Monday, December 17, 2007
Recent sale worthy of note:
433 Ortega Avenue, Mountain View, CA
Sales price $1,620,000
$263 per square foot
Cap Rate 4.2% - if you really believe the expenses!
Unit mix: one 3/2, one 2/1 and six 1/1's
Strong location in Mountain View near Palo Alto and Los Altos. Built in 1962 on a 11,760 square foot lot.
This deal probably took 40+% down payment to break even.
Any comments fellow investors?
Most home sellers decide to sell their homes in the Spring. This is the "selling season" when the market is the best - right? Maybe and no. Reality is historically sellers get the highest percentage of asking price between Thanksgiving and New Years Eve. Why? A lot of sellers who could not sell their homes in the fall will let their listings expire toward the end of the year, waiting again for the Spring. Many other sellers will not list their homes because they don't want to be bothered by people traipsing through their homes during the holidays. The pool of buyers declines too, although the buyers who are truly motivated to buy a home remains constant. This see-saw of buyers and sellers nets out to more motivated buyers with less choices and hence better results for sellers. So sometimes you may ask, why wait?