Buying low and selling high is every investor’s dream. With so much affordable inventory of foreclosure homes available in Oakland, CA today, you can accomplish your dreams easily by buying these homes at cheap discount prices, rehabbing then and selling them or holding the property and leasing it out. There are 2,188 bank owned REO properties, 1,152 trustee foreclosure auction properties and 1,126 pre-foreclosures in Oakland according to RealtyTrac data reports. Buyers/investors should be able to find a property that meets their criteria.
Trulia also reported that the average price per square foot for Oakland homes was $208, a decrease of 15.8% compared to the same time last year. The median sales price for Oakland homes for the period February 11, 2011 to April 11, 2011 was $205,000. The number of home sales decreased 29.7%. There are currently 1,058 resale and new homes in Oakland to choose from as well according to Trulia. The average listing price for an Oakland home was $418,806 for the week ending May 4, 2011, which represents an increase of 4.9%, compared to the prior week. Popular neighborhoods include Upper Rockridge and Grand Lake, with average listing prices of $1,219,163 and $294,410, respectively. Other nearby neighborhoods offer good value as well. The median sales price for homes in Piedmont is $1,177,500, the median sales price for homes in Alameda is $437,500, the median sales price for homes in San Leandro is $275,000, the median sales price in Emeryville is $225,776, the median sales price in Orinda is $858,000, and the median sales price in Castro Valley is$1,448,588. So you can see how much you can get for your renovated foreclosure homes after you rehab them in various neighborhoods and nearby cities.
Rehabbing Tips
Rehabbing kitchens and baths gets you the most return on your money. New cabinets, flooring, appliances, countertops in the kitchen should be priorities. The bathrooms should get new vanities, toilets, floors and tiles around the shower, new shower doors and refinished bathtubs are also priorities. New hardware, changing the lighting fixtures and updating windows and doors are other rehab suggestions. Change the home’s flooring by adding new carpet or hardwood floors or Pergo floors or tile. If you can do the work yourself, it will save you a bundle. Otherwise, get at least three estimates from contractors and don’t give a large upfront fee to anyone. Get referrals for vendors from your Realtor.
Buying a foreclosed property at cheap prices leaves you room in your budget to rehab your bargain so you can turn around and sell it if you want or hold on to the property until the market rebounds. You know you are getting a great deal because foreclosed homes are sold at deep discounts. You are buying a property with built in equity. Investors are competing for these homes so when you find a good property, don’t hesitate.
