Tuesday, April 3, 2007

Just Fishing?

I was running some comps last week on a house in Tempe to see where the market in that area was heading.  House prices have been increasing in this particular area, even with the slow market.  However, I was shocked to see two houses listed at nearly DOUBLE the list price of similar houses in the neighborhood.  Now why would these two houses be worth so much more than the others?  I took a look at the details and one of them does have a guest house, which increases it's bedrooms and square footage by enough to justify some increase in price.  However, the second house doesn't seem to have anything unique to boast (no pool or jacuzzi or exceptional landscaping, etc) except some good historical value in the neighborhood based on who has lived in the house in the past.  Now, I"m all for history but if the house is not designated a historical property, does the history of who lives in the house really count for asking double the list price of all other houses in the neighborhood?

It will be interesting to see what these two particular houses sell for in the end, or if the owners are "fishing" to see what kinds of offers they can get.  Possibly they are hoping for investors to buy the house for the land property value alone, to turn into condos or apartments. 

If both of these houses sell for close to their asking price, it will also be interesting to see if everyone in the neighborhood starts doubling their prices and bringing everyone's property values up with them.