August 2006 Archives

Nice Quiet Condo With Deck, Small Yard, and View



General: Coastal North County, 3 bedroom 2.5 bath. Asking price starts near $400,000. I'd start somewhere around $320,000 force them to argue me up.



Why you should be interested: It's a really nice complex of townhomes. You do have shared walls, but no upstairs/down. This one is on the edge of the complex with a view down the hill and maybe to the ocean on a good day.



Selling Points: Lots of room! It feels like a detached home from the inside! You have your own little backyard with a deck!



Why I think it's a potential bargain: Vacant, on the market for months, and nothing has sold around it for a long time.



Obvious caveats: I can't prove it has air conditioning. Also the parking situation looks ugly.



Why it hasn't sold already: Nothing is selling in the neighborhood, meaning it's overpriced



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $320,000, it would be worth approximately $520,000. If you held it those ten years before selling, you would net about $250,000 in your pocket, assuming zero down payment. As opposed to renting the $2200 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $250,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: I can't prove it has air conditioning.



Obvious way to enhance value or appeal of property: Other than a/c, it looks like it's in great shape!



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits you!

Nice Quiet Property With Beautiful Back Yard



General: Urban East County, 3 bedroom 1.5 bath on corner lot. Asking price between $450,000 and $475,000. I'd start somewhere around $400,000, and wouldn't go much above that.



Why you should be interested: Property is in good shape, standard older middle class home.



Selling Points: The backyard is where you want to be! Shade trees, lush landscape! Also has enclosed patio.



Why I think it's a potential bargain: Vacant, and the back yard doesn't show from the curb.



Obvious caveats: No air conditioning. Would be much more attractive with updating the interior, but it's solid as it sits.



Why it hasn't sold already: Built 50 years ago, and you can tell.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $410,000, it would be worth approximately $680,000. If you held it those ten years before selling, you would net about $320,000 in your pocket, assuming zero down payment. As opposed to renting the $1700 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $130,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: No Air conditioning



Obvious way to enhance value or appeal of property: Air conditioning, carpet



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits you!

The Best Loan of Right NOW



5.875% THIRTY YEAR FIXED RATE LOAN, 1.6 total points, and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2366, APR 6.065.



This is the lowest rate I've seen offered on a thirty year fixed for quite a while! This is it, the gold standard of loans. Nothing ever changes about this loan unless you change it. If you act and I can lock while this rate is still in effect, I will guarantee the rate and the total closing costs in writing.



All these are retail rates! 5 year hybrid ARMs available from 5.5%, and interest only is available!



Speaking of interest only, I have a 5.625% thirty year loan, fixed and interest only for the first five years! Payment $1875, APR 5.850.



On approved credit, not all borrowers will qualify, based upon an 80% loan to value and a 720 credit score.



Loans for bad credit, 100% loans and all other loan programs also available.



Call me. EZ Home Loans at 619-449-0070, ask for Dan. Or email me.

Estate Sale on Corner Lot, owners want OUT



General: Urban East County, 3 bedroom 1.75 bath on corner lot. Asking price between $475,000 and $500,000. From the agent, I got the definite impression that they were desperate.



Why you should be interested: Property is in good shape, standard older middle class home. It's an estate sale, and the family lives out of state, and they are tired of paying the upkeep!



Selling Points: Very roomy.



Why I think it's a potential bargain: Vacant, estate sale, not much curb appeal.



Obvious caveats: Would be much more attractive with updating, but it's solid as it sits.



Why it hasn't sold already: Nice facade, but once you're inside it's all decades old. Back yard needs grass or a pool or something.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $450,000, it would be worth approximately $650,000. If you held it those ten years before selling, you would net about $300,000 in your pocket, assuming zero down payment. As opposed to renting the $1700 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $140,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Just that everything looks 1975.



Obvious way to enhance value or appeal of property: Landscaping, carpet, paint.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits you!

Entertainer's Home with Pool!



General: Urban East County, 3 bedroom 2 bath asking price between $525,000 and $550,000.



Why you should be interested: Property is in good shape and has a great view, a nice pool, several areas for entertaining, and is central to everything. All sorts of shopping close by - walk to grocery store! Drive to Mission Velley in 15 minutes, downtown in twenty.



Selling Points: Two decks outside in front and a picture window in the living room, all with great views of the city. Patio and large pool area in back.



Why I think it's a potential bargain: This property has been vacant for months, and I see evidence that they really need to sell.



Obvious caveats: Not much yard for young children to play in, but great for older children and teenagers. By the way, the schools are excellent!



Why it hasn't sold already: This is not a property for the mobility challenged. It has a street-level garage, but you have to climb steps about fifteen feet to get to the home.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $500,000, it would be worth approximately $810,000. If you held it those ten years before selling, you would net about $390,000 in your pocket, assuming zero down payment. As opposed to renting the $2400 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $250,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: The street in front of this property does get significant traffic from the neighborhood.



Obvious way to enhance value or appeal of property: Maybe redo the second deck, but the property is in pretty good shape.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits you!

Severe Fixer!



General: Urban East County, 4 bedroom 2 bath asking price between $450,000 and $475,000. They're fooling themselves. I'd start around $350,000 net, and wouldn't go much above that.



Why you should be interested: I couldn't enter the property due to uncooperative tenants but the outside is a mess. The yard hasn't been taken care of at all, and it appears as if a tree fell on the roof. The agent said it was a month ago, and the mess hasn't even been swept off the roof. One corner has been destroyed, and I'll bet at least half the roof needs replacing.



Selling Points: This is a real world example of what happens when you have bad tenants. This place is a mess, and is going to need many thousands of dollars in work in landscaping and roof repair. The bright side is that most of which looks doable by a person of average handiness.



Why I think it's a potential bargain: Do that work, and the property will be worth somewhere close to $500,000. If the current owners or their tenants were going to do it, the outside wouldn't be in the shape it's in.



Obvious caveats: I could not enter the premises. The inside could be as even more of a disaster area than the outside, in which case I would offer even less.



Why it hasn't sold already: The are asking too much for the property. Even before the tree fell, it obviously had no curb appeal. It's expired off MLS at least twice. If I were this owner's agent, I'd see what I could do about the landscaping.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $350,000, it would be worth approximately $570,000. If you held it those ten years before selling, you would net about $270,000 in your pocket, assuming zero down payment. As opposed to renting the $2000 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $220,000 ahead of the renter, after the expenses of selling. Using a post repairs value of $480,000, this numbers would be much higher.



Fact you should be aware of: The inside could be even worse than I think it probably is.



Obvious way to enhance value or appeal of property: Roof. Landscaping. I'm sure there is stuff inside that needs work.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits you!

Four Bedrooms with a Pool in a Great Central Neighborhood!



General: San Diego, 4 bedroom 2.5 bath asking price between $500,000 and $525,000. I'd start around $460,000 net, and wouldn't go much above that.



Why you should be interested: Property is in good shape and has a nice pool, a courtyard, and both a living room and a den.



Selling Points: All of the above. No deferred maintenance that I noticed.



Why I think it's a potential bargain: This property is vacant, and the sellers have just gotten an idea of the cash outlay of two households. Probably not an investment property, but would be a very good place to raise a family.



Obvious caveats: As I said, its market position is not consistent with buying for investment. This is a place you live in, not flip.



Why it hasn't sold already: Some curb appeal, but it's a lot nicer inside than out. By the time people get inside, their mind is made up. Some updating would be appropriate, and there are upscale properties in the neighborhood, but there would be a limit.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $460,000, it would be worth approximately $750,000. If you held it those ten years before selling, you would net about $360,000 in your pocket, assuming zero down payment. As opposed to renting the $2100 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $190,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: This is not something for flippers.



Obvious way to enhance value or appeal of property: Just clean out some clutter. Kitchen could use an update



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits you!

The Best Loan of Right NOW



5.875% THIRTY YEAR FIXED RATE LOAN, 1.7 total points, and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $2366, APR 6.075.



This is the lowest rate I've seen offered on a thirty year fixed for quite a while! This is it, the gold standard of loans. Nothing ever changes about this loan unless you change it. If you act and I can lock while this rate is still in effect, I will guarantee the rate and the closing costs in writing.



All these are retail rates! 5 year hybrid ARMs available from 5.5%, and interest only is available!



On approved credit, not all borrowers will qualify, based upon an 80% loan to value and a 720 credit score.



Loans for bad credit, 100% loans and all other loan programs also available.



Call me. EZ Home Loans at 619-449-0070, ask for Dan. Or email me.

Gorgeous Five Bedroom in a Working Class Neighborhood



General: Urban East County, 5 bedroom 2.5 bath asking price about $500,000. I'd start around $440,000 net, and force them to argue me up while arguing them down.



Why you should be interested: This is a beautifully updated home in a working class neighborhood. Unfortunately for the owner, there's nothing in this class nearby, which means you can get a much nicer property for the same price you might pay elsewhere. It's also in the attendance area for an excellent middle school and one of the best high schools in the county.



Selling Points: This property is newly furnished with all the upgrades. Travertine floors, except in bedrooms. New energy windows. According to the neighbor, just installed a sprinkler system. One kitchen counter still had the UPC on it. The kitchen is gorgeous, as are the bathrooms. Good sized front yard for the kids to play in!



Why I think it's a potential bargain: This is what is known as a "misplaced improvement." It's too much better than everything around it. It's not a good investment property, but it would be a great place to live for a family planning to stay.



Obvious caveats: As I said, its market position is not consistent with buying for investment. This is a place you live in. I also thought the new stucco could have been better done.



Why it hasn't sold already: This is a misplaced improvement. Put it in another neighborhood, and it might be worth every penny. Here, it's overpriced.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $440,000, it would be worth approximately $710,000. If you held it those ten years before selling, you would net about $340,000 in your pocket, assuming zero down payment. As opposed to renting the $2000 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $175,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: This is not something for flippers.



Obvious way to enhance value or appeal of property: Landscaping, although with a new sprinkler system I'd expect the yard to come back.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Four Bedroom Showplace!



General: Urban East County (very close to San Diego City), 4 bedroom 1.75 bath asking price between $475,000 and $500,000. I'd start around $430,000 net, and force them to argue me up while arguing them down.



Why you should be interested: This is a refurbished older home with a large yard, close to great schools!



Selling Points: This place shows some real pride of ownership. The kitchen is gorgeous, as are the bathrooms. Plenty of yard for the kids to play in!



Why I think it's a potential bargain: This is priced under everything similar around it, it's been sitting vacant with no action for months.



Obvious caveats: I couldn't get a good look at the roof.



Why it hasn't sold already: Good question.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $450,000, it would be worth approximately $730,000. If you held it those ten years before selling, you would net about $350,000 in your pocket, assuming zero down payment. As opposed to renting the $2000 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $170,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: I couldn't get a good look at the roof.



Obvious way to enhance value or appeal of property: Landscaping. New Carpet in the bedrooms.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

The Best Loan of Right NOW



5.625% 5/1 ARM, Interest only payments for five years and NO PREPAYMENT PENALTIES!. Assuming a $400,000 loan, Payment $1875, APR 5.850.



This is the lowest real rate I've seen on a loan in months! This is a thirty year loan, fixed rate and interest only payments for the first five years! If you act and I can lock while this rate is still in effect, I will guarantee the rate and the closing costs in writing.



All these are retail rates! 30 Year fixed rate loans also available from the very low 6s!



On approved credit, not all borrowers will qualify, based upon an 80% loan to value and a 720 credit score.



Loans for bad credit, 100% loans and all other loan programs also available.



Call me. EZ Home Loans at 619-449-0070, ask for Dan. Or email me.

Owner is in Financial Trouble



General: Urban East County, 3 bedroom 1.75 bath asking price between $400,000 and $425,000. I'd start around $370,000 net, and force them to argue me up while arguing them down.



Why you should be interested: This is an older home that could use some updating but is basically sound. There's a pool in the yard!



Selling Points: Pool! Walking distance to one of the very best high schools in the county! Cheap property!



Why I think it's a potential bargain: This is priced under everything similar around it, and they know it's going to be a short sale.



Obvious caveats: 100 percent financing is fine, but there's probably no way to get your closing costs paid on this one.



Why it hasn't sold already: Visually unattractive. The yard needs water, so curb appeal is minimal.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $380,000, it would be worth approximately $620,000. If you held it those ten years before selling, you would net about $3290,000 in your pocket, assuming zero down payment. As opposed to renting the $2000 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $200,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Some stuff needs updating, but it looks like everything works and is basically solid. You could update at your leisure, as you have the money.



Obvious way to enhance value or appeal of property: Landscaping. Update some furnishings. Minor touch up.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Estate Sale with a Large Lot



General: Urban East County, 4 bedroom 1.75 bath asking price between $475,000 and $500,000. I'd start around $400,000 and force them to argue me up while arguing them down. If 420,000 net didn't get it, I'd definitely walk.



Why you should be interested: This is an older home with cosmetically unattractive furnishings that is nonetheless solid. Mature shade trees in the yard.



Selling Points: This would be a nice place if it didn't look straight out of the seventies. It's got a lot that's over a quarter of an acre and a pool with a couple of outbuildings.



Why I think it's a potential bargain: Estate sale, which means that the current owner inherited it. They have this property, and they want cash. They didn't pay for it, they didn't even fix it. Until they do sell it, it's vacant and eating money.



Obvious caveats: This neighborhood doesn't have a lot of upscale property in it, so there's only so much you can do to profitably update it.



Why it hasn't sold already: Visually unattractive. Straight out of the seventies. Looks basically solid, though, and all the work I can see is purely cosmetic.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $410,000, it would be worth approximately $660,000. If you held it those ten years before selling, you would net about $320,000 in your pocket, assuming zero down payment. As opposed to renting the $1850 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $150,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Definitely needs updating, but it looks like everything works. You could update at your leisure, as you have the money.



Obvious way to enhance value or appeal of property: Interior paint. Carpet. Floors.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Nice Solid Home In Great Neighborhood!



General: San Diego, 3 bedroom 1.75 bath asking price between $450,000 and $475,000. I'd start at $380,000 and work up; I think $400,000 or less will get the property.



Why you should be interested: This is a nice solid home in a mature neighborhood with great schools! Mature shade trees in both front and back yards.



Selling Points: The home is in good shape, the neighborhood is quiet, and it's close to the freeway.



Why I think it's a potential bargain: The current owner inherited it, and lives on the other side of the country. They have this property, and they want cash. They didn't pay for it, they have no ego involved, they just want to sell it before they have more outgo.



Obvious caveats: Not really a lot you can do to improve value.



Why it hasn't sold already: Probably because nobody realizes how much give there probably is the asking price.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $380,000, it would be worth approximately $610,000. If you held it those ten years before selling, you would net about $290,000 in your pocket, assuming zero down payment. As opposed to renting the $1800 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $150,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Nothing more that I can see.



Obvious way to enhance value or appeal of property: Not much comes to mind. There is some upscale in the area, but not real close to this property.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Wow! Great Bargain and Move In Ready!



General: East County, 3 Bedroom, 2 Bathrooms. Asking price between $500,000 and $525,000. I think $470,000 net would be enough to buy.



Why you should be interested: Well cared for beautiful property in quiet neighborhood with large parks, within 5 minutes of freeway. Close to Mount Helix, and children walk to good schools!



Selling Points: This is a showplace quality home. Crown moldings, huge living and entertainment room, formal dining room and a yard you'll be proud of!



Why I think it's a potential bargain: This seller is motivated. I think he's found something even bigger that he wants to buy, but needs to sell this one first.



Obvious caveats: There's a loft I don't think was legally permitted, but it's not included in the square footage and not counted as a room.



Why it hasn't sold already: It was overpriced. It isn't anymore.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $470,000, it would be worth approximately $760,000. If you held it those ten years before selling, you would net about $360,000 in your pocket, assuming zero down payment. As opposed to renting the $2400 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $210,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: This is a beautiful property.



Obvious way to enhance value or appeal of property: Not much comes to mind. It's move in ready.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

The Best Loan of Right NOW



30 year fixed, 1 total point, at 6.25%. Assuming a $400,000 loan amount, payment $2462.87, APR 6.386, and NO PREPAYMENT PENALTIES!



This is literally a no-brainer. This is a 30 year fixed rate loan, as in nothing ever changes about it unless you change it, fixed for thirty years. This is at the same rates as the 5/1, the 3/1, and all sorts of other lesser loans! If you act and I can lock while this rate is still in effect, I will guarantee the rate and the closing costs in writing.



If you want a lower that's really lower, lenders are starting to offer those again for hybrid ARM's although not 30 year fixed rate loans. I have a 5.5% 5/1 ARM with three points and no prepayment penalty! Assuming a $400,000 loan amount, payment would be $2271.16 and the APR would be 5.818. That's fixed for five years.



All these are retail rates! Interest only options are also available!



On approved credit, not all borrowers will qualify, based upon an 80% loan to value and a 720 credit score.



Loans for bad credit, 100% loans and all other loan programs also available.



Call me. EZ Home Loans at 619-449-0070, ask for Dan. Or email me.

Move in Ready, Freeway Close!



General: East County, 3 Bedroom, 1.75 Bathrooms. Asking price between $450,000 and $475,000. I think $410,000 net would be enough to buy.



Why you should be interested: Well cared for attractive property in quiet neighborhood with large park, within 5 minutes of freeway. Straight shot to most employment centers, less than twenty minutes.



Selling Points: Front yard almost manicured! Remodeled kitchen with nice interior decoration! Carpet looks new!



Why I think it's a potential bargain: Vacant and on the market for months. The seller has listed with a do-nothing service.



Obvious caveats: Garage floor has a crack, although I don't think that's the same pour as the foundation, but you'd want a qualified building inspector to make certain.



Why it hasn't sold already: I am not seeing any evidence that the discount lister has done anything to earn any money. It's just had a price reduction to something vaguely reasonable.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $410,000, it would be worth approximately $660,000. If you held it those ten years before selling, you would net about $320,000 in your pocket, assuming zero down payment. As opposed to renting the $1800 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $140,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: There is a crack in the garage floor. I don't think it's part of house foundation, but you want a qualified inspector to make certain.



Obvious way to enhance value or appeal of property: Not much comes to mind. It's move in ready.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Unexpected Showplace At A Bargain Price!



General: East County, 4 Bedroom, 1.75 Bathrooms. Asking price between $525,000 and $550,000. From Market Analysis, I think it'll comp out about $500k, and the seller would take $450k if they were smart.



Why you should be interested: Nice solid property in a good neighborhood with good amenities.



Selling Points: Nice pool, freshly redone. Concrete pad in front that can be used for RVs. Nice quiet cul-de-sac.



Why I think it's a potential bargain: Sellers are in serious financial trouble, and they're headed for foreclosure. Seeing as how it's overpriced, the agent is desperate for offers.



Obvious caveats: At a price they can get, this is probably a short sale, which takes longer.



Why it hasn't sold already: The asking price is too high.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $450,000, it would be worth approximately $730,000. If you held it those ten years before selling, you would net about $350,000 in your pocket, assuming zero down payment. As opposed to renting the $2400 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $260,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: There's a major street running behind the property.



Obvious way to enhance value or appeal of property: Fresh paint and more grass is about it.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Fixer, Owner Hearing Footsteps of Tax Man!



General: East County, 3 Bedroom, 1.75 Bathrooms. Asking price between $450,000 and $475,000. I think $400k will get it, and I'd start lower.



Why you should be interested: Basically solid home with a pool and some other nice feaures.



Selling Points: Looks nice from the street, the pool is nice if not recently cleaned, and the quiet central neighborhood.



Why I think it's a potential bargain: Vacant and on the market for months. The owner is about a month away from a tax deadline, and there's just no interest in a property like this. Get it cheap, fix it up, live in it for two years, and you'll be very happy.



Obvious caveats: Inside it's straight out of the 1950s.



Why it hasn't sold already: This property's furnishings are straight out of the 1950s, and as such, are not attractive to the average buyer. On the other hand, if you spend a little money fixing it up, it would modernize very well into an attractive property with great curb appeal.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $400,000, it would be worth approximately $650,000. If you held it those ten years before selling, you would net about $310,000 in your pocket, assuming zero down payment. As opposed to renting the $2000 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $200,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: This place has not been updated that I can see since it was new. There's also a circuit breaker box out in the open.



Obvious way to enhance value or appeal of property: Lots and lots of relatively cheap cosmetic upgrades. Redoing the kitchen would be the hardest.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Unexpected Showplace At A Bargain Price!



General: East County, 3 Bedroom, 1.75 Bathrooms. Asking price range in the mid to high 400s. I think $420 to 430 net would be enough.



Why you should be interested: Beautiful property with nice front yard and fenced pool in good neighborhood.



Selling Points: Fenced pool! Front yard almost manicured! Nice interior decoration! Goldfish pond in front!



Why I think it's a potential bargain: Vacant and on the market for months. The seller can't afford it, and the bank is going to have no choice except short sale. Seller listed with a discounter, when they should have gone full service.



Obvious caveats: Short sales take a little longer.



Why it hasn't sold already: I am not seeing any evidence that the discount lister has done anything to earn their money. The price started too high, and while it is now reasonable, the market is bad.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $425,000, it would be worth approximately $690,000. If you held it those ten years before selling, you would net about $330,000 in your pocket, assuming zero down payment. As opposed to renting the $1900 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $160,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Nothing I noticed.



Obvious way to enhance value or appeal of property: Not much comes to mind. It's basically move in ready.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Pool and Privacy at the End of a Cul-de-Sac!



General: East County, 4 Bedroom, 2.5 Bathrooms. Asking price range in the mid 500s. If they're smart they'll take $490,000, and they might take less.



Why you should be interested: Well kept home with a nice pool within three minutes of the freeway. Mission Valley and Sorrento Valley are both within twenty minutes, downtown is less than thirty. Open floor plan and nice high cielings.



Selling Points: Kitchen, Pool, fireplace, large rooms.



Why I think it's a potential bargain: Nothing within a mile of the neighborhood has sold since January, and whereas everything is comparably priced, with nothing moving, somebody has got to give.



Obvious caveats: Could also use paint on the inside.



Why it hasn't sold already: The whole neighborhood is overpriced. Also, there is a good bit of flyover noise from an airport not too far away. I didn't hear anything inside, though.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $490,000, it would be worth approximately $790,000. If you held it those ten years before selling, you would net about $380,000 in your pocket, assuming zero down payment. As opposed to renting the $2200 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $195,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Flyover noise from airport. I didn't hear it inside.



Obvious way to enhance value or appeal of property: The current decor is a little funky is all.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money without costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Property Too Good For Neighborhood!



General: Urban East County, 3 Bedroom, 2 Bathrooms. Asking price range in the mid 500s. If they're smart they'd take $470,000, and they might take less.



Why you should be interested: Older neighborhood, but well maintained. The problem is that it stands out too far from the surrounding properties, all of which are much smaller. There is no way it's going to "comp out" above $500,000.



Selling Points: Quiet street, and the living areas are split into the master suite on one side of the kitchen, and the other two bedrooms on the other. Nice roomy property, plenty of room to rattle around in, airy with lots of windows. Cieling fans in most rooms, and a huge garage.



Why I think it's a potential bargain: First off, it needs a little cosmetic maintenance. Water the lawn. Replace the wallpaper. But the big things is just that the properties all around it are half the square footage. It won't appreciate in value like it would in La Jolla or Mission Hills, but it doesn't cost as much as those properties, either, as it is in east county.



Obvious caveats: Could also use paint on the inside.



Why it hasn't sold already: People who'd be interested aren't shopping here. It's expired off MLS twice, and the owners keep re-listing with the same no activity discounter who didn't get the job done last time. Given how many months it's been vacant, their cheapness has cost them at least any difference in fees there would be to hire someone competent. It's a real opportunity to pick a pretty nice property up for way less than it might otherwise be worth.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $470,000, it would be worth approximately $765,000. If you held it those ten years before selling, you would net about $360,000 in your pocket, assuming zero down payment. As opposed to renting the $2200 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $200,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Yard needs water.



Obvious way to enhance value or appeal of property: Paint. Landscaping.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money without costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Surprise! Beautiful Interior!



General: Urban East County, 3 Bedroom, 1.75 Bathrooms. Asking price between $425,000 and $450,000. I think $410,000 from a qualified buyer would be enough to get it.



Why you should be interested: Nice middle class neighborhood. The yard is nothing special but the inside is gorgeous!



Selling Points: The first thing that hits you when you walk in is the beautiful cabinets built into the walls and wood floors. The kitchen is in pretty darned good shape also, if not quite brand new. The bathrooms have custom cabinets as well.



Why I think it's a potential bargain: Vacant and the yard needs water. By the time they walk in the door, the average buyer has already decided they are not interested, which is really a pity because the inside more than makes up for it and the outside would be easy to fix, in my opinion.



Obvious caveats: I found a bit of a smell in the laundry room off the kitchen. That could be anything from a dead mouse to mold.



Why it hasn't sold already: The yard is a push away. No grass, no trees.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $400,000, it would be worth approximately $650,000. If you held it those ten years before selling, you would net about $310,000 in your pocket. As opposed to renting the $1700 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $130,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Not much grass.



Obvious way to enhance value or appeal of property: Landscaping.



I'm a buyer's agent. I find places like this that can be gotten at bargain prices. I save you money without costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, all I ask for is a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com. Ask me to find a bargain that fits your needs!

The Best Loan of Right NOW



30 year fixed, 1 total point, at 6.125%. Assuming a $400,000 loan amount, payment $2430, APR 6.260, and NO PREPAYMENT PENALTIES!



This is literally a no-brainer. This is a 30 year fixed rate loan, as in nothing ever changes about it unless you change it, fixed for thirty years. This is at the same rates as the 5/1, the 3/1, and all sorts of other lesser loans! If you act and I can lock while this rate is still in effect, I will guarantee the rate and the closing costs in writing.



I can also do 6.00 percent for one and two thirds total points (payment $2398, APR 6.198), but for most folks, the slightly cheaper loan is going to be the better bargain.



On approved credit, not all borrowers will qualify, based upon an 80% loan to value and a 720 credit score. Loans for bad credit, 100% loans and all



Call me. EZ Home Loans at 619-449-0070, ask for Dan. Or email me.

The Bank's Loss Is Your Gain!



General: East County, 3 Bedroom, 1.75 Bathrooms. Asking price between $425,000 and $450,000. I think $380,000 from a qualified buyer would be enough to get it.



Why you should be interested: Quiet neighborhood with a decent view.



Selling Points: The first thing that hits you when you walk is is how roomy it is. It's got a three room addition that just opens the place up, not to mention the fact that it's got vaulted cielings and skylights.



Why I think it's a potential bargain: The lender owns this property. The question is not whether they are going to lose money, but how much. Time is not on their side, and they know it.



Obvious caveats: This place needs some finishing work. Also, it's being sold "As is" and I don't think that three room addition was done with proper permits. Want a building inspector and a good buyer's agent to see if getting it approved after the fact is possible or not.



Why it hasn't sold already: Unfinished counters, off color carpet, needs pant.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $380,000, it would be worth approximately $615,000. If you held it those ten years before selling, you would net about $290,000 in your pocket. As opposed to renting the $1750 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $140,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Being sold "as is" means no repairs made or work done by seller!



Obvious way to enhance value or appeal of property: Replace the carpet, finish the counters. Get permit for addition. Convert one of the addition rooms to a legal bedroom, although I don't know if this last is legally possible. Yet.



I'm a buyer's Realtor®. I find places like this that can be gotten at bargain prices. I save you money while getting paid out of the listing agent's commission, not costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, I require a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Everybody Gets Their Own Room!



General: East County, 5 Bedroom, 2 Bathroom Asking price between $425,000 and $450,000. I think $410,000 would be enough.



Why you should be interested: End of the street in a nice suburban neighborhood. Good schools. FIVE Bedroom home for less than the price of most fours and some threes.



Selling Points: Five bedrooms!



Why I think it's a potential bargain: The reason it has such a low price is it needs work, but everything I saw was cosmetic. Just removing the current occupants clutter would help. Paint and carpet and fixing the fence should get you a house that's worth a little more than anything around it, rather than considerably less.



Obvious caveats: I did not see any of the usual signs of foundation trouble, but the terrain is right for it. You'll want a good building inspector and soil report. The good news is that it's thirty years old. If there's no trouble yet, odds are good there won't be.



Why it hasn't sold already: Curb appeal is nonexistent and the presentation is awful. Clutter everywhere. The grass is dying. The fence has boards missing and others broken. All this leaps out at you. I'd be surprised if prospective buyers even got out of the car.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $410,000, it would be worth approximately $665,000. If you held it those ten years before selling, you would net about $315,000 in your pocket. As opposed to renting the $2300 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $295,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: There are some fairly nice properties around, but nothing really upscale.



Obvious way to enhance value or appeal of property: Just those cosmetic things that make all the difference in perception.



I'm a buyer's agent. I find places like this that can be gotten at bargain prices. I save you money without costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, all I ask for is a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Unbelievable Turkey!

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Being as the market is swinging more strongly to the buyers every day, it's what you might call a "target rich environment" for finding Hot Bargain Properties. On the other hand, there are still folks in denial, and just plain "What were you thinking?" moments. Since a typical realtor won't talk down anything, no matter how ridiculous, I thought I'd post one of those. The format is similar to my Hot Bargain Properties posts.



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General: East County, 3 Bedroom, 2 Bathroom Asking price $575,000.



Why you should be interested: You shouldn't. Nobody should. It's a nice house, and if it were somewhere else, it might be worth every penny. But here it is an uninhabitable waste of property tax money every six months. At $575,000, that's roughly $600 per month, $3600 wasted twice per year.



Selling Points: It's gorgeous on the inside. Spacious rooms, beautiful kitchen, nice brand new carpet. The whole property is basically brand new. Pity that ten feet outside your front door is a neighborhood that looks like it came from Deliverance. I haven't seen the one-toothed banjo player yet, but I keep looking.



Why I think it's a potential bargain: I don't. If somebody gave me this property, I'd give to some charity or deed it back to the county immediately. Less trouble than trying to sell it for $1, or finding a deaf person who wants to buy it. The only way you might be able to live here is inside a hundred foot deep multilayered bunker.



Obvious caveats: The fact that it's less than a quarter-mile off the departure end of the main use runway might be something you'd like brought to your attention. I don't know how they sold the other homes in the development. Maybe the wind had shifted on that day and the planes were using the crossing runway. I don't know why I wasted pixels taking a picture, but I had to wait for a Piper Cherokee to clear the picture window. It filled the whole thing. I love small planes, and there is no way I could stay here one night. The noise was bad enough with just the little trainers that were hopping around the pattern. This airport gets some fairly large aircraft and corporate jets, and has a regular traffic in retired World War II planes (and older!), all of which are noisier than most people would believe. I worked at that airport, and I know of two crashes in the field that used to be where this development sits. Just a matter of time before someone falls out of the sky on one of these homes.



Why it hasn't sold already: Left as an exercise for the reader. Actually, it's a private sale, not from the developer, so it did sell once. Go Mark Twain one better. Idiots. School Boards. The owners of these. I'd say two better and name the developer, but evidently the universe developed bigger idiots. Or a bigger fool. You can look out the window at runway centerline, for crying out loud.



If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a $575,000 asking price, this property will be worthless.



Fact you should be aware of: Open your eyes and look around. Feel the vibrations from the aircraft overhead!



Obvious way to enhance value or appeal of property: Getting rid of the airport would be one, but I know the provenance of that airport land. Isn't going to happen. The county not only makes a mint off of that airport, but in order to close it they would have to pay the federal government at least billions and I believe tens of billions of dollars. Not. Going. To. Happen.



I'm a buyer's agent, so I'm not afraid to make fun of stuff like this. If this owner came to me to list it, I'd probably make like one of Ted Striker's seatmates in Airplane!



Don't call me on this one. Please, I'm begging you. Properties like this are a Realtor's version of Slasher movies. You're stuck in a roomful of rabid slavering dogs sharks lawyers and their idiots shills clients, and nobody else gets out alive!



Caveat Emptor, for the love of humanity!

General: East County, 3 Bedroom, 1.75 Bathroom Asking price between $450,000 and $475,000.



Why you should be interested: Very Private home in nice neighborhood. Good schools in neightborhood.



Selling Points: Beautiful courtyard. Ceramic tile floors except in bedrooms.



Why I think it's a potential bargain: This has been vacant five months and had a major price reduction. Stealth bargain, because you get a lot more than the neighboring properties. This home is an entertainer's dream, and the price is now right.



Obvious caveats: I don't think there's a lot of give left on the price. Might cut some off the asking price with the right offer, but not as much as most of what I post.



Why it hasn't sold already: Recent price reduction. It was overpriced for the neighborhood, but now it's a bargain.



If you keep it ten years and it averages only 5% annual average appreciation per year: It would be worth approximately $730,000 based upon a $450,000 acquisition price. If you held it ten years before selling, you would net about $340,000 in your pocket. As opposed to renting the $2000 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $160,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Not Much can be done to further upgrade the property.



Obvious way to enhance value or appeal of property: None that I can see. It's gorgeous.



I'm a buyer's agent. I find places like this that can be gotten at bargain prices. I save you money without costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, all I ask for is a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

General: East County, 3 Bedroom, 1.75 Bathroom Asking price between $375,000 and $400,000.



Why you should be interested: Nice neighborhood. Good schools in neightborhood. In fact, you're within 1/4 mile of one. Nice view out the back.



Selling Points: That view! Low maintenance front yard.



Why I think it's a potential bargain: It's a forced sale with an out of area agent! Double whammy! $389,000 is already a good price, but I think $350,000 is likely a sale. This place is basically solid, but not cosmetically attractive. Most of the furnishings look like refugees from the seventies. Seem solid enough, but not what folks want.



Obvious caveats: You're probably going to want to replace most of the furnishings, but most buyers do anyway. I don't see any emergency stuff. If you're a contractor or like to work, this would be a worthy fixer project.



Why it hasn't sold already: Well, just had another price reduction. I saw another broker show it. They're going to swarm. Let me qualify you and they'll want your offer instead of anything else, as the one thing this seller can't afford is an unqualified buyer, but you have to be at least close to first with an offer.



If you keep it ten years and it averages only 5% annual average appreciation per year: It would be worth approximately $570,000 based upon a $350,000 acquisition price. If you held it ten years before selling, you would net about $270,000 in your pocket. As opposed to a $1900 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $200,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Just that it has very little curb appeal right now.



Obvious way to enhance value or appeal of property: Paint. Carpet and Flooring. Couple thousand bucks and a weekend and you have a great place to live for $100,000 less than your neighbors.



I'm a buyer's agent. I find places like this that can be gotten at bargain prices. I save you money without costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, all I ask for is a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

General: East County, 3 Bedroom, 1.75 Bathroom Asking price between $425,000 and $450,000.



Why you should be interested: Corner lot in a nice neighborhood, well kept place. Good schools in neightborhood



Selling Points: Nice basically solid place.



Why I think it's a potential bargain: Seller has been transferred out of town and is making payments on a vacant place in addition to where they're living now. They can't rent for anything like what they need for their mortgage payment. Subject to lender approval of a short payoff I see symptoms that both sellers and lenders are desperate. I think it can be had for $400,000 or perhaps a little less.



Obvious caveats: I found some hairline cracks in the stucco facade. You want a bulding inspector to make certain it's nothing worse.



Why it hasn't sold already: Well, just had another price reduction, but I had to look carefully so find out how deperate they were. I think it's going to hit default with the next payment, at which point the sharks will swarm. You want to get there first.



If you keep it ten years and it averages only 5% annual average appreciation per year: It would be worth approximately $650,000 based upon a $400,000 acquisition price. If you held it ten years before selling, you would net about $310,000 in your pocket. As opposed to a $1900 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $175,000 ahead of the renter, after the expenses of selling.



Fact you should be aware of: Hairline cracks in stucco.



Obvious way to enhance value or appeal of property: There's a room divider. Get rid of it.



I'm a buyer's agent. I find places like this that can be gotten at bargain prices. I save you money without costing you a penny. Nor are these the only ones I find. In order to protect everyone's best interests, all I ask for is a Non-Exclusive Buyer's Agent Agreement. This is a standard California Association of Realtors form that leaves you are free to work with other agents, but if I find the property you want, I'm the agent you'll use. That's fair.



Contact me: Action Realty 619-449-0723, ask for Dan or email danmelson (at) danmelson (dot) com.

Cold Hard Numbers

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(This is a somewhat redacted letter I've been sending out now for about four months)



I have recently attended a talk by Gregory Smith, the county assessor, on the future of home values in San Diego. He expects prices to continue to rise by 5-10% per year, citing scarcity as the reason. Basically, too few homes are being built, so we are in a situation with excess demand and not enough supply.



Now, public officials of the county of San Diego have an incentive to want prices to continue to rise. I tried to ask him a question about any other factors holding the price up, and he was unable to produce any.



Unfortunately for this point of view, high demand and scarce supply has a long history in the San Diego area. This has been a constant of the market, rather than a variable, since the late 1970s. Even during the last downturn, the problem was not a lack of interested buyers, the problem was that they couldn't afford the prices when interest rates went up. Sellers had a choice of selling at the prices people were able to qualify for or not at all. Many chose the latter option, it paid off in spades when interest rates fell and prices started rising again. Those in situations where waiting was not an option had no choice but to sell at lower prices.



The fact is that only 9% of the people can afford to purchase a home in San Diego. Even for wealthy investors who put $100,000 down on a $500,000 home with the intent of renting it out, their monthly cash requirements are $2528 to cover a 6.5% loan, plus approximately $500 per month to cover basic property taxes and then insurance, maintenance, etcetera on the property. Unless rents are well in excess of $3000 per month, which they are not, this amounts to investing $100,000 only to have to invest more every month in hopes that the market rise will eventually reimburse you. I agree with every respectable real estate investing guide that negative cash flow on an investment property is a recipe for disaster. This current situation in real estate has many parallels to the dot com investing bubble of several years ago.



Furthermore, we have many people who obtained short-term financing in the last several years, loans that must be refinanced within the next eighteen months, and will not be able to obtain terms that are as good or allow their adjustable rate loans to adjust. Either way, they are facing higher payments - payments that many are unlikely to be able to make. They will either sell voluntarily for what they can get, or involuntarily as the lender liquidates a nonperforming loan.



Even though long term rates are still remarkably affordable, short term financing, particularly on a "Stated Income" basis has become more prevalent for purchases, especially for beginning buyers, and these have risen enough to slow the market greatly. We are starting to see indications of a buyers market now. Homes are taking much longer to sell, and buyers are getting much more leverage on their offers. When longer term rates return to their historical margins above short, the effect will multiply. It doesn't take a genius - only a calculator - to know that when owner occupied rates go from 5.5% to 6.5%, somebody who could afford a $400,000 loan at 5.5% can only afford $359,000 at 6.5% (this difference is magnified for those willing to take interest only loans).



What does this mean to you, a homeowner? If you intend to hold onto your home for many years, I am confident that the market will eventually make good any short term correction. On the other hand, now is the time to secure the long term financing that enables you to hold onto the property profitably, while the high price of comparable properties helps your equity picture. (omitted text here)



If you are in a situation where you know that you are going to need to sell within the next few years, the time to act is definitely now, lest you lose more of your precious built-up equity to the short-term vagaries of the market. This market is going to get much worse for sellers before it gets better. (omitted text here)



And if you're looking to move to a larger house soon, the time to act is now to leverage the market! Sell while the market is still high, knowing that when prices recede later, the money you get from the sale will help you buy more house for less! (omitted text here)



UPDATE: Today's mail had an invitation to a fundraising event for Mr. Smith's re-election, sent out by the realtors association. Nothing new, but it illustrates the fact that he's in the good graces of the realtors association. This doens't happen by accident

Copyright 2005-2017 Dan Melson. All Rights Reserved

 



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