Seattle Bubble Forum Archive

This house seems pretty reasonable to me.

http://www.redfin.com/stingray/do/print ... id=1616387

17043 2nd Ave NW
3,070 sqft
$419k
$136/sqft
In Shoreline.
Across from a park.
It looks nice too.

So, what is wrong with it?

I bet it sells within a week.

Alan,
Real list calls that house only 1850 square feet, so maybe the basement was more recently finished....The pictures do look nice, but you never know of the horrors that may be lurking behind the walls.

If it was really 300 sqft, it would be listed at $800k in Bellevue or Redmond.

It seems that many people count a basement as having almost zero value, finished or not. They exclude that square footage from their thinking. You see this in sales of houses that are similar, and in the same neighborhood, except that some have basements. They sell for about the same price even though the ones with basements have about twice the square footage. I value basements highly myself.

A house in Redmond that seems very similar to this Shoreline house sold recently for $495K. It is 2250 sq. ft. with a much larger lot. There is a 2700 sq. ft. house in Bellevue that's sat unsold at $445K for a couple months (no garage though).

It's a tri-level, therefore the basement doesn't count...which explains the difference. It is very common to see these houses listed with the basement as part of sq/ft now, which they aren't.

Which house is a tri-level? Whether tri-level or split-level, as a buyer I have no problem seeing every sq. foot of livable area included in the total sq. footage. I don't understand buyers who value a cozy 1000 sq. ft. finished basement at zero. (Where, of two similar houses except that one also has the basement, and priced the same, they'll choose the one without the basement.) Their loss is my gain, though.

Nevertheless, it doesn't count. It's like listing the finish attic with carpet as sq/ft.

Including the basement when others don't makes it difficult to compare the house to other properties.

1) The house sold for $149000 in 1999 (Zillow)
2) Based on the pre bubble normal appreciation rate of 4% (being generous there) the house would be worth $215K today
3) But according to Redfin the kitchen has been updated. Looking at the pictures the kitchen looks "ok" but nothing spectacular. So let's add 30K for improvements.
4) That brings the value of the house today to $245K based on a "average appreciation" since 1999
5) They are asking $453K
6) That is $208K too much

By my calculation the house is 46% above what it would have been worth if the bubble had not happened.

Even if you play with the numbers you will see this house is over priced.

Remember, Seattle prices are just now nosing over.....we have a LONG way to go.

Step 5 should have been $419K not $453 which was the "Zestimate".

So its only 42% overpriced....well that is a different story!!!

It is a GREAT TIME TO BUY!!!

Here is a tip when listing your house: Be honest. If you include the basement in your square footage then I am going to wonder what other lies you are telling. It will make me not want to buy your house.