We’ve been house shopping, no, not shopping, more like browsing. I like to do my homework before we make any kind of big change. I have been checking papers, gathering flyers, doing drive bys, using online sites, investigating repos and fore closures, etc. I started the process about six weeks ago when I noticed that area real estate prices were dropping.
I have spent less than 20 hours comparing properties. This has been sufficient to get a good idea of the market. What keeps stunning me is that many sellers we’ve come across aren’t doing their homework before marketing their properties. They seem to pull a “wish” price out of thin air and expect someone will come their way and pay it.
We just returned from viewing a 3br,2 bath home on 1/3 acre with a large garage/shop in the city limits of our small town. This property is right next door to a low income housing project. It is owned by a small investment group. They have rented it out for a few years. Neither tenants or owners thought it important to keep the grounds watered. The once beautiful lawn and flower beds are dead. The asking price $160,000. They have not received any bites.
Outside of our city limits is a beautifully landscaped 3br, 3 bath home on 4.85 acres of trees, corrals and pastures. This property has a shop, a barn, a garage and a lawn. It’s price is $170,000.When I mentioned to the investment rep that there were better places available in that price range, he sadly shook his head and replied that the local realtor had told them the same thing but $160,000 was what they had paid for the property. I realize that where they come from $160,000 was a good deal but this isn’t the same market. Wouldn’t you have thought they’d done some checking?
There have been a number of similar situations in my hunt but I have to share this next one. It’s a doozy! We are looking at homes in the nearby small town. Many homes in that town are manufactured houses. We have seen 4 or 5 nice homes in the $70,000- $110,000 price range. The amount of land included was the biggest factor in pricing. We found one 4br,2 bath on a large fenced in lot on a private road for $69,000! It was a repo.
As we are driving out of town a little bit, we come across a dilapidated old manufactured home on 1.3 strangely formed acres. This place has been TRASHED!! The house and yard are full of junk, the roof needs replacement, several windows are broken, every interior door needs replacement, all the flooring must be replaced, there are holes in most of the walls and in some of the floors. The smell alone was unbelievable. However, with our apartment manager eyes, we can see past all that to possibilities. Wow, we think, this is doable. This might be the good deal we are looking for. We call the number, leave a message and await the return call.
It comes that evening. We chat, I ask for the price- $139,000!! WHAT?! I ask. He repeats. I blurt out- “Have you seen it recently?” Yes, he has. He then adds that price is if he does the needed work. I breathe again and ask” what if we do the work?” The reply- “I’ll take ten thousand off.” ????? Are you insane? I wanted to say! I think I muttered thanks and hung up. And we wonder why our economic system is a mess. Nobody seems to know basic math!
That’s the view from my side of the street, what’s yours?
No comments:
Post a Comment