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Hey everyone this might not be the best place for this so if not please feel free to move.
I put in an offer on a piece of creekfront property in the inner banks of NC. This property has 200ft of waterfront and is 1.9ac. 1.3 usable acres and the rest is marsh. The water is deep enough to put a small powerboat in and the Pamlico river is less than a quarter mile down the creek.
The tax value on this property in 2020 was at 107k. The listed price was 39k. I put in a offer of 34k and my lender and I are going tomorrow so he can assess the land himself and measure it and such. He is a relative so I trust him.
It's a nice secluded subdivision and each lot is full of lob-lolly pines. It seems most people only remove just enough trees to build a house to keep each lot secluded which I do like.
It shows the lot sold for 92k back in 2006 it sold for 92.5k.
What am I missing here?
Of course I notice there is a real estate after I post.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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I would have though the Real Estate forum a better place for this. Usually with homes the market value is much more than the assessed (tax) value. With raw land it may be different, especially when the lot has been on the market a long time and the owner wants to get out from under the property tax. It sounds nice, but beware of the need for and cost of flood insurance, and whether the lender will even provide funds to build on it. Relative or not, it has to be approved by the underwriters. When were the last homes built? You might want to talk to the neighbors about their experience with the permits.
I would have though the Real Estate forum a better place for this. Usually with homes the market value is much more than the assessed (tax) value. With raw land it may be different, especially when the lot has been on the market a long time and the owner wants to get out from under the property tax. It sounds nice, but beware of the need for and cost of flood insurance, and whether the lender will even provide funds to build on it. Relative or not, it has to be approved by the underwriters. When were the last homes built? You might want to talk to the neighbors about their experience with the permits.
So the original owner of the land died and it was deeded to the current owner. It has been on the market for over a year. Septic permit is already in place. There is a couple homes being built right now in the subdivision. I spoke with a neighbor that has been there for 20 years and he had no complaints really. Has a small boat himself that he takes out, retired and runs his own landscaping business.
It's also not in a flood zone. The land sits up pretty high off the creek. I don't think flood insurance is needed but I can't remember. HOA is only $200/annually. Prefer not to be under an HOA but it's hard to find waterfront property that isn't under an HOA.
Is the question why it’s selling now for a third of what it did in 2006?
That’s an easy answer! That was THE HEIGHT of the residential boom before the “Great Recession/depression”. There are plenty of these type examples all over the country (except maybe for Texas).
Hey everyone this might not be the best place for this so if not please feel free to move.
I put in an offer on a piece of creekfront property in the inner banks of NC. This property has 200ft of waterfront and is 1.9ac. 1.3 usable acres and the rest is marsh. The water is deep enough to put a small powerboat in and the Pamlico river is less than a quarter mile down the creek.
The tax value on this property in 2020 was at 107k. The listed price was 39k. I put in a offer of 34k and my lender and I are going tomorrow so he can assess the land himself and measure it and such. He is a relative so I trust him.
It's a nice secluded subdivision and each lot is full of lob-lolly pines. It seems most people only remove just enough trees to build a house to keep each lot secluded which I do like.
It shows the lot sold for 92k back in 2006 it sold for 92.5k.
What am I missing here?
Of course I notice there is a real estate after I post.
I don't know about waterfront properties in NC, but I sold a waterfront property in VA just last year that was entirely within the Chesapeake Bay Protection Area and there were myriad regulations, including local ones, regarding building there. I had never intended building so I didn't care anyway. The buyers were limited to a footprint that was extremely small even though the lot had never flooded (on a lake). You might want to look at the setback requirements according to the CBPA before buying, because they can be pretty stringent. The marsh is protected as well as the creek, btw - it's a resource protection area. (RPA). Try and get a look at the layered view of the property through the county website if they have it - it will show all the appropriate designations.
You've also got to consider utility easements. I used to live in a very pricey neighorhood in a very pricey town; in an extremely prime location there was one lot that had never been built on despite multi-million dollar houses all around it. Why? Because the utilities and easements were arranged so that all utilities would have had to come a mile or so (I don't remember details) - and the lot was full of ”shelf” rock which means bedrock that's exposed - and you weren't allowed to blast in that location. So basically it would have cost a fortune to prep the lot before you could even start building.
Be aware that a lot that's not been built on, despite a desirable location, surrounded by nice houses, and is selling for a rock-bottom price, probably has big problems that will defeat you just like they've defeated all the previous owners.
Thanks for the advice everyone. It has a building and septic permit on file. It's also not run down. It's clean and secluded. There is also no easements and power and fiber internet run the length of the drive at the end of each lot driveway.
Thinking about just going back and looking for non-waterfront, unrestricted wooded land. I don't know if I can get behind the idea of an HOA. Although it's not strict and only $200/year, that could always change down the road.
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