Hot Bargain Property September 25, 2006 (#2)
Best House on the Street
General: Urban East County, 3 bedroom 1.75 bath. Asking price between $450,000 and $475,000, and the comps actually support that. I'd start at $420,000
Why you should be interested: This is a nice house in a quiet neighborhood that will not fetch what it would be worth elsewhere. A great place to raise a family!
Selling Points: Almost new kitchen with skylights, huge family room, master suite is nice.
Why I think it's a potential bargain: The fact that it's a misplaced improvement means that you get a lot for your money if you actually want to, you know, live there.
Obvious caveats: Your immediate neighbor behind is commercial, but past that is a nice view of the hills!
Why it hasn't sold already: Most of the buyers looking around to buy right now are looking to flip. This is the exact polar opposite of an ideal fixer or flipper target - the best house in the neighborhood. Whihc means you get a lot for your money, as the comps won't support a higher ask price.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $430,000, the property would be worth approximately $700,000. If you held it those ten years before selling, you would net about $330,000 in your pocket, assuming zero down payment. As opposed to renting the $2100 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $210,000 ahead of the renter, after the expenses of fixing and selling.
Fact you should be aware of: This property has already been fixed up. Further work would be fiddling at the edges. Like I've said already, this is a place to live, not an investment.
Obvious way to enhance value or appeal of property: Water the back yard, put in a solid fence.
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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