“Sloppy” Pricing — or Something Else?
Even in a market with more “sloppy” pricing — properties listed either well below market value (occasionally) or well above (more often) — the new listing near Cedar Lake in Minneapolis stood out: an undersized ’50’s rambler on a level, huge 73′ x 135′ lot just waiting to be torn down and replaced with new construction.
Asking price: $269k . . . in a neighborhood brimming with $1 million – $2 million new homes.
Mispriced vs. Mapping Mistake
The explanation?
The property wasn’t mispriced.
Rather, the MLS map showed it in the wrong location.
Instead of being 2 blocks west of Cedar Lake (top photo), the home is more than one mile west, in a St. Louis Park neighborhood (Birchwood) that’s very nice, but where values are 50% lower (left photo).
See also, “Tear-Down Economics“; “Tear-Down Prototypes“; “Tear-Down Economics, Circa 2012″; and “You Know It’s a Tear-Down When . . .”
