|Purchased Price||$1,399,000||:::||Lot Size||13,680sf|
|Days on Redfin||1||:::||Baths||4|
|20% Downpayment||$279,800||:::||Area||Peacock Village|
*Estimated monthly payment assume 20% down, 30-yr fixed @ 6.50%
This is a For Sale by Owner listing (FSBO). Seeing as how the listing price is exactly what the seller bought it for 8 months earlier, I’m not surprised. With agent commissions costing up to 6%, can you afford to lose $83,940 over 8 months?
The listing description is even more intersting:
ASSUMABLE LOAN AT 5.375%% INTEREST ONLY FOR 9.5 YEARS; $3050/MO!! Exquisite and spacious Lower Rancho family home is on a quiet, tree-lined street in one of …
As an added incentive, you can take over the seller’s 10-year Interest Only mortgage. While I don’t think this type of mortgage is necessarily bad, it’s just a reflection of what buyers would do to “afford” a million dollar home.
This property is located in the Peacock Village community and despite the lack of photos, I’d be surprised if it wasn’t a nice home. But is it worth $1,399,000? I pulled up comparable properties also located on Altura Rd.
500 N. Altura Rd.
Purchased in 1987 for $418,000
400 N. Altura Rd.
Purchased in 1987 for $350,000
Applying the standard appreciation table, we get the following:
$418,000 after 21 years:
$350,000 after 21 years:
Both of these homes are a bit bigger than our current property so if it was worth $350,000 in 1987, I would have to apply a 7% annual appreciation on it to break the $1,400,000 value.