An offer on a tricky property in Mullica Hill...
14 Horseshoe Lane, Mullica Hill. Nice home, quality, but quirky (and I mean that in a negative way) layout due to an addition...
It's listed at 2-3x homes on the same street, but it IS a much nicer home. Tough to assess for lack of comps. But, nicer doesn't seem to justify the asking price, considering it's on a street with a few houses that are close to being condemned! It's been on the market for over 2 months, and I know the talk in the neighborhood is that it'll never sell for close to the asking price (due to the cheaper homes available nearby).
So, my question is, how do you go about making an offer on a property that is nice, but located next to a bunch of stinkers? If the home was in a different neighborhood, the asking price might seem reasonable, but as is, the list price seems crazy.
Homelurker,
I know you've now decided to pass on this particular property. As you said, "location, location, location", and "you don't want to be the nicest home in the depressed neighborhood" are two valuable ideas to keep in mind.
I'd like to share just a few things when calculating market value and eventual market price for a property.
There are three laws involved with a property's MARKET VALUE: The Law of Conformity, The Law of Progression, and The Law of Regression.
The Law of Conformity simply put means that value is increased when all the properties within an area conform to each other; that is they all look similar and have the similar features.
The Law of Progression means that the ugliest property on the street will increase SOME or be made higher by the nicer properties around it.
The Law of Regression is simply the converse of the law of progression. The nicest property on the street will invariably be brought down by the properties of less value around it. So, that bunch of "stinkers" that you mentioned are making this property far less valuable.
MARKET PRICE is the actual price that someone pays for a property. In short, when YOU buy a property, YOU determine the price.
Keep these in mind when trying to determine value and price before making an offer on the next property that interests you.
I wish you well in your search for a new home.
Regards,
John R. Wuertz
Homelurker,
If you're not working with a Realtor, give me a call. I can show you 35 Horseshoe. It's priced low and has a lot of potential - on 3+ acres! Beautiful vistas, and you could go in at the low end of the neighborhood prices. That's what you want to do...make money when you buy!
Kim
Kimberly Thomas
Realty Executives
856-308-5989
http://www.KimThomasHomes.com
http://www.NJHomesNearPhilly.com
Thanks for the advice everyone... We're going to pass on this property. I don't know much about real estate, but I do know that I'd feel pretty foolish pulling into my $1.2 million "estate" every day, knowing that I just drove past several homes on the auction block.
"location, location, location", and "you don't want to be the nicest home in the depressed neighborhood" are two bits of advice that keep sticking in my mind regarding this particular property...
Homelurker,
Here's the deal - you offer what YOU think is a fair price for the home. You're right it's more than double or triple most homes in the neighborhood; but it is a LOT nicer than most of them as well. I should know, as my office has the listing at 35 Horsehoe and I live in the area.
To help you make a decision -- look at the amount of land that the property offers, the upgrades which stay with the home, the expansion that they did - what's the new square footage? I believe they nearly doubled the size of the home - and then ask your Realtor to run some recent sold comps for you. If you do not have a Realtor, YOU SHOULD! I'd be happy to help you out with this since I live nearby and know the area, and recent sales, quite well. Our listing at 35 Horseshoe and the sales listing at 10 Horseshoe are distressed sales (ours is a bank-owned property and 10 Horseshoe is a potential shortsale and has an issue with a strong pet odor) and are not sold yet, so they are not appropriate sales comps. If you're really serious about making an offer, you may want to get an appraiser in there before you tender an offer, if you can't figure out what to offer.
This has historically been one of the most desired neighborhoods in Mullica Hill and I sincerely believe that it will come back to its former glory when the foreclosures and short sales are sold and have new owners in them to reinvigorate the properties.
Best wishes!
Kim Thomas
Voorhees Broker
856-308-5989 http://www.KimThomasHomes.com; http://www.NJHomesNearPhilly.com; http://www.KImCanHelp.com
Web Reference: http://www.njhomesnearphilly.com
Homelurker, the question you need to ask yourself is what do you want to pay for the home. At the end of the day a home is only worth what someone is willing to pay for it. Make an offer - I'm sure John would be glad to help you out. There are many reasons why a home is priced the way it is. Lot's of success to you!
What you could do is pay an appraiser to give you an appraisal on the property then take that to the owner with your offer.
The property was purchased in 2004 for $450,000. So my question is what improvements were done to the property to justify the huge increase in asking price. I started pulling up some information on the development. If you're not currently working with an agent feel free to give me a call for further discussion.
John Agnello
Realtor®
Long & Foster, Real Estate Inc.
1415 Route 70E Suite 106
Cherry Hill, NJ 08034
(609) 320-6700 – Cell
(856) 310-9229 – Fax
Realtor® specializing in the sale and purchase of Residential Real Estate / Servicing the Gloucester, Camden & Burlington Co. areas.
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