Foreclosures in Upton Estates: How did they come up with that Price???

There are currently 5 homes for sale in Upton Estates.  The high school is Ocean Lakes and there is not a POA in this neighborhood. 

What is for sale and what has sold?  Three of the five are for sale are distressed sales.  Two are short sales while the other one is bank owned.  The pending home was a short sale as well.  Two of the four that sold on this list were distressed sales as well. 

The first one listed below is a cash or rehab loan only meaning you cannot get a regular loan with this house due to the condition. 

Status DatePriceChange Bdrs FB HB SqFt Price
ACTV 12/4/2009 4 3 0 2296 254,900
ACTV 10/26/2009 3 2 0 1300 249,900
ACTV 12/5/2009 3 2 0 1305 220,000
ACTV 8/18/2009 3 2 0 1360 202,000
ACTV 10/23/2009 3 2 0 1487 259,500
PEND 12/3/2009 3 2 0 1398 205,000
SOLD 8/24/2009 3 2 0 1487 220,000
SOLD 7/15/2009 3 2 0 1746 265,000
SOLD 8/14/2009 3 2 0 1600 215,000
SOLD 6/3/2009 3 2 1 1573 237,500

Let's look closer at the first house for sale.  Why is it priced at $254,900 being in such bad repair?   

In the last six months, there has been 4 homes that have sold ranging in price from 215-265K and 1500 to 1800 sq. ft. Also, 2 out of the four were distressed sales. 

This home is significantly larger at 2300 square feet.  Nothing else is that big including the 4 other homes on the market which are priced 202-260K and 1300-1500 square feet. 

The average price per square foot for the homes on the market in Upton is $158.  If you apply that to this home, it would be priced at 363K. The average for homes that have sold is $146 which would make it 335K. 

Does the neighborhood support that price?  Would anyone touch it with a ten foot pole?  Nope.  So, instead they priced it in line with both the homes that have sold and ones that are on the market regardless of the size.  They are basically discounting the size due to the condition.   Nothing has sold even in the last year that size.  However, in 2008, 2 homes sold for over 300K, over 2200 square feet, and both in move in condition. When buying or selling, it is a give and take situation.  When you are selling and you do not want to fix up the house, you price it accordingly.  When you buy, you figure out what you cannot live without and let the less important items go.  So, with this house, if you need a larger 4 bedroom in Ocean Lakes HS and your price range is around 250K, then you may sacrafice the condition to get everything else on your list. 

Foreclosures and other distressed homes for sale:  Virginia BeachChesapeake, Norfolk, Portsmouth, Waterfront Homes, Homes with Pools, Golf Course Homes

Signing off with energy to spare,

Suzi Noyes, Realtor