That number is pretty irrelevant. If they’d bought in 2005 or 2006 it might mean more. What have other comparable nearby homes sold for?

Any time I stop and chat with a neighbor or if I’m at a get together with friends. Someone always asks me what either their own house or some other house nearby “would go for”. Sometimes if I am far from the area I practice, the questioner is surprised that I can’t give them a “ball park figure”. We are not computers that can print out a figure in answer to any house people ask about. We have to see the house inside and out for ourselves and research nearby properties that have sold. I know when I list a house the seller would rather I do research and put some thought into the price I give them rather than just pop out a number.

it was purchased in 1995 for $18,000.

I agree with Bill's answer. You'd need a local Realtor, familiar with the area, to do a CMA (competitive market analysis) on the property. And, yes, that can be done even if the house is not for sale.

If you're interested in buying it, the first step is the CMA. Then do whatever research you can on the owners' situation. Maybe they're out-of-town owners and using the property as a rental. Maybe the past owners died and the children or relatives inherited the house. Both of those can be very good things when making an offer. Sometimes people are just eager to sell.

Try to investigate the financials. A Realtor can tell you when the house was last sold, and for how much. Or usually you can find that information yourself, often online. Just do an online search for "tax assessor [town name]." If the CMA says the house may be worth $150,000 and the house was last sold for $30,000 in 1980, that's good; there's a lot of equity. On the other hand, if the house was last sold for $225,000 in 2005, that's not so good. There's no equity in the house and the owner wouldn't be able to sell for $150,000 (unless the owner is in financial distress and is willing to do a short sale).

A good Realtor--especially one with an investor "mentality"--can assist you.

Hope that helps.

Tp,

Unfortunately, more information is necessary to provide you with a meningful answer. Our recommendation is to be in touch with a local real estate professional for their input.

Considr using additional information by accessing homes sold in this general location. It might reveal some important recently sold comparison properties that help answer your question.


Good luck
The Eckler Team