Profile picture for tango4ever

How low should I bid for this house?


I checked market value of surrounding area, most at similar size 1500-2000 sqf, market value should be in the range of $450-$500
 
http://www.zillow.com/homedetails/151-Schrade-Rd-Briarcliff-Manor-NY-10510/33073688_zpid/

The owners bought it at $650K in 2005 so it might be hard for them to take low offer, however we don't want to pay overprice as neighboring transactions (another two houses on the same street are $400 - 450k. 


A recent transaction was $415 K 
Sold 03/05/2009: $415,000 
55 Schrade Rd, Briarcliff Manor, NY 10510

If I offer $480K, could it be reasonable?


Thanks for your advice!

   
 
  • September 12 2009 - Briarcliff Manor
  • 0
    0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Be a Good Neighbor. Be respectful and on-topic. No spam or self-promotion! See our Good Neighbor Policy.

 
 

Answers (6)

Profile picture for DanielWRyan
I would suggest finding a good buyers agent. Don't want to guess on what a good bid should be only to find out you overpaid by a lot.
  • September 18 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

However, my calculation was not exactly for the home price, its depend also on how the inside and outside look like (which is i can't see) and how you like the house and its neighbors.
  • September 18 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

My calculation is common use in Appraisal, and county tax assessor (improvement and land values) and maybe as same as Zillow, its depend on labor and material costs (different from area to area).
the differential is $1. for each year. for example your area is $105 per sqft for built the new house or add rooms. from 1952 to 2007 is 55 years.
$105 - $55 (Depreciation) = $50 per sqrt (old building).

If the house, which is you want to buy was built at 2007 then the house value will be:
637 x $50 (old building per sqft) = $31,850.
$55 (differenrtial) x 2,089 sqft = $114,895.
$31,850. + $114,895. + $10,000 (the lot is bigger) = $156,745.
$156,745. + $415,000 (comparable house sold) = $571,745 the price of the new house.

PS. if you can built (add rooms) for $105 per sqft., why you want to pay $286/sqf for the older house?
 

  • September 18 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Profile picture for tango4ever
thank you, Hoang ChauPhan!

Is it possible that $50/sqf (in your calc) for comparable building cost could be higher? say $300/sqf ? but it means $180k I should add.

Comparable house sold is $415k / 1452 sqf = $286/sqf

This house is $550k, compares to recent sold $595 ($415+$180k size adj) though it has a very small backyard as discount factor. 

Does my math make sense? 

  
  • September 17 2009
  • 0Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Assume your area home value wasn't rise or fall since March, 2009

The different of 2 homes is 637 sqft.
637 x $50 (old building per sqft) = $31,850.
$31,850. + $10,000 (your lot is bigger) = $41,850.
$41,850. + $415,000 (comparable house sold) = $456,850. the price of the house you want to buy.

  • September 13 2009
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.

Follow Zestimate if it is correct, the home value is $312k at late 1999, the time line is 10 years.
If we take 4% inflation rate the house value should be  $461,836
If the inflation rate is 4.5% the house value should be  $484,526
If the inflation rate is 5% the house value should be  $508,215
The average of nation wide housing inflation rate is 4.75%.
However it was depended on local jobs market, economy and many factors, nice school, good house, good neighborhood for example.

Your agent must had better idea for the house value.
  • September 13 2009
  • 1Yes

  • Report a Problem

    Please enter a valid email address.

    Content flagged

    We will review this content. Thanks for helping make the site more useful to everyone. To learn more, read Zillow's Good Neighbor Policy.

    We're sorry. This service is temporarily unavailable. Please come back later and try again.