These two homes are directly comparable to each other, at almost the same price, and very similar floor plans, only the condition and the neighborhood makes any difference between them. What is important, however, considering all we have been looking at, is a simple fact. We have looked at a large number of fixers and homes that need work before you could move in or rent them. So here is the question, if you can buy a move in ready cottage all fixed up for under $290,000, does it make any sense to pay $260,000 for a home that need $30,000 in repairs? Of course it does not. Every fixer we look at from here on in, needs to be considered in terms of what you would need to pay to buy a completely renovated and move in home with same floor plan. We have looked at a dozen fixer that have this same floor plan and similar neighborhoods all over Grass Valley, some priced as low as $230,000 other up over $250,000. Now you can see what one of these homes would sell for once they are fixed up as cute a bug and ready to move in. What this shows you is there is not a whole lot of margin for buying a fixer and putting in new kitchens and bathrooms, roofs, heating and air condition, not to mention paint, carpets, and structural repairs, all of which, or much of which is required on most of the fixers we have been previewing, and what you end up with is a house very similar to these ready to go homes, all priced under $290,000. Buy a fixer, put in too much money, and you will be upside down in valuation before you are ready move into it. You are better off buying a ready to live in home than buying a fixer, unless the fixer is a really good price, or needs just a few minor repairs.
Grass Valley cottages make up 20% of all the homes listed and sold under $300,000 in Nevada County. If you are looking for a home under $300,000, even if you have no interest in a home like this, you can’t avoid seeing them when you look on line, and the price pay, is directly a function of the cost of larger homes on bigger lots, which all start in a price range just over $300,000.
If you have questions about this, please give me a call. 530 263-0644