Is this a good deal? To know the answer requires integrating the answer to two questions: How much will it cost to get it ready for resale? And what will it be worth when the all the repairs are completed? It’s a 1500 square foot house. It could be worth $330,000 to $350,000 depending on the fixtures and finishes.
This 960 square foot 2 and 2 is located in the Highlands PUD in Grass Valley. List for $285,000 it is modern, compact, single story, minimal landscaping, has a very small HOA of just $115 per month, and has nice amenities.
We saw several of these sell earlier in the year, but this is the first one to come up since June.
In my continuing effort to bring you in contact with the entire range of what is available for under $300,000 today the Corner Office hit the field looking at a home I found for sale by owner. No realtors involved with this offering. But he’s in the price range of everything we have looked at so I went to see for myself.
This home is similar to several homes that have been features on this blog.
Compare it to 12928 Sadie D
and 10930 Bettcher
Both very similar homes, each with their pluses and minuses, but all priced right around $300,000.
If you want details on this one, give me a call at 530 263-0644.
Till the next time, Gordon
You have thought it was over priced for this neighborhood, but a look inside shows it isn’t really the neighborhood that determines value, it’s the fixtures and finishes. This one is nicely appointed, and apparently buyers agree, because it went pending in 30 days. Along with good paint and carpet, this home features granite counters in the kitchen, tile in the bathroom, a one car detached garage, and workshop, along with a neat as a pin yard with lawn and patio.
I am not surprised this one got picked up by a buyer in a relatively short order.
Tenant Occupied, so I always am respectful of the tenants personal space. This home is very typical of the manufactured homes between 10 and 20 years old. All the standard features.
We hardly see any homes, manufactures or otherwise, for under $300,000 with more than 3 acres, so a home with 5 acres that is in move-in ready condition and would qualify for conventional financing is a pretty rare offering. But Here is the question: is it a good deal? “Good” depends on what you are looking for. The land is steep and brushy. The owners at one time had goats, and so there is some fencing, but “goats” is just about all this property is good for. It is too steep to have much other functional purpose. The home have great views, but it hard to appreciate them from the narrow front porch that looks out over the mountain. At the rear of the house, you look right into a steep hill. There is a 16 step staircase that leads to the front door, and even the side door is 6 stairs up from the parking area. The parking area for a car is not flat, but is sloped just a little less than the surrounding area. It would be hard to place a garage on this parking area. The boundaries of the property contour to the existing roads, which is good, but I don’t think the home is going to sell as quickly as you might expect based on the property profile.
This home was built in 1966, which makes it one of the original and oldest homes in the Lake Wildwood subdivision. When this home was built, all of the roads were not even paved and none of the infrastructure was completed. This is truly an original build in this subdivision. That being said, it is well maintained and has obviously be updated and upgraded over the years. It isn’t hard to discern the original floor plan, with the attached carport that has long ago been enclosed and is now used a third bedroom. Fixtures and appliances all appear to date from the 1980’s when it appears the detached 2 car garage was also added behind the house. The lot is flat, there is plenty of guest parking and a place for boat or RV next to the garage. Inside is a mixture of old, and very old. All nicely maintained, but definitely dating back at least 20 years since the last remodel. No air conditioning, 2X4 framing, minimal insulation, and a propane wall furnace in the hallway with electric wall heat in the bathrooms. The windows are double pane, so that might be something from the 1990’s. Formica counters in the kitchen, but nice floral design tile in the bathrooms, probably dating to a 1980’s upgrade.
In the under $300,000 price range we see a lot of two bedroom and one bathroom bungalow style homes sprinkled through the various Grass Valley neighborhoods, but it is rare to see one of these homes in Nevada City. There have been over a dozen in Grass Valley, and this is the first one all year in Nevada City. In terms of comparable prices, this home compares favorably in terms of the size of the lot, which is 3/4 of an acre, which would correspond to just about the largest lots you see for these bungalow homes, and the fixtures and appliances all appear to be in good working order, and this house has two value added features that are rarities in the Grass Valley market. This home as a very serviceable out building that detached from the main house, but could easily serve as a guest bedroom, a workshop, or office. Also, this home has a half-basement below that has a concrete floor. This means there is easy access to plumbing and electrical, space for home’s mechanicals, and dry storage under the building. At this price, it appears the seller is being competitive with the Grass Valley market.
You might recall the Corner Office looked the home right next door back in June. I have embedded the video for a reminder of the home that was listed for $165,000 but sold for $175,000. Very similar home, except it was on an engineered post and peer foundation, while this home has a perimeter foundation. The home at 11075 also has upgraded hardwood floors in the living room. The one at 11059 sold almost instantly back in June, I can’t believe this one wont sell just as quickly. Where else can you get a move-in ready three bedroom and two bathroom home for under $200,000 and not be buying a complete wreck?
This is the second home on this same street to come on the market this year right around $175,000 where the home itself is in such poor condition that it cannot be salvaged, must be removed, and the lot repurposed for new construction. Typically, even when the lot is quite large, as this one is, it ought to sell for around $100,000, but the one down the street sold for $173,000, so who knows what will happen here. I drove by the other one to see if the new owner had started construction and while some of the trash was cleaned up, there was no evidence that the old home was either being scraped or rehabilitated. We will just have to see what happens to this one.
At the Corner Office we are interested in the underlying valuation of property and the relationship of that value to list price and the price a buyer is willing to pay. The underlying value is equal to the comparable sales price paid by buyers and sellers under normal circumstances. But there are lots of situations that cause this normal valuation to deviate greatly from the price paid. Obviously, when a home has structural defects the price a buyer is willing to pay goes down. That’s a fixer. But there are all kinds of financial difficulties that property owners find themselves in the require them to discount their home for quick sale, or to attach some condition to the sale that will cause the price a buyer is willing to pay to go down.
We have two examples here: one is 19238 Jayhawk. It came on the market today, a 1532 square foot 3/2 in a good location in Lake Wildwood list for $189,000. What! That is such a great price, you might assume it is a trashed out home, and it might be, or maybe not. No way to know because the owner is not allowing anyone inside for a week or so. There will be an open house by the end of the month, but by then the home will likely already have multiple offers. Buyers can submit offers sight unseen, and preview the home in week. All offers will be evaluated by a bankruptcy judge during the seller’s bankruptcy proceedings. If the home gets multiple offers, regardless of how low they are, he or she will likely pick the highest one, and that person will be winner of the bidding process. It turns the listing into a court supervised auction.
The second house: 14579 Sun Forest is also unusual. This home was available for preview but it was not polite to shoot video of the interior while the home owner is still living in the home. In this case, the seller is requiring that the buyer grant him a “life estate” which means he will remain as a tenant in the home after the close and will pay a fixed rent, set by a contractual agreement put into the deed so that it cannot be undone until the seller either passes away or is forced to move because of health reasons. A deed restriction of this kind is used when a family member wants to allow one family member to live in the house but the equity to belongs to another family member. I have never seen it “sold” or made part of purchase agreement between buyers and sellers who have no familial relationship. I would not represent a buyer on this sale unless they spoke to an attorney! That being said, the list price of $275,000 is good value, and that’s why I went to see it. A good value, not a great value! The home has a fairly standard kitchen, nicely maintained, good curb appeal, and the fixtures and appliances all look like they are good condition, but this home is only 1200 square feet and it was built in 1981 and it is on a lot that has a bit of an upslope, and is only partially landscaped. Nice, typical, should sell for about $300,000, maybe a little less. $275,000 is no plumb deal.