Sheriff247365, Other/Just Looking in Waldwick, NJ

Would you buy a home listed $100,000 lower than assessed value, it's located on the corner of a highway, & i'd get out of renting.?

Asked by Sheriff247365, Waldwick, NJ Sun Apr 22, 2012

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Compare the home to other listings in the neigbourhood. Go see houses in the price range + $100,000. Consider the condition of your choice vs. the other homes. Alot of homes in the area have been upgraded. Are the upgrades worth the difference in cost to you? Also a lot of the houses in the area are slightly listed overpriced. I think the sellers are just trying to re-coup their investments from over-paying during the boom and renovation costs.
On the other hand if the homes are comparable but this one is priced $100,000 less, is it discounted because no one would pay full price to live on Rt 17?
0 votes Thank Flag Link Thu Jul 11, 2013
It really depends. There are so many factors that need to be considered.
0 votes Thank Flag Link Sun Apr 22, 2012
"it's located on the corner of a highway " That is the first obstacle.

If you buy it and want to sell it later..

"it's located on the corner of a highway " That is the second obstacle.

As long as you are O.k. with where it is and you feel you are getting a good buy.. Forget the assessment and go for it. I like the thought process that you mention about getting out of renting, yes, that is good… But keep a realistic head and approach as “it’s located on the corner of a highway" and that may affect the sale of the property when your time comes to sell. If it looks like a deal, then it just may well be. Have an agent run the comps for you.. see what is happening in the area to help you make an educated decision.

Good luck and let us know what you do!
0 votes Thank Flag Link Sun Apr 22, 2012
Hi, thank you for your comments...and actually, No, I'm not really ok with "where" the house is, it's the price that I like as most houses are well priced higher and I'd never be able to afford a mortgage on them. Which Means while I live in the area I'd be renting for who knows how long.
Flag Sun Apr 22, 2012
Although I am not an agent in the NJ area, I can answer this question in general. There are many factors that determine the price of a home. Why is it listed for $100,000 below the assessed value? Also, there is a difference between a home's appraised value and the assessed value. Have there been previous inspections done that may shed some light on the current pricing of the home? Generally speaking, if you find a home that does not need a complete renovation and it's listed $100,000 below assessed value-then you have possibly stumbled across a great deal. However, if you have to put $100,000 worth of work into it, of course you may want to reconsider. The best advice I can give you is to find an experienced buyer's agent in your area to guide you through this dilema.
Hope this helps-Sean Hyland, Real Estate Agent in Virginia
0 votes Thank Flag Link Sun Apr 22, 2012
Thank you for your feedback and it's an estate sale so the owner (also realtor) wants it to sell fast.
Flag Sun Apr 22, 2012
Here in NJ homes are assessed at current market value. If the house was assessed in 2011 then that was the appraiser's opinion based on recent comparables of solds in the neighborhood of what the home would sell for in that market at the time.
I know the home you are talking about and although I have not been in the house yet, (plan on going today) it does look like a good deal for the price. Since it is an estate sale the heirs may just want a quick sale and is pricing it accordingly.
I agree if you want someting in this area, there is not little in that price range and we may never see this this price range with the current interest rates in the future.
If you need someone to help you with your decision making process on this home or any other home in the area, I would be happy to help.

James Lockard
Realtor Associate
RE/MAX Properties - Saddle River
Office:201-825-6600
Cell: 201-674-3114
0 votes Thank Flag Link Sun Apr 22, 2012
I did look at the house today. As John mentions above and I now see, it is located on the corner of the highway with the driveway accessed from Route 17. The house is dated as you mentioned and needs work. I think the price is where it should be.
Flag Sun Apr 22, 2012
Thank you for your comment James, I am using the realtor whom is also the home owner currently as she has also shown me the home. I appreciate the feedback just wonder what it would cost to put up fencing/sound barrier on the property as sitting outdoors would not be so comfortable plus possibly move the driveway which is currently on the highway.
Flag Sun Apr 22, 2012
The house was assessed in 2011. The owner passed away and the daughter is the realtor. The house was occupied the last 50 years. Most of the inside is well kept...kitchen and bathrooms need updating but are in working condition. For myself to own in this area this may be my only option...or another 199,000 but what are the chances of that popping up in the listings. I think getting out of renting would be in the best interests of our family as I get more space and some kind of investment even if it is small.
0 votes Thank Flag Link Sun Apr 22, 2012
Assessed values are not always accurate with the current market value. Your question is not easy to answer without the particulars of the property. I suggest you work with an experienced realtor to get your answers.
0 votes Thank Flag Link Sun Apr 22, 2012
Your question is based on information that may be out of date and probably flawed:

Most assessments are based on the last selling price; if that happened at the top of the market, then it will be artificially high.

The LISTING PRICE is an artificial number that may have been deliberately low to attract multiple offers.

The assessment may be reset to the new selling price, and
The house may sell for considerably more than the LISTING PRICE.

With the Market haven fallen so far lately, the Values we are seeing are lower than we had at the peak. This is very good.
But do not hang your hat on saving $100,000. It would be a "paper" profit anyway.
0 votes Thank Flag Link Sun Apr 22, 2012
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