Would I be able to sell this for a profit in 5 years ?

Question

Hi,

This home is listed for $700K in Livermore. Given people are leaving bigger cities (such as SF and whole of Peninsula),with few minor repairs, Wood flooring (remove tiles), bit of updating (such as add a Smart refrigerator) and landscaping - would I be able to sell this for profit ? What should be my offer price ?

Jay Hinrichs · Answer

700k in the SF bay area ( which is where Livermore CA is) is starter housing and would be the same as a 150k house in most of Texas

Ben Lapane · Answer

@Akanksha Shrivastava

I would run like hell from a house that is 700k unless that is considered “entry level” housing in your area.

I only invest in blue collar housing because that price range has the most buyers and I know I can get the most equity capture for the least amount of money out of pocket.

If your a multi-millionaire forget this post because your an accredited investor and can afford to lose 20k no problem.

700k you are looking at super sophisticated buyers who will nail you so hard on inspections you can lose your shirt quick.

Dennis Cosgrave · Answer

We live in very uncertain times. Even trying to guess the market over the next 18 months is difficult if not impossible. There are so many variables in play right now. I would certainly be looking at migration patterns. Are more people moving into the area than are moving out? What are the major industries in the area and are they vulnerable? From where I am sitting, CA has its own set of unique issues. I would look at those issues carefully before moving forward.

DJ M. · Answer

No one can predict what the future will bring in 5 years.

Just my 2 cents.

Good Luck!

Account Closed · Answer

How much will it be worth in 5 years?

Your sales costs will be about 8% of the asking price, so if you sold for $700,000 there would be about $56,000 in realtor fees and closing costs. Make sure you subtract that from your "equity".

Nick Robinson · Answer

@Akanksha Shrivastava

Are you planning on living in this property for the next five years? If you are and you want to live there good luck. If your trying to make that a rental you are going to have a negative cash flow on that property. So it’s going to be a money pit and you’re speculating that the house will be worth more when you decide to sell it. Trust me if you count up all the negative months you won’t make as much money as you think. The only way this won’t negative cash flow is if you put a big down payment down. If that’s the case their is better ways to invest your money.

Sam Shueh · Answer

If it is near SFBA in a good location, there has been almost no acceptance at below (market ) price. It is still negotiable. With fewer inventory and same demand most properties are snatched up same week on the market with multiple offers.

Maria D'Aura · Answer

For reference the lowest priced 3/2 SFH in Livermore for sale (pending) is $699k. This is an entry level detached home at 1000 -1200 sqft.

$350k in Livermore gets you a 1/1 condo.

Maria D'Aura · Answer

@Akanksha Shrivastava

I’m a real estate agent and I live in Livermore. Message me the address and any questions you have about the market here and I’ll give you my input.

Would I be able to sell this for a profit in 5 years ?

Would I be able to sell this for a profit in 5 years ?

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