Home Buying in Madrid>Question Details

Buckeyed, Home Buyer in Madrid, NY

Looking for opinions on if this home is over priced. Asking price is 250k but the comparable home on the same street are listed at 145k, 129k.

Asked by Buckeyed, Madrid, NY Thu Feb 2, 2012

Comparable homes are same # of beds, baths, sq ft, etc. What is different is that there have been considerable renovations done to the inside and out. But are they worth over 100k? Im just not getting where they got the 250k asking price?

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Impossible to say without knowing more specifics.

Knowing nothing about the specifics, I'll still go out on a limb and agree with your implication that $100,000 is a big difference if it's just based on renovations and improvements.

I think I found the one house and the two you consider comps. The one at $144,500 is pretty close. It's on a slightly smaller lot, though, and the liveable square footage is 26% smaller. The one at $128,900 doesn't resemble the others at all. True, it's also a 4 bedroom/3 bath. But it was built in 2001, versus the other comp in 1860 and the house you're interested in--unknown, but it looks 80+ years old. So, the cheaper one isn't a comp.

Again, these are just wild estimates, but given the square footage and lot size, the one you're considering could be worth 20%-30% more than that other comp.

That doesn't get you up anywhere close to $250,000, though. I can't tell from what's online what renovations were done. But a total renovation of that property might run $60,000, +/- about 15% in many areas of the country. And even that wouldn't get you up to $250,000.

So, my uninformed comment is that, from what I see online, I wouldn't be surprised if the house you're looking at ends up selling for significantly less than its asking price.

Best thing to do is ask your Realtor to run a CMA. If you don't have a buyer's agent, you should get one. Or at least ask one for a CMA.

One other thing to consider is whether the community prices would support such a spread on resale. Looks like houses in the area are listed for roughly $120,000-$170,000. The community may not support a home price of $250,000, regardless of the quality of the repairs and renovations.

But a local Realtor can provide much better, more informed advice.

Hope that helps.
0 votes Thank Flag Link Thu Feb 2, 2012
Don Tepper, Real Estate Pro in Fairfax, VA
MVP'08
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