Many buyers these days, if not all, are looking for a deal in this housing market. And why not?
Some are seeking to buy a short sale, foreclosure or bank-owner property.
Read: Buying a Short Sale Property as you consider this option
Others are attracted by new home construction, such as La Costa Greens and La Costa Ridge…and may reap the benefits of builder incentives (upgrades, flooring and cabinetry packages, interest rate buy-downs) and willingness, in some cases, to consider offers, not just the asking price as in the past.
And some folks are after a fixer – because it might yield a better price, and they can put their own personal touch to it. When buyers say they want to buy a fixer, there are some important things to consider. After all, the word FIXER can mean many different things to different people. So it’s useful to consider what YOU mean when you say fixer.
Here are some issues:
You get the idea.
Some fixers can become what you want for $10,000 or $20,000, maybe less. Some might require $150,000 or more. An advantage of buying a fixer is that you do not pay for all the brand new stuff. And you have a chance to put your own stamp on it.
Of course depending on what you do, and how much you pay for the fixer, you may not reap as many financial benefits down the road that you might hope for. And buying the most expensive home in the area, or over-improving beyond the standard of most area homes is not a good idea.
And for those who hope to buy a fixer, do a quick upgrade and sell for a profit, well, you may want to rethink this strategy. There may be some markets where that may still work, but not here.
One more point in your quest for a fixer. Be sure to have a home inspection once you have decided on a home that you like and get your offer accepted. Things may seem fine on the surface, but some fixers may have hidden defects that may turn your fixer into “the Money Pit.” (a fun movie, BTW, for any homeowner who has taken on a fixer and lived through it).
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If I can provide more information about Carlsbad and surrounding areas, or the housing market in general, or otherwise assist you in your homes search, please contact me by phone or text at (760) 840-1360
or email me at JDowler@remax.net.
All content copyright © 2007 Jeff Dowler Carlsbad Homes and Real Estate Tidbits
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Passionate about solving buyer & seller real estate problems in Carlsbad & coastal North County San Diego communities. Relocation to Carlsbad and nearby is my forte! CALL or TEXT ME at (760) 840-1360.
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Jeff fixer uppers can be a real challenge and depending on how much work they need even getting a mortgage on them can be equally challenging.
Hi Jeff, a great subject and well written. How right you are, so many people have different ideas of what they mean by fixer. It would be interesting to sort of set a type of standard for the different levels of fixer. It again fails because one's idea of the term can not be clearly defined. Most in our business use the term cosmetic fixer and from some of the properties that I have seen, they certainly don't have any clear idea of what that means either, lol
Jeff, This is great information! Some people do not realize how much of a "fixer upper" they are getting into. It does work for some people but not others. I try to give buyers this information before they look and get shocked.
Great post Jeff, With the HGTV viewers out there we have to make sure that buyers really know what they are in for. I have done quite a few remodels that we lived in during renovations. It can get UGLY and expensive. The tip about inspections is right on too. What you can't see can hurt you.
Jeff,
Thats what the room in my house used to look like when my daughter was young...no furniture but lots of toys...I could have sold the toys instead of the house.:)
George - so true. I had buyers pull out of a deal on a home back in Boston because of foundation issues.
Jeff
William - I always ask buyers a series of questions to find out what they really mean by fixer and how much work they are willing to take on. It really varies quite a bit. Showing people different types of fixers is helpful in learning what they can and cannot take on. Sometimes the reality is an eye operner.
Jeff
Roberta - me too. And sometimes the inspection really yields the issues a fixer has that the buyers are not thinking about. It's always a good reality check for them so they can make the right decision.
Jeff
Paddy - been there, done that also. There are always surprises, it seems, along with more time than you expect and greater costs. I am always more comfortable when buyers indicate that they have done some remodeling already.
Jeff
Neal - LOL. I know what you mean.
Jeff
Jeff - the potential is great - the risk if you are turning it over right away is also great.
Jeff, very valuable information and insight. 3 more tips I'd like to add.
1st Check with the City to see if proper permits were pulled through the years on additions and/or structural changes to a home. I have seen a lot of homes gutted and resold these past few years with no permits.
2nd, We had an adorable remodeled cottage up the street. The new buyers ended up pulling out all of their new kitchen and bathrooms to replace bad plumbing. The previous owner bought and flipped the home. Your advice on getting the Home Inspection is invaluable.
3rd, I'm mentioning to Realtors to bring back the "Home Warrenty" Insurance. It might help you close the gap on negociations and give the new buyers a sense of security with that inspection and buying that fixer.
Terri - Thanks for your thoughts. Great information for buyers to consider.
Jeff
Jeff: SUCH an APPROPRIATE post for this day and time. My two cents is : YOU GET WHAT YOU PAY FOR--one way or another.
Thanks, Kat. Your two cents is pretty valuable!
Jeff
Hi Jeff, I really like your list. So many people cannot identify what a "fixer" is to them. These are the right questions to ask to get a true answer. BTW - The Money Pit is our favorite movie and we watch it over & over. Hope all is well with you!