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Thursday, August 11, 2005

The $13,000 Phone Call

I was just leaving for lunch when my agent called me. She checked out some active listings in the area and she thinks I can get more than $167,000 for the place. She suggested $180,000. There are 3 active listings in the subdivision and, even at $180,000, mine would still be the lowest priced one. I was a bit concerned because, although I did do a lot to improve the place, the bathroom showers are still a bit, well, not the best. But one house in the neighborhood is a pending sale for slightly more than $180,000 and it is tenant occupied, so you can be sure that house isn't in the best of shape either. So what the heck! I told her to list it for $180,000! She thinks it'll sell fairly quickly too. That was a great phone call!

Of course, this leads me to reassess my valuation skills. I had seen some higher priced homes show up on the comps list, including one that sold for $225,000. Some had pools. I figured a pool added $20,000 to the price. My agent said it only adds about $10,000. A two car garage adds a bit (my property just has a 2 car carport) too, but not a huge amount. I think, in my mind, I had assumed the higher priced homes were in immaculate condition or had some other features that I couldn't tell from looking at the comp list. I guess I need to change my thinking a bit.

6 comments:

tmtb said...

::clapping::

There's a silver lining to every cloud. $13,000 more. That's awesome.

Anonymous said...

How much did you buy it for?

Shaun said...

I have posted the purchase price a couple times previously here. However, because the house is now on the market and negotiations can be initiated at any time, I think I am going to suspend discussion of my expenses and potential profits on this property until escrow closes. Once that happens, I’ll post full details, but right now, I think I need to withhold some information to ensure I retain a good negotiating position. I know there are other Arizona investors that read this blog and it’s also possible someone doing a Google search for homes in the Phoenix area may find my site as well.

Scott said...

I think that's a good idea. I am doing the same thing with my 8-plex right now. As soon as the fat lady sings, I'll post all the gory details.

Bginvestor said...

Shaun,

Your mistake may be that your using comp values (sold), not MLS listed values. In your market, thats a big difference...

Good luck!

Shaun said...

That was exactly what I was doing.

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