Less can be more and bigger can be better. Confusing, right? With so many different adages, how do you know what is correct when it comes to real estate? Here are a few things to help give you some perspective on weighing the options.
One factor that people often look at when comparing home values is the price per square foot. While the price per square foot can vary drastically depending on the overall condition of the property, it can also give a false sense of value when comparing home sizes in an area. Think about a street of homes. Unless you are in a tract neighborhood, most homes are going to be different sizes. Having the biggest house on the street does not necessarily mean you will end up with the highest price per square foot. In fact, typically the smaller homes will have a higher value on a price per square foot basis. Larger homes, on the other hand, will generally have the lowest price per square foot.
What role does the number of bedrooms play into a home’s overall appeal? A quick look at the sales reported in the Multiple Listing Service reveals that in 2017, the highest number of sales occurred with three bedroom homes in both Laguna Beach and Newport Beach.
Let’s dive into these numbers. In Newport Beach in 2017, there were 175 2-bedrooms that sold, 303 3-bedrooms, 243 4-bedrooms, and 132 5-bedrooms. As for Laguna Beach, there were 115 2-bedrooms, 163 3-bedrooms, 73 4-bedrooms, and 28 5-bedrooms. So in terms of bedrooms, it looks like two bedrooms are less popular than three bedrooms, but three bedrooms are more appealing than having more bedrooms.
Another feature that is important to consider is the number of stories in a home. Did you know that many real estate searches allow house hunters to find homes that are single-story? A large segment of the population is aging and prefers to have all of the living space on one level as it’s much more accessible. There are also lots of families that don’t want to deal with the headache and hassle of stairs.
On the flip side, there are plenty of reasons to favor more than one level. Many of the new homes that are being constructed are vertical in design with a minimum of two-levels, and often three-levels plus a rooftop deck.
Also, buyers who are intent on living in certain neighborhoods (like Balboa Peninsula or Corona del Mar) will have to consider vertical living since the majority of homes there are designed in that style. Another added bonus of having a taller home is the possibility of getting a view. So for some buyers, one floor will be more in demand and for others, multiple stories will be more appealing.
By Holly McDonald
Holly Schwartz McDonald is a realtor with Villa Real Estate who lives in Newport Beach and has been featured on HGTV’s “House Hunters.” She can be reached at HSchwartz@VillaRealEstate.com.
