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Answers (9)
- Pasadenan
- Contributions:21413
I had appraisals done on two almost identically sized properties, one with a 2-story house and 2-car detatch garage, one with no structures; the one with structures was slightly larger, zoned exactly the same on the same street in the same area; appraised at the same time by the same appraiser. At first, the appraisal for the EMPTY lot came in HIGHER then the one with the structure. I had to tell the appaiser to adjust the numbers because no one in their right mind is going to believe a property with only "potential" and no present usage is worth more than one that has pressent income and useful function.
Even so, most of the "market value" is the land (about 70%). The county assessor looks at it quite differently, and most of the value is in the structures (about 70%). And of course, for the insurance company, all the value is in the structures. They don't insure the trees or crops, and as far as they are concerned, there is no value to insure for the "dirt". I don't even think they will insure the driveway.
On a "cost per sq ft" basis, I used to assume the structure "livable space" was 10 times the cost per sqft of the empty land. But it varies widely, and the majority of "bubble cost" in this area was in the land. So that rule of thumb does not hold up at all and Zillow's method of considering land, bedrms, baths, etc is much more reasonable, though much harder to do quickly in your head when glancing at properties.
Even so, most of the "market value" is the land (about 70%). The county assessor looks at it quite differently, and most of the value is in the structures (about 70%). And of course, for the insurance company, all the value is in the structures. They don't insure the trees or crops, and as far as they are concerned, there is no value to insure for the "dirt". I don't even think they will insure the driveway.
On a "cost per sq ft" basis, I used to assume the structure "livable space" was 10 times the cost per sqft of the empty land. But it varies widely, and the majority of "bubble cost" in this area was in the land. So that rule of thumb does not hold up at all and Zillow's method of considering land, bedrms, baths, etc is much more reasonable, though much harder to do quickly in your head when glancing at properties.
- HomeSand.net, "White Picture"
- Contributions:4389
Most of urban of County of Los Angeles areas are value more on the land then the improvement, visit on LA assessor website, you gonna see. i don't think Orange county is different from LA county.
- Song San, "song san"
- Contributions:85
DebtsNMesses, I agree with most of your comments. Looking at many appraisal reports and working with some appraisers I have not seen any real estate where the land is worth more than the home. I know it is out there and it could be scenarios where a buyer purchase a big plot of land for say $200,000 and put up a $100,000 home on it.
I looked at a few homes that have HOA fees of about $100/month and depending on how long you plan to live there, it would add thousands to your purchase price. I wouldn't buy a home that have HOA because there are restrictions on what you could do, and the biggest reason to get a home is so you have more freedom of doing what you want with the home, not less.
I looked at a few homes that have HOA fees of about $100/month and depending on how long you plan to live there, it would add thousands to your purchase price. I wouldn't buy a home that have HOA because there are restrictions on what you could do, and the biggest reason to get a home is so you have more freedom of doing what you want with the home, not less.
- HomeSand.net, "White Picture"
- Contributions:4389
The votes are:
4 choice A.
0 choice B.
1 void.
4 choice A.
0 choice B.
1 void.
- Terri Linnell, "DebtsNMesses"
- Contributions:6728
My family absolutely considers lot size. Land has value, whereas the house can burn to the ground. Especially in Calif... if you look at an appraisal the land will have more value than the house. (although in the last 5 or so years I'm not sure that it didn't go wierd) ... but in the last 40 years in socal, it has been true.
Plus, choice B has HOA's, which FOREVER are going up. So you're not truely locked into a fixed price.
Plus, choice B has HOA's, which FOREVER are going up. So you're not truely locked into a fixed price.
- Song San, "song san"
- Contributions:85
This is a personal preference. When I drive around, I often seen big houses (about 2000+ sq ft of living space), but no front, side, or back yard. The owners would take their kids to the streets to play.
When I first start looking for a place about 4 months ago we just wanted any house, but with a family I started to see that a large lot of over 12,000 sq ft is good for the family to play and expand. I almost purchased a place that have about 1800 sq ft on a 6800 lot for $319K, but didn't because we would have run out of room in a year and nowhere to expand and would have to get another place.
My suggestion is to get a place about 20-30% bigger than your minimum if you could afford it in case you need to expand.
- HomeSand.net, "White Picture"
- Contributions:4389
With $100 HOA, there will be no guard for the community, I rather CHOICE A, where I can do the Dragon dancing in my back yard or park my car on opposite way of street or paint my front door with the black color and nobody bother to make the complaint.
In the HOA community, everything is different, if you want built something in the back yard, which is can see from the front? There will be the complaint, forgot to bring the trash can back to the back yard after the service day? there will be a complaint, everything make a little different from your neighbor? There will be a complaint, every change at the front needed the permits from HOA. These make you feel like you aren't living in your home any more.
In the HOA community, everything is different, if you want built something in the back yard, which is can see from the front? There will be the complaint, forgot to bring the trash can back to the back yard after the service day? there will be a complaint, everything make a little different from your neighbor? There will be a complaint, every change at the front needed the permits from HOA. These make you feel like you aren't living in your home any more.
- Pasadenan
- Contributions:21413
Of course lot size is important! What is the point in buying Real Estate if you are not buying land????
If you don't want land, you might as well buy a Condo. And if you are going to get a Condo, you might as well live in an apartment, because there is no difference, and at least with an Apartment, you do no maintenance, and all the fees are included in the one monthy rental price.
That $100 extra HOA fee is the equivalent of $20k higher purchase price, and 1989 materials are lower quality, and you have no guarentee the HOA fees will not be raised every year you live there, so it easily could cost you much more than the $415k home.
As to how you measure the quality of the neighborhood, or the accessiblity to jobs and work, that is an entirely different matter, and I know of no specific accurate method of making those comparisons.
You also need to consider proximity of neighbors, and estimated noise and other disturbances. More land means not only more flexibility for what you do with it, but also more buffer between the neighbors. Still, you should also check the specific zoning, as that will determine what neighbors MIGHT do, and what you could do.
Buy enough land, and you may be able to split the lot and move on another home.
You really like "community pools"? Then why not use the one at the public park? You really like gated communities where some guard keeps track of your coming and going and there are few ways in and out?
If you don't want land, you might as well buy a Condo. And if you are going to get a Condo, you might as well live in an apartment, because there is no difference, and at least with an Apartment, you do no maintenance, and all the fees are included in the one monthy rental price.
That $100 extra HOA fee is the equivalent of $20k higher purchase price, and 1989 materials are lower quality, and you have no guarentee the HOA fees will not be raised every year you live there, so it easily could cost you much more than the $415k home.
As to how you measure the quality of the neighborhood, or the accessiblity to jobs and work, that is an entirely different matter, and I know of no specific accurate method of making those comparisons.
You also need to consider proximity of neighbors, and estimated noise and other disturbances. More land means not only more flexibility for what you do with it, but also more buffer between the neighbors. Still, you should also check the specific zoning, as that will determine what neighbors MIGHT do, and what you could do.
Buy enough land, and you may be able to split the lot and move on another home.
You really like "community pools"? Then why not use the one at the public park? You really like gated communities where some guard keeps track of your coming and going and there are few ways in and out?
- Charles Park, "charleskpark.com"
- Contributions:54
Sounds like it's a matter of personal preference?
Is lot size really that important?!
CHOICE A: 1650 sq ft SFR home, with an 8700 sq ft lot in an ok neighborhood, $415K, built in 1956, anaheim near disneyland
CHOICE B: 1727 sq ft SFR home with a 3600 sq ft lot in a slightly better neighborhood, $375k + $100 in HOAs for gate and pool maintenance, built in 1989, whittier near la habra
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