Market Conditions in 95841>Question Details

Susan Goering, Home Owner in California

What are the market conditions for selling a "fixer-upper" now?

Asked by Susan Goering, California Fri Sep 20, 2013

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BEST ANSWER
So you got the tenants that trashed the place out. Good.
Well how bad is it?
There are many degrees of fixer upper.
1. Big Dog./ Red Flag / Possible tear down
2. Contractor special: - mold, rot, foundation problems, bad roof, code violations, fire,water damage, smells bad.
3. Diamond in the Rough: needs gutting and thorough rehab inside and out.
4.Needs TLC kinda like Diamond in the rough.
5. Cosmetic fixer : see #3 and #4.
6. Move-in ready (ranges everywhere from "yikes!" to "oh, I can see how this could be nice")

While most buyers want move in ready, that is a slim majority. There are almost as many who will tell their agent they would rather save some money going in so they can fix up as they go along. This mindset does not work of course, because lenders won't loan if there are unresolved health and safety or structural issues. Lenders also don't like missing or broken stuff.

So if it is really a true fixer, your pool of buyers are mostly pros or semi-pro investors who are going to try to beat you up on price like a red headed step child.But don't worry about that, They can try, but they won't succeed. Some fool will come along and pay way too much, cause fix and flip is the path to easy money don't you know? At least according to the reality TV shows on HGTV and other high number cable channels. Even the hit show "Modern Family" is doing a multi-part sit com show on the fictional family buying and fixing a flip.

In summary the market condition for selling a fixer is great right now. You will actually net more if you get the place cleaned up of debris in and out. Remove, but don't replace, broken stuff. Remove the stinky stuff. If the place smells bad due to urine in the carpet , pull the carpets and pads. Air it out. Check the drains for leaks, then run the water (if not leaking) to keep the sewer gas from backing up through the pipe. You don't have to fix it up to sell it as a fixer, but at least make it possible for people to walk through it, and take their time to imagine it fixed up. They can't do that if it is too smelly.

Oh, yes. By the way. Call or email me. I'd like the chance to be your listing agent, too. Along with at least 16 others. - The fact that so many agents want to list this dog, sight unseen, also tells you the market condition for selling a fixer upper is really good.

click on my web link below if you want my contact information.
0 votes Thank Flag Link Fri Sep 20, 2013
Mista Jim... you do have a way with words... I might have to copy items 1 through 6... I thought was great....
Flag Fri Sep 20, 2013
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
Contact
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Where older homes, built in the mid 1950's, are being sold as is w/out the amenities, renders an affordable price, at FMV, within the Market comps.....
With the refurbish additions of modern conveniences... Enhancing the decorum, of vintage design.... Embellishing the uniqueness in charm...Will transform the completion, to these homes of reflective objet d' art... You'll find yourself breezy tranquil....like a sonnet, that may go like this.....
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0 votes Thank Flag Link Sat May 3, 2014
Well answered - condition will ultimately determine your return.
0 votes Thank Flag Link Mon Dec 2, 2013
Market conditions are still favorable but not nearly as favorable earlier this year when there was a feeding frenzy for them. For example, in late 2012/early 2013 40% of homes sold in Sacramento County were from cash. In October 2013, that number dropped to 24%. Therefore, most investors have either stopped buying or slowed down. The shift occurred in March/April this year.

Thanks,

Jason Walter

REALTOR® - lic #01923240
Certified Public Accountant (CPA) - lic #103885
Hammer Real Estate Group
jasonwalter.re@gmail.com
cell ph 916-716-1341
0 votes Thank Flag Link Tue Nov 26, 2013
I find most fixers are attractive to the investment buyers that want to remodel and then resell the home. With many of these rehabbed homes on the market, most buyers looking for a home to live in want turn key property that has already been fixed or remodeled. Generally, investor offers will be low because they must allow for repairs and then a profit margin for resale. Price is more critical to investors buying to turn a property for profit so if you want to sell in AS IS condition, depending upon what needs to be done, expect a lower price. I have to see the home to determine what an investor would likely pay or if the home is a light enough fixer to attract buyers that want to live in it.
http://www.captiolhomesbrokers.com if you need more information on your home.
0 votes Thank Flag Link Sat Sep 21, 2013
Cosmetic fixing can sometimes turn a investor market home into a regular home buyer home. The difference will be a substantial increase in the price you get. Investor market homes typically have much lower selling prices. I need to see your home to see if we can get you the higher price a prepared for market home can get and estimate the cost of bringing it to the level that will get the highest price possible. http://www.capitolhomebrokers.com for my information should you want me to look at the home and see what we need to do to get the highest price possible. Best Regards, Mike Garozzo 916-600-8176
Flag Sat Sep 21, 2013
Just about perfect IMHO (of course you have to price it accordingly) low inventory = even challenged properties have a chance of selling quickly.
0 votes Thank Flag Link Fri Sep 20, 2013
Just Me....

OMG... as they say

There's still a market for them as you have been told.

If you are the Seller of a Fixer, be smart and get an idea of what it would cost to fix it up and have a broker evaluate it and the area. He'll also get the comparable sales in the neighborhood. That way you'll know how to price it right to get a relatively quick sale.

Please keep in mind that who ever buys a fixer to flip has to have a "profit" when they sell. They make the profit on the "buy" not the sell.

If they pay too much and after having to do the required repairs and updates, paying too much to you makes it a little harder to bring in a decent profit.

That should be of some concern, if you are a seller, because like any other deal, if you price it too high, you as a Seller won't get the action you want. That's because there's not enough profit in it for whoever buys it to do the work and go through all that hassle.

Anyway... I hope this helps.

Make it a Great Day...!
0 votes Thank Flag Link Fri Sep 20, 2013
You have my authorization to use my list of six degrees of fixeration. With or without attribution, as you please.
Flag Sat Sep 21, 2013
Fixer uppers are still in demand. With cash buyers still out there, there shouldn't be too much of a problem selling. The price does have to be right in order to get a good return on the investment. I have a few investors I'm working with now that are still looking to buy more fixer uppers.

Please feel free to contact me if you are looking to sell or if you have any questions.

Sincerely,

Jaime Becker
Lyon Real Estate
jbecker@golyon.com
http://www.SacramentoHomesByJaime.com
Off: 916-484-3610
Cell: 916-715-7454
BRE# 01737783
0 votes Thank Flag Link Fri Sep 20, 2013
Investors are looking for a "deal," and while some people might think you can take the market value of a home that is fixed up and deduct the repair costs to arrive at a listing price, you still need to further discount that price to interest an investor.

If it's priced right, you'll get multiple offers, and that will drive up the price. There are a lot of investors who are dying to buy that worst house on the street.
0 votes Thank Flag Link Fri Sep 20, 2013
Conditions have improved recently but it looks like it might have stalled somewhat. Some pundits are predicting that we might even have a small drop next year. It's impossible to predict in this crazy real estate market we are in but I would suggest if you are thinking of selling that now is better than later in the year. I have helped hundreds of people with distressed assets and many of those were "fixers" so I am very experienced in this market. Please contact me if I can be of help...
Ted A. Greene
JCL Realty, Inc.
916.442.4500
http://www.jclrealty.com/ted-greene
Web Reference: http://www.upsidedownca.com
0 votes Thank Flag Link Fri Sep 20, 2013
FIXER UPPERS are still going strong. It all depednds though.

I have a few investors that would be willing to look at your house. I am also actively looking. We maybe able to even work something out that we just partner together and that way you may make money.

Call me and we can discuss.

Jamie Collins
RE/MAX GOLD
916-257-3779
0 votes Thank Flag Link Fri Sep 20, 2013
Fixers that are priced right, allowing room in the market price for repairs, are selling quickly especially to investors. You just need to know that the home will not sell for the same price as a move in ready home. I have an investor buying in the Sacramento/Elk Grove areas, are you ready to sell?
0 votes Thank Flag Link Fri Sep 20, 2013
There is still quite an appetite for "fixer-uppers" from flippers in Sacramento. I represent many flippers throughout the region. It really depends on the neighborhood and the condition of items needing repair. Feel free to contact me if you'd like to discuss further!
0 votes Thank Flag Link Fri Sep 20, 2013
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