The Risk of Buying Early in A Neighborhood!

Good morning! Been a while I know but my father died and wife had recent surgery. Anyway, though I’d blog a little about some showings this past weekend. Had a very nice lady come into town to view real estate in the Greenville area.  She had sent me her criteria for homes to see in Greenville so I put together a few showings in different areas so she could get a good feel for what’s where.

Well, one of her favorite homes was in a neighborhood that had started in 09.  She really liked it… and I did too.  Lot of stone and brick, very nicely finished.  And it was $500,000 which we both thought was very reasonable.  Beautiful tiled, screened in back porch with stone fireplace.  Beautiful kitchen.  I mean really, there was nothing to not like about the home.

So, you ask…”Don, what’s the problem”  Well I wrote about it years ago here. “Are you the Experiment?”  Perfect example.  The home was one of the first started in the neighborhood in 09.  If you follow the market, that was right about in the middle of a Greenville SC real estate downturn!  There’s two or three homes in there that are really really nice.  Then everything just stopped.  Well a larger builder moved in about a year ago and guess what.  He’s building homes about half the price per sq. foot of what the original homes went for!  Kaboom!

How would that make you feel about your “investment”.  So, my buyer asked me what I thought about buying it and I said if you can get it for what the new construction is selling for, I’m all for it.  Dream on!  Sad situation for the sellers.

Moral: Don’t be the Experiment!

 

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