Is this a good real estate deal? Townhouse for 222,000 in southern california?

Question

I'm considering buying a townhouse for 222,000. 3 bedroom/ 2 bath 1200 sq ft. Needs a LOT of cosmetic work as well as new appliances. Seller is willing to pay 4,000 closing. What do you think of this deal?

Answer 1

I would study the neighborhood and area. Look and see how much the other townhouses are 'of like property' is going for. Comps (comparables). See if there is a townhouse near by and check it out. See how much your neighbors paid for their houses and see how much they have appreciated. Definately look at surrounding property. That to me is a good indicator of value. See how much stuff is going in your area per square foot. If below value then hell yeah fix some of it. Get a professional out to examine the bones of the place (plumbing, electrical, structure, roof, etc . you know the real expensive stuff). Also WHY is this person selling!!

Answer 2

I live in southern California, and for what you describe the property includes, that price range is kind of the going rate for townhouses where I live. HOWEVER, personally, I wouldn't want to pay $222,000 for a townhouse, because where I live, what they do alot of times, especially in the less than desirable neighborhoods with less than desirable tenants, is the owner of an apartment complex will evict the tenants, go in and remodel the apartments, fix them up to where they look nicer than before, and then turn around and sell them as townhouses. But, all they really are is just glorified apartments. And when they try to sell these "glorified apartments" as town houses, they typically do not sell well, if at all. For example, there were two different apartment complexes (within a couple of blocks of each other) in the area close to where I live. The owners evicted the tenants, and completely remodeled (inside and out) the apartments, and then turned around and tried ("tried" being the key word here) to sell them as townhouses. They started out selling them for $220,000, couldn't sell any of them, and eventually dropped the price to $156,000. They still couldn't sell them, so they ended up renting them out again as apartments. Doesn't sound like too good of an investment to me. And, as you can see, the re-sell value just isn't there. Plus where I live, if you are patient and shop around, you can get a nice 3 bedroom 2 bath home with approximately 1,400 - 1,600 (sometimes a little more) square feet in a decent neighborhood, for around $280,000 (sometimes a little less). So, why not pay a little more and end up with a nice house that has the potential for excellent re-sale value? Hope this helps..

Answer 3

I'm an appraiser. You should seriously consider if this is the right time to buy. Prices are on their way down. Do you intend to live here for a long time? Can you afford the place with a conventional fixed rate mortgage? Do you like this place? If you said "yes" to all three then go for it! If not, think about waiting another year or so.

Answer 4

222K is a very very good deal for southern CA. Get an inspection report to make sure nothing else beyond just cosmetic works. If i get a hand on a deal like this, I'll fix it up and flip it right away. I live in southern CA near Irvine and median house price in my neighborhood is still in the high 700K so for 222K for a townhouse, I say get it. If not, please share the info on it w/ me - email it to me if you don't want it.

Good luck!

Answer 5

Get an agent you trust. They will tell you if it is a good deal. They will can tell you about the monthly fees, mello roos taxes, and neighborhood as well. It sounds like a good deal, but you know what they say about to good to be true.

Answer 6

I don't live in California, but for 222,000 I sure in the hell would not be buying a townhouse, I need my own space.

Answer 7

Ask a local agent!

Keep in mind...........

Times and markets are changing!

In California with average homes selling well over $500,000, a 20% decline is $100,000! In any market 'timing is everything'! So, could you afford a loss of 25% of your investment all because of poor timing???

This last up cycle was 10 years in many parts of the country. The downcycle now started in CA, Wash DC, NYC, Vegas and other hot areas of the past are all soft and getting softer.

From 1990 to 1996, the average home in San Diego lost 20% of its' value! The cycle we are now enterng looks like it could well exceed that on the downside!

With all the 100% financing, interest only loans, EZ qualifing etc...even a slight decline will cause many to be unable to sell for the amount due on their loans!

For some great 'insider' articles on the San Diego real estate market, which I beli
eve will apply to any of the hot real estate markets of the past five years.....visit:

http://www.brokerforyou.com/brokerforyou

http://www.downtown-san-diego-real-estate.com/san-diego-real-estate-article-index.htm

http://www.brokerforyou.com

http://www.san-diego-for-sale-by-owner.com

http://www.la-jolla-ca-del-mar-san-diego-real-estate-encinitas-california.us

http://www.brokerforyou.com/blogger/index.html

http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://san-diego-coastal-real-estate.blogspot.com
http://sandiegofsbo.blogspot.com
http://downtown-san-diego-real-estate-views.blogspot.com
http://www.brokerforyou.com/san-diego-real-estate-sales.html
http://www.poway-real-estate.info
http://www.del-mar-real-estate.info
http://www.la-jolla-real-estate.info
http://www.los-angeles-real-estate-brokers.com
http://www.san-jose-real-estate-brokers.com
http://www.orange-county-real-estate-brokers.com
http://www.san-francisco-real-estate-brokers.com
http://www.sacramento-real-estate-broker.com

Answer 8

this is a very good deal for SoCal. thats actually cheap for down there. most houses go for at least 500.000

Answer 9

I LIVE IN A 1200FT. SQ. FT. HOME. IF THE HOME IS IN HIGH PRICE PLATT, GO FOR IT, FIX IT UP AND DOUBLE U'R MONEY. GOOD LUCK

Answer 10

Depends what city you're in; depends on a bunch of different variables.