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 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
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.