Big Price Reduction! Owner carry possible! Get away from the City! 10 secluded acres with large modern cabin set on ridge 400 feet above the Yuba River. Hear the river roar and star gaze off the tree topping deck. The cabin has three bedrooms, three bathrooms, a bonus game or media room, plus ample kitchen and living room for guests, family, or entertaining. Outdoor living or BBQ on the spacious decks, plus plenty of paved hard-scape for RV parking. Downstairs has separate entrance. Home has Hughes Net satellite internet connection, remote door alarm, metal roof, and fire safe clearance around the home. There is ample river view from the deck. Plenty of flat area where you could build a shop or garage. Home is connected to the Washington municipal water supply. No well, but there is 2500 gallon fire suppression tank.
Originally listed for $387,000, that price would be a bit high in Grass Valley, but not over the top. But the sellers or their agent simply miscalculated the discount buyers demand for a North San Juan address. Once a property is pegged as “over priced” sellers end up discounting the home more than might have been necessary had the home been priced right in the first place. $325,000 probably would have been a solid value, but the seller clearly expressing a desire to move the home, dropped the price to a very aggressive $300,000, and that flipped the switch for buyers, sending this one into the pending stack after just a few days at that price. I looked at the house when it was listed for the higher price, and noted not a single business card on the kitchen counter. Three days after the price was dropped to $300,000 there were a dozen cards on the counter. Buyers came out in droves once the price point dropped below the price of a similar home in Grass Valley, and the real incentive kicked in when buyers realized this home was a good deal, even compared to other homes in North San Juan. Not surprising that is went pending right away.
Blog Update Last year this same home was listed for $209,000- and I put together my assessment below- The home did not sell, not surprising! Same tenant lives in it a year later, and the seller is once again got it on the market, but now the price is $10,000 more than last year.
No video for this tenant occupied rental. Tenant pays $1100 per month. Limited parking, home is in poor condition. Yet another fixer is the Grass Valley market, very similar to the several we have already been looking at over on Second Street. A little better than the bank owned home on Mill. Puts everything in perspective. Check out previous blog entries to see where this one fits into the matrix of fixers and investment property under $250,000.
The strong hand of a contractor has made this sow’s ear into a silk purse. A year ago this was just a shell, and needed everything. The contractor came in, got the floor plan right with all new interior walls and staircase, redid the plumbing and electrical, added new windows and doors, and put in some nice finishes. I doubt he spent less than $75,000 not including the labor. Because the house started out with no sheet rock and no interior walls, there was not much demolition, and my guess is the contractor did not find any “surprise” damage when he got to work on the rehab. This was basically an unfinished shell when he took over, and now it is a complete house. In Grass Valley this same house would be right around $300,000. In North San Juan the market is weaker, demand is a less, and buyers require a discount to be tempted to live out in the rural community. But I am certain someone will see the value of this home and purchase it. Just have to keep an eye on the sales price to know what market place says the discount between a Grass Valley home and similar home in North San Juan
The North San Juan market is always a bit difficult to predict. There are some very high end homes on large private parcels that get priced equal to any other location in the county. There are also shacks and sheds on dirt roads, they also hit the same price point for sales as other remote locations in the Nevada County. What is not typical of any other location in Nevada County is the small neighborhood right near the North San Juan post office, and the surrounding area where homes tend to be older and on city lot size parcels, similar to some of the shabbier neighborhoods in Grass Valley, except for the location is 30 minutes from Grass Valley! There are not that many home that fit this rarified description, but when one comes on the market they are extremely tough to price. If this same home was in Grass Valley, and there are plenty of homes like this one in the city of Grass Valley, it would be easy to price it. I have reviewed dozens like this one over the last year or so, and $217,000 would be a decent price. That’s just about what you would expect for a home like this, on this size lot, walking distance to downtown Grass Valley. But what do we make of this same house in North San Juan? Buyers, of course, will make that decision. At the Corner Office, we watch and report, and see what happens when this one sells.
When looking under $250,000 I see a large number of these older manufactured homes, often times, like this one, they are on post and peer foundations, and have lots of deferred maintenance. This one is typical. What is not typical is the frontage on Deer Creek. The location is almost at the corner of Bitney Springs and Newtown, so there is a bit of road noise, but you can’t see the road, and I doubt you would hear much late at night or early in the morning. There is one neighbor on the same access driveway, but the neighbor’s home appears to be in equal disrepair and not currently occupied. The road in a bit rough, looks like it might flood during the winter, but the house is up on a ridge well above the riparian area, so the home looks comfortably free from potential river flooding. The home itself looks and needs an extreme make-over, and I don’t anything about the well or septic, but the location is idyllic, with sound of the river permeating the home, and big windows looking out to the water. Without inspections there is no way to put a value on the mobile, but the land is probably worth $150,000 to $175,000, which means the property is likely priced fairly close to fair market, or maybe just a little over. (Figure the mobile is worth $30,000 or so.)
This is nice 2.9 acre property, but the creek run along the road, so the only part of the property that is accessible is a narrow strip between the road and the creek. There is no bridge, and no vehicle access to the larger portion of the property on the far side of the creek. County records show this cabin was originally built in the 1960’s before setbacks from the riparian area were strictly enforced, and when build permits were lax. But the records show that the current owner got a building permit in 2015, but the permit was never acted on, and has since expired. It is doubtful that the county would make a new owner remove the home, but they might not be willing to issue a permit either. The home is clearly in danger of flooding, with the edge of the foundation just inches away from the creek. Perhaps more of challenge will be the location of a septic system. The property is not wide enough to get a septic system far enough away from the creek and not be inside the setback from the street. There are always work-arounds for these kinds of problems, but there might be additional costs and engineering fees that would make this home a money pit.
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.