Hot Bargain Property November 30th, 2006
Lender Owned Fixer!
General: Urban East County, 4 bedroom 1.75 bath. Asking price between $425,000 and $450,000. It might sell for that fixed up. I would offer maybe $370,000 at most.
Why you should be interested: Three words: Lender owned fixer. Furthermore, the agent is trying to play games to restrict the buyers to his favorite lender. This is illegal.
Selling Points: Lots of public space in the home due to converted garage. Also has lots of parking.
Why I think it's a potential bargain: It's lender owned, and it needs updates. Until it sells, the lender is paying taxes and has a non-performing asset.
Obvious caveats: The last sale was 100% financing in November 2004. This will obviously be a short sale. Ugly inside. Couldn't get a good look at the roof.
Why it hasn't sold already: The lender has it mispriced, hoping to recover 100% of their investment. Not. Going. To. Happen. The agent should have told them. I'm not real impressed by this agent.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $370,000, the property would be worth approximately $600,000. If you held it those ten years before selling, you would net about $290,000 in your pocket (not including increased value from updates!), 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 $220,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Not much of a back yard.
Obvious way to enhance value or appeal of property: Modernize the kitchens and bathrooms, get rid of the sixties paneling, replace the carpet.
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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