Pricing real estate is a bullshit science. Find the MAX someone will pay and that’s the value. To find the approximate max, realtors look at similar homes recently sold in your neighborhood.
House A sold for $Y/sqft therefore my listing should be worth $Y x my square footage plus any improvements that will justify listing it for more. (and you thought you would never use algebra again?)
Sue La Bounty out of Long Beach figured that this tiny old spanish house must be worth $1000/sqft because that’s in the range that other local homes have sold for. Funny enough that SHITTY spanish at 403 Loma Vista Sold for $1009/sqft!
So Sue figures this home is nicer than the dump on Loma Vista so it should command at least the same price per square foot.
Let that sink in. Two bedrooms and one bath for a home that doesn’t look like it’s been updated since the 1970s.
Look, a “vintage” stove! That might be worth something on ebay.
But Wait! “Property also offers a room off the back garage with a 3/4 bath”. You can have your very own Air BnB, or maybe just put you eldest teenager in his own unit across the lawn.
If you pay anywhere close to a million for this house you deserve what happens to you.