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I live in my hometown in northeast TN, but have lived in affluent suburban areas around Des Moines and Indianapolis the last two years. I moved back home last year and have been thinking of buying a home. However, the more I look, the less I like the housing stock, and the more it seems overpriced given the poor local economy and dated condition. Although this is an older area with little new construction, many of the homes I see are just crummy - they need tons of internal updating.
In Indianapolis and Des Moines, housing stock was much, much more up to date overall, at similar prices to what we have here.
This is a common house in this area, and was a childhood friend's home. I've been in there quite a bit, but it's been at least twenty years.
This is about $140,000, which is an average price for the area, but is so incredibly dated with the blue carpet, ancient appliances, paneling. It's going to need a ton of work to bring it up to any relatively modern standard.
This is $289,000 (!), was built in 1978, and they're saying the "updates have been done," but it still has butt ugly wallpaper in the dining room, and it feels extremely dated overall. Needs lots of work.
This is a $175k townhome outside Nashville. It's about the best updated I've seen today. The exterior is brick and a bit plain (which is a contrast to all the vinyl siding townhomes here), but the inside is a real stunner.
This is brand new construction outside Nashville starting at $230k in this development. Compare this to that $289k home locally. Yes, there is a major land difference.
The first three properties are in older suburban neighborhoods built in the 60s and 70s. Knowing the area, what seems to be happening is that the now old folks who were the original residents are dying off - they never updated the homes, the town has declined economically, yet the kids want top dollar and the houses end up sitting for months.
It's difficult to even find updated homes in this area, much less new construction, and what there is isn't much cheaper than metro Nashville or the affluent suburban areas where I lived in the Midwest. If you find something that is updated and reasonably priced, it gets snapped up quickly.
At this point, I'm just perplexed to see tons of dated houses, houses taking months to move, and few sellers seem willing to do renovations to make the properties attractive.
I live somewhere also where the local agents keep the prices sticky despite properties taking months or years to sell. I am at a loss to explain this other than agents wanting to control the market at the expense of their seller's holding costs. Or sellers have so little margin in the property that they actually can't sell for less, which may be the case in a rural/depressed area. My area is not depressed and there is plenty of demand and yet the last house we bid on had been for sale for FIVE YEARS without lowering the price. They turned us down.
Where I lived previously if the house hadn't sold in a week you dropped the price $5k, and so on. So houses stayed on the market maybe a month. But it was a hot market with pent up demand.
It's not really fair to compare the Kingsport market to Nashville because they are SO different. So to answer what I think is the main question in your OP, yes.
Nashville has been an internationally recognized "It City" for the past 5 years or so and has seen a ton of corporate relocation and overall economic prosperity. The housing market here has gone insane, and the interior finishes are reflecting that in order to cut through the competition.
The same things just can't be said for Kingsport.
Having said that, even in an upscale market there will be dated houses. If you are handy (or patient) you can buy an older home and make it look like one of those slick new ones you linked to. That's part of OWNING. You take time to make it your own.
That's why people say the most important factor in home buying is location because anyone with money and/or skills can take out paneling and butt-ugly wallpaper but you can't change a bad location.
It's not really fair to compare the Kingsport market to Nashville because they are SO different. So to answer what I think is the main question in your OP, yes.
Nashville has been an internationally recognized "It City" for the past 5 years or so and has seen a ton of corporate relocation and overall economic prosperity. The housing market here has gone insane, and the interior finishes are reflecting that in order to cut through the competition.
The same things just can't be said for Kingsport.
Having said that, even in an upscale market there will be dated houses. If you are handy (or patient) you can buy an older home and make it look like one of those slick new ones you linked to. That's part of OWNING. You take time to make it your own.
That's why people say the most important factor in home buying is location because anyone with money and/or skills can take out paneling and butt-ugly wallpaper but you can't change a bad location.
Focus on what is really important.
The thing is these houses are not really that cheap for what you are getting, especially considering the condition and the local economy.
Some of these homes would require tens of thousands of dollars to get them as updated as a common home in the Nashville area. By then, you may be very well approaching Nashville prices.
Sellers generally don't want to take on renovations just to sell. Think about it, if they couldn't be bothered to renovate while living there, why would they want to renovate and go through all of that hassle and cash just to hand it off to someone else?
We live in an area that is built out and the housing stock stinks. Everything is old and cruddy. Very few houses around here are updated and the ones that are sell for a steep premium.
The thing is these houses are not really that cheap for what you are getting, especially considering the condition and the local economy.
Some of these homes would require tens of thousands of dollars to get them as updated as a common home in the Nashville area. By then, you may be very well approaching Nashville prices.
East TN is picking up as a retirement area because people want a more affordable location with a gentler lifestyle and low taxes. I'm sure that's part of the issue with price.
So knowing the market is key. Are the homes there SELLING for those prices your seeing listed? You would need to see sales prices to get a feel for the market and then possibly adjust your expectations on what actually is "cheap for what you get."
Here is a "lovely" example in your favorite community of fancy Brentwood:
Trust me, these photos make this place look good. And the inside is all original. Of course logically this house is not "worth" $400K, but people who want to live in that neighborhood for the schools and other amenities (location) and have a half-million to spend will pay it and then turn it into a showplace. (Personally I think if they listed it around $380K it would sell to a flipper.)
Maybe they know trends and style aren't important for everyone. Maybe they have a busy life and just don't care about max selling price.. it can be a pain to update a home that is completely furnished.. .mine was mostly empty when I did my updating.
I didn't replace all the cabinets in my home, I just primed, painted, and added hardware.. same with the doors, trim... I'm happy with the result of my place, although one might argue it still needs windows, even though the existing windows are andersen 100/200 series original to the house and all but 2 of them still work great with no leaking. A picky person won't like that the cabinets don't function smooth as silk and really aren't modern but I don't care.. they look fine to me. I admit my father's are nice.. they self close nice and smooth but new cabinets are expensive.. paint and oil rubbed bronze knobs from amazon were both cheap.
As someone who likes looking at different houses, thanks for the links! Here's mine, a work in progress. Feel free to critique. Almost everything that can be painted has been upstairs, receptacles, lights, etc. replaced.
I know my local market well. It's supply limited with labor and an ongoing housing shortage and growing population, and it had a rental shortage for the longest time but there's been major apartment construction the last 10 years. I could probably get $165K-170K for it (paid $120K back in October), add on another $5-10K if I replace the windows and another $5-10K yet if I finish the one half finished "bonus room" in the basement that I didn't photograph and add supplemental baseboard heat, and possibly and egress window in one of the rooms. The driveway has cracks, but again that's another one of them "I don't care" issues unless it gets really bad.. concrete cracks with time.. It's a wide, full length driveway, larger than the neighbor's. There are new constructions nearby that sell for $155-185K, including the one across from me in my backyard, which adds to the location appeal (zillow's map source is really outdated). I got mine cheap because the interior needed work and estate auctions always go for less than realtor listed.. but the guts were in good shape, so the work has been relatively inexpensive thus far. Replacing the upstairs carpet was by far the most expensive item so far. You have to look at the guts and visualize what it will cost to get the house where you want it.
Next project is cleaning and sealing all the wood decks using probably the following product...
The funny thing is that the townhome you think is stunning will be just as dated as the other homes you posted in 5-10 yrs. Maybe less. All gray is admittedly hot and of the moment, but half the population hates it. All you have to do to confirm this is go to the house forum where its debated ad nauseum. Gray comes around every 25 years and then it is dated.
If as you say the people who owned these houses were elderly deceased, then they are Depression era kids raised by Depression era parents. That demographic at the point they achieved middle class, are not going to gut perfectly functional kitchens and bathrooms just so you can have a modernly decorated home. Even if they could afford it which maybe they cant, or even if they could tolerate the mental upheaval involved in renovating a house.
What that demographic does do, is maintain their homes structurally. I think you may be missing that, as many of the homes you listed appeared to be very well maintained despite the fact they were cosmetically dated. So, do these homes have new roofs, new HVAC systems, are there virgin hardwood floors under the dated carpet? Those things are worth tens of thousands of dollars and for most people much less satisfying to have to spend thousands of dollars on.
The idea that sellers should make a resale into a brand new modern home is a relatively new one. Where it came from I don't know. If you want a home to be exactly the way you want, buy land and build a custom home. If you cant afford that, you are stuck with remodeling a resale to your satisfaction.
The idea that sellers should make a resale into a brand new modern home is a relatively new one. Where it came from I don't know. If you want a home to be exactly the way you want, buy land and build a custom home. If you cant afford that, you are stuck with remodeling a resale to your satisfaction.
I think we probably have HGTV to blame for that one. Maybe not, but I don't remember my parents being in such a rush to change everything in the house they bought in the 90s that was at least thirty years old.
For OP, urban areas having "nicer" (I think you're implying newer, though) housing than suburbs or small towns is only applicable in areas where there is significant urban growth. Look at Rust Belt cities, for example. We're house hunting in Ohio right now, and the burbs are where it's at for newer housing or even updated older housing. The cities? Maybe there are pockets, but mostly they're run down due to manufacturing jobs moving out and nothing replacing them. Why buy new houses where there isn't anyone who can afford that? Same with updating.
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And the inside is all original. Of course logically this house is not "worth" $400K, but people who want to live in that neighborhood for the schools and other amenities (location) and have a half-million to spend will pay it and then turn it into a showplace. (Personally I think if they listed it around $380K it would sell to a flipper.)
