What’s Your Riverside Tear-Down Worth?

7 Hearthstone Drive, Riverside (small farmhouse now removed), .31 acres, sold for $1.315M back in 2008, about what it would sell for today!

7 Hearthstone Drive, Riverside, .31 acres, sold for $1.315M back in 2008, about what it would sell for today! This property sat vacant for 5 years but now, finally, has a house under construction by Argus Development.

I took a look at two year’s worth of Riverside sales of houses that, with two exceptions, have either already been torn down (and replaced) or are scheduled to be. The two exceptions were sold to people who apparently plan to update, which is just fine, but it’s plainly accurate to put them on the tear-down list, nevertheless.

As an aside, the two that weren’t torn down remind me of a little-known real estate fact, namely, that “sprucing up” an obvious tear-down can be a smart move for two reasons; one, someone who plans to actually live in the house may pay more than someone who wants to tear it down, and two, people who plan to tear down will often pay more for a house that appears to be at least somewhat ‘livable”, reasoning that a larger group of potential buyers may be interested, and that will drive the price up.

“Sprucing up” does not mean new baths and  kitchen, it means paint, wallpaper, maybe a new roof (if it really, really needs it). Also, de-clutter, wash the windows, and clean up the property. that’s it.

16 Riverside “tear-downs” 

For the record, I added them all up to see how they averaged out (I included as a 17th example, the one pictured above, 7 Hearthstone Drive):

Average lot size: .365 acres

Average Sale Price: $1,402,000.

15 thoughts on “What’s Your Riverside Tear-Down Worth?

  1. Do you not think 16 hearthstone is also on that list? I can’t imagine someone would pay that much for a lot when the high on that road for a lot was $1.45.

  2. Bubblelious!

    I’m a little skepitcal all these new spec homes will land their desired price. I think their is some demand, but is it enough to make every builder conclude with a happy ending?

    Seems like the 1.6 to 2.4MM market is the one more in need of product. I get it though, obviously its a little harder to make lower price deals work…but hey, maybe a medium sized profit that is more assured is better than shooting for the moon.

  3. You missed 11 Bayside Terrace. Purchased earlier this year for $1.08m (above ask I believe) and about a quarter to a third of an acre. It was nearly completely torn down. Being finished up as we speak by a developer. Unless they have a buyer already, it should hit the market soon.

  4. so in a lot of ways if u are trying to get into Riverside , entry level per se . what’s the price ? This suggest that most anything around .3 of an acre for $1.3m will be going to a builder .. we talk about lack of inventory but perhaps this explains why anything between $ 1 – 2 mio in Riverside last only a few days from when it comes on the market ?

    • Green:
      It’s not that bad. Here’s a sample of Riverside sales that have gotten deals in the last 6 months, priced between $900K-1.5M. You will note, from these examples, that you can still get a livable house for under $1.3M in that part of town. As for competing with builders, yes, that “problem” has started up again, after having gone away for a few years. But not all streets attract builder interest.

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