LJ, Home Seller in Philadelphia, PA

Explain how owner of 1627 15th Street asking $100,000 more than they paid for it in 2003? It has been rented to students for seven years!

Asked by LJ, Philadelphia, PA Wed Sep 8, 2010

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Edmund Choi’s answer
Current market conditions dictate property valuation; what is a buyer willing to pay for a property today. Furthermore, several models can be used in determining property value including, but not limited to, replacement cost, income and, of course, recent sales. In your post, you had mentioned that the property has been a rental property for several years. This situation can appeal to an investor and, depending on their individual matrix, they may be willing to pay more for a property generating a positive cash flow, even though recent sales may show otherwise.
Web Reference: http://PhillyandBeyond.com
0 votes Thank Flag Link Thu Sep 9, 2010
What soemone pid for a property has nothing to do with what it is worth today. You need to assess the properties value in todays market and base your opinion of value on that.

Priced increased greatly in 2003, 2004, 2005 and sluightly in 2006, then sayed the same or declined slightly in 2007 and decreased in 2008, 9,10 . So there was more time for increase in value then there was decrease in value.
0 votes Thank Flag Link Thu Sep 9, 2010
Good Morning LJ,

It is called appreciation, housing prices have increased since 2003. Also, just because someone is asking a particular price for a house, does not mean they will always get their price. There are many houses currently on the market or have not sold due to improper price and or condition.
0 votes Thank Flag Link Thu Sep 9, 2010
The property is currently listed for $209,900 and the person purchased the property for $129,000. That's only a $80,900 difference. It also shows a settlement date of November 2002. However, I think that it's incorrect and should show as 2003. So it's either 7 or 8 years.

I think that given a typical economy, this place would have been priced properly. With that being said and not knowing what improvements that may or may not have been made, I think this property may only be $20K or so off the mark.
0 votes Thank Flag Link Thu Sep 9, 2010
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