Hot Bargain Property August 13, 2006

By Dan Melson on August 13, 2006 11:00 AM | Permalink | Comments (0)

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.

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