September 15, 2016 by Jeff Lowen
If you were around last week, I asked a question that I have got quite a response from so far. So as promised, here’s the question in case you missed it, along with the answer:
Here’s a little test to see what you know about price…
Two identical houses sit side by side. Built about 5 years ago at the same time.
They are both on well water. One of them had to drill down 40′ to get clean water. The other, much to their dismay had to go down to 300′ and came with an additional $18,000 charge to get there. Ouch!
The one with the 40′ well went on the market and sold for $325,000. Now, the owner of the other identical house wants to sell.
What do you think the price of the house should be?
Answer in next weeks’ issue.
Well, here we are… This is next week! Here’s the answer… Quite simple, really. Thanks for all the feedback and responses, too!
The owner of the home with the deeper underground well, has to take into consideration what the end result is for potential buyers.
There’s really no difference. Whether the depth of the well is 10 feet or 10,000 feet; it still provides the same thing. Potable, table water. Just like every home should.
With the home next door selling for $325,000. Providing everything else being equal, like the direction of the market – we’ll call it stable for this purpose, the seller should price his home accordingly and not expect it will sell for more than $325,000 just because he had to drill deeper for potable water.