14342 Sun Forest Drive, Fixer in Lake Wildwood, 2153 sq ft 3-story home, 5 bedrooms, $248,950

There are four or five classes of homes that are priced under $250,000. A good percentage are “fixers” in either Lake Wildwood or Alta Sierra. This home is typical of the class and type that have been prevalent so far this year.

It compares directly with two other homes I have previewed in Wildwood:

18865 Chaparral Drive, Lake Wildwood bank owned home, a 1920 sf fixer for $202,500


and

19339 Jayhawk Drive, a fixer in Wildwood listed as a pending sale at $225,000

18865 Chaparral Drive and 19339 Jayhawk
Those are pending sales, priced under $225,000

and one fixer in Alta Sierra that is also a pending sale:

10982 Juanita Court a Bank Owned Home in Alta Sierra, 1761 sf, fixer for $189,900


10982 Juanita Court

Every home that has structural damage along with needing the necessary cosmetic fixes has the potential to cost way more to repairs and get ready to market that the home will be worth when it is fixed up. Investors make that determination every day on every home that is discounted to the premium based on the condition of the home and the comparable sales for similar homes that a move-in ready. All these damaged homes are homes that can sell in $350,000 price range when they are cleaned up and repaired. There isn’t going to be a huge margin on any of the three that are pending, and while this home on Sun Forest clearly has some potential, investors have not taken on this project yet. It will be interesting to track it, and see what price it eventually sells for.

325 Second Street in Grass Valley, modest 2/2, with lots of freeway noise listed at $245,000

As the price point moves up and we get out of the homes that have structural defects and into the $250,000 price range the quality of the homes improves, but there are still price suppressing factors that keep the market value of a home like this one below what it would otherwise be. In this case, its the proximity to the freeway. This home sits on ridge just above Hwy 20 and the Hills Flat Roundabout. The noise from the cars and trucks is noticeable and quite loud, even on the far side of the house. Inside, with all the windows closed, you don’t hear much, but just open a door or window and the sound rushes in. The home itself is well maintained. It is right across the street from the troubled property I have listed for sale at 328 Second Street. 328 sits far enough back and across the street you don’t hear the freeway noise. Interesting how much difference just a couple of hundred feet can make.

328 Second Street Grass Valley, a potpourri of problems for this Grass Valley fixer listed for $235,000

14358 Pepperwood (2/2) Two-story home in Wildwood for $239,900

This two-story two bedroom and two bathroom home in Wildwood is listed for $239,900, and while it has an upgraded kitchen with granite counters, nice cabinets, and decent bathroom fixtures, the exterior siding is lap cedar that has failed in several places and need to be entirely replaced. The floor plan features a small master on first floor and a guest bedroom upstairs. There is just a single car garage, and the lot sits on a corner facing the street and neighbors, giving no privacy on any side of the home. Because it needs all new siding, I would still count this home as a “fixer” albeit, not in the severe condition as:

18865 Chaparral Drive, Lake Wildwood bank owned home, a 1920 sf fixer for $202,500


or:

19339 Jayhawk Drive, a fixer in Wildwood listed as a pending sale at $225,000

which are the other two “fixers” that are in same price range in Wildwood, but are in far worse condition but are also much larger homes.

478 Lamarque Court, 2 bedrooms, 1.5 baths, single story on a city lot for $238,500

Moving up the price point there are a few homes under $250,000 that are not total fixers. This home is typical of smaller older Grass Valley homes, not a true “ranch” only two bedrooms, and 1.5 bathrooms, but the home has decent fixtures and finishes and mature landscaping that offers good curb appeal in the front yard and bit of privacy in the fenced back yard. This home went pending after just one day on the market, which gives you a sense of how strong the demand it for homes under $250,000 that are not in need of a total remodel. Older homes like this all have some maintenance issues. It will take a pest inspection and whole home inspection to know if there are any issues that would prevent this home from being move-in ready. When buyers see homes like this, and there are no immediate and obvious structural defects, and they realize how few homes are priced this low, it is not surprising they go under contract so quickly. Figure the inspections take about two weeks. If it still under contract in two weeks then you can figure the inspections came out good, and this one will close. I will keep watching it. Compare this one to Lucas Lane to get an idea of what the least expensive homes in all of Nevada County are like: http://remarketreport.net/2017/06/15/170-lucas-lane-the-least-expensive-home-in-the-grass-valley-area-that-is-not-a-fixer-listed-at-225000/

13755 Frontier Lane, a Bank Owned single wide trailer on 3 acres for $140,000

Today I went a previewed this new listing. Older trailers on a couple of acres are fairly common. There have been six similar to this property so far this year. This one is in better shape that most of similar properties, but as is typical, it is on a post and peer foundation. The road to get to is long and bumpy, but passable in standard car, at least in summer. Once you get to the property you can see the neighbor’s have quite a bit of junk near the road, but you don’t see homes, just stuff. The property doesn’t have any trash on it, but the home is near a back fence that looks right over at the neighbors. Again, you mostly see trash, not a house. The value of this property will largely be determined on the buyer inspections, and what is discovered to be the condition of the septic and well. If both those turn out passable, then this one is priced to sell. if the well or septic fail, of course, a huge price adjustment will be necessary. Since it is new on the market 6/25/17, it will be interesting to see how long it takes to sell. When iw as out previewing, there has already been a couple of agents there and I am sure that by the middle of the week it will be shown a half dozen times.

328 Second Street Grass Valley, was listed for $235,000, Seller Dropped the Price to $200,000!

6/21/17 A potpourri of problems for this GV fixer. Structural, cosmetic, and title issues all combine to make this one a toxic mix of problems for even a seasoned investor. Listed for $235,000, if it was just the repairs and structural issues this home would have already been sold. The repairs can be managed, and the home would be a good rental if it was fixer up. But the title issues are sticky. The lot was accidentally created in such a way that there are two other property owners who own strips of land between the parking area and garage and the public street. None of the surrounding neighbors have volunteered to offer the easement and only negotiation and potential litigation will get the property a deeded right for ingress and egress. There is no way of knowing how this will be resolved and that uncertainty is unpalatable to investors and completely rules out any one with conventional financing.
7/2/17 So, have already discussed the fact the homes lacks a deeded access and the seller lives out of area and does not have the ability to pursue the necessary legal steps involved in securing ingress and egress. I spoke to him yesterday and now he is desperate to sell. He is looking for a cash buyer with a short close who can take the reins and negotiate with neighbors and the city to find the solution. It is obvious no city lot can stay landlocked forever! But the time and potential cost involved in finding resolution are unknown. My advice is that a buyer/investor should seek legal counsel before making an offer. Give me a call and we can discuss it:
530 263-0644

10441 Broken Oak Court, Penn Valley ranch style fixer for $229,000

If you are looking for an investment home, either to fix and flip or to rent, then a three bedroom two bathroom ranch style home is the right floor plan, less than 20 years old and in a decent neighborhood, this home fits the profile. Then the question becomes, how much will it cost to get it ready to sell or rent, and what will it be worth when the home is ready? This home took just nine days to go pending, so somebody did the math and felt it would work out for them. But have a look around- the bones might be good on this house, it isn’t that old, but every fixture and every cosmetic detail, from the landscaping to the light bulbs is either missing, broken, or so badly soiled it needs to be replaced. Missing and broken doors only add to the cost, and the garage, converted to living room, means there is no covered parking for a car.
The true measure of value is always what a buyer and seller can agree on price. The buyer who will pay the highest price typically get the home. When it comes to fixers and investments homes, the buyer who gets the home is the
one who will accept the slimmest margin between the purchase cost, the repair cost, and the final value. We learn about the market by looking at what investors are paying for fixers, and we get a heads up to look for homes that need little or no repair but are priced in the same range as these total fixers. A prudent buyer waits for the opportunity home that needs little or no work, but has an asking price in the same ball park as a total fixer like this one, or the others I have previewed. Have a look at Juanita Court, Chaparral Drive, or Jayhawk (previous blogs) to get an idea of what else investors are looking at.

26206 Sweetland Road North San Juan, Jungle Paradise with Creek for $149,000

This is one of the most interesting opportunity offerings this year. The lot is 1.6 acres, flat, with Sweetland Creek on the back side. It looks like an impenetrable jungle from the street. Tall bamboo grows in dense clumps all over the property interspersed with tall pine trees and large bushes. There are fruit tree interspersed throughout in the dense foliage. The house is a one-bedroom and one-bath cabin, about 600 square feet, on a post and peer foundation that was built in the 1950’s before permits were required. The county tax assessor recognizes there is house on the property but there are no records of the home, the septic system, the well, or any of the development on the property, since everything predates the county recording of such improvements. The condition of the home is modest and appears to be livable. The owners lived in it for 40 years until they moved into Grass Valley last year. In addition to the house, there are two shops, a wood heated sauna, a wood heated spa and a cold plunge pool. Everything has the look of being long ago abandoned, even though it has only been a little over a year since anyone live at the property.
There are, from time to time, similar homes and properties that are lived in for decades by the owners, and then they pass away or move on and the property is sold “AS IS.” What makes this so unusual is the all the personal property, 40 years of accumulated tools, spare building materials, mechanical and electrical components as well as all the furniture and every scrap of personal property and memorabilia is included in the sale. It looks like a combination between a museum and flea market. There are boxes of stuff, piles of tools, things too numerous to count and no way to inventory all of it. All the personal property is included in the sale price. There are lots of valuable items on the tool bench, and in the work shop. Sell it all on E-Bay or sort it and use it for your own projects.
So, why are they only asking $149,000?
They want it sold ASAP, and they want a cash buyer who will take everything.

12000 Zeibright Road Tahoe National Forest Cabin on 1.6 acres $229,000 Gateway to the Sierras!

Wow! What an opportunity here. Looking at properties under a $250,000 typically involves fixers and small homes, but here is something completely unique that has no comparable homes anywhere in Nevada County. Located on Zeibright Road in Bear River headwaters basin, this cabin is set up for family fun and vacation relaxation.

Bring your family and friends to this secure base camp along the Bear River and let the adventures and memories begin. This gated 1.5 acre site has a well, spring fed creek and is a quick walk to the Bear river or Pioneer trail. A permitted two story with a tall roll up door is big enough to park an RV or other toys with security doors that keep it locked up tight when you are not around. A cozy upstairs is welcoming in all weather. Quality engineering and construction show throughout this 2” x 6” framed building that sits on a stout 4′ tall masonry foundation to ensure that even when the deep snow hits it’s high and dry. Ready for you to finish and create a year round home, or just use it as the current owner does, for extended comfortable stays between day trips to Bowman Lake, Spaulding Wilderness and the back country. Land is private, flat, and quiet. Seller will consider owner carry with suitable down and terms.
You can spend the day lounging in the grassy meadow under the shade of the big trees, or walk to the the Bear River. It is surrounded by Tahoe National Forest and located on famed Zeibright Road in the headwaters of the Bear River Valley. Close to kayaking, fly fishing, equestrian trails. Snow mobile and cross country ski right out of your front door or fire up the ATV’s and head out for miles of adventure. Just 10 minutes from I-80 at Blue Canyon, only 20 minutes to Nevada City with Donner, Truckee and Lake Tahoe less than an hour away.

If you would like to make arrangements to see this home, give me a call 530 263-0644.

19339 Jayhawk Drive, a fixer in Wildwood listed as a pending sale at $225,000

OK, so I am out looking at homes that are fixers and need work, and generally I have been looking under $200,000, but this home is such a good comparable for the home on Juanita I wanted to go look at it, and see how much work it needs and see if there a reasonable spread between the work that needs to be done and price differential of these two homes.

The Jayhawk home is definitely in better shape. It still needs a total make over, but structurally it seems to have no major defects. Just a lot of cosmetic repairs and this one will be ready to go. Not surprising that it went pending after just four days on the market.

If it’s already pending, why go look? Two reasons, one a pending sales tells me what other buyers think about the price of a home, and have been willing to write an offer on it, and secondly, these fixers and damaged homes have a much higher rate of falling out of escrow than regular homes. For all kinds of reasons, this one could easily be back on the market. In that case, it is good to already know the home and have an idea what sort offer would turn it into a money maker.