29 Grape Arbor in Northwood II (another flipper listing coming to an MLS near you)

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usctrojanman29_IHB

usctrojanman29_IHB

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29 Grape Arbor over in Northwood II (Camelia Plan B - 2,315sf) will be hitting the market either tonight or first thing tomorrow morning for $749k. The sellers are the same flippers that own 11 Laurelglen over in Woodbridge. They bought the property at the SA courthouse for around $631k on 8/20 and picked up the keys from the previous owner on 8/31 with a "cash for keys" strategy. I viewed the property the past few days and although it looks in near move-in ready condition there are a few things that need to be corrected/trimmed/touched-up (the contractors were there for the past few days). I communicated to the sellers that the property will have a difficult time appraising for their asking price based upon CLOSED sale comps in the neighborhood. It'll be interesting to see what happens with this property.
 
[quote author="usctrojanman29" date=1252040905]29 Grape Arbor over in Northwood II (Camelia Plan B - 2,315sf) will be hitting the market either tonight or first thing tomorrow morning for $749k. The sellers are the same flippers that own 11 Laurelglen over in Woodbridge. They bought the property at the SA courthouse for around $631k on 8/20 and picked up the keys from the previous owner on 8/31 with a "cash for keys" strategy. I viewed the property the past few days and although it looks in near move-in ready condition there are a few things that need to be corrected/trimmed/touched-up (the contractors were there for the past few days). I communicated to the sellers that the property will have a difficult time appraising for their asking price based upon CLOSED sale comps in the neighborhood. It'll be interesting to see what happens with this property.</blockquote>


IYHO: How much:

1. is it worth?

2. will it sell for?
 
[quote author="Stuff It" date=1252041327][quote author="usctrojanman29" date=1252040905]29 Grape Arbor over in Northwood II (Camelia Plan B - 2,315sf) will be hitting the market either tonight or first thing tomorrow morning for $749k. The sellers are the same flippers that own 11 Laurelglen over in Woodbridge. They bought the property at the SA courthouse for around $631k on 8/20 and picked up the keys from the previous owner on 8/31 with a "cash for keys" strategy. I viewed the property the past few days and although it looks in near move-in ready condition there are a few things that need to be corrected/trimmed/touched-up (the contractors were there for the past few days). I communicated to the sellers that the property will have a difficult time appraising for their asking price based upon CLOSED sale comps in the neighborhood. It'll be interesting to see what happens with this property.</blockquote>


IYHO: How much:

1. is it worth?

2. will it sell for?</blockquote>
1. Whatever a buyer is willing to pay for it.

2. All depends on if there are buyers desperate enough to bid it up to list price. I would be SHOCKED if it sold for over $730k and no way it appraises for list price.
 
The flippers have officially listed the property on MLS today. Looks like they posted the incorrect square footage...it's not 2,460sf as it is a Camelia Plan B which is 2,315sf. I advised them to correct it before someone flags the listing. Here are the agent-to-agent comments:



"Go direct. Combo lockbox code #XXXX. Write all offers to Grape Arbor Trust 29. Listing agent is the owner. Owner has never lived in home. Please provide pre-approval w/credit scores and proof of funds with offer. Submit all offers to JOEBLOW@gmail.com via Mongofax or e-fax. Not eligible for FHA financing due to recent acquisition. Sellers choice of services. Property sold 'as is'. MLS is updated daily."
 
[quote author="usctrojanman29" date=1252129675]The flippers have officially listed the property on MLS today. Looks like they posted the incorrect square footage...it's not 2,460sf as it is a Camelia Plan B which is 2,315sf. I advised them to correct it before someone flags the listing. Here are the agent-to-agent comments:



"Go direct. Combo lockbox code #XXXX. Write all offers to Grape Arbor Trust 29. Listing agent is the owner. Owner has never lived in home. Please provide pre-approval w/credit scores and proof of funds with offer. Submit all offers to JOEBLOW@gmail.com via Mongofax or e-fax. Not eligible for FHA financing due to recent acquisition. Sellers choice of services. Property sold 'as is'. MLS is updated daily."</blockquote>


Maybe now that they have another property to focus on it is time to call them on behalf of your clients and put in another (lower) offer on the Woodbridge house...cash is king!
 
[quote author="Chuck" date=1252130976][quote author="usctrojanman29" date=1252129675]The flippers have officially listed the property on MLS today. Looks like they posted the incorrect square footage...it's not 2,460sf as it is a Camelia Plan B which is 2,315sf. I advised them to correct it before someone flags the listing. Here are the agent-to-agent comments:



"Go direct. Combo lockbox code #XXXX. Write all offers to Grape Arbor Trust 29. Listing agent is the owner. Owner has never lived in home. Please provide pre-approval w/credit scores and proof of funds with offer. Submit all offers to JOEBLOW@gmail.com via Mongofax or e-fax. Not eligible for FHA financing due to recent acquisition. Sellers choice of services. Property sold 'as is'. MLS is updated daily."</blockquote>


Maybe now that they have another property to focus on it is time to call them on behalf of your clients and put in another (lower) offer on the Woodbridge house...cash is king!</blockquote>
I think they need to learn that 11 Laurelglen is overpriced and needs work...I don't see how it will sell more much over $800k. As for 29 Grape Arbor, that little boo-boo in square foot could cost them $20k-$30k. Just goes back to knowing the market you are getting into.
 
[quote author="usctrojanman29" date=1252131196][quote author="Chuck" date=1252130976][quote author="usctrojanman29" date=1252129675]The flippers have officially listed the property on MLS today. Looks like they posted the incorrect square footage...it's not 2,460sf as it is a Camelia Plan B which is 2,315sf. I advised them to correct it before someone flags the listing. Here are the agent-to-agent comments:



"Go direct. Combo lockbox code #XXXX. Write all offers to Grape Arbor Trust 29. Listing agent is the owner. Owner has never lived in home. Please provide pre-approval w/credit scores and proof of funds with offer. Submit all offers to JOEBLOW@gmail.com via Mongofax or e-fax. Not eligible for FHA financing due to recent acquisition. Sellers choice of services. Property sold 'as is'. MLS is updated daily."</blockquote>


Maybe now that they have another property to focus on it is time to call them on behalf of your clients and put in another (lower) offer on the Woodbridge house...cash is king!</blockquote>
I think they need to learn that 11 Laurelglen is overpriced and needs work...I don't see how it will sell more much over $800k. As for 29 Grape Arbor, that little boo-boo in square foot could cost them $20k-$30k. Just goes back to knowing the market you are getting into.</blockquote>


I agree....Laurelglen is a nice street but this house needs work and I can't quite figure out how to make that floorplan work....
 
Just came from there. Very busy. There were at least a dozen realtor cards on the counter and in the 4 minutes I was there, three other groups were walking up/parking.

It felt a bit small but will sell pretty quickly. Flooring was good except for the gouges in the kitchen. The back yard was a postage stamp (tiny).
 
[quote author="davenlei" date=1252210016]Just came from there. Very busy. There were at least a dozen realtor cards on the counter and in the 4 minutes I was there, three other groups were walking up/parking.

It felt a bit small but will sell pretty quickly. Flooring was good except for the gouges in the kitchen. The back yard was a postage stamp (tiny).</blockquote>
Yeah, I went there this afternoon and noticed about 20+ realtor business cards along with two couples that came their the house while I was there. Appraisal will be an issue for the buyer if the sales amount is close to the list price.
 
[quote author="usctrojanman29" date=1252225020][quote author="davenlei" date=1252210016]Just came from there. Very busy. There were at least a dozen realtor cards on the counter and in the 4 minutes I was there, three other groups were walking up/parking.

It felt a bit small but will sell pretty quickly. Flooring was good except for the gouges in the kitchen. The back yard was a postage stamp (tiny).</blockquote>
Yeah, I went there this afternoon and noticed about 20+ realtor business cards along with two couples that came their the house while I was there. Appraisal will be an issue for the buyer if the sales amount is close to the list price.</blockquote>


can you post the comps?
 
[quote author="davenlei" date=1252229870][quote author="usctrojanman29" date=1252225020][quote author="davenlei" date=1252210016]Just came from there. Very busy. There were at least a dozen realtor cards on the counter and in the 4 minutes I was there, three other groups were walking up/parking.

It felt a bit small but will sell pretty quickly. Flooring was good except for the gouges in the kitchen. The back yard was a postage stamp (tiny).</blockquote>
Yeah, I went there this afternoon and noticed about 20+ realtor business cards along with two couples that came their the house while I was there. Appraisal will be an issue for the buyer if the sales amount is close to the list price.</blockquote>


can you post the comps?</blockquote>


Ask IR for one of his realtor report!



Serisouly, at $324 per sf, it does seem out of range. The sf has been fixed to 2,315. I like to see that it's $220,000 less than it's 2006 price. That's a significant drop!
 
[quote author="Roo" date=1252278294][quote author="davenlei" date=1252229870][quote author="usctrojanman29" date=1252225020][quote author="davenlei" date=1252210016]Just came from there. Very busy. There were at least a dozen realtor cards on the counter and in the 4 minutes I was there, three other groups were walking up/parking.

It felt a bit small but will sell pretty quickly. Flooring was good except for the gouges in the kitchen. The back yard was a postage stamp (tiny).</blockquote>
Yeah, I went there this afternoon and noticed about 20+ realtor business cards along with two couples that came their the house while I was there. Appraisal will be an issue for the buyer if the sales amount is close to the list price.</blockquote>


can you post the comps?</blockquote>


Ask IR for one of his realtor report!



Serisouly, at $324 per sf, it does seem out of range. The sf has been fixed to 2,315. I like to see that it's $220,000 less than it's 2006 price. That's a significant drop!</blockquote>


Everything in the area in the last 3 months:

Limited to 4 bedrooms, detached SFR, 2200-2600sqft, built after 2000

Hope this helps,

-IrvineRealtor



http://irvinerealtorsite.com/images/29GrapeArborIII.JPG

http://irvinerealtorsite.com/images/29GrapeArborI.JPG

http://irvinerealtorsite.com/images/29GrapeArborII.JPG
 
[quote author="IrvineRealtor" date=1252281441]But why get hung up on the past... that's only part of the story.



Here's a peek around the corner at what's to come (and note that the "A" for our Grape Arbor property is already back on the market):



-IrvineRealtor



http://irvinerealtorsite.com/images/29GrapeArborIIII.JPG</blockquote>
Yup, 27 Grape Arbor is coming to an auction near you.
 
I am of the belief that the best comp for 29 Grape Arbor is 64 Bamboo which closed on 5/22/09 for $730k when though it closed more than 3 months ago. The appraiser will have his/her work cut out for them because there aren't a lot of SFR comps out there for 29 Grape Arbor (adjustments will have to be made if they choose to use the closed condo comps). I just wonder if the appraiser will use the condo closed comps versus using the larger SFR closed comps.
 
You guys will love this...



So I sent a text to the listing agent/owner that I will be submitting offers from 2 of my buyers. He responds saying that they have received over 20 offers and the property will probably sell for over $800k so come "strong." Classic, just classic. If someone is willing to bid up over $750k they better be ready to deal with the appraised value coming in below the contract price.
 
[quote author="usctrojanman29" date=1252465795]You guys will love this...



So I sent a text to the listing agent/owner that I will be submitting offers from 2 of my buyers. He responds saying that they have received over 20 offers and the property will probably sell for over $800k so come "strong." Classic, just classic. If someone is willing to bid up over $750k they better be ready to deal with the appraised value coming in below the contract price.</blockquote>


My concern is that if the buyer(s) plan to put down the average now of, what, 42%?... that the appraised value will be meaningless to them and they'll have the cash to bridge the difference.
 
[quote author="Pookie" date=1252470335]This might sound stupid but I have to ask....



Why does it matters if the appraised value came in lower ?</blockquote>




My guess is because the lending bank may not approve the loan if it thinks the property is over-priced.

But if you have enough down-payment, then the bank will not care much for the appraised value, as the buyer put enough cash taking the risk.
 
Its an LTV (Loan to Value) issue.



Say you are trying to get a FHA Loan with 3.5% down. So you put in 28k on a 800k house. Loan is for 96.5% at 772k. If house appraises for 750k, you are suddenly at almost 103% LTV which is not a position the bank wants to be in and they will not fund the loan.
 
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