A real estate agent and investor wants to buy a house for $2 million in an area where it’s more than 80% vacant.
Is it illegal?
The answer is no, says Paul Hager, a real estate lawyer and author of The Best Real Estate in America: How to Save Money and Get the Best Deal in America.
He says a buyer shouldn’t buy a home for less than $2.5 million, which he calls “the most valuable thing a home can be for the value of its place.”
“It should be an asset of a family member or a close friend.
The buyer should have a plan in place to maximize value in the area,” Hager said.
The best place for a home to go, says Hager is if it’s a vacant lot or vacant lot near a city center.
He said a lot can be a good place to put a lot, but not necessarily a good site to buy.
“It’s a little more complicated when it comes to property taxes, and a lot of the property values in the areas where vacant lots are the most common are in the cities and suburban areas.
A lot of these vacant lots, if they’re on a parcel, are owned by people who aren’t going to take care of the lot,” Hagers said.
Hager said he advises prospective buyers to consider the market before they make a decision.
“The bottom line is that there are always better deals out there.
But if you don’t know what you’re getting into, don’t do it.
You should have some idea of what your price will be in your market and then you should be looking at other alternatives,” he said.
In some areas, like the Northeast, vacant lots have a much higher property value than vacant lots in more affluent areas.
But in others, like parts of San Francisco, it’s the opposite.
Hagers said a home in the San Francisco Bay Area is more valuable than one in a less-developed area.
“I think it’s important to look at the market.
Do you have enough demand that the property is worth the price?” he said, adding that the value isn’t necessarily as high in the Bay Area as in the more affluent regions of the country.
He says the real estate market in California has been very volatile.
“A lot of people think they know how to get rich.
It’s really a whole new ballgame, and it’s really hard to get a good idea of how much you can make off of a property.
That’s one of the reasons I’m a little bit skeptical of buying a home right now.”
Read or Share this story: http://usat.ly/1mF7YmX