My clients bought a condo unit in Bella Vista in Daytona Beach Shores for a very good price. They still have money and are thinking of investing, but are very particular about the buildings. It has to be a nice one, and nice one by their standards.
When in 2 months the listing agent called me about the short sale he had there and said that the bank agreed to a very significantly reduced priced (by $100K), I sent my clients an e-mail suggesting that they buy this unit, and then resell for a nice profit.
They ask questions. They need to know what it was initially purchased for, what they were selling for, and so on and so forth. However, the most important fact that this is the second lowest price in this building ever eludes them. That it was bought for $693,550 and is now for sale for $345,000 does not mean much. They are still concerned. Looks like $0.50 on a dollar is not a good deal…
The fact that this is the largest floor plan also does not impress either.
They are coming to Daytona and would like to see it. I am not sure that it will be by the time they come, but my sense of urgency is just my sense of urgency…
They come, spent some time in the unit. Leave. Next day they ask to go back again. I arrange with the owner, who still lives there, and they come and spend a lot of time there. They walk every corner…
They do not quite like this… and then this… and then this… and finally I am confused.
Do they plan to move here?
- No.
Then what is this all about? They are not going to live there a single day, a single hour, but they are choosing it specifically to their taste…
And because it is not all up to their taste, they feel that it would take about $20K for a great new luxury condo in absolutely great condition. Which they plan to rent for a year before selling. Makes no sense to me…
I am trying to tell them that if they buy it for $345K, which is approved by the short sale lender, I will sell it for them for at least $200K more. And I can see that they do not believe me.
While they are still thinking, the unit goes under contract and closes for $346K – the second lowest price in Bella Vista…
And a week later a unit on the same line pops up on the market for $649,000. Now they start regreting that they did not buy the unit. $649K impresses me. And in 3 weeks it goes under contract. Now, that it is off the MLS, I would have put the unit that my client missed, for $599K and I bet it could go for $550K. So, $345K vs. $550K. I think this was an excellent investment.
How can I stress that if you are buying a property for investment, it doesn’t really matter what you like.
- But who's gonna buy it?
- Somebody not you.
Follow this link for the availability and prices of condos in Bella Vista in Daytona Beach Shores
Photo by The Integer Club via Flickr.com
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