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.
Showing posts with label curb appeal. Show all posts
Showing posts with label curb appeal. Show all posts
Monday, July 14, 2008
Wednesday, July 9, 2008
House of the Day Results: Stuck on Stockton
Click here for details on this House of the Day
Value: $120,000
Projection: Depreciating
Stockton is arguably the most publicized declining real estate market in the United States. Foreclosure and REO (Real Estate Owner, or Bank Owned) activity is very high, and values have declined precipitously in the past 12 months. The subject's neighborhood itself is aging, with many new developments in the vicinity providing an alternative to these older homes.
The subject property has not been immune to these declines and is further hampered by its location on a major four-lane street on the Northeast side of the city. This section of the city is dominated by 2 bedroom, 1 bathroom properties, compared to the property’s 3 bedrooms, 1.5 baths.
1901 Bradford Ave sold in January for $105,000, but is inferior to the subject based on its smaller lot and one fewer bedrooms. 1220 Sycamore St sold in April for $150,000 but is superior to the subject based on location and curb appeal.
1240 Wilson St is currently listed at $109,900 but is inferior to the subject based on its larger lot size.
The subject has bars and windows on its doors, reducing curb appeal and forcing us to be more conservative than normal. We value the property at $120,000 to reflect a middle ground between the two sales listed above, erring on the side of caution.
Value: $120,000
Projection: Depreciating
Stockton is arguably the most publicized declining real estate market in the United States. Foreclosure and REO (Real Estate Owner, or Bank Owned) activity is very high, and values have declined precipitously in the past 12 months. The subject's neighborhood itself is aging, with many new developments in the vicinity providing an alternative to these older homes.
The subject property has not been immune to these declines and is further hampered by its location on a major four-lane street on the Northeast side of the city. This section of the city is dominated by 2 bedroom, 1 bathroom properties, compared to the property’s 3 bedrooms, 1.5 baths.
1901 Bradford Ave sold in January for $105,000, but is inferior to the subject based on its smaller lot and one fewer bedrooms. 1220 Sycamore St sold in April for $150,000 but is superior to the subject based on location and curb appeal.
1240 Wilson St is currently listed at $109,900 but is inferior to the subject based on its larger lot size.
The subject has bars and windows on its doors, reducing curb appeal and forcing us to be more conservative than normal. We value the property at $120,000 to reflect a middle ground between the two sales listed above, erring on the side of caution.
Subscribe to:
Posts (Atom)
