Hot Bargain Property September 26, 2006
Update This Blast From The Past!
General: Urban East County, 3 bedroom 1.75 bath. Asking price between $450,000 and $475,000, and the comps actually support around $430 to $440. I'd start at $390,000
Why you should be interested: Nice quiet street in a good neighborhood, close to park and freeway access.
Selling Points: Nice Courtyard in the front. Good closet space. Nice high cielings.
Why I think it's a potential bargain: These people have owned it forever and don't owe much. Nor do they have much cash, or they would have replaced the carpet, at least. Kitchen is straight out of the seventies and needs updating. People in this situation, it's kind of like found money when the house actually sells, but until then, they have to pay for upkeep and taxes.
Obvious caveats: Third bedroom is really more suited to a game room.
Why it hasn't sold already: Overpriced, and for no good reason. It would be a miracle to get more than $410,000 for this property in this market.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $390,000, the property would be worth approximately $635,000. 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 $1900 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 fixing and selling.
Fact you should be aware of: Just that you're going to want to update everything.
Obvious way to enhance value or appeal of property: Replace the carpet and paint inside. Modernize the kitchen.
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!
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