Public Home Auction: $475,000 in Morgan Hill, CA!

Morgan Hill is located just north of Gilroy and about 30 miles south of the Silicon Valley. The small town is not too far from major employers like Nortel, Cisco,and Intel. But with today's gas prices ($4.65), 60 miles round trip could add up really fast if you intend to drive to work everyday. With an average mileage of 20 miles/gallon for a typical vehicle, you could easily spend around $300/month on gas alone and that's not including weekend activities and chauffeuring your kids to soccer games! And because restaurants and shops are limited nearby, this could mean even more driving if you're looking for a variety of food or stores. That being said, the good news is that the commuting problem could easily be solved by going to work by train or if you drive a gas-efficient vehicle.

The only problem is that the Viento Community is just blocks away from the train track that the Amtrak and cargo trains run on. So the house could periodically shake violently. Also, Hwy 101 is nearby so there is some freeway noise to deal with. But overall, the neighborhood seems quiet and there aren't too many major problems to worry about in this Morgan Hill area. If you could put up with the house vibrating occasionally and the constant hum of the freeway, these homes are in fact very nice. What do you think about this area?

The Viento community in Morgan Hill is putting up 16 single family homes for auction. Starting bid is $475,000 for a 2,281 sq. ft. home with 4 Bed + Loft and 2.5 Bath built by DeNova Homes. This particular plan previously sold for $822,00 during the bubble era. Clearly, this home is not worth that much in a normal real estate market. So how much is this house really worth? Let's go through some numbers:

Morgan Hill Median Household Income: $100,000 (unofficial)
Affordability Ratio: 4
Estimated Median Home Price (1500 sq. ft): $400,000.
Estimated Price per Square Foot: $266.
Estimated Fair Value for a 2,281 sq ft Home: $608,000.

Based on my calculation, this home in Morgan Hill is worth $608,000. Of course, there are many other factors to consider when purchasing a home. But this is a good place to start!

The HOA is currently $205 (free for the first month) and will eventually be $129 once all homes are occupied.

From the website:

Community Location
335 Calle Viento
Morgan Hill, CA 95037
(Google Maps)

Auction
Date/Time: Sunday, July 20th @ 5PM
Location: The San Jose Hilton Hotel in San Jose, CA
300 Almaden Blvd., San Jose, CA 95110
Phone: 408.287.2100
Bidders should arrive for check-in at 4PM to pick up their bidder packet

"Viento’s new homes feature five spacious floor plans from approximately 2,281 sq.ft. to 3,185 sq.ft. of dynamic living space. Inviting gas fireplace, designer fixtures, handsome Shaker style cabinetry, gourmet kitchens with Corian counters and quality kitchen appliances are found in all homes. Private master suites with adjoining bath and large walk–in closet provide the perfect retreat. All homes are designed with safety, efficiency and convenience with energy saving insulation, dual pane windows, central heating and air conditioning, tankless water heaters and so much more. The homes are situated on private lots with perimeter encing and front yard landscaping with automatic sprinklers."

Go to http://viento.acceleratedmp.com/ for more details.

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