Determining Value
We have a house that is in foreclosure under contract. FMV is about $550k / $560k. We have it under contract for $480k. The property is in good condition, no repairs necessary, the only thing is, in the back of the house, behind a fence there is a commercial building, some kind of food store. What kind of negative effect would this have on the value of the property? [ Edited by reinatalie on Date 10/21/2004 ]
In my views, a house in the middle of a commercial neighborhood is bad.
However, if the house is located in a subdivision, the comps you are using are also from the same subdivision, and that the boundry between commercial and residential is somewhat carefully planned, then I don't think it should have much of an effect.
Dont' take my word for it--know your market! GOOD LUCK
The potential problem is the area could have been rezoned. Check with the city. I know cases in some Cities that have a law that if a house sits vacant for more than 1 year, then the house can never be a SFR anymore. Check it out.
Best Regards,
Jeff Adam
[addsig]
Sorry, for not being as clear as I should have been. The house is located in residential neighborhood, and it is surrounded by other SFR. There is only one commercial property bordering this house.