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Old 04-06-2007, 12:29 AM
 
Location: Princeton-area, New Jersey
113 posts, read 738,252 times
Reputation: 80

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I've been eyeing a house for some time. It's an older home, about 80 years old. I haven't put an offer or anything, but I've visited a couple of times. It just seems to good to be true for the price. There is another house a few blocks away selling for just $5000 less and it's one of those modular types, so I'm wondering why the older house is selling so low.

After a couple of weeks, I saw a new listing on the same street of the older home. It's younger, maybe about 50 years old. Priced about $10000 more. I was able to get the address from one website, so I drove by, and saw right next to it another older home (looks more than 100 years old) for sale as well.

I've asked my agent for comps in the area... wouldn't you know there were 3 other homes on the same street, within the same 2-3 blocks, that were listed and sold in the last year. So that is a total of 6 houses. Also, it looks like that ancient house was flipped... it was also a comp and it was bought and sold last year.

I've also asked my agent why the sellers were selling the one I've been eyeing; she just guessed they needed a bigger house. But now I'm wondering about the phenomenom of the neighboring homes that were and are up for sale.

Has anyone ever observed this happening? If so, what were some of the reasons? Could it be a hot market? Or one of those trends where one neighbor sees a house go up for sale and figures he can do the same? But even then... 6 houses?

I'm wondering how I can find out this type of information. I've even called the township to ask if there was a possible plan to demolish the older homes to make way for commercial-type buildings, and I was just told, "heck no." He even invited me to look at the plans for the area, so I'm guessing he's serious.
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Old 04-06-2007, 12:43 AM
 
Location: South Carolina
92 posts, read 273,807 times
Reputation: 92
That would make me very nervous. Granted, I'm not a real estate professional, but still. I tend to trust my intuition on things... it would be my luck that I ignored my gut feeling, and a few years later, construction starts on a new interstate 2 blocks away.
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Old 04-06-2007, 01:28 AM
 
Location: Marion, IN
8,190 posts, read 29,699,081 times
Reputation: 7304
I don't know what part of the country you are in, but here in west central FL EVERY street has a half dozen houses with for sale signs in the yard. The market here was hot in 2004 & early 2005, then it fell flat. Most of the houses in this area that are for sale went on the market in the latter half of 2005, and there they remain. Skyrocketing property taxes and homeowner's insurance are forcing some people to try to sell, but not very many people are wanting to buy knowing that and being faced with the insane prices that the sellers are asking.
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Old 04-06-2007, 05:42 AM
 
Location: Mass.
345 posts, read 1,506,654 times
Reputation: 135
Quote:
Originally Posted by luckyduck View Post
I've been eyeing a house for some time. It's an older home, about 80 years old. I haven't put an offer or anything, but I've visited a couple of times. It just seems to good to be true for the price. There is another house a few blocks away selling for just $5000 less and it's one of those modular types, so I'm wondering why the older house is selling so low.

After a couple of weeks, I saw a new listing on the same street of the older home. It's younger, maybe about 50 years old. Priced about $10000 more. I was able to get the address from one website, so I drove by, and saw right next to it another older home (looks more than 100 years old) for sale as well.

I've asked my agent for comps in the area... wouldn't you know there were 3 other homes on the same street, within the same 2-3 blocks, that were listed and sold in the last year. So that is a total of 6 houses. Also, it looks like that ancient house was flipped... it was also a comp and it was bought and sold last year.

I've also asked my agent why the sellers were selling the one I've been eyeing; she just guessed they needed a bigger house. But now I'm wondering about the phenomenom of the neighboring homes that were and are up for sale.

Has anyone ever observed this happening? If so, what were some of the reasons? Could it be a hot market? Or one of those trends where one neighbor sees a house go up for sale and figures he can do the same? But even then... 6 houses?

I'm wondering how I can find out this type of information. I've even called the township to ask if there was a possible plan to demolish the older homes to make way for commercial-type buildings, and I was just told, "heck no." He even invited me to look at the plans for the area, so I'm guessing he's serious.
take another drive by, the first adult you see outside there home ask what is going on in the neighborhood...you should probably only do this if there is no for sale sign in front of the house.....
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Old 04-06-2007, 06:44 AM
 
Location: Princeton-area, New Jersey
113 posts, read 738,252 times
Reputation: 80
Default thanks!

Ooh, asking someone would be a good idea. I'll try that next week, as I can only go once a week. All three of you have been helpful. The other thing I was worried about, and it's silly, is what if this area is haunted, given the age of the homes!? Haha.
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Old 04-06-2007, 06:56 AM
 
Location: Danbury CT covering all of Fairfield County
2,493 posts, read 6,662,291 times
Reputation: 1253
It is all just chance. Maybe all of the people outgrew the house, got transferred, or something like that. At one time, there were 4 units in an almost new 10 unit condo complex for sale. If it was anything material about the comlex (special assessment, bad pipes), they would have to disclose it.
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Old 04-06-2007, 07:02 AM
LML
 
Location: Wisconsin
7,112 posts, read 8,575,379 times
Reputation: 5189
Sometimes people will buy an older home that has "good bones" but needs updating and buy it cheap, update it, and re-sale it for a profit. It is called "flipping" too but that kind of flipping is not a bad thing...just good old American business. However, you would want to have a GOOD inspector look it over very closely to make sure that any work done is up to code.
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Old 04-06-2007, 07:58 AM
 
11,451 posts, read 48,453,400 times
Reputation: 15730
There's many explanations.

It could be an opportune time for people in the area to relocate.

It could be that it's a "herd" mentality. One owner sees how much a neighbor's house is on the market for and decides that the time has come to test the market for his house, too. If it's worth that much, maybe I could afford to relocate to something more desirable for my needs ......

I sat in several RE marketing classes which taught that we should always canvass the surrounding properties around any listings. You'd be surprised at the number of times the neighbors were the source of a buyer for your listing, or decided to list now because a neighbor was selling.
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Old 04-06-2007, 08:14 AM
 
Location: Sometimes Maryland, sometimes NoVA. Depends on the day of the week
1,501 posts, read 11,266,832 times
Reputation: 1132
One thing you left out, how many houses are on the street? 10? 60? So do these 6 houses represent 60% or 10% turnover - or some other number.

My previous neighborhood was high density townhomes. I lived there for 4 years, and I don't think I remember a single month where there wasn't a for sale sign up. There were probably 75 townhomes on the street, but I wouldn't say we had more than 10% turnover per year. Of course, this isn't a directly comparable market to a street with 100+ year old houses, but just a demostration that there may be other factors at play.

That said, while looking, we have seen a lot of neighborhoods with quite a few homes for sale. I think its less about the neighborhood and more about the slowing market. People still need to move, but now their houses sit long enough that the neighbors list also. I don't have the exact reference handy, but I recall doing some research into acuracy of addresses - if you have a large list of people in the US and their addresses, after 3 years something like 75% of them are innacurate due to moves.
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Old 04-06-2007, 01:43 PM
 
Location: Falling Waters, WV
1,502 posts, read 7,051,282 times
Reputation: 815
I have to say that we have 5 homes in our community for sale now, mine being one of them. We have a small community and there has been hardly any turnover since we lived here (9 years). I know my other neighbor is putting their house up next week. I often wondered if buyers steared clear because of all the homes for sale, wondering what is wrong with the neighborhool. But the truth is that we are relocating out of state and the other 2 are going to a neighboring county and 1 is having financial troubles, I am not sure of the others, but the fact is that it just so happened that we all are leaving for a specific reason other than the area.
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