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Best real estate bargain you can find?
Old 05-21-2009, 01:11 PM   #1
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Best real estate bargain you can find?

I found this today - KB Home Community - Kenion Grove - Hillsborough, NC

$58/sqft for a new single family home in an area that's growing. That's pretty unbelievable. What's the best real estate bargain you've seen?
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Old 05-21-2009, 01:30 PM   #2
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That's a steal even in that area. It looks like it is "in town" too. Well, in Hillsborough at least.
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Old 05-21-2009, 01:41 PM   #3
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Although with enough upgrades you can end up with a fairly decent KB house, in this part of the world many of their lower price per sq ft homes are built with the cheapest materials available. They begin to disintegrate at the 5 to 7 year point - as do the neighborhoods.
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Old 05-21-2009, 01:51 PM   #4
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I was really going to find a great real estate bargain and post here. But then I started thinking - - (dangerous, I know) - - a great real estate bargain is going to be different for different buyers, depending on what they want in a house, where they want to live, and so on.

So now, I am stumped. What is a great real estate bargain to me, would probably just seem like an old dump to someone else. And what might seem great to someone else, would seem to me like it had no character and was built on a postage stamp sized lot. Different strokes and all that. In Springfield we have seen homes larger than that one on 1/4 to 1/3 acre lots for less than that one... but they are older homes, some with wallpaper and pink tile bathrooms and so on.

Edited to add: Here's one for $119,900, 2982 square feet, on 0.43 acres. It's an older home, though.
http://www.realtor.com/realestateand...804_1098108684
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Old 05-21-2009, 09:14 PM   #5
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Originally Posted by Want2retire View Post
I was really going to find a great real estate bargain and post here. But then I started thinking - - (dangerous, I know) - - a great real estate bargain is going to be different for different buyers, depending on what they want in a house, where they want to live, and so on.

So now, I am stumped. What is a great real estate bargain to me, would probably just seem like an old dump to someone else. And what might seem great to someone else, would seem to me like it had no character and was built on a postage stamp sized lot. Different strokes and all that. In Springfield we have seen homes larger than that one on 1/4 to 1/3 acre lots for less than that one... but they are older homes, some with wallpaper and pink tile bathrooms and so on.

Edited to add: Here's one for $119,900, 2982 square feet, on 0.43 acres. It's an older home, though.
2028 South Oak Grove Ave, Springfield, MO, 65804 - MLS ID#807393 - Single Family Home real estate - REALTOR.com®
Good point about the bargain thing. I guess instead of bargain I could have used the words - shock factor. I was very shocked with the KB home prices because:

1. I've never heard of new construction going for $58/sqft. I just heard of prices being around 2x of that.
2. The Raleigh market still seems somewhat strong and is suppose to be one of the first cities out of the slump
3. The area is growing

My guess is that all of the new construction is creating massive amounts of inventory and driving down prices.
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Old 05-21-2009, 09:41 PM   #6
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If I remember well, Hillsborough is quite far from Raleigh. I wouldn't want to have to commute everyday between the two, especially on that stretch of I-40 (what can I say, I spent way too much time stuck in traffic around RTP...). But I guess if you work west of the airport, it would be OK.

It's worth noting that the price quoted is the starting price. I doubt you'll get the pictured house for $58/sqft. You probably would have to add substantial upgrades to the basic model to get something that nice.

Even though, it's not bad...
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Old 05-22-2009, 09:35 AM   #7
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Old 05-22-2009, 09:36 AM   #8
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Old 05-22-2009, 10:00 AM   #9
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If I remember well, Hillsborough is quite far from Raleigh. I wouldn't want to have to commute everyday between the two, especially on that stretch of I-40 (what can I say, I spent way too much time stuck in traffic around RTP...). But I guess if you work west of the airport, it would be OK.

It's worth noting that the price quoted is the starting price. I doubt you'll get the pictured house for $58/sqft. You probably would have to add substantial upgrades to the basic model to get something that nice.

Even though, it's not bad...
Yep - the $58/sf probably gets you a barebones house with white cabinets, white paint, vinyl flooring and cheapest carpet throughout, zero architectural detail (like crown or chair moulding), cheapest roofing, cheapest siding, contractor's special fixtures and appliances throughout (if all appliances are even included!).

Location isn't really that bad to RTP. Just a little farther than parts of Raleigh and Durham. It is rather close to UNC/chapel hill and if one spouse works west towards Greensboro/Burlington/Mebane it would be a prime location. Also just a moderately long commute through the woods to Danville Va if one partner works there (ie licensed in VA only or something).
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Old 05-22-2009, 11:56 AM   #10
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Location isn't really that bad to RTP. Just a little farther than parts of Raleigh and Durham. It is rather close to UNC/chapel hill and if one spouse works west towards Greensboro/Burlington/Mebane it would be a prime location. Also just a moderately long commute through the woods to Danville Va if one partner works there (ie licensed in VA only or something).
I agree. The location would probably be a deal breaker for me because I go into Raleigh a couple times a week. If a large family was looking for a new home, in a quaint small town and didn't have a lot to spend that development could be a decent option.
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Old 05-22-2009, 12:05 PM   #11
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I didn't realize KB has such a bum rap. How do they stack up among some of the other "cookie cutter" builders (Centex, M/I, Pulte, Beazer, Standard Pacific)?

KB's other developments in the area sell for $100+ sqft and they seem to do pretty well.
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Old 05-22-2009, 01:02 PM   #12
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W2R - I went to Zillow to look at the area surrounding the address. Is that train tracks at the back of the property?
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Old 05-22-2009, 03:37 PM   #13
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W2R - I went to Zillow to look at the area surrounding the address. Is that train tracks at the back of the property?
Buckeye, those are indeed railroad tracks but they are just local and have very little rail traffic. They are surrounded with green space and nicely landscaped park like area, with a really nice paved walking trail.

But if those are a problem, then how about this one:

3164 West Seminole, Springfield, MO, 65807 - MLS ID#907989 - Single Family Home real estate - REALTOR.comŽ

$124,900, 2686 square feet, 4 bedrooms two baths, on 0.64 acres near the golf course. No RR tracks. I can keep this up all night because this is not an unusual price for houses in the area. However, they are older homes and not brand new ones like the KB homes that Bank5 found. Many have not been updated or renovated since they were built. So, while quite liveable they would not appeal to those wanting a luxurious, updated home.

Also, there are some great deals in rural western Pennsylvania. Like these houses in Missouri, the homes are older and I guess they aren't really located in trendy spots. So heaven help you if you ever have to sell.

This one in western Pennsylvania is $99,000, 4 bedrooms, 1.5 bathrooms:

http://www.realtor.com/realestateand...931_1105200733
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Old 05-22-2009, 03:38 PM   #14
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Many have not been updated or renovated since they were built.
Translation: Add $50,000 to the price for renovations if you don't like the look of 1970s kitchens and bathrooms.
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Old 05-22-2009, 03:41 PM   #15
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Especially bad rap in Florida. Only outsiders are tricked into buying them.
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Old 05-22-2009, 03:54 PM   #16
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Translation: Add $50,000 to the price for renovations if you don't like the look of 1970s kitchens and bathrooms.
At the very least. It really helps if you have old fashioned tastes and can stomach a lot of wallpaper or 1970's paneling. If you wear paisley shirts and wide gaudy ties with your leisure suit, you'll fit right in with your home decor (sorry if that sounded snotty - - actually I like these older homes and prefer them to the new ones in Springfield, but others might not like them so much). Also if you don't cook maybe the 40 year old stove and dishwasher will be more bearable.

And then you may have to update the wiring, get more insulation, install completely new light fixtures throughout the house, and so on.

As a bonus, you get the original hardwood floors (sometimes absolutely beautiful, sometimes worn and ugly) and the big lots (sometimes not fenced). Depends on what appeals to people, I guess.

We are planning to buy this type of house after we ER and move north. They are hard to sell, so there are a lot on the market right now and we can easily find two that are close to one another (or ideally, across the street or next door to one another). Then I will probably have the kitchen of my house renovated and leave the bathrooms alone. I might just do a partial renovation on the kitchen if it isn't too bad. Also, I don't have to do anything at all until I feel like it is not a problem to spend the money on it.
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Old 05-22-2009, 06:32 PM   #17
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W2R - I like the train track house...including the tracks! It doesn't look outdated in the pictures that were posted but no kitchen pictures. Heck of a deal.
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Old 05-22-2009, 08:01 PM   #18
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W2R - I like the train track house...including the tracks! It doesn't look outdated in the pictures that were posted but no kitchen pictures. Heck of a deal.
Kitchen pictures (and lots of others) are available by going here:

A framed page from OzarksHome.com presenting their MLS IDX solution for you.==

The MLS 807393 and zip code 65804. Basically, the kitchen is small with outdated cheap white counters and outdated cabinets, but no wallpaper, wood floor, and really does not look that bad, considering. I could live with a kitchen like that, though there are people who couldn't. There is no wallpaper in the house at all (glory hallelujah!). Lots of neutral paint.

It has been on the market since at least April of 2008, 13 months ago. There's a lesson in this - - buy a house in an isolated midwestern small town and you may never be able to sell it.
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Old 05-23-2009, 07:15 AM   #19
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I'm with you on buying and selling a house in a midwest town. We have decided to move back to FL so we have put our home up for sale for the same price we paid in December 2004. We didn't have a real estate bust here as we never had a boom but people are hunkered down due to the economy. It was a unoccupied spec home to which we added another $20k in floors, appliances, curtains, blinds, paint, etc. It is the most beautiful, well-built home I'm sure we will ever occupy but it's time for someone else to enjoy it!
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Old 05-23-2009, 01:47 PM   #20
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This may not be an inexpensive property but it is a bargain at $699,000.
Real Estate For Sale in Bradenton Florida, Scott Norris Coldwell Banker Residential Real Estate,bradenton real estate, palma sola bay real estate, palma sola real estate, manatee county waterfront real estate, manatee county real estate
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