Here’s a nice little article from azcentral.com. It talks about the sub- $200k market being ‘hot’. There’s not many of facts to back it up, but, I have to agree with most of it. There’s a ton of deals out there right now, and the $200k market seems to be fairly hot. The reason being, in my opinion, is that is the AFFORDABLE price range for most buyers nowadays. So it appears ‘hot’ due to the activity going on there. The article also mentions how most of the buyers out there seem to be investors. Hmmm, I wonder why?
HOWEVER, where I disagree somewhat is that the $200k-$400k price range is where the KILLER deals are. The reason? Not as many people can afford that right now, and the majority of nicer, newer homes are in that price range. Bottom line: there are BETTER deals in the higher price ranges than the lower- you have less competition, and tons more equity. It’s very common to find deals with $50,000, $70,000, $100,000 or more in equity (read, BELOW VALUE). At the end of the day, there’s PLENTY of deals out there right now- it’s insane how easy I’m finding great deals. The day is coming, however, where they will be much harder to find, and everyone will be saying ‘I wish I would have’!
Well, it’s been going on for a while, but it’s now getting more publicity in the press. Home Builders are using auctions as a way to shot gun sales of their existing inventory. The same way wholesalers use the word ‘foreclosure’ to mass market a property, home builders are hoping the general public thinks they’re getting a great deal if they buy at these events. The sad thing is, it’s typically a bunch of uneducated buyers who are getting caught up in the excitement of the bidding action. They’re purchasing on a whim, without representation from a REALTOR®, and no knowledge as to whether it’s a great deal or not. Just because the builder says the home retails for $500k (and the opening bid is $400k!), doesn’t mean that’s what it’s worth. You’ll find out quickly that your $400k home is going for $350k across the street.
Yes, you CAN find some deals in these auctions, however, you’ve got to be VERY careful and know your values like the back of your hand. Yes, a homeowner might walk into $10,000 - $30,000 in equity, but that’s about it. Certainly not the best way to find a deal on an investment property. Before you get caught up in the excitement of it all, make sure you call me first to get an honest value of the homes before you go. Be prepared to be outbid and pay more than you should once the excitement of it all is said and done. For what it’s worth, here’s an article about it, but I’d take it like a grain of salt.
ok guys, time to gear it up here. Just came across a SMOKIN deal in the Gilbert/Chandler area. Here’s the specs-
1750sf, 3 bed/ 2 bath, No Pool, Single Level, built in 2005, It is a Bank REO, and the Fair Market Value is anywhere from $250,000 to $300,000+. We can get it for less than $190,000. Did I mention it’s in a gated community? It’s off of Germann and McQueen, roughly. This is a GREAT DEAL for someone as a rental, or, owner/occupy. If you are interested, give me a call and we’ll go snag it! A deal like this WILL NOT last long, so we gotta move fast!
UHHH! I can’t believe I missed this one! This past 2 weeks I’ve been super busy with other aspects of my life and business- but not looking for deals too actively. I’m in the middle of developing a new database for finding deals- and most of my time and attention has gone there (well, not to mention putting up Christmas Lights!) I just started lightly ‘grazing’ the MLS and I came across this beauty.
It was listed in MLS for just under $200k. 1700+ square feet, 4 bed, 2 bath cookie cutter home. In great condition (could use a little modernizing, but definitely livable). NOT in foreclosure, but the seller was over it and just wanted it sold now. The subdivision was very popular and well established, housing many upper-tier homes (not to mention man made lakes, waterfront properties, clubhouse with pools, tennis/raquetball courts, the works). Days on market in this subdivision are some of the lowest in Gilbert due to it’s popularity. Centrally located and less than 1 mile from the I-60- it doesn’t get much better than this!
It comps for $320k.
By the time I found this little gem, it had already sold. I can’t believe I missed that one. $120k in equity, in a great neighborhood. Unbelievable. So how motivated am I to get back on track and go find some others like it? VERY. And guess what- there’s PLENTY OF THEM OUT THERE! If you’re interested in sharing in the abundance of deals- contact me or sign up for my Deal Alerts and let’s make some money! Let’s just make sure to not miss any more like this one!
