So whats the catch?

4 Replies

Hey guys,

So I am very interested in this property

http://www.zillow.com/homes/union-nj_rb/#/homedetails/18-Sandy-Point-Dr-Lake-Hopatcong-NJ-07849/2107493388_zpid/

This is a lake community home and as far as I know there are no membership fees and though the taxes have increased they are no more ridiculous than normal for New Jersey as from my research. Zillow estimates the property near 300k but its selling for 80k. I can easily put the downpayment and even considering using an FHA loan. I like the location more than anything as it is safe but close enough to get to see my family and friends further east and the price is fine with me. So whats the catch with the low price? Anything I should really look into before I make a regretable leap?

That's a mobile home in a park.  Zillow is on crack, estimating that that $300k.  And I guarantee that there are fees and/or lot rent.

it's probably just the land you'll be buying.  as Zillow indicates, it's "TO BE BUILT."

as well, sometimes when Zillow is off on its estimates, it's WAY off.  

i came across a property that was worth about 300 as well, selling for 70.  upon further research with the use of a realtor, we discovered that it's just the land, even though there were pictures of the inside - the sellers/builders were using photos from the model property...

Doesn't really look that underpriced to me as it's a smaller manufactured home (essentially a single-wide mobile home on a foundation). That being said it looks to be in really good condition and if your looking at it as an owner-occupied residence for yourself it looks to be a decent buy. As far as the Zestimate...they are NOTORIOUSLY bad. The only thing I use Zillow for is locating similar properties that have sold recently for running comps. I would never consider the Zestimate anywhere near accurate. Always go by what other homes in the area have actually sold for and what active listings are showing at to get at the real value of your property. Hope that helps!

Thanks guys and yes the "to be built" gave me a red flag as to if this property is even the one on the actual location.

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