Thursday, September 6, 2007

Granite guzzler

Many owners think granite countertops is like a real estate steriod. Just install the specky stone into the kitchen and a wreck is transformed from a seven stone weakling into oily skinned 14 stone gym poser. That kind of thinking might have worked a year ago. Today, granite is yesterday’s thing. In 2006, price is the only thing that moves houses.

This house boasts the usual granite tops, stucco and hardwood floors, but so what. Despite the enhancements, the house is ugly, isolated and small. Who wants to spend $695k just to live beside a Toyota dealship called the Toyotathon?

As always, the realtor write-up contains the a couple of mysterious comments. The appraiser thought that this house was worth $750k. Really! So why has the owner dropped the price by $55k? Could the appraiser really be that far out? This raises two difficult but inter-related questions. Do appraisal valuations have any meaningful connection to market prices? Or are appraisals driven by the need to obtain over-inflated mortgages?

The realtor also promises a large 234 sq. ft. unpermitted bonus room. What does that mean? Does the room exist but the authorities don't know about it?

Thanks to Katharina. This one can be found on ziprealty. If there are any other granite enhanced wrecks out there, this blog stands ready to expose them.

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