Is Real Estate Ever Worth Nothing?
November 25th, 2008 categories: Central Connecticut News & Information, Real Estate Market
I was watching Morning Joe today. Fill-in co-host, Chuck Todd, said something I’ve heard before - that some homes are worth nothing.
I can think of few instances where a home could be worth nothing.
Nuclear waste spill. Located on earthquake fault line. Maybe.
Even this instance, where a woman paid $1.75 for an abandoned home in Saginaw Michigan. That seems ridiculous to people in CT where our median home price is around $240,000 but in Saginaw, the median sales price is about $76,000, according to Zillow. Given the state of the economy in Michigan. $1.75 seems about right (the buyer also has to pay some back taxes).
People will always need a place to live. There is a finite supply of land. The population keeps growing.
Sure, real estate can go down in value because of the economy, too many homes on the market, not enough buyers, mortgages harder to obtain, catastrophic events like 9/11, etc. But it’s hardly ever worth nothing.
