In my recent post on this series, San Jacinto Market Analysis - SOLD 5/20/09 - 6/20/09 I shared insight to the overall San Jacinto real estate market by providing a brief synopsis of current market conditions by analyzing all of the 136 residential real estate homes that closed escrow between May 20th and June 20th, 2009. In this segment, I will look closely at a single San Jacinto home for sale that sold with a LAND CONTRACT.
Of the 136 properties SOLD in San Jacinto CA during the period of May 20, 2009 to June 20, 2009 there has to be one odd ball...right? Well this is it.
It is hard to say just what happened, based on the records that I have easy access to. There is one home that was recently purchased from HUD in April and then sold again in the MLS earlier this month. What is confusing is that both transactions appear to have a $130,000 purchase price. The current transaction is reported in the MLS as a LAND CONTRACT. There is no prior closed transaction in the MLS - but there is a title report that shows it was purchased from HUD in April.
My understanding of a Land Contract is that it is a useful tool for an investor who wants to flip a property and put a buyer in with less than good credit. This scenario allows the investor to play the roll of the bank and sell the property to the new buyer, typically for a profit. The profit is not only the agreed upon purchase price but typically includes a substantial down payment and higher than normal interest rates.
In any event, there is only one - so let me run the numbers down so we have complete data.
The house was built in 2006 with 2,087 sq ft of living space and is a 4 bedroom 2 bath home on a 9,147 sq ft lot. It sold for the list price of $130,000 (or at least that is what the MLS reports) and earned $62.29 per sq ft. In total, this HUD home sat in the market of 196 days and then in escrow for 63 days. There were only 2 pictures.
BE SURE TO READ THE OTHER SEGMENTS OF THIS SPECIAL MARKET REPORT ON SOLD LISTINGS IN SAN JACINTO, CA
Blessings to all who read,
John Occhi, REALTOR®
Hemet - San Jacinto Valley
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