Looking for experienced analysis. Why such a price difference?

Question

Hi Everyone,

I'm just getting into real estate and I'm still researching whether I want to flip or buy and hold. While browsing my local market on zillow I noticed the 2 properties linked below that are seemingly identical but sold for a $150,000 difference. Same zip, same beds/bath, roughly same square footage, sold on almost the same day.

Could it be the lot size? Maybe the cheaper one was a complete disaster inside? Would that mean the cheaper one is potentially a good deal?

I'm very curious as to why they sold for such a difference in price and would appreciate any expert advice. Just trying to wrap my head around what goes into pricing these homes.

Thanks!

https://www.zillow.com/homedet...

Bronson Massas · Answer

@Nicholas Rini This is interesting. I can only imagine that the interior of the property sold at the lower price is a complete disaster to justify a sale that is $150k lower. This is still a very significant difference, though, given that the property with the higher selling price is only about a C3 (somewhat well maintained with minor repairs necessary). Lot size typically won't have a significant impact on value, and the larger property in this case is the one that sold for less. If I had to guess, I would say the seller of the first property simply needed to sell fast and cheap for some type of unique circumstance (avoid foreclosure, need to pay medical bills, etc.)

Whether this makes it a good deal is another conversation. It's a good initial indicator of a good deal but you'd need to be able to determine the amount of rehab required to achieve the higher price point in order to determine whether it is a good deal.