I find it odd that many people really do not understand what they want when it comes to purchasing a home. The properties that seem to move today are foreclosed, REO, Short Sale and Bank Owned before a Standard sale, so why is this? Well most of us turn to a friend or a family member to ask for financial advice before we ask a professional. So to the average person the lowest price is everything, or is it?
There is a retired couple in Corona CA that want to sell their home to move to be closer to their grand children. Their grand children’s father was relocated to the east coast for work and of course the family went with him. The grandparents want to be closer so they have been trying to sell their home for some time now. The home has been under contract two times now and fell out for different reasons, not value. I received an email from them asking why people go to the so-called discounted properties and pay nearly equal to what the retired is asking. I found myself wondering why that is.
Recently there have been three homes sale within a few minutes walk to their home. Two have sold for a little less and one for a little more than their asking price. Is it the perceived believe that REO, Bank Owned, Foreclosure or Short Sale a better buy than a Standard Sale? All three of these homes needed work and one did not have a functional master bathroom. This very large bathroom was in need of $25,000 in repairs since the walls, floors and all fixtures were in need or repair or replacement. This master bath home sold for 415,000 to my understanding. The home needed more work than just the master bathroom but without the bathroom repairs only a FHA 203K loan could be done due to the homes condition. Of course you could pay cash but how many people can do that with today’s economy.
The home in question is very nice and you can see it for yourself at http://budurl.com/FeaturedProperty. Here is a move in ready home and yet is gets ignored by most buyers. So is a lower price with repairs of $35,000 to $75,000 a better deal? What are your thoughts? Yes yours too Vic. Just my opinion here but the lower priced home that you get no feed back on its history with needed repairs is much more risky than a home with documented history and in move in condition. Best of all this home does not have any special tax assessments, base tax rate of 1.25%. Buyers’ do not seem to understand special tax assessments either but that is for another time.