Question about Housing Price from 2000 - 2010 (East Hampton, Ridge: foreclosure, insurance, countertops)
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I am interested in a house (again for the handful of people here I chat with) and have found out some information that I need help with. I know they purchased the house for $289990 in 2003 (Ridge).
I am trying to figure out what the house is worth today. I do understand there are alot of variables, and I will take them into account. They did add an inground pool and they did redo the kitchen. (They did not redo the roof or heating system).
So.... is there a basic chart about housing prices and where they were then? Again, i know it isnt anywhere near perfect... but I am trying to just get a rough idea.
Inground would add between 18-40K depending on style and build (gunite > liner). I'm leary of kitchen redos, unless you know what your looking for your not going to see what the cabinets are (and subsequently what they cost). Should be about 320-330 minus costs to fix any problems if I were to guess.
I don't think there's a chart or formula that can tell you exactly what a house is worth - relative to what it cost in 2003.
If you want a pool - that increases the value. If you don't want a pool and the expense of upkeep - it can actually be a negative. It may cost 20-40K to install one, but I can't see it retaining that much in value - unless the next buyer REALLY wants a pool.
Different neighborhoods on Long Island got hit by the "market adjustment" much more than others. I know areas of Quogue, for example, got hit really hard. Montauk, for another example, didn't take near the hit East Hampton did.
Bottom line - who cares what they paid in 2003? Maybe they got a steal, maybe they got taken to the cleaners. It's not part of the negotiation (it's a sure way to bring emotion into it when somebody is taking a beating). Base your offer on the market today, in that area and that's all.
Go with the comps. What's selling in the area and what is it going for? It's the only thing that should matter (aside from what you actually can afford, of course). If you find the house is priced at market or below, be competitive with your bid. If you find it's priced high, lower your bid.
we bought in Ridge in 2004, after looking for a while. IMO homes in most parts of Ridge are still selling for SLIGHTLY more than they were selling for in 2004. For example, when we bought our home there were at least 15 homes in decent condition in my neighborhood that sold for just under or just over $200,000. In the last year or so anything that has sold near that mark has been a complete fixer/as-is/ or a total foreclosure. Decent tiny 3 bedroom or 2 bedroom, 1 bath homes still go sell for $240,000 and up these days. As for the pool, it only adds value if you want it, lots of buyers do not. DM me the street and I will give you the scoop.
Hope that helps.
Do you have a realtor? Have them pull you a market analysis (CMA) out of MLS and send you the details... You'll want to see everything that closed in the surrounding area (specifically in the same school district) in the last 60 days at least. You can also extend into RP, SB, and Middle Island for comparables IMO.
Pull the data apart to compare - cost per sqft, property sizes, key stats. New roof, siding, upgrades, etc.
The pool adds significant expense to your nut (electric bill, insurance, taxes, cleaning, supplies, etc). IMO it actually is a wash value wise at a minimum... it doesn't increase the "value" of the property at all.
Lowball - lowball... Be ruthless with the inspection and be prepared to walk. It's a business decision and prices are going nowhere but down while interest rates will stay rock bottom.
its a waste to figure out a formula, whos to say what they paid was market value, it could have been above, or below depending on the situation. best way is to look at comps near by. then adjust for things like pool in necessary
We are currently at about 2003 prices. That being said, I would not apply it to any particular home. Look for recent sold comps of similar homes in the same neighborhood.
We are currently at about 2003 prices. That being said, I would not apply it to any particular home. Look for recent sold comps of similar homes in the same neighborhood.
Not to hijack the thread:
Tom, not to disagree, but I'm not seeing that at all in the homes I'm looking at. I'm finding homes that were built in 1999-2004ish trying to be sold for double almost triple their original home costs. Many of the homes I'm seeing have painted cabinets and veneer countertops with orginal bathrooms. (Manorville, colonial/victorians on .5 or more)
Tom ; ours is the same. Back to 2003 prices. Too bad we bought it in 2004. But were looking in 2003 and the price was the same as now.
Same for us, bought in '04, but we're young, and bought to live in it with good schools, not to make money off of.
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