Duplexes Are Selling Fast – Lately….
For those of you that follow this blog, I’ve just put together the Comparable Sales Data for Citrus Heights, Rancho Cordova, Carmichael, Folsom, Fair Oaks, Orangevale, North Highlands and the Foothill Farms area of Sacramento County.
The Closed Sales section consists of Sales that have closed escrow on or after May 1, 2009. I think you will notice that there has been a flurry of recent sales. Time on the market has dropped. I am posting this now so you can see what has been happening in the market within the last 2 or 3 months.
I will post later more statistics. One of the problems in trying to analyze these properties, is the fact that many are vacant, so their incomes have to be “projected”.
Fix Up should be factored in.
Don’t forget that many of these duplexes, if they have gone back to the Bank, will need work because they have been neglected.l
The reason for the neglect is that many of these properties were sold at such a high price back in the “go-go” days, the investor had to take money out of pocket to maintain loan servicing and “defer” needed maintenance. However, some of these properties were purchased by investors who had hoped to “flip” them and therefore did spend a lot of money with some new kitchens and bathrooms. I’ve seen some of these where one unit would be rent ready with not too much more invested beyond new paint and carpet.
In other cases, well.. let’s just say they’ve got a lot of “deferred maintenance”. Our experience has been that on just about any of these, you’ll need something in the neighborhood of $5,000 – $10,000 extra “per unit” to get these duplexes back into a decent condition. This would be enough most of the time to have new carpet, paint… and some landscaping to enhance the curb appeal.
If you have any questions, please drop me a note at firstname.lastname@example.org or call me at 916-203-1260.
Make it a great day…!!!