Home Value keeps going down . Why ?

[jimazee]

Originally Posted by Bike4Life

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I can see how much you paid for it and how many times it has been on-and-off the market. If I see the history that your house has been flat for many years, then that's a safe market price or possibly lower if the area had a significant economic impact. I've seen too many house values in the area being flat for 8 years and only recently started asking for huge mark up prices beginning in 2013.

So, the market price in the area I'm looking at has a median price per square foot in between $84 to $109 in 2016. Anything more than $136 per square foot starts to turn me off, perhaps the exception would be a large acreage which I don't need anyway. And that's in and around Bloomsburg, PA.

What you'd like is more likely to be found in a newer custom home (or maybe renovation)...at least in NEPA. You won't find the actual price anywhere unless it was resold. These homes also push the price per square foot up, sometime a lot. Quality costs...trim/finish, framing/insulation, flooring, HVAC, baths, basements, landscape, decks/porches, windows and doors (interior and exterior), wiring (both electric and 'other' infrastructure), siding/roofing, garages, and of course kitchen cabinets/appliances...and details and custom and 'extras'.

Tax appraisal value is not a good indicator in many parts of NEPA. They are all over the map for sometime similar homes. I don't know if/how the tax value is set in all areas, but some I'm familiar with 'are pretty crude in their approach. So sometimes actual acquisition cost and sales/market value of 'similar' (mostly size...) are not well reflected in tax values. You see this as you looked at the homes closely.

...and as you mention land makes a difference, in size, setting, and location. Many of the nicest houses I've seen were set on a hilly lot, often not visible from the road. Big and flat or cookie cutter lot is often boring.

Good luck.

[Rogue0888]

On this topic, anyone come across some good resources for recovery in the area? And I mean the positive outlooks, not just doom n gloom speculations

[mathjak107]

unfortunately none . it just is not as desirable as it once was when all our newspapers ran a poconos section and why rent when you can buy was the slogan .

[Sarge621]

Its funny and God forbid me for saying this but the Poconos is one of the only places that when people have a house fire they celebrate because the insurance company covers your $30,000 house for $250,000...... I'll never understand it...

[Gerania]

Originally Posted by Sarge621

Its funny and God forbid me for saying this but the Poconos is one of the only places that when people have a house fire they celebrate because the insurance company covers your $30,000 house for $250,000...... I'll never understand it...

I'm sure there are others. When people are stuck with a house they don't want and can't sell, there's every reason to run to the store and buy marshmallows when it burns.

[theatergypsy]

When they bought the over-priced house and took a $250,000. mortgage, the bank said thou shalt carry insurance enough to cover the mortgage if your over-priced house burns down. The bursting of the bubble may mean your house is now only worth $30,000. but the bank doesn't care that you're underwater. They want what you owe. People aren't celebrating the fire; they're celebrating that they can pay off the bank and make one last commute back to NY/NJ and exhale on the way "home".

[fp_911]

Originally Posted by Bike4Life

So, the market price in the area I'm looking at has a median price per square foot in between $84 to $109 in 2016. Anything more than $136 per square foot starts to turn me off, perhaps the exception would be a large acreage which I don't need anyway. And that's in and around Bloomsburg, PA.

I wish I could list our home at $89 per square foot!

The problem is people won't look at the home beyond the price. They see that the foreclosure down the street is $50k less but even though it's a disaster they have this mental picture that the nice home is worth less.

But you are right, I've been looking at some of the listings and I can't believe how some people show their homes when selling. Some of them are really not fit for sale and they probably wonder why they sit for months if not years.

[Rogue0888]

Originally Posted by fp_911

The problem is people won't look at the home beyond the price. They see that the foreclosure down the street is $50k less but even though it's a disaster they have this mental picture that the nice home is worth less.

One of my favorite fantasies that it seems EVERY home buyer has. "We're gonna get a fixer upper foreclosure for cheap and make it ours or flip it." Sure if your a handy person & have the resources, you know materials still cost $$, time is included in that resource list, maybe you can knock it out. But since a large portion of the area does have to commute a good distance with what time are you finishing this project? I'd spend a little more $$ to live in my home and not roll the dice on a money pit