For a guy who likes to thoroughly analyze things, I made a mistake when selling my house that could have cost me hundreds of thousands of dollars. Before accepting the final offer, I failed to do a thorough analysis of what similar homes bought at a similar time for a similar price sold for most recently. Instead, I just looked at current listings, recently sold homes no matter when they were purchased, looked at how the overall median price point moved, took my realtor’s guidance, and went with my gut.
In other words, I extrapolated the overall trend of the real estate market and applied it to my house without finding apples-to-apples comparisons. If the SF housing market was up 50% since 2012, so was mine! I now realize after writing this post why I wasn’t more thorough. I was afraid I wouldn’t like what I found. My house was on a busy street near one of the busiest streets in San Francisco (three lanes each direction). I didn’t want to relive the disappointment when I tried to sell the house in 2012 and failed.
To refresh, I bought a 2,070 sqft, three bedroom, two bathroom single family house with an unwarranted room and bathroom on the ground floor on a 2,300 square foot lot in February 2005 for $1,525,000. I tried to sell the house for $1,700,000 in 2012, but didn’t get a single offer. Finally, I sold the house in June 2017 for $2,740,000 because I no longer wanted to be a landlord.
In this post, I will now do the exercise I should have done before I listed my home. This is an exercise you should do too if you are planning on selling your home. If you don’t want to do it, make your real estate agent do it! You will be amazed at your findings.