Radical cheap: $1,000 homes
* Les Christie, CNNMoney.com staff writer
* Thursday January 8, 2009, 12:31 pm EST
The real estate market is so awful that buyers are now scooping up homes for as little as $1,000.
There are 18 listings in Flint, Mich., for under $3,000, according to Realtor.com. There are 22 in Indianapolis, 46 in Cleveland and a whopping 709 in Detroit. All of these communities have been hit hard by foreclosures, and most of these homes are being sold by the lenders that repossessed them.
“Foreclosures have turned banks into property management companies,” said Heather Fernandez, a spokeswoman for Trulia.com, the real estate Web site. “And it’s often cheaper for them to give these homes away rather than try to get market value for them.”
In Detroit for instance, Century 21 Villa owner Randy Eissa has a three-bedroom, one-bath bungalow of about 1,000 square feet listed at just $500. It’s a nice place with lots of light, but it needs a total rehabilitation inside, which Eissa estimates will cost between $15,000 and $20,000. But that’s not bad, considering that the home last sold for $72,000 in late 2007, according to Zillow.com.
With prices this low, lenders aren’t looking to make any money on these deals. They just want to get these houses off their books, so they don’t have to bear the cost of maintaining them and paying property taxes.
In fact, the $500, $1,000 or $3,000 that a buyer forks over often goes straight to the real estate brokers as a commission. And often the lenders have to kick in extra cash to make it worthwhile for a realtor even take the listings, according to Eissa.
“Usually these homes are bank repossessions that the lenders have already tried to sell on the market, perhaps then put up for auction without success and then re-listed,” he said.
Fixer uppers
These houses are almost always small fixer-uppers. Wiring, plumbing and heating systems have to be replaced, walls and ceilings sheet-rocked, plumbing and light fixtures installed and new kitchen cabinets and counters put in. Few come with working appliances.
Often buyers are legally required to rehab these homes to bring them up to code. In Detroit, buyers are required to sign Affidavits of Compliance Responsibility, which obligates them to make repairs outlined in an inspection report. Only after that can a certificate of occupancy will be issued, which makes the house legal to live in.
But even factoring in these costs, they’re still bargains.
And as the housing crisis drags on, there are more and more four-figure listings popping up, as lenders try to unload their repossessed properties.
Cleveland is another city with many incredibly inexpensive homes. On Ardenall Avenue, in East Cleveland, McMullen Realty has a listing for a four-bedroom, one-and-a-half bath house for $1,900. It’s been vandalized inside, but the outside is in good shape.
It features a deep front porch with Doric columns, double dormer windows and a separate garage. It’s an excellent opportunity, according to agent Tonya Stoudamire. The last time it sold was in March of 2008 when it went for $16,677, according to Zillow.
“East Cleveland has a beautiful housing stock,” she said. “These houses just need someone to come in and love them a little.”
Another property for sale in Birmingham Ala. is priced at $1,900. The one-bedroom, one bathroom home was built in 1923 and has major fire damage, according to its listing broker, Tom Murphy Realty. The listing states that “Rooms are hard to distinguish.”
But it’s on a nice-sized lot, about 0.38 acre, close to downtown and transportation and has all utilities. Nearby, comparable homes in good condition sell for about $100,000, according to Zillow.
Rehab money
Most of these $1,000 homes can be renovated relatively inexpensively, and buyers can actually get government help to finance these repairs. The U.S. Department of Housing and Urban Development (HUD) has a special loan program for just such purchases.
Its rehabilitation mortgage insurance, available through FHA-approved lenders, was designed to encourage banks to issue a single, long-term loan to buyers that covers both the acquisition and rehabilitation of a property, according to HUD spokesman Brian Sullivan.
He adds that there may also be grant money available from the $4 billion Neighborhood Stabilization Program, which was a part of the massive housing rescue bill passed by Congress in July, to assist buyers with grants for down payments.
Buying homes like these is certainly a leap of faith; they’re generally not in the best of neighborhoods and they’re often surrounded by many other vacant and deteriorating homes. Still, some of these neighborhoods may turn around and provide residents with good, dirt-cheap housing.
“It’s a sad time,” said Stoudamire. “But it’s also a time of opportunity, especially for low and moderate income people.”
© 2008 CNNmoney. All rights reserved.
I was able to search on craigslist for all the 2009 bank owned, short sales, foreclosures, price reductions, builder liquidations homes currently on market in los angeles county. This is a good place to start your search if you are first time homeowner. Hope this helps for all the VIP BAZAAR’s buyers.
$469,000 (LP)
4016 Berenice Pl, Los Angeles, CA 90031
Beds: 3 Baths: 3 (2 0 1 0) (FTHQ) Sq Ft: 2085 Lot Sz: 5200sqft Yr: 2008
Remarks
Builder must liquidate. Priced at bare-bottom for quick sale/firm. STAGED MODEL-VIEW HOME. Two-story, custom built & designed with an eye for the future. Vibrant city lights-parks-mtn VIEWS. An attractive, easy to live with, open floorplan, yet defined room uses emerge with-in wide archways, wall cutaways for display or add doors/glass for future storage. Simple kitchen has ample space for more cabinets, dishwasher & granite counter. Upstairs sleeping area unifies two congruent bedrooms, an extra large true Master Suite with it’s luxurient bath & abundant closet. Concrete tile roof, C/A, F/A, 3 car direct access garage & storage. Envision a lush courtyard at street level to improve future value & distinct appeal while creating a practical outdoor space for your personal enjoyment. Get what you need right now, and consider the simple ways you might enhance your investment as you go. Quick commutes to Civic Center, Old Pasadena, Burbank Media, nature preserve, hiking trails and freeways. Realtor: Realtor: Elsa Kim 323 240-8731 mobil 323 254-3966 office
www.elsakim.com
$449,000
4022 Berenice Pl, Los Angeles, CA 90031 Beds: 3 Baths: 3 (2 0 1 0) (FTHQ) Sq Ft: 1700 Lot Sz: 5445sqft Yr: 2008
Remarks
Priced at bare-bottom for quick sale, firm. FULLY STAGED, MODEL VIEW HOME. Custom built, combines 2-stories of metropolitan living, warmth of Tuscan architecture and the room to create future value as you go. Clever floorplan merges open spaces to distinct room uses by broad arches, custom paint, and deceiving wood grain, high end laminate floor. Simple kitchen retains ample room to expand cabinets and additional granite counterspace in the future, as your budget allows. Second floor repose gives way to two similar sized bedrooms sharing a full granite bath and a true Master Suite with its rejuvenating master bath and generous closet. Blank canvas grounds will challenge you to annex an outdoor garden to this fresh new home. You might start with free trees from DWP. Full concrete tile roof, C/A, F/A, direct access 2 car garage & storage. Freeway close, minutes to Civic Center and short commutes to Burbank Media and the eateries of Old Pasadena though this hidden street appeals to the quiet appreciation of coming home.
$719,000
724 Montecito Dr, Los Angeles, CA 90031 *
Beds: 4 Baths: 4 (2 1 1 0) (FTHQ) Sq Ft: 3036* Lot Sz: 6031sqft* Yr: 1989*
Remarks
This custom-designed tri-level home stands out with gorgeous hardwood floors, crown molding plus open floor plan for everyday living and fine entertainment. All three levels open onto balconies with beautiful mountain and peek-a-boo city view. It features 3 bedrooms, 4 baths, office, spacious family room that leads out to a very private and enchanting back yard. The master suite has its own fireplace and spa bath. Other amenities include modern appliances, central air and heat, security system, circular driveway, over 3000 square feet of living space and sits on a double fenced lot. Excellent location, only minutes to Los Angeles Civic Center, Old Town Pasadena, Burbank Media Center and walking distance to Earnest Debs Park.
Realtor: Elsa Kim 323 240-8731 mobil 323 254-3966 office www.elsakim.com
Countrywide owned properties (lender-owned), also sometimes referred to as REO (real estate owned) homes or properties, are often seen by qualified borrowers as good investment and purchase opportunities. You can use the search tool below to search our inventory of Countrywide owned properties in your area.
1504 STADIUM Way LOS ANGELES, CA 90012
Price: $252,750
Beds: 2
Baths: 2
Sq. Ft.: 1,086
$/Sq. Ft.: $233
Lot Size: -
Property Type: Single Family Residential
Area: Silver Lake - Echo Park
County: Los Angeles
MLS#: 08-265063
Source: TheMLS
Status: Active
On Redfin: 201 days
Unsold in 90+ days
A DODGER FAN’S DREAM COME TRUE! OLD VICTORIAN STYLE HOME LOCATED BEHIND DODGER STADIUM.DETACHED GARAGE BONUS BEDROOM WITHOUT A PERMIT. COZY FRONT PORCH, VERY CUTE HOME, NEEDS YOUR BUYERS T.L.C. Property is now in auction status Commission will now be: 2.5% to listing agent 2.5% to co-op min of $1500 per agent
$549000 2+1.75 near Yahoo Center (Santa Monica)
$879000 BONUS TO BUYER!! $5000 toward closing costs if you work with me! (Santa Monica)
$669000 Superbly Done Designer Remodel near Montana Avenue (Santa Monica, North of Wilshire)
$795000 Santa Monica Townhouse (Santa Monica)
$789000 www.townhomesonvista.com (West Hollywood)
$589000 Dog-friendly condo with private 2-car garage (Santa Monica)
Ultimate Santa Monica Beach Living w/ Ocean Views
$779500 luxury 2bd/2ba condo (Santa Monica)
$659000 DESIRABLE NORTH OF WILSHIRE 2BD 2BA UPPER LEVEL UNIT (Santa Monica)
$839000 CONTEMPORARY SPANISH - MOVE IN CONDITION TOWNHOUSE.
$899000 Spectacular, Sexy awesome 1 bedroom Pied-a-Terre on Ocean Avenue
$799000 Wonderful Ocean Avenue Pied-a Terre! Top Floor
$649000 Architectural 2+loft+2.5 Townhome
LIVE THE ULTIMATE LIFESTYLE THAT DREAMS ARE MADE OF 201 Ocean Ave #B806
$549000 Open House Sunday 2-5 (12211 Idaho Ave)
$799000 Ocean Park Townhome with Ocean Views! (Santa Monica)
5226 San Rafael Ave, Los Angeles, CA 90042
1930 Spanish triplex located within the Highland Park HPOZ. 3×1BR/1BA apts. Owners unit has direct access to private garage, which has been converted to a den/office and could be used as a 2nd BR. Private rooftop patio with panoramic views of the surrounding mountains. 3 garages. Hardwood floors, built-ins, tiled kitchen floors, washer & dryer. Unit #1: Owner occupied - rent projected at $1,200/mo, Unit #2: $714/mo, Unit #3: $657/mo. The owner’s unit delivered vacant at close of escrow.
Edward Jesman Realty
Investment Properties & Financing
127 Broadway, Suite 211
Santa Monica, California 90401
310.394-9129 Office
323.345.5374 eFax
edward@jesman.com
5520-26 & 5528-34 Franklin Avenue, Los Feliz, CA 90028
Two existing fourplexes located on two legal lots. The buildings are over 3,650 sq ft each. Eight large 1BR/1BA units / used as nine. Both lots total approx 9,500 SF and are zoned LAR3-1. Development potential. Build 11-16 new condo or apartment units. All offers subject to inspection. Each property is listed at $950,000. Both properties have to close concurrently!
5520-26 Franklin Ave:
5520 : $785/mo
5520 ½ : $650/mo
5522: $1,300/mo
5524: $650/mo
5526: $878/mo
TOTAL: $4,263/mo
5528-34 Franklin Ave:
5528: $1,190/mo
5530: $758/mo
5532: $1,300/mo
5534: $1,300/mo
TOTAL: $4,548/mo
Call Edward 310-291-2681
Edward Jesman Realty
www.jesman.com