We see some agents advertise homes as "below market" here in San Clemente. Whenever we see a listing like this we always wonder if it's truly priced below market, and if it is what is wrong with the property? Some real estate agents will price a home very aggressively that is slighting below recent sales comps to generate a lot of interest. This results in multiple people interested in the property which causes the price to get bid up. For example, if the home is worth $1 million but the agent prices it at $850,000 to lure buyers into the property while hoping that several people will place bids on the home driving the price above the $1 million price point. Sometimes this does work and sometimes this backfires causing the home to sell less than what it should have.
A current example of a home being advertised as "below market" is the home listed at 401 Via Presa in San Clemente. The agent writes "Priced below market! This will go fast!" according to the listing description. It's a two bedroom, two and a half bath condo listed at $597,500. After looking at the photos and reading the property description there is no mention of the home needing work and the finishes look nice on the photos. The next step is to take a look at the comps to see what the recent sales are in this community called Vilamoura. In the last 6 months there has been 3 sales in Vilamoura for 2 bedroom units ranging from $589,000 to $684,438. It's important to note that there is a variety of 2 bedroom condos that range in square footages. The lower priced sale at $589,000 was at 1,434 square feet with the sales starting at $615,000 were with a large square footage units at 1,547 square feet. The property that's listed for sale at 401 Via Presa has the smaller square footage at 1,434 square feet so the current list price of $589,000 is not actually below market value as it's equal to one of the recent sales that sold for $589,000 as well with the exact same square footage.
Whenever you see a home advertised as "below market value" make sure to take this on face value only. Real Estate agents will say a lot of things to get a home sold but it's important to know what homes have recently sold in any particular community. Our San Clemente Real Estate agents can quickly let you know if a home is truly below market and considered a "good deal." For more information on buying home please contact us at 949-204-5110.
San Clemente 216 Avenida Miramar
Value-add investment property in core downtown San Clemente location. This Tri-plex currently has below market rents in place with a strong unit mix (3/2, 2/1.5, 2/1), all tenants currently on month to month leases. Ocean view from the front balcony, walking distance to downtown amenities and the beaches. This is a strong investment opportunity poised to be re-positioned.$1,250,000
San Clemente 112 W Escalones
Midcentury triplex on the Ocean side of El Camino Real. New Laundry and storage rooms recently completed. New exterior paint, fencing, and driveway also recently completed. All units are two bedrooms with the same floorplan. Rents rates are below market and current tenants have been long term occupants. All tenants are on a month to month contract. This property in within a few blocks of the beach, shopping and beach hiking trails.$989,000
San Clemente 128 Paseo
Location, location! This Beautiful Santalana Plan 3 is below market price. It has a bright open floor plan with high ceilings and canyon view. This Luxury town home has a main floor spacious Master bedroom with large closet and dual sink vanity, walk-in shower and separate bathtub. Upstairs are 2 spacious bedrooms with full bath. Travertine Floors thru-out the downstairs. Kitchen has granite counters and stainless steel appliances. Inside laundry room. 2 car attached garage. Amazing custom b...$649,000