FIXER IN DESIRABLE EAST END OF ALAMEDA CA
My friend and co-worker just left for a holiday in London, and she asked me to look after her short sale listing.
This is a fixer in Alameda, in a very desirable part of town called Fernside. It has good "bones" but has not been remodeled or upgraded in decades. It was refinanced a few years ago, but like some homeowners who later got in trouble, the funds from that refinancing didn't go towards maintaining this house. Hence, it's a fixer --- and a short sale.
It was priced at $300,000. Two contractor bids to repair/renovate the property so it becomes habitable came to approximately $250K. What does it need? Everything! But it does have large formal rooms, hardwood floors, built-ins, and it's in a great east end location on a corner lot. If this were in good condition, in this neighborhood, and in today's market, this would be worth in the low to high $600K.
As of this writing, there are thirteen offers, 8 of them cash offers. All of them are above list price. The lender doesn't want to see all 13 offers, and will only look at the top two offers, while promising to make a decision within 72 hours of receipt of these offers. I called all 13 agents to give them an opportunity to re-submit their best and final offer.
In the meantime, as the deadline for a response looms, more people are calling about this property, drawn by this price which is very low for this neighborhood.
UNDERPRICE TO GET OFFER ABOVE LIST PRICE
So...here's a classic case of underpricing to get the best and highest offers. By the time the dust settles, I won't be surprised if this property finally sells around $400K which is probably what it's really worth, even as a fixer.
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