At California Coastal Home, we know how much the fluctuation homes in Pebble Beach have. You may find listing for so-so homes that sell for uncharacteristically high prices and scratch your head, why would that house be so expensive? Why is that much nicer house down the street a lower price than you imagined? The best way to answer these sort of questions is to examine the four main tenants of real estate value: demand, utility, scarcity, and transferability. In regards to housing demand generally revolves around the convenience, neighborhood quality, and aesthetic/utility based properties of the home. Put simply houses closer to affluent areas with good schools and low crime, are the ones that we want, and of course the size and amenities factor in as well. Big, well built houses almost always sell for more, but location is often the primary factor in pricing. Utility refers to what can be done with a property, of course in this instance the property has already been utilized to build a house, but additional land attached to say house will often boost its value significantly because that land can be turned into a variety of valuable assets. Scarcity refers to housing supply, when the market is flooded with available listings people have far more options and can afford to pass over prospects more readily until they find exactly what they want. Alternately when property is scarce buyers will pay more for less impressive listings because they are in more desperate need of a home. Transferability refers to title exchange, it is important to the house buying process but generally does not factor into the properties listing price. It’s very important to note that things like landscaping, quality of construction and appliances, along with luxury items like high counter tops and floors can be huge factors in a home demand, they act as another hidden layer of home value.