WHY IS THIS SO ?
Why is this so ? a regular and intriguing question in the world of real estate. It would be fair to assume that in the same street and with similar internal and land characteristics, houses would sell at similar prices, but one house sells for much more than the other homes, so why is this so?.
To even attempt to anticipate or answer this hypothetical theory is mind boggling as there are way to many reasons that this may occur. And for this reason I refer back to what we have previously recommended, before buying real estate seek the services of a local professional for their assistance. This may add to your acquisition costs but may also save you multiple of thousands of dollars.
Some possible reasoning’s for such difference in the price may be as simple as the permissible use of the land (Zoning), this particular zoning may have a substantial difference in the floor space ratio of future developments.
Adjoining property owners may see the major benefits of buying the home next door for various reasons, there for these people may be prepared to pay much more than what the current market is prepared to pay.
Sentimental feelings may be another reason for an out of line sale, this is the case when a home is purchased for above market values, as it may have belonged to the family, or a loved one previously .
So when attempting to value real estate this thought may come to our minds (why is this so ?) and at times will test our character, but none the less never feel defeated as the answer never lays far away from the area you are searching in.
Conclusion: Never assume what one person pays is a market value.