Deal For Buyers – Bad Deal For Neighborhood

When you read this post, please remember I am the messenger(don’t shoot the messenger). The home at 916 Mann Court sold on 3/13/09 for $340,000!  That’s right $340,000 for 2,287 square feet, 4 bedrooms, 3 baths, pool on a court. That is $148.65/sqft.  This was a short sale situation. Now granted, the home had some special features that may not be desirable, such as a living area set up in the garage (walls and everything), a downstairs bathroom configured for wheelchairs. And it was not turnkey as far as walls needing to be repainted etc. But really!  The average price for a home this size would be $181.14/sqft or $414,267, based on solds in the past month.

I had been told that this was an all-cash deal, however when I check the tax records, there is a loan placed on the property, at the same time as close of escrow.

While the buyer certainly got a good deal, it is not a good deal for Prairie Oaks. This will be what we call a comp.  Whether you are going to sell your home or possibly take advantage of the low interest rates and refinance, this home will be considered a comp. Appraisers will look at this home and its sold price and possibly value your home based on the comp on Mann.  If your selling your home, make sure your Realtor has other comps to support your pricing, and if you are refinancing, make sure there are enough other comps to support your refi price. Lately I get a lot of phone calls from appraisers asking about the homes I have sold and what they had in them(in the past few years we never got calls from appraisers). Hopefully the listing agent will describe the home and its “amenties”  it had so that appraisers have a clear picture of the home.

If you do get stuck and need comps for a refi, please contact me, I might be able to show some better comps.