Here is the video I shot in June from 22752 Pleasant Valley Road, a gutted out bank owned manufactured home in North San Juan that was listed for $91,500 on 5/28/17. It went pending just a week later, and closed escrow at the end of June for $112,500, or 12% over the list price! That gives a very clear indication of the land value, the value of the well, septic, foundation, and permits, because the home itself needed to be scraped and completely rebuilt. I drove by the other day and saw a full crew of contractors working on it. This one clearly was somebody’s summer investment project. So, home much do you think this house will sell for?
To get an answer to that question lets look at a new listing. Todays listing is active in the inventory, a fully cleaned up and ready to go manufactured home, 12905 Shady Creek. It is what the investor working on the Pleasant Valley home is aiming for. We don’t know what this home started out looking like, it might not have been as bad as the on Pleasant Valley, but the remodel here is complete, with new cosmetic improvements, and clear evidence that structural and pest repairs have been made in a professional looking fashion.
Here is the basic math- Pleasant Valley sold for $112K Shady Creek is listed for $284K. The difference is $172K. If the investor on Pleasant Valley buys a brand new manufactured, and installs it on the existing foundation, say that costs $100K. Add on 2 car detached garage, another $30,000. Sell this finished product for $282K, and that leaves a nice $40,000 profit. That’s the basic math, and that’s why there were multiple offers on that old manufactured that was not habitable.