Grow House Anyone? Help yourself – there is plenty around!

I just cant stress enough the importance of research and market evaluation for the buyer clients. For some reason, when selling, people want to know the value of their home, but when buying, they are not doing this extra step (or shall I say not being led by their real estate agent to make this extra step?) I just came across this wonderful example in Mississauga, ON and all I can do is wonder: HOW????

marijuana-1

Home in Mississauga sells in July 2013 for way under 500K. Large lot, excellent high demand neighborhood, close to amenities. Paying 10-15 % below the market price – Good for the buyer!

Very same home goes back on the market in February 2014. Listing price is 200K more.

Everyone is flipping houses our days, right? There are just a couple of issues here…

1. You would hope for some extensive renovations and upgrades, but pictures on the new listing look very similar to those from the listing in July – old kitchen, old bathroom

2. Basement had been finished, but I don't believe in finished basements being worth 200K

3. Listing price is about 75K over the market

I could not apply any of the existing home evaluation methods to explain this marvelous increase in value, and, since one of my clients expressed an interest in the property, I called the listing agent. Not the current listing agent. Listing agent who sold the home in July.
And guess what?

4. To add to all the previous benefits – it is a GROW HOUSE! Yes, yes, the one used for growing illegal substances, marijuana in particular and the one that supposed to go for the price of land.

Long story short – my client is not buying it. And anyone shouldn't without getting a detailed market evaluation and knowing what are you getting yourself into.

Please, make sure the property you are buying is worth what you are paying for it, or at least has some potential – get your free market evaluation.

More on Home Value
Home Appraisal – Why is it Important to Know Your Home Market Value
Real Estate Bubble, and how Buyers Make It Happen

More Tips for Home Buyer

12 Steps To Buy Your First Home
Types of Homes – Learning Real Estate Terms
First Time Home Buyers – Wonderful Video For You by CMHC
Discount Real Estate Brokers – Illusion and Reality or Free Cheese, Get now – Pay later
Moving Checklist –  based on the list from Martha Stewart
Some More Mortgage Terms and Rates
Mortgage Basics
Your Home and Maslow's Hierarchy of Needs
10 Reasons Why You Need a Realtor to Buy a House

More Tips for the Home Seller:

Home Seller Tips – Take Lots of Photographs of Your Garden
Closing Your Pool for the Winter – Homeowner Tips
National Do-Not-Call-List – Do You Really Know What this is?
Video Tours, Virtual Tours or a Combination of both
Making Your House Buyer Friendly – 10 Seller's Best Friends
Please, Don't Let the Cat Out – you gotta be kidding me!
Handymen Gone Handless or possibly brainfree!
Moving Checklist
Discount Real Estate Brokers – Illusion and Reality or Free Cheese, Get now – Pay later

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