Hot Bargain Property November 9, 2006
Ugly Fixer with Potential
General: Urban East County, 3 bedroom 1 bath, with pool. Asking price between $425,000 and $450,000. I'd probably offer $340,000.
Why you should be interested: Three bedroom house close to the freeway at an affordable price. This is a fixer.
Selling Points: It's got a pool and a deep garage plus loads of parking.
Why I think it's a potential bargain: This place is ugly, and cluttered on the inside. If the average buyer goes to look, they'll turn around as soon as they open the door. However, I don't think it'll cost much to fix, and these people have had it on the market - overpriced - for months. We're coming up on the holidays, and these folks need to sell.
Obvious caveats: I smelled gas in the garage, and couldn't get a good look at the roof.
Why it hasn't sold already: It's not attractive. Your average buyer is going to turn around and leave. No offers made yet.
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 $1800 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $130,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Traffic noise in the back yard.
Obvious way to enhance value or appeal of property: Clean it up and update the fixtures. Clean the pool. Water the lawn.
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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