Chance Gates' Blog

Met with a gentleman last month.  He says "Chance what can you do to sell my condo".  First I let him know how people reason for buying has changed.  Use to be a person would buy a house and the value would go up and they would have equity in their house.  His condo a one bedroom 480sqft that was built in 1982, has been totally remodeled, similar properties once sold between $85,000 and $90,000.  He understands that bank REOs and short sale have reduced their prices to sell.  He also understands that he will have to compete with their price.  So I show him how I will get him listed on several different web-sites.  I also show him what the fliers or possible post cards will look like.  I then explain different marketing techniques that will be used to sell his house.  So we go over the comparable sales in the area and he decides to list this property for $55,000 (been reduced to $39,000).  I explain to him how this is higher than anything in the area that has sold in the past 3 months.  He understands that I feel this price is to high, but is close to what I think it should be listed at.

Doing the Math:   

$39,000.00
-  8,000.00  down payment 
$31,000.00  financing amount 
    $244 + 113.00 = $357.00
30yr fixed @ 6.5% monthly payment $244.00 plus insurance.
HOA fees $113.00
Profit  $475.00 – 357.00 = $118.00
 
Rents going between $475.00 – $525.00  
Profit  $118.00/ month – insurance.

Interest rates and Insurance will verify.
Buyer to verify all rates and payments.

Like to thank National City Mortgage for the interest rate.
All information deemed reliable but not guaranteed.