Hot Bargain Property September 15, 2006

By Dan Melson on September 15, 2006 7:40 PM | Permalink | Comments (0)

Just a Basic Home in a Good Neighborhood

General: Urban East County, 3 bedroom 1.75 bath, with an optional room that could be a fourth bedroom or office. Asking price between $475,000 and $500,000, but the comps only support $450,000 at the most. I'd start somewhere around $400,000 net.

Why you should be interested: This is a decent single family home in a good neighborhood, that goes to some of the best schools around.

Selling Points: Newer kitchen. Nice large garage. Decent view from the back yard.

Why I think it's a potential bargain: There's not a lot that jumps out and says "oooh!" but I didn't see anything that said "Eeeew!" either. Vacant and on the market for months, it was initially way overpriced and it is still overpriced. But if these people have any clue at all, any actual reasonable offer should be jumped on at this point.

Obvious caveats: Nothing I saw.

Why it hasn't sold already: It's overpriced, and therefore the only people who are going to see it are also looking at superior properties for the same cost.

If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $400,000, the property would be worth approximately $650,000. If you held it those ten years before selling, you would net about $310,000 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 $150,000 ahead of the renter, after the expenses of fixing and selling.

Fact you should be aware of: I didn't see anything nasty

Obvious way to enhance value or appeal of property: Just the standard cosmetic stuff.

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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