Case Study from 2011: 516 Se Sherri Lane in Blue Springs.
The Numbers:
Purchase for $77,243.00 on the day of purchase on the courthouse steps.
This home was in need of up updating for the most part: kitchen and bath plus paint and carpet throughout. Total repairs came to $15,091.00.
Holding Costs that includes back taxes, insurance, utilities, and interest, came to $2,861.40.
Settlement Fees that include tax prorations, title company fees, and real estate commissions of $8,392.28
Profit made was $23,306.32
We held this house for 113 days including the Christmas holidays.
The story on this house:
This home was purchased on the courthouse steps for cash wired to the bank trustee attorney completing the sale by 5 pm the day of sale in the amount of $72,243.00.
Our evaluation:
We learned about this home the day before the sale and took a drive by. In observing we noted that the home appeared occupied and in fact was as the tenant came out to talk with us and actually let us walk through the home.
We learned that the tenant may want to purchase the home, but were not able to get him qualified, and was currently paying $800 a month in rent.
A nice owner-occupied neighborhood where homes were selling well.
In negotiations, we were able to collect rent from the tenant in the amount of $800 a month for the first month and a 1/2 while he worked on moving out.
Repairs:
- Refinished the hardwoods in kitchen & dining area.
- Fresh paint throughout
- New carpeting throughout
- We were contemplating resurfacing the countertops when the home sold.
Marketing:
We listed home for sale in the MLS and marketed heavily to local Realtors who work the area as well as the top 20 or so home selling websites including Craigslist. We listed at $129,900.
We had multiple showings and an almost full priced offer within 6 days at $127,000
This was one of our fastest sales and resulted in a profit of $23,306.32. We could have held out for a higher priced offer, but we like signing the contract and selling fast.