Location, Location, Location: Beyond the Cliché, Sellers Must Navigate Variables to Come Out on Top
By Ryan Mathys and Tracie Kersten, http://LaJollaAgent.com
When it comes to real estate, you’ve probably heard it a million times… Location, location, location! That famous phrase has been in use at least since 1926, according to The New York Times, and San Diego is no exception. America’s Finest City offers some of the best properties in California, complete with amazing views, highly-acclaimed school districts and the state’s most sought-after attractions. If you own a home in La Jolla, you know exactly what we’re talking about.
Even though La Jolla is contained within one zip code, it is generally broken down into roughly 16 neighborhoods and communities as can be seen here: http://www.lajollaagent.com/la-jollas-neighborhoods/ With so many areas of La Jolla to choose from, it’s no surprise to learn that price points can vary significantly even within a small half-mile radius.
So why does La Jolla have such a big spread in terms of pricing? One word: variables.
La Jolla is extremely diverse and houses including price/value can vary dramatically from one block to the next. For example, on certain streets like Camino Del La Costa, the difference from being on the beach side to the east side can easily be a $10M swing. The more rare the property, the higher the price. In La Jolla, price can vary depending on proximity to the beach, a view and walkability to communities like The Village, Bird Rock and The Shores. When these desirable factors are present, the home values tend to rise.
Views are another big influence on value in La Jolla. Real estate agents and locals instantly know which streets offer the most spectacular views. Calle Del Oro, Prestwick and parts of La Jolla Corona and La Jolla Rancho are just some of the areas where property values can skyrocket depending on what you see out of the proverbial kitchen window.
The influence of location in La Jolla, Del Mar and other coastal communities is apparent when you realize how much redevelopment and building is taking place throughout desirable coastal communities. It is very common to see neighborhoods undergoing a transformation where you can see an original 1960s ranch sell for $2 million only to be torn down and rebuilt into an expansive $4 million show piece. This is happening everywhere and shows how much value is put on the lot and location of a property. We recently sold one of these homes where the appraisal gave almost 90% of the value to the land and the rest to the small house that was on it. Understanding this value is critical for buyers and sellers in this market.
And let’s not forget about school districts. New families are often on the lookout for homes in the most desirable school districts. When bordering along the Pacific Beach Zip code, you can see two very similar homes on the same street sell for $200- $400K more on the La Jolla side of the school boundaries.
In this market, range and variance make it extremely difficult for automated value sites like Zillow, Trulia and even our own home value calculator to be accurate. They are a good starting point but by all means should not be relied on for accuracy. Valuing some of these properties is like art; it is very subjective and take a knowing person to do it right.
If you’re a seller in La Jolla, your location is one of the biggest influences on your homes value. It takes a local, knowledgeable agent to navigate and negotiate price and value successfully. For more information on a custom home valuation or to get a second opinion about your real estate valuation in San Diego, visit http://LaJollaAgent.com or call (858) 405-4004.
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