Posted by: Timothy Ellis (The Tim)

Tim Ellis is the founder of Seattle Bubble. His background in engineering and computer / internet technology, a fondness of data-based analysis of problems, and an addiction to spreadsheets all influence his perspective on the Seattle-area real estate market.

10 responses to “Cheapest Homes: August 2013 Edition”

  1. Erik

    This is why I live in a condo. My other option is something like this. Condos are the way to go in my opinion for us poor trolls. I think people on the West Coast aren’t so hot on condo/co-op living, so condo prices are cheaper than on the East Coast. Is that true? I was just thinking that may be the case since you can afford so much more and live much nicer in a condo if you don’t have that much money.

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  2. ChrisM

    Would be fascinating to learn why the Rose property wasn’t picked up at auction. Seems like 101k would have been a steal.

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  3. softwarengineer

    RE: ChrisM @ 2

    I Wasn’t at That Auction

    But IMO minimum bids are way too high at repo auctions….its time for banks to take bigger losses if they want even partial recovery in this tight money environment.

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  4. ARDELL

    RE: Erik @ 1

    Condos are cheaper because you are not buying a piece of land in “fee simple” fashion…with a house on it. I just checked an East Coast area that is very similar to yours/ours and a location approximately the same distance to the small town (Newtown Borough) and major city (Philadelphia) as you are from Kirkland Downtown and Downtown Seattle, and the price is about the same for a 2 bedroom condo that is the same basic “garden apartment” style as yours..

    http://www.redfin.com/PA/Newtown/114-Leedom-Way-18940/home/38939233

    The original single family homes in the small town are older, as in 1865 vs 1921, but comparable in price. http://www.redfin.com/PA/Newtown/123-Liberty-St-18940/home/38933997

    Condos are cheaper than houses because the nicer the neighborhood, the more expensive the land value, and if you take the amount of land your complex sits on and divide it by the number of owners who live there, the piece of land per unit is much smaller than the land that comes with a house. Then reduce the price of the living space on a price per square foot basis, and the condo will be equal to that of a house after reducing for size of land and house and condo ownership vs fee simple ownership.

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  5. Erik

    RE: ARDELL @ 4
    I guess it’s just my perspective has changed regarding condo living. Thank you for setting me straight.

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  6. ARDELL

    RE: Erik @ 5
    Subtract the lot/land value on these “cheap homes” to get the value of the structure on the land. Pretty nominal value for the house itself.

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  7. ARDELL

    RE: ARDELL @ 6

    While this is commercial land in Bellevue, it is relevant to the issue that land values are actually increasing, not home values. Apparently this sale broke the record as to price per square foot of land, which I assume means higher than the last peak prices.

    http://www.bizjournals.com/seattle/news/2013/07/29/bellevue-land-sale-shatters-price-record.html

    Parts of Bellevue are carrying a lot of the appreciation factor that you read about, given their upswing is higher than the median price increase, by far. So there are conversely some other areas that did not increase at all, and possibly even went down recently. Not Kirkland, but some other parts of King County reflected in the median YOY increase.

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  8. Erik

    RE: ChrisM @ 2
    Yeah, that’s strange. I was told that if properties don’t sell at the trustee sale (auction), they are discounted further and sold as an REO (bank owned). In this case, it didn’t sell at the trustee sale so they increased the price and put it up as an REO.

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  9. Lo Ball Jones

    Meanwhile, a little further south…

    3215 Madison
    Tacoma, WA 98409
    $65,000
    Price 3
    Beds 1
    Baths 870 Sq. Ft.
    $75 / Sq. Ft.

    http://www.redfin.com/WA/Tacoma/3215-S-Madison-St-98409/home/2940530

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  10. ChrisM

    RE: Lo Ball Jones @ 9 – Come on, you keep posting these “cheap” properties and I keep pointing out they are SHORT SALES – the price and listing MEAN NOTHING!!!

    Come back when you’ve found a real (non short) property for sale in a school district that has a ranking > 4 and isn’t in the Rust Belt. Is that too much to ask???

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