Largo, MD

Today I attended an auction for a condo in Largo, MD. We were allowed in an hour before the auction to investigate the unit. I was actually surprised that there were so many people there - my guess is 8-10 sets of people bidding.

The bidding started at $20,000 and quickly climbed to a point that eliminated many of the buyers present.

I'm not sure what I expected but it kinda felt like I was on an episode of Storage Wars. It was very civilized and controlled and the unit actually sold for very close to market price.

One interesting thing was that the buyer is charged a 5% auction premium which is added to the sales price but this auction company only offered 1% commission to an agent who brought their client. That means at opening bid price I had the potential of earning a whopping $200.

Most buyers shy away from auctions because they aren't contingent on financing. However, it seems that they would be good ways for cash buyers to scoop up some good investment properties.

Having attended one and seeing that it really wasn't that strange I no longer feel intimidated by the concept and I look forward to attending more in the future.

I have several clients who are would be first time homebuyers but who are having a hard time finding a home that qualifies them for financing.

So many of the first time home buyers in PG County are in price ranges under $75,000 which for the most part means they are looking at condos. However, so many of the condos no longer qualify for financing because of the delinquency rate.

Investors or first-time home buyers with cash are able to come in and scoop up some of the condos at these incredible prices.

Sample Investment Scenario:

Purchase price for 1 bedroom condo: $30,000

Potential Rental Price: $1100/month

Monthly Costs (condo fees, taxes, property manager, etc): $500

Potential monthly income: $600

In this scenario, you would completely make back your purchase price in just over 4 years.

There are many homes in PG County that are listed that will need to be cash only and have great income potential as rental properties.

If you are interested in learning more about the condo opportunities available in PG County, MD give me a call.

PG County, MD is one of the many places in the country where it is actually cheaper to buy than rent a home.

For people who are qualified to purchase this is a good time to buy a home in PG County, MD.

In Prince George's County the average 1 bedroom unit for rent is $1200/month with prices ranging from $750 to $2150 depending on location.

In Prince George's County the average 1 bedroom unit available for sale is $98,000 with units ranging from $19,000 to $328,000 depending on location.

A purchase price of 98,000 would mean a monthly payment of approximately $800 (this number will vary depending on purchase price, loan program, down payment amount, interest rate, taxes, property insurance, and any condo or HOA fees).

A purchase price of $100,000 may even get you something much larger than a 1 bedroom unit which means you may be able to buy a larger home than you would be able to afford to rent.

PG County has several homes currently for sale under $100,000