNeighborhoods.com continues to serve as a helpful resource to you as you research home values, monitor for new listings, and more.  Don't forget -- you can sign up to receive email alerts of all new listings and recent sales in any of the 34 neighborhoods!