Speak to me directly!
A Fixer Upper can be a home seller’s worst nightmare. Reason being is because you think, “what if the perfect home buyer comes along but won’t buy it because they wouldn’t want to do a little TLC?” and you’ll be stuck with an investor who will give you a low ball offer. Right?
Or maybe on the other side of the coin you may actually get an investor willing to pay more because he’ll make additions, pop the top or just want the house for the land for redevelopment while a family wanting to live in it may just see the house for what it’s worth “as is” offering lower than the investor.
No matter which side of the story a buyer may be on, fixer-uppers are always the inspiring type of deal. It’s the time someone can start from scratch and let their imagination wonder. Do something unique to the home no one on the street has.
If I had could have any super power, it would probably be perfect timing. Location isn’t the only thing that’s important with buying and selling real estate. For example, if a buyer can find a fixer-upper in a hot market between Spring-Summer, then any updating should suffice.
The problem lies with hurdles if your contractor falls behind schedule, has trouble staying on budget, or is just unreliable. Any professional investor will tell you they’ve had their run ins with bad contractors. So if you’re looking to do-it-yourself, then consider the fact that it’s going to take more time than expected to finish repairs on your own if you want to before selling the home.
Be absolute certain about your options and what works best for you before getting stuck with a project. Real Estate Investors know how to configure a “scope of work” well ahead of time before the project starts.
“It takes money to make money”, although not the truest statement, was probably first coined by a real estate investor. Fixer uppers make sense as long as the numbers pencil out. You make your money when you buy the house, not when you sell it. And are the repairs put into the property going to bring out a return?
In general, people will price a property based on what others sell for. It’s just human nature and sounds like simple math to say, “Well the Dardin’s sold there house down the street for $450,000, so with a little carpet and paint mine will too!” Not so fast. Are the bedrooms the same, what about the layout and the square footage? Did they add a fireplace and a sauna in the bathroom? You got to factors these numbers in before buying or selling a house.
Professional home buyers know this information, are experienced and have the teams in place to conquer any real estate rehabilitation. With this, the return for their hard work is made in the profit of selling the house.
When you are walking around the Highlands in Denver, Colorado, looking for a Fixer Upper for example, and see all the new houses being put on the market, how did the house become brand new again? Was it the Real Estate Agent, The Seller, The City, Magic? More likely than not it was a Real Estate Investor. That’s right, having mention it may sound like common sense but now you know why investors love a fixer upper. They provide unique, new, fresh and spacious living for new families. This brings the most joy out of the life in a professional home buyer.
Related Posts You May Be Interested In:
Comments are closed.