Real estate prices and values are local.Ask me and my sister. She's a real estate agent in western Pennsylvania with horse farm property she's listed in Westmoreland County for slightly more than $900,000.
The farm has two working gas wells and with more than 100 acres it can be subdivided.
She's thinking it's perfect for people living and working near Baltimore, Maryland or Washington, D.C. who want that country getaway.
Now compare that with my "farm" in Pasadena, California, just a few miles from the world famous Rose Bowl. We have a sprawling 9,000 square foot lot which is room enough for our three dogs to roam: a chihuahua, maltese-shitsu and a rat terrier. We have 2,300 sq feet and our house is valued slightly more than $800,000 which has more than tripled in value since we purchased it in 1994.
So what's the better deal?
You really can't say. Real estate is a perfect example of a product that's based on a personal choice and the demand is driven locally. Certainly, there are far more people in Southern California than western Pennsylvania and that demand has driven prices here.
Yet, many of us So-Cal residents get cranky or gasp when we play the game of "how much is your house worth" and we wonder what our kids will be able to afford.
Hmm, two working gas wells on more than 100 acres at a price slightly more than the value of my house on an average lot in an urban area.
Hey, I might just call my sister and tell her she has a buyer.
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