Home Buying in Donnelly>Question Details

Delynns1, Home Owner in Big Bear Lake, CA

with only one, (1) comp, how can u find out what is a fair price for a home?

Asked by Delynns1, Big Bear Lake, CA Mon Nov 7, 2011

Looking in Donnelly, only (1) home sold. Not to (low-ball) the home, want to know how u can come to a fair price on a home.Seems like it's make an offer, and take your chances.

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Great question!

In that area properties could end up in the Mountain Central MLS or the Intermountain MLS so it is good to check both sources for data (it is in between the two service areas).

Donnelly is in a state of flux right now with the uncertain fate of the Tamarack Resort. Prices skyrocketed during the first few phases of the project and then now they have crashed to where some of the really nice properties are being sold for less than material costs alone.

I think at the current prices, if Tamarack never becomes the full four season resort it was attempting to become, the values are still there. If Tamarack regains momentum, it will be a great investment.

Keep in mind that if your offer requires a bank loan, your bank will require an appraisal on the property so you can't over pay due to your bank won't lend any more than they think the home is worth. 3 appraisals may come in quite differently due to the lack of comps that you noted!

One thing I do is try to figure out when the property originally sold and at what price and see how it's current price is compared others that had been resold from that earlier time period. If you found 3 homes that dropped 40% for example, this value "might" be 40 percent under what they paid for it from the same time period. An appraisal will never use that approach but it is my "rule of thumb" estimate.

Another thing to look at is replacement cost. What would it take to recreate that property by rebuilding it? What is the lot worth, how much is invested in utilities, and what would it cost in today's market to rebuild that size and quality of home? Then you would depreciate that number for the current condition of the home you are thinking of.

When it comes time to make an offer, we need to make sure the seller knows that you know the impact of supply and demand and that you have lots of choices and demand appears limited right now based on sales. That translates to your ability to negotiate!

I remember from being involved in the first three phases of Tamarack, that there were several families that came out of Big Bear to buy into Tamarack.

I used the term "Tamarack" as generic for Donnelly but really I shouldn't have. That would be like calling Ketchum = Sun Valley. Make sure you know the area and it's history before making an offer. There are some beautiful homes on the other side of the lake that don't include the premium to be within the Tamarack Resort. The whole area is beautiful but make sure you realize the winter access, etc. that comes from living up there. Also the availability of water/sewer/utilities.

Hope this helps! I know of 14 additional lots for sale that are not in either MLS too if your interested.
Jim Paulson
Owner/Broker - Progressive Realty
1 vote Thank Flag Link Mon Nov 7, 2011
There's often a bit of that, Delynns.

Unusual properties do not have comps, so buyers pretty much have to ask themselves, is this the best buy I could make with my money?

I've found that if you've been shopping for a while, you pretty much know the market, and if a property seems wildly underpriced or like such a great and spectacular deal, there's probably also something unusual about it that's worth investigating.

All the best,
1 vote Thank Flag Link Mon Nov 7, 2011
Delynns1, Are you sure there has only been one Sold in the past 6-12 months?
Have you contacted a Reator(R) in the Donnelly, ID area to run the comparables for you?
I recommend contacting a Realtor(R) to represent you in your purchase. There are a number of different ways to determine value. Your Donnelly Realtor(R) will run the comparables for you.
If you are using a "Lender" to finance the purchase they will require an Appraisal. The appraiser will use a combination of ways to determine current value. That value will be the maximum your Lender will lend on.
I recommend contacting a Realtor(R) with at least two of the following designations: CRS (Certified Residential Specialist), GRI (Graduate Realtor Institute), ABR (Accredited Buyer Representative).
0 votes Thank Flag Link Mon Nov 7, 2011
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