Anticipated Sales Price…

Real Estate ComparisonsJMF has agreed to pay $1.25 million for the land under the Post Office provided that Township agrees to pay for demolition, remediation of all environmental issues, and provide a tax break in the form of a PILOT.   On closing day the net profit to the Town will be no more than $679,000.

That sale price is based on an appraisal that will be nearly 18 months old when this deal is signed.   But look at the market trend since then–41% of home sales this year have been over asking price!

This does not add up.  Mayor DeLuca proposes to sell this site for less than a typical home in Maplewood!?

One thought on “Anticipated Sales Price…

  1. This comparison is not meaningful for a host of reasons. Here are three:

    1. the property is commercial, not residential. The value trends may be worse (or better) than the residential market. Comparing to home sales means nothing. By the way, your data shows that 59% of home sales in 2015 have been at or below asking price (which is as meaningless as your saying that 41% have been above).

    2. The buyer of the property would not have approval to do anything. Groups like ohno60 that would potentially oppose a proposed project would only diminish the appeal of a potential project. By no means am I saying that we should allow ourselves to get paved over by developers-its great to live in a town where people care. Its just that the developer needs to earn a return, otherwise he/she won’t do it.

    3. The economics of the deal as proposed are not really about the selling price. The improved property will (eventually) carry a much bigger tax bill than the post office did (zero, right?). The profit to the town on closing day is an element of this, but only an element, and should not be viewed in isolation. But take a step back; If this deal were so egregious, surely the interested parties that wanted to pay much more for this property would have stepped forward and make themselves heard by now, right?

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