Why did one townhouse sell for more than the other? [Rockville]
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Anonymous
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I am seeking opinions on why this townhouse:
https://www.redfin.com/MD/Rockville/409-Oak-Knoll-Ter-20850/home/11190942 sold for more than this one: https://www.redfin.com/MD/Rockville/206-Oak-Knoll-Ter-20850/home/11190586 206 Oak Knoll sold for $863k and 409 Oak Knoll sold for $870k. 206 Oak Knoll has more square feet (2540 vs. 2432), more bedrooms (4 vs. 3), no need to walk up a flight of stairs to main level from garage, and a larger garage. The only difference I can tell is that 409 Oak Knoll has a deck vs. a patio and looks out to free space vs. street/alley. Is that worth $7k for a smaller place with a more tedious entry? I don't get it so I must be missing something. |
Anonymous
| The cheaper one sold a month earlier for less than 1% difference. Pricing is not an exact science, and that’s not a significant difference. Timing matters a good deal in this area, as well as what the competition is at the time. I don’t think you can put any meaning on a $7k difference at that price point. |
Anonymous
Above is correct. Houses and availability vary and they are not interchangeable. |
Anonymous
| Thank you, PPs. The smaller type of townhouse used to sell for $25-50k less, but now they are selling for similar amounts. It could just be the limited supply because they are very similar. Thanks for helping me understand. |
Anonymous
| It depends on the competition for that specific house. We got our house without going to the maximum of our escalation because the other parties bowed out. Similar homes that sold before and after went for anywhere from $25-100k more than what we paid. |
Anonymous
| There might be closing cost credits not factored in which may make one price look higher than it was. |
Anonymous
I think this is right, OP, because I am seeing the same thing in my neighborhood as well. Limited supply and desirable place to live - so buyers are happy to being getting a townhouse at all. My neighborhood also has more of the smaller model so that is what people expect and don't necessarily try to wait it out for the chance at a slightly bigger one. So consider it a lucky bonus if you have the model you prefer! |
Anonymous
Are you serious? 863k and 870k are the “same price”. You call a 7k difference a price difference? |
Anonymous
I do! I just thought it was weird that my model used to sell at a premium and now does not. |
Anonymous
Average family size/number of kids keeps dropping every year. Could be that the premium for a 4th bedroom isn't as much- fewer people with 3+ kids, on average, smaller pool bidding that up. Same reason why most new apartment buildings rarely have 3BR units, and not that many 2BR. Average household size in the US is a full person lower than it was 60 years ago. |
Anonymous
| That is a really negligible amount of money, OP. I thought we were going to be talking $25K. $7000 is just a timing thing - there happened to be more people looking when the $870K house sold and they knew the other house sold for $863 so it got bid it up a little higher. This is nothing. |
Anonymous
| Agree it’s a negligible price difference. Also, the one that sold for more has better pictures and looks much brighter inside. And yes, having the back of the house face open space rather than a street and more houses is definitely worth a premium. |
Anonymous
| I don't get why people would pay that much for a townhouse. Both are dated builders grade. |
Anonymous
Because if you want to live in that neighborhood, you would need to spend 1.3M to buy a SFH. Most people would rather live in a TH in a top neighborhood, than in a SFH in a bad neighborhood. |
Anonymous
| Multiple offers or give us your best and final offer by 6 PM on Tuesday. |