Of the two homes that I previously posted, it seems that home #1 is the more popular house. Thank you to Dirty for posting the links to the homes, and if you took the opportunity to look into the two homes, you will see that they are rather different homes. There are unfortunately not enough photos on the website for this home...so I will be establishing a photo album of the home soon.
What I would like to ask here is, what is a fair price for this home?
- To Give a little history, this house was first listed in October of 2007 for $450,000.00- It was then dropped over a series of just short of 6 months to $398,000.00. This was when we located it.
- While we were looking at the property it was relsited at $375,000.00.
Here are the stats for the home -
built in 1909
2112 square ft.
4 bedroom
1.75 bath (one full bath & one shower)
2 car garage - disconnected from house
Formal Dining room
Renovated kitchen
.18 Acre lot near the 9th & 9th area
updated electrical in the home
So....what do we know?
The housing market is in the toiliet, with inventories rising daily.
Houses have been listed on the market for longer than they have been for almost 10 years.
Ben Bernanke will probobly lower Fed rate again when the reserve board meets on 3.18.08.
There are no comp's in the area to value this home against.
Loan rates continue to remain stagnant, but have come up almost 3/4% since January.
Housing prices are on the decline after the steep increases in home values over the last 3-5 years.
So with all that being said, what would be a fair offer on this home, and what would you pay for it?
4 comments:
I would not pay more than 270k for this house.
My guess is that they'd probably drop to 325k in a couple months more. But I bet you could talk them into 300k
Dear Michael,
In formulating my opinion of House #1, I factored in many aspects to buying a home.
Now, I had planned to initially discuss my concern in person. However schedules have not permitted this discussion to occur.
Based on this analysis and walk through of the property; here were my concerns:
- No vents for Air Conditioning
- Radiator Heating (this combined with high ceilings and hardwood floors would make for a very chilly winter)
- not really much of a yard and the grass will most likely have to be replaced (very patchy in places and lumpy ground, you'll see what I mean in a month)
- Awkward entertainment room
- Don't like the flow of the house outside of the entrance and dining room
- The area will appreciate more than the above 13th East area will; however, 9th and 9th is closer to being maximized in price than Sugarhouse Proper is
All in all, I think that given the pieces that needs to be done to make this house comfortable to my own needs (air conditioning is HUGE); I would pass on the house aside of getting an estimate to install the air conditioning and replacing the radiator heaters with central heating. To me, that is a huge turn off for the house.
The upstairs like you said is a weekend project; however the heating/cooling is not. Also, how much realistically would you have for sweat equity if you were even to get them down to $325k? If you have enough to make some of those changes it may be worth it.
However, I just beg that you don't over estimate these factors:
- Heating/cooling
- good electric
- good plumbing
- good insulation
- good windows
These are all very big big ticket items that if they are not in place you may find yourself with a big price tag down the road.
My end analysis is I would pass.
Sincerely,
The Spaniard
There are no fair prices when it comes to homes.
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