Hot Bargain Property December 4, 2006
Lender Owned Beauty!
General: Urban East County, 3 bedroom 1.75 bath. Asking price between $425,000 and $450,000. I would actually offer about $400,000.
Why you should be interested: I was in this property six months ago before it was auctioned, but the lender has actually gone in and spent some money fixing it up! Still, because it is lender owned and there are no transfer disclosures, it's worth less than the surrounding properties.
Selling Points: Decent sized corner lot, and it feels bigger than it is. Nice hardwood floors, new kitchen, paved patio area for entertaining, detached garage, timed sprinkler system, and the whole back yard is walled in so you have a place for the kids or grandkids or even grown ups to play!
Why I think it's a potential bargain: It's lender owned, and it's in pretty good condition now. Nonetheless, until it sells, the lender is paying taxes and has a non-performing asset.
Obvious caveats: Like I said, lender owned, which means no transfer disclosures.
Why it hasn't sold already: most Agents who looked at it while it was for sale before the auction won't go look again. I almost didn't.
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. If you held it those ten years before selling, you would net about $310,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1700 per month most comparable current rental and investing the difference at 10% per year tax free, you would be approximately $140,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Just the lender owned stuff.
Obvious way to enhance value or appeal of property: You might update the master bath. Other than that, the work has been done
This property does not 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!
Buy My Science Fiction Novels!
Dan Melson Author Page
The Man From Empire
A Guardian From Earth
Empire and Earth
Working The Trenches
Preparing The Ground
The Book on Mortgages Everyone Should Have!
What Consumers Need To Know About Mortgages
The Book on Buying Real Estate Everyone Should Have
What Consumers Need To Know About Buying Real Estate
Want San Diego MLS?
Add to Technorati Favorites