This Victorian looking cabin has many adorable features, and a few huge negative aspects. Whether a buyer can look past the negatives and appreciate the positives will determine what this home sells for. The home is a probate sale, which means it is being sold “AS IS” with a court administrated purchase agreement and very strict rules about the terms that the estate will accept in the sale. The home must be appraised, and cannot sell for less than the appraised value. It can, however, sell for more than the appraised value! I seriously doubt it will appraise for the list price of $275,000, but if someone choses to pay more than the appraised value, the probate court would gladly approve that sale. I suspect the $275,000 list price is a fishing expedition. Any home within walking distance of Nevada City priced under $300,000 is going to get a lot of immediate activity. Since this home is in too poor condition to qualify for conventional financing, the buyer will likely be a cash buyer, and a cash buyer will not need an appraisal. So, how will they determine what price to offer?
The best measure of value is probably to look at the only market where homes with similar features and condition exist, which would be in the city of Grass Valley, and then compare pricing between Grass Valley and Nevada City, attributing the difference in price a buyer might pay for this home in Nevada City verse what they would pay for a similar home in Grass Valley to the premium difference between the two cities. In Grass Valley, a home like this, in this same condition might sell for $175,000 to $200,000. Any premium paid over that amount can fairly safely be attributed largely, or perhaps, entirely, to the preferential desirability of the Nevada City location. That premium will then have implications for other homes in the Nevada City market which also may not have comparable homes in Nevada City, but might have equivalent homes in Grass Valley. This is especially useful when considering homes at the very lowest end pf the price spectrum.