“THE PRICE IS RIGHT”?
Preston Hollow and Northwood Hills Real Estate

Arguably, the single most important aspect of one’s selling strategy is getting the listing price right! Wishful thinking or testing the market are not sound strategies.  

When most areas of the country are experiencing reductions in home values reaching double digits as a percentage, North Dallas, and more specifically Preston Hollow, and Northwood Hills is faring quite differently.

There are several reasons for this phenomenon. First of all, far North Dallas did not experience the wild inflation that was a part of many other markets in the United States. Therefore, the affordability index, the ratio that compares housing prices to incomes, was never out of whack in Dallas. There was never a need for a pricing correction. Secondly, nearly 300 people are moving to the area daily. Thirdly, we are optimistic about our economy because of the Barnett Shale, a natural gas source bed rock that stretches over 16-21 North Texas counties and is still actively being discovered, and what that means for us locally now and for the next thirty years or more. Its 6000+ square mile reservoir is already the second largest producing on-shore domestic natural gas field in the United States.

North Texans are not immune to the impact of the financial crises our country faces, however.  Our region has been hit hard by foreclosures and short sales over the last couple of years.

So what if you have experienced a change in your life, and find the need to make a move?

In most of Dallas’ more established neighborhoods, prices have remained steady to down a percent or so in some cases, days on market are up, and inventories have remained relatively constant. In these neighborhoods there is a wide range of values due to the condition of the home, the degree in which the home has been updated, and the lot the home sits on. Older neighborhoods elicit a slightly different buyer than the brand new high end developments in west Plano or Frisco, for example. The buyer in North Dallas is purchasing, first foremost, location and convenience. Secondly, the purchaser values the home’s surroundings. Lot, trees and privacy are important to him/her. The home itself is only important as a subset of the first two considerations, as the buyer acknowledges, it can be changed or modified.

Now that we understand the likely buyer for your home, can we assess what it is truly worth. After all, it is “the ready, able and willing buyer” who will ultimately establish its’ value.

Given what we know, the first thing we need to establish is “what is my lot worth”?  In Northwood Hills, north of LBJ, for instance, the standard lot size is approximately one half acre. South of LBJ, in the Preston Hollow area, lot sizes vary, but are typically worth approximately $1M/acre. Because Northwood Hills is further than Preston Hollow, from downtown Dallas, by ten minutes to fifteen minutes, one can expect lot values to be a

 little cheaper. A buyer will expect to get more for his money in Northwood Hills than he would expect to get south of LBJ. Are there trees on the lot? When I look out to the back yard, do I see a neighbor’s roof, or second story windows?

By comparison, in newer neighborhoods in west Plano and Frisco and others, the builders have gone to great lengths to put gorgeous homes with state-of-the-art finishes and amenities in them, but most have very little useable yard, other than a pool in some cases, little to know vegetation, except what came with the builder’s landscape package, and most of what one’s sees when they peer in the back yard is concrete and the high-pitched roof and second story windows of their neighbors.

Another consideration is how the home’s condition compares to its’ competition? This includes how the home has been maintained. Have the systems been updated? How old is the roof? Are the windows thermal-paned? Does the home need interior or exterior paint? Will the buyer have to come in and neutralize the color scheme? Is the home move-in ready?

And thirdly, is this a home the buyer will be able to expand? Does it have the space that will give a buyer the flexibility to have what owners in 2009 expect in a home, i.e. an office or study, a guest bedroom or mother-in-law suite, an exercise area, a gourmet kitchen that can be opened to the family room or main living area? Or, should the home be priced at lot value?

Finally, what is the value range for a home that has been totally renovated? And, what is the value of a home that has been torn down and re-built from scratch?

In Northwood Hills, sold values range from approximately $120/ft to over $240/ft. It is very important to understand these nuances when pricing a home for sale. If the Price Is Right, Bob Barker or now, Drew Carey might concur, that the sale price will actually be higher than if the home’s list price starts too high and then must endure several price reductions during its’ marketing period. The longer the home is on the market, the less it is worth! Contact Judy Switzer & Associates at www.judysellsdallas.com or call 214-445-6555 to get an assessment of your property’s current value.