http://cribbinrealty.com. Looking for fixer uppers in O'fallon or anywhere else...here are some myths that aren't true. Check them out. If you have any questions call Mike Cribbin of Cribbin Realty (314) 954-6500
5 O’fallon Fixer Upper Myths And the 5 Facts to think about first
A HOME WILL ONLY SELL FORWHAT THE MARKET CAN BARE.No Matter How Many Upgrades Were Made, or How Much Money You Invested In Upgrades, A Home Will ONLY Sell For What The MAJORITY Of Homebuyers Are Willing To Pay
Fixer Upper Homes Can Represent a Good Deal… BUT there are some points that a homebuyer should be aware of Before making that offer.
5 Myths To Think About Before You Purchase A Fixer Upper1 Myth #1 – I Can Make a “Killing” Buying a run-down property and fixing it.2 Myth #2 – I Don’t Need An Inspection Just save the cost and aggravation3 Myth #3 – It’s Better To Buy A Fixer-Upper In an undesirable area than in a better area4 Myth #4 – Once Fixed I Can Double My Money I can sell it for double what I paid for it5 Myth #5 –Make More By Turning It Into Something Else Turn it from a single family into a multi-family
Myth #1 I can make a “Killing” in the real estate market by buying a run-down home, fixing it, and selling it for full price or more
Fact #1Most homeowners selling their “fixer-upper”have reflected the fixes in their pricing. If youupgrade your fixes too much … you may NOTrecoup your investment.
Myth # 2 I don’t need to bother with the cost or aggravation of a home inspection.
Fact # 2A home inspection shouldalways be included in anOffer To Purchase and Sellagreement –Many time inspectors will findstructural defects that areNOT visible to the untrainedeye
Myth # 3It’s better to pay a lot lessand buy a “fixer upper” in anundesirable area, than topay more for a comparable“ fixer upper” in a betterneighborhood.
Fact # 3Location, Location, Location The 3 most important things to consider when buying a home
Myth #4Once I fix this houseup, I can turnaround and sell itfor double theprice I paid
Fact # 4A home will only sell for what themarket can bare.
Myth # 5I can make a lot more moneyby turning this single familyhome into a multi-familydwelling
Fact # 5 While this is generally true … it may not be possible. Most towns / cities have strict zoning laws that not only dictate the maximum allowable occupancy, but dictate the size and type of home.
Investigate the Pro’s and Con’sAfter investigating the pro’sand con’s of the purchasinga fixer upper … you need torun the numbers
Run Your Numbers Before You Purchase A Fixer Upper1 List Price of Fixer Upper2 Average Recent Sale Prices of Similar “Non Fixer Upper” Homes3 Estimated Cost of Repairs from reputable sources e.g. Referred renovation company4 Buffer Amount for “Unexpected” Repair Costs (usually ½ of estimated total)5 Selling Expenses ( real estate fees, closing costs, etc)6 Amount of Profit You Desire vs Amount of Actual Profit
For Example1. $200,000 = List Price2. $255,000 = Average Sales Price3. $ 25,000 = Estimated Repairs4. $ 12,500 = Buffer for Repairs5. $ 17,000 = Selling Expenses6. $ 20,000 = Desired Profit Versus Actual Profit of $500
The Big Question …If you were looking to just Buy, Fix, and Sell fora $500 profit this wouldn’t work for you, BUTIf you were looking to Buy, Fix, and Live forsome time you would normally show a niceprofit
Feel free to contact us.Questions? Need More Information? CribbinRealty.com Mike@CribbinRealty.com (314) 954-6500 Lets find the RIGHT fixer upper to meet your goal