Tord, Home Buyer in Southeast Raleigh, R...

why are homes so much cheaper in zip code 27610?

Asked by Tord, Southeast Raleigh, Raleigh, NC Tue Apr 17, 2012

are there high foreclosures, sec. 8 housing, high crime, bad schools

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Answers

9
Oh, I couldn't possibly answer it all in a paragraph.

I purchased my home here in East Raleigh about 25 years ago. East and Southeast Raleigh have always been treated as a stepchild. Fewer shopping opportunities, yet, some of that is turning around, because land prices are so much more expensive elsewhere.

I tell people: look at your goals. Rather than base your potential purchase on what other people think, first, ask if they live here. Then, ask why they don't. More than likely, its based on a negative opinion that someone else pro-offered.

The April 2011 tornado showed how diverse many of our neighbors are - but the media takes very little notice. Eventually, EVERY area will be more costly in 10 years or so!
3 votes Thank Flag Link Tue Apr 17, 2012
Here are some of the reasons based on my observations and experiences as a realtor for over 12 years why the houses in zip code 27610 is cheaper comparatively speaking to the other zip codes in the Raleigh area or Wake county area:


1. The land price within the 27610 area is cheaper. So, builders can build houses with more square footage for less price. The following critical factors affect the prices of the finished house that builders build:

a. price of the land b. costs of the building materials c. costs of labor

If the important variable in the building of the house which is land is much cheaper, the finsihed product naturally would be less. The builder has to realize a target profit for each house and thereby can still realize a gain with a comparatively low price. That answers your question I hope. Then, you may ask next as to why is it that the land in the 27610 area is cheaper.
So here is the following answer.

1. The geographical location of the area contributes to the land price. The 27610 is a little bit farther away from the usual amenities of the major highway like 1-440, 1-540, 1-40. Easy access to these major thoroughfares, libraries, shopping malls, the RDU airport, the Research Triangle Park, major universities, good schools, etc. are contributing factors affecting land price. The closer the area to these important amenities for people,, or the convenient it is is for people to these access, the pricy the land would be.

2. When houses are cheaper in a particular area, the market tends to favor buyers with a low to lower median household income to buy these houses. This is a fact. Financing for a loan to purchase a house is determined on the debt to income ratios of the borrowers.

3. Which brought us to the next which is: The finances of the low income earners to lower median income earners are less stable and thereby, you can see most of the foreclosures are happening in this area. Foreclosures are sold much less than the average market value of the house.
But the real estate market operates on the law of averages; if a foreclosure occured within your community, the market value is affected bringing it to a lowe price. I hope that helps. Good luck. Please visit our website at http://www.CarolinaMaxRealty.com for more information about buying a home.

Nila Kucharski,
0 votes Thank Flag Link Sat May 5, 2012
Venita answered the question well. There are great areas in the 27610 zip code that are going unnoticed due to personal opinion. As the area continues to grow you will begin to see how diverse it really is.
0 votes Thank Flag Link Wed Apr 25, 2012
Thanks Teresa!
Flag Sat May 5, 2012
It depends on where you're buying in 27610. There are some really great areas with lots of land and then there are areas with nothing but tract housing. River Ridge golf community is in 27610 and it's the only 4 1/2 star rated course in Raleigh.
0 votes Thank Flag Link Wed Apr 25, 2012
Somethings to consider are land is so much cheaper so the expense is the building of the house. There's also the question of convenience- living close to shopping or further away influences pricing of housing.

When it comes to buying a house anywhere- you should determine your goals- how much land you want, how close or far away from "shopping" you want/need to be. How close to work, schools and the like are important to you. Then you can always ask other neighbors what they think about the area- no one can tell you your opinion but they can certainly provide you with information to make a sound judgement.

If you are still in need of an agent - I would be very happy to meet with you or interview with you or anyone in my office for that matter.


Dawn Anderson, Realtor

Coldwell Banker HPW
9051 Strickland Road ste 200
Raleigh, NC 27615
Direct Line 919- 960-6321

--
Dawn Anderson, Realtor

Coldwell Banker HPW
9051 Strickland Road ste 200
Raleigh, NC 27615
AndersonD@hpw.com
Direct Line 919- 960-6321
Fax - 919-645-9177
0 votes Thank Flag Link Tue Apr 17, 2012
The 27610 zip code has a higher percentage of renters and the crime rates are slightly higher as well. 27610 is a fairly large zip code and geographically provides a wide variety of homes and neighborhoods. I feel that because RTP provides a high percentage of the jobs in the area, east/southeast raleigh has a disadvantage due to the distance to these jobs. Once I540 is completed, i expect the area to be more desireable. Many homes in the 27610 were tract built and are lower quality and on smaller lots. The foreclosure rates are higher in 27610 which effects the amount of available inventory, pushing down value. I have sold several homes in the 27610 and have a very nice home available for sale at 212 Cross Current Ln. - I wouldn't rule out the zip codes, just neighborhoods, depending on your preferences.

Jimmy Conder
919.896.7131
Web Reference: http://www.ConderRealty.com
0 votes Thank Flag Link Tue Apr 17, 2012
Vanita has offered some great insite as to the "10" zip code.

Great homes and great values await.

Good Luck

Tom
0 votes Thank Flag Link Tue Apr 17, 2012
the 27610 Zip is challenged in many ways byt income and crime have been issues in many parts of it. my recomendation is get professional help buying. i can help you if you like to give me an interview. as one of the top realtors here i can say that our first duty is to protect our clients and be the strongest information sourse as possible.
john Little
919-798-6285
0 votes Thank Flag Link Tue Apr 17, 2012
Mostly because of Land. It is cheaper which means lower building cost.
0 votes Thank Flag Link Tue Apr 17, 2012
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