Lots of Space, Little $$$

Three listings caught my attention this week that offer a lot of space for not a lot of money. 2 of the houses are the original buildings on the farm that was subdivided into the Meadows by Bethel Farms off of Lenape Lake Road south of Livingston Manor. The farmhouse on 4.28 acres (MLS 27886) is about 3,500 sq. ft. and was originaly listed in 2008 for $355,000. The new "move it" price is $150,000! Also available is the original barn on 5 acres for $159,900 (MLS 27885). The barn has a small 2 bedroom "apartment" at one end that is perfectly liveable. The rest of the space is unfinished. (The total is listed as 10,000 sq. ft.) The barn was originally listed for $349,900 is early 2009. Both properties have nice views and are well set back from any main road, but neither is really secluded — they have parcels around them that are likely to be built on at some point in the future. And the farmhouse isn't totally classic — it's been added on to and "remuddled" some over the years. But at these prices, it's hard to be too nit picky.

The third listing is a bank owned foreclosure down on Gregory Road near Glen Spey. (MLS 27846). 2,200 above grade square feet, built 1975, surprisingly private given that it's only on 1.3 acres. Asking price is $135,808. Keep in mind, though, that this is a bank-owned property, which means it's sold "As-Is", with less opportunity for due diligence and closing requirements that can make financing difficult if not impossible. But for a cash buyer, this could be a great one.

Click here to check out the three listings.

Comments

[Rod]

I think you got it wrong, David - 'picky' is exactly what buyers tend to be - at every price, and buying a structure in a languishing development that needs hundreds of thousands of dollars of repair is not in any sense what I am seeing in terms of demand in the marketplace.

And the listing agent calling the 'original price' $159k after 3 years of sitting on the market would in most industries would be called 'deceptive' and 'misleading' advertising, regardless of the rules of the MLS. A 66% reduction is allowed to be hidden by the MLS rules. I find the lack of sales history transparency offensive.

The question will be - what trick and sleight of hand will be used if they don't sell at this price?

[David Knudsen]

Remember, my post is about some deals on a lot of space cheap. This is a lot of space for the money. I don't think the barn needs hundreds of thousands of dollars in repair for the current living space. To finish off all the square footage in the barn into finished living space, the classic "barn house", would certainly require that. But that, in my mind, would be foolish investment given the overall property. But I come across folks all the time with some need for some large space, to paint large, work on sculpture, whatever, and find some appeal in a large, if unfinished, space.

I think these properties coming back to market at much lower prices is a really good illustration of pricing to the market. At $250,000 or $300,000, these two houses were dogs on the market, with too many drawbacks — the need for repairs or updating and the possibilty of houses being built within their viewsheds — to entice buyers at those prices. But at $150,000, it's a different animal. There have been lots of examples over the last year of less-than-perfect houses that languished on the market for a long time finding buyers after they cut their prices big time, and I think that could happen with these. Neither is going to appeal to city buyer who wants a cozy, picture perfect farmhouse fantasy, but for some buyers, having 4 bedrooms and 3,500 sq. ft. in what is a reasonably nice setting (much better than being on a busy, main road) trumps having 2 bedrooms and 1,000 sq. ft. for the same price that might be more picture perfect.

Regarding your second point, I guess that's a good reason to use a buyer agent, isn't it? To have someone who will search through and disclose the listing history of a property.

[Rod]

Point well made DK. Big space, low cost, new pricing to reflect market. Makes sense. Drastic reductions for sure. And at mid-100's, pretty damn affordable regardless. Hello 1998.

I find a buyer's agent proposition overwhelmingly a smart idea. I think real estate is one of the few industries where your most trusted advisor during the purchase is actually obligated to get the other party the best deal. Very strange.

[Bix]

That second house looks mighty appealing. However, I can't quite place where it is, and I'm not clear on why it is so cheap.

However, a couple of years ago you couldn't get much for 150K, so this definitely shows that the quality at that end is rising.

[David Knudsen]

Update on the $150,000 farmhouse. Just talked with the listing agent. It was shown a number of times over the past weekend, and there are now multiple offers on it.

[Bix]

Not surprised about the multiple offers. Even if there is a privacy issue, it is priced to sell. I'll bet it ultimately goes above the asking price.

A few years ago, 150K would get you an unappealing house in Liberty Village or Monticello, at best. I still see houses worse than this one where the asking price is well into the 200s.

[compo]

The Glen Spey listing comes up as a signed contract when you click the link. Did something happen over the weekend also?

[David Knudsen]

compo, must have. The listing status was changed from "active" to "contract signed" sometime yesterday. One thing to note about bank owned properties is that they do to contract VERY quickly. Time on market from first listing to contract signed on this one was just 17 days.

When super deals do come on the market, buyers really can't dawdle. I emailed out that Glen Spey house to a few buyers I've been working with just after it was listed. The property did get a positive response, but the earliest any of those buyers thought they could come up was early February. While there isn't much urgency in the overall market, buyers do need a different mindset and some sense of urgency when these super deals pop up.