So my wife came upon a property in the same zip code where we reside currently. It's a custom-built, modern house on 5 acres in an high-end development. The house is incredible from an architectural perspective and it's not too far off from what I would design myself as our dream home. It's been sitting on and off the market since 2013 when the owner passed away, and is now owned by the decedent's estate. It was currently re-listed $173K below tax value, and $200K less than what the previous owner paid for it in 2007. So what's wrong with it? Number one, it's a modern design here in the land of extremely traditional homes. Number two, it's very dated in terms of finishes. Number 3, it only has 3 bedrooms, which is unheard of at that price-point and sq footage. Other than that, it's solid. No major repairs or problems noted.
There's absolutely nothing wrong with where we live now, and we weren't even looking for ourselves per se, but I really like this house and would relish the opportunity to make it amazing. I just recognize that it will take time and money for me to make it turn-key, and in the meantime, I'm doing all the pragmatic, second-guessing of the "what if's." For instance, if we took the plunge on that property, we'd have to stay there for the long-haul, as it would be much harder to sell than our current home.
Additionally, what's the reality of instant equity in such an undervalued property? That much below tax value in this area is almost unheard of unless the place is a total dump.
