Hot Bargain Property November 7, 2006
Probate Sale Opportunity!
General: Urban East County, 3 bedroom 1.75 bath. Asking price between $375,000 and $400,000. I'd probably offer $340,000 to start with.
Why you should be interested: This is a 3 Bedroom Home in an established neighborhood. The owner died and it's vacant. The heirs want money, but they have to pay to keep it going.
Selling Points: The neighborhood and the schools.
Why I think it's a potential bargain: Vacant on on the market for months, and we're entering a slow time of year to move real estate. Nor is it visually appealing, so most buyers are not interested. Basically, the odds are stacked against them getting a better offer.
Obvious caveats: The whole house needs modernizing.
Why it hasn't sold already: Because the owners are asking too much money, people who are likely to make a good offer won't even go look.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $340,000, the property would be worth approximately $550,000. If you held it those ten years before selling, you would net about $260,000 in your pocket, assuming zero down payment. As opposed to renting the $1500 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $110,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Needs work before it's going to be visually appealing. Roof may need replacing soon.
Obvious way to enhance value or appeal of property: Update the fixtures, pit in new carpet, rip out the aging paneling and paint the inside. If the owners did this, it might be worth what they're asking or maybe a little more. Since they won't, it creates an opportunity for you.
This property does appear to be eligible for a first time buyer Mortgage Credit Certificate provided your family income is not more than $82,800 or $96,600. Ask me for more details, on this or any other property.
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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