Asking Price vs. "Market Price"

[vnagarajan]

Thank you for responding to my post. I have looked at more than 25 houses in Edina and have not found one that is as aesthetically appealing (inside) as this one that backs on to 100. Although it backs on to 100, it has a .25 acre lot. It is also conveniently located within a mile of Southdale. I was wondering what would be an appropriate highway 100 discount. Also, if I was going to stay in the house for at least 5 to 7 years, do you see me at least recovering my equity? Another house on the same side street, which was recently demolished and reconstructed, sold for about $200 per sq/ft in late 2005.

[Robert P Stewart]

I don't know if there would be a standard discount - but it will be a concern.

I think you have to look at what has sold around it recently, come up with some hard numbers, and then decide how strongly you feel about the property.

I suggest you schedule a long showing. Sit on the couch, and listen. Decide if it is tolerable. Now is a good time to do it. Clear, cold days are the loudest.

Robert

[wag-pete]

[quote=Robert P Stewart;324501]When a home is for sale, only one factor will determine its price. Only one. All that matters is what a buyer is willing to pay for the home. That's it. That's all there is - and that's all there ever will be.

[quote]

This is all that matters UNTIL the moron who overpaid tries to go find an even bigger moron to sell it to a few years later and finds that there is nobody around who is equally or more stupid than he was.

Data like tax assessments are useful as part of what INTELLIGENT buyers look at in coming up with genuine evaluations of risks involved in purchasing property. Yes, you have to take into consideration things like updates that haven't been assessed yet. Tax assessments ALONE are only a small part of the info that helps you make a thoughtful evaluation of price.

The only thing that allows realtors to keep believing their own hype is the abundance of fools in today's marketplace. That foolishness is being mitigated by the reality that is now coming back to bite them on the butt in terms of foreclosures, etc.

[Navelinski]

It has some impact, especially if there is no barrier between the highway and the home. Much of highway 100 has just been redone. If the home is behind the new noise barriers, then I wouldn't be concerned about purchasing it. The fact that it is closer to the highway could also help you in negotiating a better price.

Most of the older properties in Edina are great homes to have. They were very high end and well built when they were new. As long as they were properly maintained, you should be able to find something you like.

Originally Posted by vnagarajan

I am looking at a property that backs on to 100. I was wondering what impact backing onto a highway has on a properties value. The house is great otherwise and I love to purchase it; however, the highway 100 issue worries me. In general, should someone be concerned about buying older properties in Edina (i.e., properties built in the 50s)?

[carpenter001]

research your homes value and reduce to that tax value as the law allows. This is done through your city hall. You dont have to pay what they say its worth, you have to pay what the market says its worth.