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Old 02-05-2023, 12:47 PM
 
24 posts, read 37,669 times
Reputation: 25

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Hey all, so I have a question. Here's the situation. There's a piece of unbuilt land in Oregon City (technically Canby, but walking distance from downton OR city.) It's been on the market for a while. It's between a busy street and the railroad tracks, and it's not big enough to be a developer's #1 choice (1/4 acre, no way to get 8 houses on it, which is what they want.) So I can see why it didn't sell fast. It's near the river but not on a flood plain. The earthquake risk is not great, but it's no higher than most other homes here. I would buy this to put a manufactured home on it (no problems with this being legal in Clackamas county.) No loan, all cash. The strange thing is that in September 2021, it was listed at $245,000, and now it's $80,000. Real estate in the PDX area is softening more than most people realize, but that is still a huge price drop!! Does anyone have any opinions on why this might have happened? I'm not sure how serious I am about this idea right now-- kind of still in the "playing with the thought" stage-- but I really have to wonder why the price is now one third of what it was a year and a half ago for such a desirable area. Thoughts?
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Old 02-05-2023, 02:29 PM
 
Location: Boise, ID
1,070 posts, read 789,860 times
Reputation: 2713
Could be any number of reasons: soil contamination, problem with access/easement, building/permitting issues, unstable soil, lack of utilities/hook-ups that may be expensive to install, and probably a bunch I've missed.
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Old 02-05-2023, 10:18 PM
 
Location: WA
5,446 posts, read 7,740,196 times
Reputation: 8554
Also consider that it didn't sell back in September 2021 at that higher price so that $245,000 was likely not the correct market price or it would have sold. A lot of people put land for sale with completely unrealistic notions of its value, or with no real intention of selling. So listing prices don't tell you very much. Maybe they were hoping for a sucker from CA to come along and overpay.

I've seen this kind of thing before. Maybe it is part of an estate and one heir doesn't want to sell and so lists it at an outrageous price to subvert the sale or some such. There are all kinds of crazy reasons why people might list a property at an incorrect price that they don't really intend to sell.
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Old 02-06-2023, 10:26 AM
 
Location: North Idaho
32,650 posts, read 48,040,180 times
Reputation: 78427
It could be anything. Sellers circumstances changed and they need to sell fast. Or maybe it had a buyer and the buyer discovered a very expensive problem and backed out. But once the seller knows, it must be disclosed.

Maybe the city had plans for roads or utilities that would make the location desirable and they canceled the plans. Or the other way around, maybe city has plans that will destroy the value of the property and those plans have been publicly announced.

Maybe the seller was dreaming when they set the listing price and now they are being realistic.

If you are considering buying it, have your agent do some research before you make an offer.
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Old 02-06-2023, 10:28 AM
 
Location: North Idaho
32,650 posts, read 48,040,180 times
Reputation: 78427
What's the zoning? Tucked between the railroad tracks and a busy road is not a desirable location for houses. Perhaps the seller applied for a zoning waiver and it was denied.

Maybe the city gave permission for a homelss shelter to go in next door. It could be any number of things.
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