₦airaland Forum

whitecat2:
There's no point being all over the place. I would just like to know why your very listings are showing older and almost abandoned building more expensive than newer and modern one next door.

The term 'Comps' can only apply to newly sold homes in the neighborhood with same price, square footage and curb appeal among others, so in this case the loft north of the train station that has all the bells and whistles your own does not have should be more expensive.

Well I'm done with this! I realized that you have a business to run. I was just curious.

Your post is symptomatic of the reasons I chose to comment in the first place - you make too many assumptions, based on half facts and a lack of information.

1. This is not my post. I am not the OP. From what I gather (as I am actually willing to research) the OP is a legitimate agent in Nigeria. At least, they have one of the most professionally done up web sites in the Nigerian RE business. I am a REMAX agent out of the Buckhead office. I have sold a lot of RE in the area since I moved to Atlanta in 2010.

2. Sellers determine the listing price of their homes. We agents act as a guide, but the seller is ultimately responsible for price.

3. The particular loft development is FULLY OCCUPIED! Mostly owners live there. They have a less than 20% rental occupancy. I showed a unit there to a potential buyer late last year. Where do you come up with abandoned? Older, yes. Abandoned? You are clearly mistaken. Look them up, they have a very active Facebook page.

4. The loft north of the train station that according to you "has all the bells and whistles" has no bells and not even a single whistle! Granted it is newer, but only because it sat half empty for almost 4 years after the bank foreclosed on it and had to sell at ridiculous prices to recoup their cost. Even then, it took that long to convince buyers.

5. Even if that were the case, comps are not set on bells and whistles, but on fundamentals such as size (sq. footage), number of rooms, quality of build, obsolescence etc. Age of building plays a small role, but cannot determine price.

You clearly have an interest in real estate. I encourage you to learn the fundamentals in a licensing class.

whitecat2:
I know the the area very well and the building. Is it not the building facing Chamblee train station? And why is bank having problem selling it? Which would you compare it to if not the one next door that is newer and modern? There's a reason why those flats sit unsold for many years.

You misunderstand.
The foreclosed property I refer to is the "newer and more modern" one you seem to wish to use as a comparable. As well as the other loft development down the road, facing the North end of the train station. The developers were unable to complete at the height of the real estate downturn, and the banks stepped in.

For the purpose of valuation, you cannot logically use a property in distress as a comparable, or as RE professionals call it one not sold at fair market value / not sold in an arms length transaction. The one for sale here is actually the best selling loft development in the area. There are only 2 units for sale in the development, and all units are occupied by young professionals who LOVE the area.

whitecat2:
This is overpriced for an old building. You can still get 2br/2ba for $160,000 in the new Lofts next door.

You clearly do not know the area well, or do not know enough about real estate.
"Overpriced for an old building"? Real estate values in the US are set by comparable sales, not by the whims of a seller. I sell RE in Atlanta. This development is one of the best in the area, second only to EcoLofts, built by same developer. There are several units for sale at upwards of $250,000 in the same development.

"...the new lofts next door" - clearly you are unaware of the history of the lofts you refer to. It was foreclosed from the developers, and the bank has had the challenge of trying to sell them off. In addition, the building is fraught with a number of problems.

In the eyes of the real estate market, it is not an apples to apples comparison.