Its a really nice home amongst a bunch of run down old homes. There aren't very many good comps, and the ones that are close are generally in nicer neighborhoods. This is why the seller is convinced the house is worth more than it is (and why he bought it for so much in 2007). Buyers who want this type of home are scared of it because of this, and they are willing to pay a little more to get into a nicer neighborhood.

The saying is "never buy the nicest home in a neighborhood," but we really like the neighborhood because my wife has family nearby. If we get the house, we will be there for the long haul.