The house next door, what to do?

[Justin Shaulis]

I live in a small town (Perry, MI) and I have one of the newest/nicest houses on the block. I also have one of the oldest, most run down homes right next door. The neighbors are friendly enough, but the house is not.

They made a offhand comment that they may be moving and selling. I asked what she would be looking for if moving and she said maybe 15k. The house itself is over 100 years old is VERY small. It is 2 bedrooms, each bedroom can barley fit a bed. Tiny living room, even smaller kitchen and a bathroom that has the floor caving in.

The house sits on approximately 1/3 - 1/2 of in acre within the city limits. Both my house and the neighbors house are zoned for light industrial.

Thoughts, the house is worthless. No one in there right mind would buy this for purposes of fixing up. I honestly can not think of a home I have seen in worse condition. It is also super small house. I think it should be demo'ed.

The 15k question is:
1. Should I buy this?
Pros:
- I could demo the house and it would help my property value.
- I could have room to build a garage
- Prevent some business from coming in next door

Cons:
- Price seems high but I might not be up on my property values. When research other properties in the area, they where selling between 5-7k, but out of town and in larger quantities(5+ acres)
- Lady thinks the house is worth something, I do not. Cost of demo'ing would be a con.

Does city property really worth that much more than county property?

Thoughts or other things I should consider before making any type of offer?

Thanks!

Justin