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Evaluation of Huntsville investment home.

Posted on Wednesday, February 29, 2012


Evaluation of Huntsville investment home.





homes for sale in huntsville
Homes for sale in Huntsville
214 RIVER OAKS DRIVE  at the link below is listed at $120,000 / $74 per square foot. It has been on the market since 06/30/09 and was originally listed at $149,900. It looks like it went under contract on 06/19/10 when it was listed at $136,000 but the sale fell through.

http://nalmls.com/NALMLSReports/ListitLib/show_report.aspx?ID=7115332825

 

The link below is to the listing where the current owner bought the house $118,250 / $73 per square foot.

 

http://nalmls.com/NALMLSReports/ListitLib/show_report.aspx?ID=7115332830

 

The first mortgage dated 8/30/04 was for $94,600.

http://probate.co.madison.al.us/LoadImage.aspx?sk=20040830000335970&format=PDF&ref=e08cd07f-510b-46ec-8d6e-e8622163c121

 

The second mortgage was for $23,650 for a total loan amount of $118,250 the purchase price.

http://probate.co.madison.al.us/LoadImage.aspx?sk=20040830000335980&format=PDF&ref=e08cd07f-510b-46ec-8d6e-e8622163c121


Downtown Huntsville
Downtown Huntsville AL

 

Without knowing the loan interest rate or if seller made additional payment we can estimated that his loan balance will be in the $110,000 range. Including the brokers fee, a 3,000 contribution to purchaser closing costs and a $500 home warranty, purchaser's will need to sell at about $120,000 to be able to pay off his loans. It's probably no coincidence that the house is listed at $120,000.

 

The link below is to a summary of MLS activity of  homes for sale in Huntsville in the neighborhood since 01/01/11. The average sold price was $86 per square foot with a range of $51 to $111 per square foot. The average days on market were moderate at 117 days and a range of 5 to 199 days.

 

http://nalmls.com/NALMLSReports/ListitLib/show_report.aspx?ID=7115332843

 

 




Dallas Mill water tower Huntsville
Dallas Mill water tower Huntsville AL
My impression of the listing is that was initially listed for WAY too much then became a stale listing and people just assumed something was wrong with it. The listing agent seems a little lazy, The current listing uses the same photos and description as the previous listing including " NEW SCHOOLS IN 2005 " When the house wasn't listed this time until 2009. In the two and a half years it has been on the market it has run down and someone fell through the garage ceiling.

 

The house is listed "as is" meaning the seller wont warrant anything to work. It is vital that we make any offer contingent on inspection and make sure the water is on to check the plumbing (I think the power is on).

 

Seller may be motivated to take a loss, the question is does he have money to bring to closing if the sale won't pay off the mortgages.


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