Home Buying in Morgan Hill>Question Details

Home Owner, Home Owner in San Jose, CA

Interested in Morgan Hill. Saw that the homes near Butterfield recently decreased their price...they seem not very popular...why?

Asked by Home Owner, San Jose, CA Fri Apr 27, 2012

They've been on the market for over 60 days and recently dropped the listing prices. Why is this specific neighborhood less popular than the others? It seems that homes in Morgan Hill sell very quickly (less than 2 weeks in most cases) but these specific homes have been on the market for over 2 months!

The homes in question include:
16257 and 16261 San Ramon Dr
698 an0d 694 Barrett Ave
660 Saint Timothy and 643 St Timothy Pl

The neighborhood seems decent but why is it so hard to resell? These homes were built in 2007 according to Zillow and not overpriced (according to Zillow... and I have noticed most homes in MH sell for far above the Zillow's zestimate prices).

I am interested but if it is THIS hard to resell, then I think it would not be a smart choice to buy these homes. What is going on here?

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Answers

5
Dear Homeowner,

These are all great suggestions. There is one more thing, the train. These homes are in close proximity to the train tracks. As with any town or city living close to downtown as it's advantages and disadvantages.

I happen to live close to downtown Morgan Hill. The train only runs a few times a day. The last train runs I think at around 9pm.

Advantages: Walking to downtown Farmers Market, Music in the Park, 3rd Street Music, 4th of July, Memorial Day, Resturants, Movies, Cocktails, Wine Bars, Mushroom Festival... It goes on and on..

You don't have to look for parking for all of the events downtown.

Frankly, My biggest complaint about living close to downtown is that by the time you get your seat belt on.... your there...
0 votes Thank Flag Link Sat Apr 28, 2012
Two reasons why they have not yet sold: Price and size of lot(backyard). Nice quality built home by Marques and Barrett Elementary is a good school down the block.

For these to sell, prices should be another $20k less or more. They just reduced these by $10k so getting closer to real value. Nothing wrong with neighborhood. I actually sold the 44 homes across Barrett called Rose Haven back in 1999 through 2001 and lived in one for 5 years.

These are all REO homes and making an offer for less would be appropriate say around $580k to $590k.


Tony M. Lupina
Altera Real Estate
408-218-4886 direct
0 votes Thank Flag Link Sat Apr 28, 2012
Hello,

This really depends on what part of butterfield you are talking about. Up by cochrane, you will see townhomes that have had some challenges. These properties are intended as lower income homes and have restrictions applied to them. Things like not being able to rent the property when you buy it, that kind of thing.

As for single family residential properties, as others have mentioned, the majority closest to butterfield are bank owned properties. As others have mentioned, this is particularly true over on Barrett near butterfield.

I have also shown these properties, my clients tend to bring up traffic noise from the freeway and lot size as the biggest turn offs. However, these are good looking homes. My clients have mostly been families, so the lack of a yard has been a bigger issue for them. The traffic noise is really not an issue inside these properties. I think these homes will just tend to appeal to a buyer who is not interested in a larger lot and does not mind the noise from traffic since its not really an issue inside the house.

However, the same market ideas exist here as anywhere else. If you see homes on the market for extended periods of time that don't sell at the asking price, come in and offer less!

Hope that helps,
Robert
0 votes Thank Flag Link Sat Apr 28, 2012
Hi,

Funny you should ask about these homes, I showed six of them yesterday and am leaving to show them again soon this morning. According to the listing agent, these homes are bank-owned, the builder was foreclosed on. He explained that the builder had allowed some buyers to move in to get income (rent to own?) before they were eligible to buy but they have since been evicted. So, the homes have been cleaned up with new paint, appliances, landscape etc. and are ready to sell. The ones I saw yesterday were very nice with little signs of wear (I noticed some dirty grout on some floors but little else).

I would say the low prices are likely due to the lack of yards. Many don't have any yard to speak of and a few have yards about 15 feet deep. Nothing wrong with the neighborhood, although there is some road noise from Butterfield.

I hope that helps.

John Wunderlich
Broker-owner/Realtor
Wunderlich Realty
(408) 201-4007
0 votes Thank Flag Link Sat Apr 28, 2012
Hi interested,
All except for one of these homes is bank owned, the other one is owned buy a realestate agent.The reo's have gone pending several times. I believe that the builder went broke and the lender foreclosed on the properties. I don't know if there are any building problems, none are noted. The main thing is PRICE, if they are not selling then the price is to high. If you go see any of the REO'S bring a good buyers agent with you, they are being sold like new homes and your agent and you have register together. The look wonderful, but make sure you have an agent as they can help protect you.
If you have any other questions or if you need assistance with this or any other property feel free to contact me.

At your service,
Allyson
408-705-6578
allyson@homesbyallyson.com
Certified Distressed Property Expert
0 votes Thank Flag Link Sat Apr 28, 2012
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