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L, Other/Just Looking in Dover, NH

Built a new home on 8 acres one year ago.

Asked by L, Dover, NH Tue Aug 19, 2008

We tried to refinance several times last summer but no one was ever able to find truly suitable comps (this kind of acreage with a new home is very hard to come by in Dover). We have about 60K above the purchase price invested in this house because of upgrades that were not included in the mortgage amount and upgrades we made after purchase. If we were to sell today, I'm afraid since it was only a year ago that a realtor would expect us to sell for what the town records show as purchase price ($350K). I would like to list at $450K and I think a buyer would be willing to pay that but what if there are no suitable comps as the house has to appraise at that level.

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You're not alone in this. There are many people that have purchased within the last 3 years that are in the same situation as you are. If you don't have to sell right now, don't. If you have to sell then you'll have a couple of choices to make. One is to list it for what you feel you can get and what a realtor is willing to list it for. It's possible the right person would come along and buy it for what you want due to the unique amount of land with it (especially if it's subdividable). If it doesn't appraise for the sale price they would have to put the difference in money down or possibly find a cash buyer (there are many out there right now that are buying). Or, you take the loss and sell it for what the market is bringing right now.
If you can, best to try and hold on till the market corrects itself and you will have more control over what you want for it. They say the Boston market (which we're part of the Boston market) will be or is currently the first to recover from this "market correction".
I'm not a realtor but if you want a couple of names of the area's best of the best for realtors, just ask and I'll get them for you if you decide to try and sell. Good luck and I hope I've given you something to go by.
1 vote Thank Flag Link Tue Aug 19, 2008
Hello "L"- Generally, most appraisers will do a more accurate job with a market value of a property than a realtor, so that might be a way to go- for $275 that you'd have to pay. They are impartial and they are not trying to get your RE listing.
Overall, the fact that you have 8 acres- to me that's great and a plus, but to many people that may not really mean much and won't increase their offering price any. Evaluating a house is much more than that. In many cases a home with 1.5 acres that border town forest land may be more "valuable" to a potential buyer than a home with 8 acres, but its all at a steep grade or mostly wetland area, etc.
If you'd like more help on this, other than the appraisal idea, please let me know and I'd be happy to offer you some concrete thoughts. Thanks,
Ken L.
2 votes Thank Flag Link Mon Aug 25, 2008
The numbers just don't seem to jive here. $350K plus $60K comes to $410K. Homes have not appreciated 10% since last year, where's the add'l $40K in value? You may not be aware that when you put money into your home, you don't usually get 100% of it back .... it's more like 80% or less depending upon what you've upgraded. Not what you wanted to hear, I'm sure, but you're not alone. I'd be happy to help you find a Realtor familiar with your area that can give you price opinion based on current market conditions.
Web Reference: http://www.LizJarman.Com
2 votes Thank Flag Link Tue Aug 19, 2008
If you can back up your improvements with receipts of what you paid compared to what you purchased it for, then you can back up the value in an appraisers eyes. Ask some local realtors to give you market analysis without you telling them what you have done, get their price then see where they are it, then you can back up why you want to price it at 450k. Good luck
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Tue Aug 19, 2008
Go with your gut. Call around and find a realtor willing to list the property at $450k. Even though the market is soft, there is always a need for special properties and your property sounds interesting. The worst that will happen is it won't sell but at least you'll feel better knowing you tried.
1 vote Thank Flag Link Tue Aug 19, 2008
You indicated that you tried to refinance last summer and "no one was able to find truly suitable comps". As far as refinancing is concerned, the bank or mortgage company will ultimately use an appraisal to justify the refinance amount and Appraisers (as well as Realtors®) know how to adjust the values against the comps that are avaiable to come up with the right value for your property.

As previously stated, the fact that you have 8 acres does not necessarily add a lot of monetary value to the property, unless it is useable (subdividable) land. Yes, there may be 1 buyer out there that values that privacy and space as much as you do, but that is not the case for the general market of today's buyers. Similarly, there may be 1 buyer that would value the improvemenrts you have made as much as you do. Unique properties take longer to sell, because you are waiting for that 1 unique buyer. You may also have to consider that some of the improvements you put into the home may not be appreciated by others (potential buyers) at the same level as you value those items.

Unfortunately, the real estate market at the moment is not conducive to making a profit on a property in a short time period. Homes that were purchased in the last 2-3 years are not selling for what they were purchased for, much less for any significant improvements that have been made.
My best suggestion would be the same as has been mentioned in another "answer" - if you don't need to sell right now, don't. Enjoy your home and wait for the market to rebound a little. In time, the market will come back and you will be able to sell for what you paid, plus the extra you have put into the home, and with some profit. Be prepared to wait several years for the market to rebound enough for you to recoup and profit from the home you built in 2008.

If you need to sell now, find a Realtor® you can trust to take the very best care of you, and that you can work with "personally" during a very difficult transaction. Trust the Realtor® who will be honest with you and who is more interested in taking care of you than in "getting the listing". Anyone can list your property for a high price, or a low commission, just to see if they can get some business off your listing. That is not taking care of you and your needs.

Hopefuly, you can make things work so you can wait a few years.

Katheryn
0 votes Thank Flag Link Fri May 8, 2009
Hi,
Honestly, it depends on the usable land you have. Typically in Dover the properties with large lots have considerable wetlands. If you do have considerable wetlands and limited use then you should compare your property with homes of that acreage. Mostly in Dover, home values are based on presentation of home, size of home, location, school district and convenience. I have sold a lot of homes in the $350k and up range in Dover and each situation is unique. No lot is the same. If you would like a CMA on your property give me a call and I will get it done. Take care.
0 votes Thank Flag Link Tue Apr 7, 2009
Hi,
Honestly, it depends on the usable land you have. Typically in Dover the properties with large lots have considerable wetlands. If you do have considerable wetlands and limited use then you should compare your property with homes of that acreage. Mostly in Dover, home values are based on presentation of home, size of home, location, school district and convenience. I have sold a lot of homes in the $350k and up range in Dover and each situation is unique. No lot is the same. If you would like a CMA on your property give me a call and I will get it done. Take care.
0 votes Thank Flag Link Tue Apr 7, 2009
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