Hot Bargain Property December 14, 2006
Older Home with Granny Flat on Large Lot!
General: Urban East County, 3 bedroom 1 bath plus detached granny flat. Asking price between $450,000 and $475,000. I think an offer of $420,000 net would get it sold.
Why you should be interested: Huge lot with fruit trees! Two car detached garage! Private patio for entertaining!
Selling Points: Huge lot with fruit trees! Two car detached garage! Private patio for entertaining! Granny flat! Lots of parking! Solid neighborhood!
Why I think it's a potential bargain: The styling and fixtures are dated, and public spaces are pretty dark, which turns folks off. I think it's inherited, and the heir didn't put any money into it and now they've had to pay taxes, maybe they will listen to reason. I didn't see any recent mortgages, so no matter what price they sell for, the heirs get a lot of money, and in the meantime, they are spending money.
Obvious caveats: Only one bathroom, and the granny flat doesn't have a kitchen or a bathroom.
Why it hasn't sold already: This is not a modern property. But what it does have is better, and you can get it for a lot less than those modern detached wall condos.
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $420,000, the property would be worth approximately $680,000. If you held it those ten years before selling, you would net about $330,000 in your pocket (not including increased value from updates!), assuming zero down payment. As opposed to renting the $1700 per month most comparable currently available 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: Dark inside and needs updates
Obvious way to enhance value or appeal of property: Add a kitchen and bathroom to the granny flat. Update the kitchen and bathroom in the main house, and let some light in while you are at it. If you're feeling really ambitious, add another bathroom or even a new master suite. There is plenty of room on the lot!
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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