michael.bloo…, Home Buyer in Silver Spring, MD

Why is this house priced $100k higher than last year's sale price?

Asked by michael.bloom.mail, Silver Spring, MD Fri Jun 13, 2014

This question was asked from http://www.trulia.com/property/3044555738-8724-36th-Ave-Coll…

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6
Hi Michael, it's priced much higher than last year's sold price for a number of reasons:

1. this property was sold as a short sale (the previous owner sold for less than they owned and required the lender's approval)
2. the current owner likely made some improvements, the short sale was sold "as-is". It's impossible to tell by the pictures how much was actually done and invested. However, it doesn't look like an extensive rehab to me.
3. the owner is taking advantage of the market and increasing property prices, the average sold price in the zip-code for the last 365 days is in the $260s range

Whether or not the house is worth the asking price is a different question. I'm leaning towards "no" since otherwise it wouldn't be on the market for 160+ days! The pictures also don't show it off very well.
1 vote Thank Flag Link Tue Jun 17, 2014
good question Michael, because i drove past this with a friend and the FRONT STEP was falling off! it's on a dead end street with a bunch of houses that probably have multiple residents (due to the parking spaces being set up for multiple cars and the mail boxes being set up for multiple persons). it looks horrible and not even worth $135k.
0 votes Thank Flag Link Sun Jun 22, 2014
That's what we call inflation! When the cost of living goes up, so does the price of everything else. That's why you can have a house someone bought for $250,000 in 1986 that is selling today for 500,000. As time goes by the cost of living becomes more expensive year by year.
0 votes Thank Flag Link Fri Jun 13, 2014
What is this house worth to YOU?
Have you been inside to evaluate the tangible and intangible assets?

Have your REALTOR prepare an offer based on the value it represents to you.

There could be 100,000 reasons to justify the increase in price.
None of them need to make sense to you.

One good reason for price high is to keep those who ask 'Why' out of the picture.
They want to sell the home to those who know area value, are decisive, and have the ability to buy. These folks don't ask 'Why?' but the do take action. The answer to the question is revealed 30 days later when the closing is completed.
0 votes Thank Flag Link Fri Jun 13, 2014
The market is on the rise in Connecticut as well!! $100k sounds a bit dramatic - maybe this house was purchased at aution or foreclosure price which would have been under market value. The owners could have done some renovation work as well...Consult with a local realtor who can do a market analysis for you before purchasing to make sure the value is there!
0 votes Thank Flag Link Fri Jun 13, 2014
The market, she is a rising! In my market, we've seen a 20% growth in value, so on this house, that would only equate to around a $25k increase in price, vice the $100k you site. Could be somebody bought it at the lower price, fixed it up and is now flipping it? Need to find a local realtor and do some real investigation if you're interested in buying. Could be real, justifiable reasons for increase, or it could just be a greedy seller who sees the market changing and wants to cash in. Best of luck...
0 votes Thank Flag Link Fri Jun 13, 2014
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