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.
Spec builders and investors take note. This is a flat lot, with no landscaping, and very little setback from the street, but the builder went right at, put in 2 bedroom and 2 bathroom home with a few nice upgrades, and now it’s listed for $310,000. This is an important bell weather of buyer appetite for manufactured homes. Nobody built manufactured spec homes in the past, this is an entirely new entry in our market place. In the past, a lot like this one would have got a small stick built house. The profitability of that kind of construction is simply not there any more so we see the shift to spec builders installing manufactured homes. I will be counting the days till it sells and watch the price they get for it.
This home is more than just a cosmetic fixer. It is the definition of functionally obsolete. It only has one bathroom, and the condition is poor. The kitchen looks like it needs a gut and replace, and the interior and exterior both need attention. What this bank owned repo has going for it is the three car detached garage, the large flat garden area, and the very large lot size- 5.8 acres. At the $300,000 price point, there have been just 4 properties in the last year that have had five or more acres, and none of them have had homes that were in any better condition than this home. The size of the lot makes it difficult to establish comparable sales. There simply are not enough properties with that much acreage to compare. However, the value of the land can easily be established because there are lots of land sales, properties with no house, that can be used as a guide to know what the property is worth independent of the house.
The land alone is worth between $120,000 and $150,000. The difference between the higher and lower value depend on the strength of the well and certification of the septic system, both of which a buyer would have to find out during their inspection period because the bank who owns the property has not done any inspections. If the well is a low producer, or if the septic has failed, then the property would be closer to $120,000 in value, with a good well and operational septic, the property would be worth closer to the $150,000 price. The reason the property is capped at about $150,000 is because of the freeway noise. You can definitely here Hwy 49 from the property. The garage is worth about $50,000. When a renovation was completed, and if a second bathroom could be added, the home would be worth about $425,000 to $450,000 depending on the quality of the finishes used.
Listed back in September, price adjusted to $309,999 a week ago, this home went pending within a day of the price adjustment. The home is in fair condition, but it shows a bit age- It was built in 1982. The roof is covered with pine needles, could be 20 years old, or it might be the original roof, windows appear to be original, as is the deck. The siding is in good condition, but has a bit of dry rot near the rear deck. The garage is unfinished, and like most steep lots, the garage is down a long staircase, main living is on the mid-level of the home where there is one bedroom, a kitchen, and living room with hardwood floors, there is guest bathroom with an entry to both the living room and from the bedroom. Upstairs is a master bedroom with a bathroom and sitting area. There is also a laundry room/mud room at the rear entry off the deck.
This home is would qualify as a cosmetic fixer, but because it has two bedrooms and not three, and is on a steep lot with stairway access to the garage, there is not currently a lot of upside potential for an investor. Keep looking.