Hello from the Corner Office- Today I am looking at a bank owned home in Alta Sierra, listed for $189,000. This home was occupied long after the bank foreclosed. The tenants are gone, and the home has been cleaned up a bit for marketing. Some health and safety issues have been resolved, but home has structural damage that was caused by a tree strike on the roof, which I document in pictures below.
This is a big house, over 1700 square feet. It is the least expensive large home anywhere in Nevada County so far this year. It’s a fixer, but how much would it cost and what would it be worth when the repairs are made?
The big unknown is the cost of the driveway repair. That could run $30,000 or more. There is no obvious cheap fix for the driveway. The house could be made rentable for $50,000 mostly cosmetic fixes. Add another $20,000 to that to repair the damage to the roof, and the cost really adds up quick. Also, there is no way of knowing how the septic system is functioning. That would have to come during an inspection. To really know if it is a good value, I would need to find some comparable homes that were in decent shape and see what price they sell for. The lowest priced homes over 1500 square feet in Alta Sierra in any style or type, that is not a fixer is around $350,000. I think this home would sell in that same price range, $325,000 to $350,000 when it was painted, new carpets, repairs to the siding and roof and driveway as necessary, new exterior paint, replace the deck and stairs, and new appliances… figure it will rent for about 1300 per month, or you could sell it for $325,000 to $350,000. So, if you paid $189,900, (the asking price) put $100,000 to $110,000 into the repairs, you would be in it $300,000 and it would sell for $325,000 to $350,000. There is a little bit of opportunity here, assuming the septic is OK, and the costs don’t spiral higher than expected. You can see the damage to the roof in the following picture, both from the exterior and where the tree penetrated the room and damaged the sheetrock in the master bedroom.