We see some agents advertise homes as "below market" here in San Clemente. Whenever we see a listing like this we always wonder if it's truly priced below market, and if it is what is wrong with the property? Some real estate agents will price a home very aggressively that is slighting below recent sales comps to generate a lot of interest. This results in multiple people interested in the property which causes the price to get bid up. For example, if the home is worth $1 million but the agent prices it at $850,000 to lure buyers into the property while hoping that several people will place bids on the home driving the price above the $1 million price point. Sometimes this does work and sometimes this backfires causing the home to sell less than what it should have.
A current example of a home being advertised as "below market" is the home listed at 401 Via Presa in San Clemente. The agent writes "Priced below market! This will go fast!" according to the listing description. It's a two bedroom, two and a half bath condo listed at $597,500. After looking at the photos and reading the property description there is no mention of the home needing work and the finishes look nice on the photos. The next step is to take a look at the comps to see what the recent sales are in this community called Vilamoura. In the last 6 months there has been 3 sales in Vilamoura for 2 bedroom units ranging from $589,000 to $684,438. It's important to note that there is a variety of 2 bedroom condos that range in square footages. The lower priced sale at $589,000 was at 1,434 square feet with the sales starting at $615,000 were with a large square footage units at 1,547 square feet. The property that's listed for sale at 401 Via Presa has the smaller square footage at 1,434 square feet so the current list price of $589,000 is not actually below market value as it's equal to one of the recent sales that sold for $589,000 as well with the exact same square footage.
Whenever you see a home advertised as "below market value" make sure to take this on face value only. Real Estate agents will say a lot of things to get a home sold but it's important to know what homes have recently sold in any particular community. Our San Clemente Real Estate agents can quickly let you know if a home is truly below market and considered a "good deal." For more information on buying home please contact us at 949-204-5110.