Buy the Lot, Get the Home for Free
Huh??
It turns out that what's really for sale here is the land: according to Hennepin County, 70% of the $588k tax assessed value, or $413k, resides in the land. That compares with the usual 25% - 33%.
"Home for sale, home not available for showing."Beautiful property with west views of Highland Lake! Premier lot close to Interlachen golf course! Home is not available for showing.
--per MLS
Huh??
It turns out that what's really for sale here is the land: according to Hennepin County, 70% of the $588k tax assessed value, or $413k, resides in the land. That compares with the usual 25% - 33%.
Is it worth it?
As I've blogged previously, to determine if the asking price is in the ballpark, multiply by 3.5, then subtract 20%.
In this case, 3.5 x $850k (list price) = $2.975M. Subtracting 20% from that is $2.38M.
If there is a precedent for $2.4M homes on the block . . . the asking price is right. (Twenty percent is typically how much new construction can overshoot prevailing, nearby prices.)
P.S.: sure looks like an aerial shot to me (discussed a couple posts back).
Posts
No comments:
Post a Comment