Hot Bargain Property August 4, 2006 (Second today!)
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.
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