One of the biggest mistakes homeowners and buyers make is in not understanding the difference between their local market and their hyperlocal market. For instance, a local market may be comparing homes on a relatively even scale in Belmont and San Carlos. The towns are next door to each other, similar in population, size, schools, feel and demographics. However, with the amount of information now available both publicly and privately, a hyperlocal analysis will give you a much more accurate valuation.
In the above example, using the towns of Belmont and San Carlos as a base for comparables to achieve a valuation on a subject property is a dated approach. A hyperlocal approach would pair the analysis down as follows:
Belmont and San Carlos > San Carlos > one of San Carlos’ six neighborhoods > classification of street in the particular neighborhood > individual characteristics of the street > views vs. flats > off-market comparables > expert realtor input on intangibles of the property and current buyer needs based on feedback from other pending properties.
It is becoming more and more common to have privately held information on sales and off-market sales in the mid-peninsula neighborhoods. Uncovering and tapping into this information stream is vital in determining the true value of properties.