The Truth Is Size Matters a Lot!
By: Brian Mason
Welcome to The Home Sold Brian Mason Quarterly Truth Telling, In Your Face segment. Selling and looking out for my clients’ best interests is what I do, not just opening doors, drinking beer, collecting checks, and crushing competitors’ souls. The one thing I must always advise my clients is that size does matter a lot for future resale value.
Sure, it’s one thing to say it, but what proof do I have? That is a great question, and I am about to break it down. How? Unlike your college girlfriend, who said Joe is just a friend, quantitative data will not lie to you!
We know that in zip codes 22101 and 22102 there were 674 non-new construction detached homes listed at over $1,000,000 between February 15th, 2021 and February 15th, 2022. This time frame is considered the hottest market since that dreaded period from 2005 to 2008. Although it seemed like anything could be sold, an astonishing 174 of these homes listed did not sell! There are always tons of variables, but one that is commonly overlooked is the size of the lot.
The breakdown for homes in acres follows:
As you can see, the sweet spot when buying a property is really from one quarter of an acre to three quarters of an acre. Anything below or above that takes a drastic turn in how long you can expect your home to idle on the market and make you question whether it will even sell for the price. Remember, this data was pulled during a hot market when inventory was low, and consumers were rapidly purchasing. Can you imagine the impact in a normal market, or even more, during a slow market? This is one of many considerations you must analyze when buying your home, and understand, too, when you are selling your home. No matter what they say, size matters a lot, and that is the bottom line because Home Sold Brian Said So!
Written by Brian Mason