We have proof. The much-anticipated closing for 1261 Torrance Ave, Sunnyvale in finally in — sold at $541,500. This is a completely remodeled (and expanded) home on the East side of Freeway 101 in Sunnyvale, known as “Lakewood Village” that sold for $775k exactly 2 years ago.
I have been tracking this area of Sunnyvale for the past 6 months or more. It has been severely hit by the subprime credit fallout and there are short sales on every street. As the banks take too long to respond to offers or buyers walk away preferring other deals that can close more easily, many of these homes are becoming bank-owned foreclosures. I found this particular home many months ago and became very interested in watching the results. It was listed at $505,000 and had multiple offers awaiting a response from the bank.
Clearly, the designer/contractor has done a wonderful job on this home before it was sold 2 years ago for $775,000. Granite counters, Ikea kitchen with stainless appliances, new flooring, designer colors inside and out with great landscaping as the finishing touches.
My point here is that this home proves to me that we continue to see opportunities for contractors and flippers in the Bay Area even in this market! There are similar fixer-upper homes ALL OVER this area of Sunnyvale that you can negotiate for around the low $400k mark. I have previewed many of them and agents are calling me BEGGING for a client to write any reasonable offer.
These will be money-maker opportunities. The Torrance Ave sale shows us that a buyer is willing to pay $541,500 for a well-done home in this neighborhood. Take 1250 Tucson Ave for example. Just listed for $430,000 and it is bank-owned so you could close quickly. Maybe you even negotiate a better deal on the purchase, who knows. Let’s say you put in $50k for renovations (roughly speaking — $5k per bathroom, $20k for the kitchen, $5k for flooring, $5k for paint, $10k for landscape and hardscape). You are in for $480k; make it a 60 day flip or less and resell for $540k means you have gross profit of $60k for 2 months work!
These are just raw numbers but I’m convinced that this area of Sunnyvale is a great opportunity for first-time buyers willing to put in some DIY sweat-equity OR for contractors who have a crew ready to work on flipping distressed homes.