5 o’fallon fixer upper myths
DESCRIPTION
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) 954-6500TRANSCRIPT
And the 5 Facts to think about first
5 O’fallon Fixer Upper Myths
No Matter How Many Upgrades Were Made, or How Much Money You Invested In Upgrades,
A HOME WILL ONLY SELL FOR
WHAT THE MARKET CAN BARE.
A Home Will ONLY Sell For What The MAJORITY Of Homebuyers Are Willing To Pay
BUT there are some
points that a homebuyer
should be aware of
Before making that offer.
Fixer Upper Homes Can Represent a Good Deal…
Myth #3 – It’s Better To Buy A Fixer-Upper
In an undesirable area than in a better area
5 Myths To Think AboutBefore You Purchase A Fixer Upper
Myth #1 – I Can Make a “Killing”
Buying a run-down property and fixing it.
Myth #2 – I Don’t Need An Inspection
Just save the cost and aggravation
Myth #4 – Once Fixed I Can Double My Money
I can sell it for double what I paid for it
Myth #5 –Make More By Turning It Into Something Else
Turn it from a single family into a multi-family
1
2
3
4
5
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
Myth #1
Most homeowners selling their “fixer-upper”
have reflected the fixes in their pricing. If you
upgrade your fixes too much … you may NOT
recoup your investment.
Fact #1
I don’t need to bother with
the cost or aggravation of a
home inspection.
Myth # 2
A home inspection should always be included in an Offer To Purchase and Sell agreement –
Many time inspectors will find structural defects that are NOT visible to the untrained eye
Fact # 2
It’s better to pay a lot less
and buy a “fixer upper” in an
undesirable area, than to
pay more for a comparable
“ fixer upper” in a better
neighborhood.
Myth # 3
The 3 most important
things to consider
when buying a home
Fact # 3
Location, Location, Location
Once I fix this house
up, I can turn
around and sell it
for double the
price I paid
Myth #4
A home will only sell for what the
market can bare.
Fact # 4
I can make a lot more money
by turning this single family
home into a multi-family
dwelling
Myth # 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.
Fact # 5
After investigating the pro’s
and con’s of the purchasing
a fixer upper … you need to
run the numbers
Investigate the Pro’s and Con’s
Estimated Cost of Repairs from reputable sourcese.g. Referred renovation company
Run Your NumbersBefore You Purchase A Fixer Upper
List Price of Fixer Upper
Average Recent Sale Prices of Similar “Non Fixer Upper” Homes
Buffer Amount for “Unexpected” Repair Costs(usually ½ of estimated total)
Selling Expenses ( real estate fees, closing costs, etc)
1
2
3
4
5
6 Amount of Profit You Desire vs Amount of Actual Profit
1. $200,000 = List Price
2. $255,000 = Average Sales Price
3. $ 25,000 = Estimated Repairs
4. $ 12,500 = Buffer for Repairs
5. $ 17,000 = Selling Expenses
6. $ 20,000 = Desired Profit Versus Actual
Profit of $500
For Example
If you were looking to just Buy, Fix, and Sell for a $500 profit this wouldn’t work for you,
BUT
If you were looking to Buy, Fix, and Live for some time you would normally show a nice profit
The Big Question …
CribbinRealty.com
(314) 954-6500
Lets find the RIGHT fixer upper to meet your goal
Questions? Need More Information?Feel free to contact us.