Hot Bargain Property October 20, 2007
Older Home in Great Area - Beautiful Inside!
General: Urban East County, 3 bedroom 2 bath, and two extra rooms. Asking Price between $400,000 and $425,000. Worth every penny and then some. I think $380,000 net might get it sold!
Why you should be interested: 1) It's gorgeous 2) Quiet Neighborhood 3) Large back yard 4) Great Schools 5) It's close to just about everything.
Selling Points: Throughly modernized kitchen and bathrooms, water efficient front yard, back yard is large enough for kids to play. You could put a pool in and never miss the space. The ceiling is a little low on the extra rooms for them to be legally bedrooms, but people have obviously used them for that.
Why I think it's a potential bargain: Actually, it's a steal, and in any less fearful a market, this one would be long gone. This is one of those wonderful surprises you find every once in a while if you look at enough properties.
Obvious caveats: I do want to slap whoever it was that put pergo down on top of hardwood in the front section of the house. As I said earlier, I don't think the ceiling is high enough for the extra rooms to be legally called bedrooms. Other than that, I just didn't see anything wrong with it.
Why it hasn't sold already: The listing agent is basically acting like a bump on a log.
Monthly Income to Qualify: (assuming no down payment and average credit on a thirty year fixed rate mortgage, full documentation, one total point or less) $6520 gross with zero down. If you have 20% down, monthly gross income to qualify will be $6020
If you keep it ten years and it averages only 5% annual average appreciation per year: Based upon a purchase price of $380,000 the property would be worth approximately $620,000. 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 $2300 per month most comparable currently available rental and investing the difference at 10% per year tax free, you would be approximately $260,000 ahead of the renter, after the expenses of selling.
Fact you should be aware of: Evidently, school buses use the street in the morning.
Obvious way to enhance value or appeal of property: Other than get the pergo off the hardwood, not much.
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 am looking to represent buyers, so 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 bargains 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, and there is no reason not to sign such an agreement unless you're an agent yourself. If your current agent was finding properties like this, you wouldn't be interested.
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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