Unrealistic Expectations
Well, well. Someone bailed out the unwise previous owner who acquired the property in October of 2019, almost certainly without having understood the extensive restrictions in the Mapleton Hill Historic District. We don't know who those people were as it was held anonymously, but we do know their remorse likely came quickly. They had it back on the market only a few months after their initial acquisition. Too bad they chose an unrealistic (i.e. wishful thinking) list price of $3.85M.
Mr. Market ignored it, as you'd expect. We went to see it ourselves and couldn't quite get our head around the extensive renovations that would have been necessary to make the home functional. It was dilapidated, with a maze-like layout, and displayed several periods of now dated, mismatched renovations.
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Why Notable?
This deal illustrates the risk of rushing into a purchase decision without having done your homework. While historic homes in Mapleton Hill have an excellent track record of long term appreciation, buyers can still make a big mistake by overpaying for a compromised asset and then later finding themselves forced to resell it at a loss.
The eventual sale price was $2.56M, $40K below their acquisition in 2019.
Due Diligence
If you're contemplating acquiring property in the Mapleton Historic District in Boulder, this document is a good starting point to understanding the challenges that lie ahead. Remember: If your agent is all sunshine and rainbows about the homes you see, get a better Realtor.
Osman Parvez is the Founder and Employing Broker of House Einstein. Originally from the Finger Lakes region of New York, he lives in Boulder with his wife and their Labrador Retriever. He has been a Realtor since 2005.
Osman is the primary author of the House Einstein blog with over 1,200 published articles about Boulder real estate. His work has also appeared in many other blogs about Boulder as well as mainstream newspapers, including the Wall Street Journal and Daily Camera. For more information, click HERE.
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The ideas and strategies described in this blog are the opinion of the writer and subject to business, economic, and competitive uncertainties. House Einstein strongly recommends conducting rigorous due diligence and obtaining professional advice before buying or selling real estate.
