Some help on what a fair home price is in this area in Aurora? (Naperville: section 8)

[jamaicabound60565]

I guess you would say I'm a potential first time homebuyer. I actually live with my gf, however am thinking about buying a place renting to my sister for a year or two and then moving in myself when she eventually buys a place in the city. I figure with home prices low and me planning on buying in a year or two anyway why not buy now and let her pay my mortgage for a year or two and build some equity as long as I'm going to live there soon enough anyway.

Area I'm looking at is in Aurora but only like 5 minutes outside of Naperville past White Eagle, main cross streets would be Montgomery and Andover. It's all duplexes so no association fees.

I'm seeing some places recently sold for like 74k and 94k, not sure what shape they are in though, I"ve seen some really rough looking foreclosures that I woudln't pay 60k for so not sure how to judge those sale prices.

On the other hand one place down the block is selling for 199k which I find laughable. There's a few other places however sellign for like 145k to 160k which I also think is pretty overpriced.

Wanting some input on what's a fair price to pay for a place on this block? I'm somewhat handy and have some friends and family in the trades so dont mind something that needs a little work but dont want to gut a whole house either.

Aurora Illinois Homes for Sale & Aurora Real Estate - Zillow

Not sure if that link will take you to the zillow page of recently sold and for sale so if not check out like 1333 Andover, 1352 Andover, 1372 Andover, 1391 Andover, 1413 Andover, etc.

[chet everett]

I know that area from having driven by it many times. The negatives are pretty obvious -- railroad tracks, power lines, out-of-fashion development style. I think you would do better spending money in an area with a wider appeal.

Yes, there have been low price sales, but there are also lots of folks that are willing to sit on asking prices that are too high, not really a good thing...

See the downsides with an area like that are too hard to over come. You want a house in an area wher YOU have control of future direction of the price of YOUR home, not be at mercy of whole bunch of problems...

Now IF you want a very low priced home I can see how a "discount" situation that might a foreclosure or shortsale is appealing , but if you goal is really long term place to live and to have an upward curve on appreciation(as opposed to a one time POP when you handyman a wrecked place into market ready condition, which is more of a flip...) then look for a neighborhood that is likely to move up not stay flat/ decline.

See in the way these duplexes are sited I doubt that you can expand them, even modifying the garage to make it a much more in demand two-car probably would not be possible without a zoning variance or something.

Older neighborhoods closer to the North Aurora / Batavia section MiGHT have something a little more amenable to renovation, and even if prices are a bit higher you will be on a "fatter" part of the curve for future buyers down the road...

[jamaicabound60565]

Originally Posted by chet everett

I know that area from having driven by it many times. The negatives are pretty obvious -- railroad tracks, power lines, out-of-fashion development style. I think you would do better spending money in an area with a wider appeal.

Yes, there have been low price sales, but there are also lots of folks that are willing to sit on asking prices that are too high, not really a good thing...

See the downsides with an area like that are too hard to over come. You want a house in an area wher YOU have control of future direction of the price of YOUR home, not be at mercy of whole bunch of problems...

Now IF you want a very low priced home I can see how a "discount" situation that might a foreclosure or shortsale is appealing , but if you goal is really long term place to live and to have an upward curve on appreciation(as opposed to a one time POP when you handyman a wrecked place into market ready condition, which is more of a flip...) then look for a neighborhood that is likely to move up not stay flat/ decline.

See in the way these duplexes are sited I doubt that you can expand them, even modifying the garage to make it a much more in demand two-car probably would not be possible without a zoning variance or something.

Older neighborhoods closer to the North Aurora / Batavia section MiGHT have something a little more amenable to renovation, and even if prices are a bit higher you will be on a "fatter" part of the curve for future buyers down the road...

Thanks for the advice Chett, I figurd you woudl Chime in, you seem to have good input on questions like this generally.

You make some good points. The railroad tracks aren't really an issue for me but I was a little skeptical about the power lines. Did some research online and apparently the health scare regarding them was a one off study which has never been duplicated but none the less myself and most other people I know chined in on the power lines as well so even if its just a perception its not good, plus they arent very visually appealing. If i were seriously thinking about putting in an offer I'd probably buy a cheap gauss meter from home depot just to test the emf level the powerines put off but from the research I did when I started checking this area out it seems you get more emf's from household wiring and appliances than you do from power lines. i think they said a bedside clock is like 10x the levels of powerlines. That said I agree people dont want to live by them so good point with thta.

I like that its a duplex and not a townhouse, I imagine your right about not being able to put on an addition though I did look at some that had sunrooms but again thats not a real addition since its not heatd and stuff. I like that there's no assocaition though, I think that would mean a little more flexibility in terms of picking youw own shingles if you put on a new roof, being able to paint your hous how you like, etc. I guess thats a downside too as I've seen some connecting duplexes where each person paintd their side a completely different and not complementary or flatternig color at all...lol.

Chet, if you happen to read this maybe you can offer some advice on one more question. I think the tops I could get approved for is 110k maybe 120. I'd like to be in district 204 for resale reasons plus I'd like to be not too far into Aurora close to Naperville and this area seems to be the only thing even close to that price point.

I'm not looking at this as a flip or rental but at the same time its not exactly going to be my primary residence longterm. My sister is looking to move out so I figured I would rent to her, after that I may move in for a year or two or if I stay at my current place my continue to rent. All the while I guess I may post it on craigslist from time to time or maybe put up a FSBO sign. If an offer comes along and I can walk away with 20k I'd do it in a second, if not I'd be happy to live ther or continue renting.

Do you have any advice? Would it be better to continue saving and look elsewhere or is that an okay plan? I think you have mentioned in the past your an investor so interested in your take?

[jamaicabound60565]

Bump....

There's a good chance I'll be putting an offer in on one of these places today, a lowball offer but an offer none the less. Any thoughts on pricing? Anyone?

[TempesT68]

The area isn't exactly the best around, but there is alot worst. As stated the train is a big issue, there also is a bit of section 8 and HUD around there as well. Lastly the 59 traffic is a nightmare to deal with, it's a cruise to get to 88 and there is no metra close by either. If you can get a place on the cheap and don't expect to make a ton of money off it, i don't see it really being that bad of a deal for a first place/flip if that is your price range.

[jamaicabound60565]

Basically at this point kinda looking for a number. Pretty much everything in this neighborhood is 3 bed 2 bath duplexes.

Assuming its a place to rent out for now, maybe a place to live for a year or two later and at anytime during this time a place to flip if the right price were to present itself would 85k be a decent price for a place needing maybe 5k max in work put into it?

I see some places going for 199 which is crazy but average maybe 140k. If I could put the place up for sale by owner at like 130k and walk away with 20k or 30k cash is that realistic or is this stuff priced around 140k way overpriced as well?

I'm not necessarily looking at this as a flip, going to rent to my sister for a year or two, after that maybe live there for a year or two. All the while though I would maybe put a FSBO sign up and undercut the rest of the block on price and if someone sees mine and I can walk away with 20k I'd do it in a minute. I'm early 20's so dont own much stuff and dont have a family so nothing preventing me from selling and finding a better place to live. I'd like to buy something I can afford even if its not the best place around, dont wanna make the same mistake so many others have in recent years.