Impact On Future Value?
I am looking at a place that is currently in a very average neighborhood, just off of a lake. I can get it for 85K. My question is this. There are currently 3 new constructions going up on the block. only 2 other houses on the block, besides the one im looking at and the new constructions, are in good shape. The rest of them are in less than average looking condition, not well ekpt and with poor curb appeal. The new contructions help the block out alot in terms of being better looking. They are listed for $159,000, similar style to the one im looking at.(ranch)
How much more will the new constructions help as compared to the rest of the blocks poor curb appeal hurting the value. Will the new constructions positive impacts outweigh the the rest of teh blocks negative impacts.(only 5 total houses on the block look worth a "plug - nickel",) so most of block looks old and not kept up very well. I love the house im looking at. Like the idea of the new constructions, and hate the rest of the block.
any thoughts?
Bu
Do you have any idea of what the sales have been in this neighborhood, how long it took for the houses to sell, as well as any info on all of the houses that don't appear to be well kept? Do you know what (if anything) was there before the new construction going on now? Wondering if it's possible that some builders bought properties with "dozable" homes for use as building lots.
Without knowing more about the immediate surroundings of the property you're considering, it's tough for me to get a feel for the situation. As you point out, the new construction helps the neighborhood, however, if the owners of the majority of properties in the neighborhood don't maintain them well, the nice homes (new and resale) could wind up being the "hole" in the doughnut.
Nancy is more knowledgable than I but it might be an upsurge in the market in that area.
Ive found threw my own personel experience that once one of the nieghhbors starts fixing up thier house the trend slowly moves through the nieghborhood.
ED
I'd personally pass on the purchase. The property you are looking at @ $85k may be overpriced from the getgo- look for some other recent sales which have transpired in the neighborhood-that should give you a clearer indication of its value. Is that the type of neighborhood you want to live in??? Is that the type of neighborhood you want to have as an investment???. .
The purchasers of those new homes are in for a rude awakening when they try to sell.
They probably have some sort of subsidy directly or indirectly via the builder.
The other property owners with deferred maintenance may "get the message" and begin to improve their properties -there's cerainly no guarantee of that happening.
If I were a betting man, I'd bet that the new construction will look like the rest of the neighborhood before the neighborhood begins to look like the newly constructed homes. I don't see that you got yourself a deal here.. If you had found a junker in a good neighborhood , you'd have a good deal , but the obverse seldom it worth bothering with-unless you have a screaming bargain.