Buyers tend to want the newest house they can afford. In Colorado Springs those houses typically sell for $100 per finished square foot or more.
But there is a special “best value” niche of houses that most 1st time buyers over look. These are the “executive” homes built between 1950 and 1960. These are houses with at least 2,000 finished square feet, which was 2-3 times the typical house built during this era.
Why should you consider these houses?
Location, location, location - many of these houses are in the best locations in the city and have terrific views.
Building materials - ask any veteran carpenter and they will tell you there is a huge difference between the quality of lumber and building materials used 50 years ago and what is used today. These older homes don’t have the problem materials used today such as OSB and the potent resins and glues used in newer houses that make some people sick.
Cost - a newer 3,000 square foot house will typical cost over $300,000. An older home of the same size will tend to run closer to $235,000. That is over 20% less. That difference will allow many buyers to put enough down to avoid paying mortgage insurance which would be another hefty savings. You may be able to buy an older house of nearly 2,500 sqaure feet for less than $200,000.
Property taxes & HOA dues - many of these older homes have lower property taxes and HOA dues than newer subdivisions.
The following tables are for houses built between 1950 and 1960, with at least 2,000 finished square feet.
Data is for houses that closed between April 20th and November 20th of 2010 and 2011.
|2010 - 82 sold||Beds||Baths||Finished Square Feet||List Price||List Price / Square Feet||Sold Price||Sold Price / Square Feet||Sold Price / List Price||DOM|
|2011 - 71 sold||Beds||Baths||Finished Square Feet||List Price||List Price / Square Feet||Sold Price||Sold Price / Square Feet||Sold Price / List Price||DOM|
"Based on information from the Pikes Peak REALTOR Services Corp. ("RSC"), for the period April 20, 2010 through November 20, 2010 and from April 20, 2011 through November 20, 2011. RSC does not guarantee or is in any way responsible for its accuracy. Data maintained by RSC may not reflect all real estate activity in the market."
There is a myth that these older houses don’t sell quickly. Look at the median days on market (DOM). Just 48 days in 2010 and 66 days in 2011. Very few newer subdivisions can match the quick sales of these older houses.
Another myth is that you have to heavily discount the asking prices on these older houses. In 2010 these houses sold for 96% of list price and in 2011 it was 97% of list price. Those percentages are excellent for the current market.
The market for these houses tends to be among the most stable year in and year out. Notice there is only a $2.30 difference between the list price per square feet 2010 / 2011 ($81.84 to $79.54).
The sold price per square feet did soften by $6.11 ($81.40 to $75.29) but I think that is primarily a factor of tighter mortgage lending requirements.
The volume of these houses that sold remains strong. 82 units sold in 2010 and 71 in 2011. Tighter mortgage lending requirements are again the most common factor that has inhibited volume.
I encourage 1st time buyers and any buyer tyring to get the best value to at least look at these houses. Yes some are quite outdated but they can often be bought very reasonably. Any buyers who may health issues, especially that may be influenced by air borne irritants should consider these older houses.
There are inspection issues that differ from newer houses. Not more issues, just different. As Colorado Springs only “Home Inspection & Safety Consultant” I can help you work through those issues. For a free, no obligation look at some of these homes or to have new listings automatically sent by email, call or text me at 719-304-4684 or email me.Remember that I’m the only broker committed to work through all available houses that may be for sale, not just those listed in the MLS. Search smarter, contact me today.