Click here for details on this House of the Day.
Value: $350,000
Projection: Depreciating
The subject property is located in Orange County, which is experiencing a slump in the local economy due to the collapse of the mortgage market. In addition, the subject should expect to see further declines in value because it has only one bathroom.
You will notice we often mention property's with only one bathroom negatively. In a market flush with supply of homes, prospective buyers will be much more attracted to homes with more than one bathroom. Thus, we believe one bathrooms homes are at an extreme disadvantage and must be priced much more aggressively to sell. From our research, this fact is overlooked by most brokers and as a result one bathroom homes are typically over listed.
10301 MacDuff St, a superior home, sold for $370,000 in April. Due to the fact that the property has only one bathroom, coupled with the weak economy and rising fuel prices, we don't see strong demand for this type of property. Most listings in the area are substantially higher than our subject's estimated value, and we expect those homes to sell below the listing price.
We value the subject property at $350,000 and expect it to see declines in the coming months.
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