1545 CRICKET DRIVE, CHULA VISTA, CA
Original List Price: $$535,000-$590,000
Listed on: 8/31/06
Specs: 3 Bedroom, 2.5 Bath, 2 Car Garage, 1659 Sq Ft Built in 2005
Positives: Balcony, Rain gutters
Negatives: $89/month HOA, $210/month Mello-Roos, small home
This flipper purchased the "American Dream" in June 2005 for $600,334. In less than 15 months this flipper is in a deep deep hole. Even though the home has been on the market for a few days this one could be on the MLS a while. Why? First, you have a small living area; 2) you are paying $300 monthly in addition to your mortgage payment and 3) Seller wants to minimize his losses so he probably won't go near the low end of the asking price.
What would I pay for it? $200 per sq ft = $332K. However, with a $300 HOA/M-R, it is equivalent of adding an extra $50K to the mortgage over 30 years at 6%. So today the home is worth only $332-50K = $282K.
I know what your thinking.....you're questioning my methodology right. But only five short years ago a house like this in Chula Vista would have sold for $175-$225K. Just think about it.....
2 comments:
I do question your pricing methodology, but in the opposte direction. If this house was $175k-$225k just five years ago, why would you consider paying $282k today? You'd still be overpaying.
You are right, I guess in todays market 282k is better that 600k
Post a Comment