[quote=bearishgurl]pfflyer, you have to ask yourself (on a case-by-case basis), “What was done to the property since 2003?”
You can’t expect to get $100K ++ in “improvements” for “free” if the property was purchased “original” or “near original” in 2003 (or thereabouts) unless the sellers are about to lose the property to foreclosure and their lender(s) are willing to “play ball.” It’s not purely a “numbers game” in the areas you are looking in. Many of those ‘hoods may have been tracts at one time but since the vast majority are now remodeled to varying shapes and sizes, they could now be considered “custom areas.” Therefore, the money spent on them by former owners varies WILDLY from property to property.
Your “numbers game” only works on tracts in which there are few models (under 6), the houses are fairly new (under 20 years old) and the type of buyers who purchased them in the past didn’t have the wherewithal to drastically improve them (and/or the area wasn’t worth spending a lot of “home improvement” money in).
pfflyer, if you want an “under-market deal” in one of your target areas, I recommend looking for a very dated fixer and offering to pay in escrow for any termite work needed.[/quote]
I can’t speak for pfflyer, but when I refer to something like 2003 price, I would be referring to the price the house would sold for in 2003 at its current condition, not its pre-remodeled condition.
The “numbers game” has nothing to do with tract vs custom. I’ve shown a couple custom homes in RSF at 1998-2000 price and plain jain tract homes in 4S Ranch and MM at 2003 price.
