This is just the third house listed so far this month priced under $300,000 anywhere in Nevada County. If this trend keeps up the 4th quarter inventory of affordable houses will be minimal. This home is no plumb. the exterior siding has failed in so many places it really needs all new siding. The listing agent told me that roof repairs had made it water tight, and new paint and some new floor covering and good cleaning made this home look move-in ready on the interior.
When I walk around a home and do my video and preview I have a check list with me and ask the same 16 questions about every home I go to see. It question rates the home on a scale of 1 to 5, where a 1 typically means the home is substandard or needs improvement, and a 5 means the home has some value added feature. 16 questions, each one allowing a point rating one to five, means the highest rated home would be a score of 80, the lowest rated home would have a score of 16. I made the scale so that a three bedroom two bathroom move-in ready home would score between 40 and 50 points. Most homes under $300,000 are not going to score that well, but homes that score 30 points or more are generally the best of what you find for less than $300,000. Homes that score down in the 20’s or high teens, are fixers or in need of substantial rehabilitation.
The scoring of homes breaks down as follows:
On a scale of 4 to 20 in each division
Yard and Landscaping
Interior Features and Condition
Fixtures and Appliances
Every home gets rated against the same scale based on how each home objectively qualifies in quality and condition for a series of questions that scope out each of the four divisions. series of I put everything on a spreadsheet, and every home is given a series of numbered codes that remind me of the condition, even when I see dozens of home every month.
So, how did this home do?
Yard and Landscaping 9
Interior Features and Condition 6
Floor Plan 5
Fixtures and Appliances 7
If you are an investor, or just trying to figure out how much a home that needs work is worth in a market place where list price is almost meaningless, give me a call and I can go over the data with you for dozens of home that have sold recently or are currently listed and compare homes of similar ratings, and see how the market place has set their valuation based on actual sales results.