Is there any more important rule in real estate than, "location, location, location"? In case you've been living under a rock, that's the answer to the question, "What are the three most important factors in buying a home?" The basic idea is that it's not the Sub-Zero fridge, the spacious deck, or the fancy faucets that dictate whether a home will hold its value. What matters most is where it's located.
USA Today proves the point yet again today with new findings from a Coldwell Banker survey. The survey looked at similar houses -- all with four bedrooms, 2 1/2 baths, a family room and a two car garage -- and compares how much they cost in 384 markets around the world.
The most affordable place in the U.S. is Minot, North Dakota, where a four-bedroom home lists for $132,000. The least? Beverly Hills, Calif, where the price tag is $1.8 million. Take the trends abroad and you can pay $1.8 million for that kind of house in Milan, Italy, or just $56,500 in Bogota, Columbia. The average sale price in the U.S. is $424,000 (you can parse all the data here).
What good does this information do you? Well, if you just paid $2 million for a split-level in Greenwich, Conn., and are worried you bought at the peak, this data may make you feel better. At least you bought in a premium location that will hopefully hold its value.
Better yet, if you are thinking of trading down, a handy tool at the Coldwell Banker site allows you to crunch this data and see how much a home comparable to your own would cost anywhere else in the country. For example, you can trade in that $2 million Greenwich home for a similar $278,000 house in Amarillo, Texas, should you one day decide to head to cattle country with plenty of free cash in hand.
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Reader Comments (Page 1 of 1)
9-29-2006 @ 3:39AM
MARIANO RAMOS JR said...
hello from magic Orlando Fl. In Jan/2006, beg. of the year I refinanced my house in North Shore, Lake Hart community.
The house is 5/3 two stories, 2CG, Swimming pool, and all the trimings. Because of a Ad RL I went to fixed rate. The house was appraised @ $452,000.
My loan balance is 240,000. Good deal?
Same houses in the neighborhood are in the market for less than $400,000.00 and not even getting offers. That's only seven months difference. Equity down the drain. God bless America.
9-28-2006 @ 12:21AM
Terry Wahlberg said...
That's strange! Real estate professionals have told me it's no longer location. location. location. It's now disclose disclose,disclose. That is if you're interested in avoiding litigation in the future.
9-27-2006 @ 11:25PM
Christopher William Carman said...
I just visited in Key West where a 575 Sq Ft. Bungalow was selling for $650,000. In My neighborhood, that is a cheap price on Longboat Key, FL, 34228. If You have the Money go for it...There is always a home for sale but never more land for sale.
11-26-2006 @ 11:13PM
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11-23-2006 @ 2:17PM
Property Salvage said...
Location, location, location?
I would like to see the statistics of home sales in the country, I think that more people are moving south for a more conservative place to raise their families with old fashion family values and be with likeminded people. Not to be political but are the "red states" growing any faster than they were. Please tell me how your market is at
http://propertysalvage.wordpress.com/
Property Salvage
www.propertysalvage.com
12-12-2006 @ 7:32PM
Property Salvage said...
Location, location, location?
I would like to see the statistics of home sales in the country, I think that more people are moving south for a more conservative place to raise their families with old fashion family values and be with likeminded people. Not to be political but are the "red states" growing any faster than they were. Please tell me how your market is at
http://propertysalvage.wordpress.com/
Property Salvage
www.propertysalvage.com