$875K? Are they kidding?
A reader asked me my thoughts on this listing.
This property is being marketed in a way that really grates on me as well as any educated buyer. Let me just quote from the property description on www.caar.com MLS#462250:
INCREDIBLE VALUE...$60,000 below recent appraisal. New Custom Home in BeauMont Farm, in the IVY/Free Union area and the Meriwether Lewis Elem. School district. Historically inspired design with architectural details reminiscent of the classic southern home while incorporating a thoughtful floor plan that accommodates today's lifestyles. A wonderful home with high quality construction and custom appointments throughout. Terrace Level has 10" ceilings & plumbing for 2 baths. Finished March 09.
Here is the irritating part about it, the 2009 Tax Assessment done in January 2009 is for $832.8K! So that little part about $60K below recent appraisal, one has to assume that is wasn't the tax collector. And in this case I believe the tax assessor has over assessed this property more about that later.
Second thing that I don't like about it, is that the realtor does not provide any internal shots of the house at all. Is the custom finish of such high quality that it is impossible to be captured on film? Maybe I am reading a bit too much on this but they said finished in March 2009, did everything get done in the last couple of days? According to county records they have been building this house since 2007.
I am wondering if the lack of photos is just a lure to get customers to call the agent and then waste their time and the agents time when they actually see inside the house. If a house is really high quality then a good realtor will have tons of pictures highlighting the property.
The land was purchased by Woodland Builders for $205K on 5/5/2007. Obviously they overpaid. Here is why. That land was purchased 10/17/1997 for $72K. Being generous let us assume that for the time that it wasn't overpriced back in 97. In 10 years the value of the land almost tripled in value? In fact the tax assessor never raised the assessment value of the land until the boom boom years of 2005. It jumped to $142.5K and reached its peak at $213.8K in 2008... this is just the LAND ASSESSMENT!
From looking at the pictures that I can see of the house I would value this construction only at $100/sq ft. There also appears to be some discrepancy between what the county believes is complete and what the realtor is promoting the property. According to the realtor it has 3,875 sq ft of finished space, and 2,700 sq ft of unfinished space. But according to the county there is 3,681 sq ft of finished space, and 2,061 sq ft of finished basement space. Not exactly sure where the realtor is getting their numbers.
To make my pricing estimate I am just going to use what the realtor said at 3,875 sq ft of finished space on 2.26 acres.
My pricing would be $387,500 for the improvements (3,875 finished sq ft at $100/sq ft) and the land I believe is better appraised back in 2004 at $90K.
I think a fair price would be $477.5K. What do you think?
Give me your feedback anonymously by checking the box below marked Worth More, Priced Right, Worth Less as compared to the price of $477.5K.