Robin Camacho
Las Vegas Real Estate
David McKee
Stiffs & Georges
Jean Scott
Frugal Vegas
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Posted At : April 7, 2008 9:22 PM | Posted By : Administrator
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Gui’s Story: The Final Chapter. Wow, what a twisted tale. For those of you who have been following my blog since its inception, you’ll remember Gui, The Man Who Would Not Heed Advice. This deal really tested my patience and my sense of humour. (I think I’m going to start inserting a “u” for all of my Canadian readers. Don’t worry; the novelty will wear off soon. But they’re such pleasant people and nice to deal with.)
Gui finally closed escrow on his home yesterday. This deal should have closed on February 22, as that nice mortgage agent that Gui found on the Internet promised. Against my advice to go with a local mortgage professional, Gui insisted on saving $250 by using an agent he found online.
Never mind that Gui risked his $3,000 earnest money deposit when that clown of a mortgage agent didn’t know how to read an appraisal. When I finally got my hands on a copy, I convinced the construction elves to sneak in at night and make a few small repairs. Even then, it took that mortgage agent another week to close a simple loan. Gui had a $117,000 cash down payment tied up for 2 weeks; I’m guessing it wasn’t worth the $250 he saved.
But all's well that ends well; his $249,000 home just appraised for $350,000. He not only bought way under market value, but this house will cash flow all day long. We'll be looking for another one shortly.
My staff and I have been really busy, and I’m afraid my blog has been sorely neglected lately. My apologies, dear readers. We really had no idea how popular our Top10 would be, and we’ve experienced some growing pains. I’m hiring a new admin support person and two more agents, and will soon be able to devote more time to keeping you up to speed on the Las Vegas market.
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are you saying it's worth $350,000? If so, how could it have sold for $249,900?
the price to $249,900. Since the home was worth more, I advised Gui
to offer list price. In fact, he received a $5000 credit for appliances from
that price, in effect paying $244,900. Gui purchased a nice used refrigerator
and repaired the stove; the house was otherwise ready to rent. As for
the value, an appraisal just came in at $350,000. An appraisal is an opinion
of value, and based on current market factors, the appraiser is of the opinion
that the home is worth $350,000. Gui got a great deal. Does this mean
Gui could flip this home tomorrow for $350,000? Not likely, since there are
more foreclosures on the market to compete with. I specialize in finding
homes with equity; this is what our Top10 values are all about. But just
because a home is worth $350,000 doesn't mean you can find a buyer
today who will pay that. There are 6 model matches for this home in
pending status; these range from $249,900 to $299,000. If Gui were to sell
it today, he'd probably get offers in the high end of this range. The home is
worth substantially more, but that doesn't mean much until more buyers
return to the market. Gui wanted to buy before that happens, while the prices
are low. He now has a home with a lot of equity, and one that will give
him positive cash flow. He plans to hold it for 5 to 10 years, expecting
substantial appreciation before he sells it.
mind whether he wants a property manager or wants to manage it
himself from San Diego. Rental comps in this neighborhood for this
size home are $1450 to $1700. The last time we spoke he planned to
rent this home for $1600.