Hot Bargain Property August 2, 2006
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.
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