Hot Bargain Property September 22, 2006
Turn This Fixer Into A Showplace!
General: Urban East County, 3 bedroom 1.75 bath. Asking price between $425,000 and $450,000, and the comps actually support that. Because it's a short sale, there's a limit to how low you can go, but I'd guess $400,000 would get it.
Why you should be interested: This is an older home on a huge lot. Nothing wrong with it, but it's old and not very attractive. However, it's also got all the stuff that can't be faked and can't be rushed. Huge lot with wonderful mature trees, hardwood floors. Modernizing it will be a project, but you've got room to work and a great setting! This has the potential to be a million dollar house.
Selling Points: Both the front and back yards are large, and have mature trees. Backyard is set up beautifully for entertaining. There's is room to expand the house, and the lot is big enough that you could put a pool in without using much of it. The front room has a great picture window.
Why I think it's a potential bargain: Flipper that got caught short.
Obvious caveats: It's old enough that it sits on piers. This has advantages and disadvantages.
Why it hasn't sold already: It's being mismarketed.
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, even if you did nothing. 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 $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 fixing and selling.
Fact you should be aware of: Buildings this old sometimes have flaws I don't spot. Need a building inspector.
Obvious way to enhance value or appeal of property: Just modernize what's there. Buff the floors. Update the bathrooms. This thing is the best "diamond in the rough" I've seen in a long time.
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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