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Would you buy a house that appreciated well under average for your area?
We have our eye on a little weekend cottage. In 13 years since the last sale, its only appreciated about $12,500. This is far below the average for the area. We are trying to figure out why but it doesn't seem like a good sign. The appreciation issue is one that might keep us from making an offer despite the fact that we like the property.
Is this for a vacation/weekend/second home? If so, I likely wouldn't worry about it but that's me.
Its a weekend house that we will probably rent out when we aren't there. But its not far enough away for the second home loan by about 10 miles, so we are looking at a higher interest rate investment loan or cash. We would like to get our money back when we sell.
What is the basis for your assessment that it hasn't appreciated as well as other properties?
Is it the list price? Perhaps the current owners want a quick sale.
Perhaps the owners bought it under market value 13 years ago and just want to sell it.
Owners bought it for 345K, listed for 359K. Dropped price to 350K with closing credit. Comps in the area that sold for 340-350 ten years ago are now listed in the the 440-450k range. The owners have had the home since 2005. Did some improvements which are nice and show well. The lot is very well kept.
Comps in the area that sold for 340-350 ten years ago are now listed in the the 440-450k range.
Did some improvements which are nice and show well. The lot is very well kept.
SOMETHING is going on there to suppress a genuine comp that much.
Do some investigating to see what hasn't been reported to you.
It MIGHT be something with the owners personal/financial situation...
but few of those will benefit by selling BELOW comps to any degree.
your question is not about the perceived (lack of) appreciation of a single home. It's why isn't it priced higher, to match the other nearby comps. Depending on the contingencies that you're allowed, I don't know why you wouldn't jump now and do your due diligence later. You've seen it in person.
your question is not about the perceived (lack of) appreciation of a single home. It's why isn't it priced higher, to match the other nearby comps. Depending on the contingencies that you're allowed, I don't know why you wouldn't jump now and do your due diligence later. You've seen it in person.
Because we are concerned about a very expensive undisclosed issue. On a second home, we just don't have the time to deal with such a problem.
that's what the inspection period is for ... at least as I noted - "depending on the contingencies you're allowed". If you're allowed out without loss of deposit, then perrsonally I would pursue it sooner rather than later.
It's just as possible they chose agents/priced it poorly or have some other reason to fire sale it. Perhaps it needs a new roof, contributing to the lower value. Who knows. If your budget is maxed at $350K, then yeah, I wouldn't buy a beat-up $450K house.
There's a reason it's worth less than the others you're comparing it to. And it's probably not that hidden.
Go look at it. Have your realtor talk to the listing realtor. If there are serious issues with the house, they are bound by law and ethics to disclose them. A good inspection should find most anything else.... about the house anyway.
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