A year ago this same property sold for $115,000. It was covered with junked cars, old trailers, and trash. The new owner has hauled away the trash and cars, most of the trailers are gone and what remains in a couple of buildings that have no value and no structural integrity. There probably is an old septic somewhere, water comes from a meter in the street. The new owner has also graded the driveway and added some new perimeter fencing near the street and on the uphill side. It is a fairly nice property, and the neighborhood could sustain a $400,000, but the existing infrastructure would need to be scraped away and a new home built from foundation up. $179,000 for the lot is a bit pricy. The actual value is probably pretty close to what the owner paid for it a year ago, around $115,000. For about $10,000 or $15,000 you could scrape this lot clean and have a nice home site for a new development.
$189,000 on Lower Banner, where homes can run 3/4 of a million and up, even a tear down might be worth it, but is it? A couple of things. First, the lot itself is just .35 acres, so it’s a small lot, even by Nevada City standards. It has piped city water, so no need for a well, but the home has a septic system, and I heard that the septic has failed. There is no way this lot is big enough for a new septic system, even if the soil percolates well, which I assume it does given the nice tree cover. But the house itself is a wreck. Not even the foundation look like it can be saved. The entire house suffers from bad framing, failed siding, and leaking roofs. There is no plumbing or electrical, that’s all been removed, so the home is stripped down to the studs, but what you can see of that reveals broken member, dry rot in the wall, and pest damage. Everything must go! And did I mention there is an old 1950’s trailer under a shed in the back yard? Not salvageable, it needs to be hauled off to the land fill- add another $5 or $6 K to the cost. There are vacant lots on Lower Banner, not many but this one is not a good a value. Perhaps at $50,000 or $60,000 this one might be worth a second look.
12777 Blue Jay Court
10073 Schroeder Way
On 5/9/18 I wrote the following about the Blue Jay Court home… The math does not seem to work out.
The lot is a very nice property, but it located in a rather undesirable neighborhood. I estimate the lot is worth $100,000. Assuming the septic system and well are both in good operating condition, add $25,000 to the value. The double carport adds another $10,000. The home and deck, and everything else, maybe $60,000 to $75,000. That is generous. You still only get to $200,000, and yet, it went pending in just a few days at a list price of $239,000. Perhaps the seller saw good offer and took it. What matter is the settlement price, which will be known only after it closes. If it sells for something north of $225,000 then the needle for the price point really has moved up this spring. We will just have to watch this one and see what the actual price a buyer was willing to pay turn out to be.
Then a week later it fell out of escrow, I presume because the buyer figured out they had made a very bad decision about valuation! So, here we are less than 2 weeks later and the house right next door comes on the market, larger lot, nicer home, and it listed for $145,000. That price actually makes good sense to me.
Fixer, is portably an understatement. This home might have been a contractor’s dream, or maybe someone got in over their head, but it needs just about everything. The home may not be structurally sound, the garage, while large, may need to be torn down. There is no indication of the condition of any of the infrastructure. This home is a true “project” house. Is it even worth the asking price of $124,900? Well, actually, the land is portably worth $100,000, maybe a bit less, but even so, if it has a functional septic it might work. Seller say they will carry. It could be an interesting project for the right buyer.