Hot Bargain Property August 18th, 2006
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.
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