Home Buying in 08817>Question Details

Melissa, Home Buyer in Edison, NJ

My husband and I are interested in a bank owned home that we would be able to purchase for under market

Asked by Melissa, Edison, NJ Fri Apr 17, 2009

value. The one problem we are having is that it's located 3 streets away from a 1,000,000 sq ft lot that will soon become an upscale town center. It will include retail, entertainment, and large multiplex theater, restaurants, and a hotel. The entrance and exits for vehicle traffic is supposed to be located solely on the major highway in which the front of this center will face (opposite the residential area). Would being that close to such a large town center increase or decrease our resale value?

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We are sure the city has the results from a study already, even neighbors may have attended the planning meetings and may have those statistics. Try talking with the neighbors and definitely speak to the planning commission for the information you seek.
0 votes Thank Flag Link Sun May 17, 2009
Melissa: I doubt very much that you will be able to purchase for "under market value." The bank has had the property evaluated and, with repairs taken into consideration, the most you will be able to save (at least in theory) is the profit that an investor would wish to make. You "save" that amount with the sweat equity of your own labor and management of the repairs and the risk you take that the house will be worth more than you paid for it when you are done, along with the risk that the repairs won’t turn out to be more expensive than you first contemplated.

As far as the impact of a shopping center on value, you will have to get someone to do a long-term analysis of similar situations at another, established mall. Cherry Hill might be a good one, since it has residential nearby. Any other comment will be a guess.

Please think the economics through. Bidders on the property in question will determine the market value, not any other figuring. If the property is listed with a Realtor, ALL the interested prospects will be publicly informed. Do you think that they will all step back and let you have the property for less than market value?
0 votes Thank Flag Link Fri Apr 17, 2009
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