Question: I am venting. We are looking to
purchase a home that needs some work, but it’s amazing how many homes are past
the “needs work” and into the “disgusting” category. Bad odors, torn carpeting
and walls with holes…the list goes on. We can’t find anything. Any
suggestions?
Answer: Let’s review this…. You are looking
for a good deal, but you don’t want a home with odors, or a home that needs some
work? I don’t think the distressed property market is for you. If you want a
good deal on a home, you are going to have to find something that needs a lot of
work. A home with odors, torn carpeting and holes in the walls and more. If the
home doesn’t need work, the homeowner can sell it at fair market value which is
usually always higher than what they would get in an investors market.
Finding a super
deal in real estate is not easy. The overwhelming majority of homes sold would
be categorized in the “fair deal” category. Fair, because Realtors price the
homes correctly and appraisers ensure the buyer is not overpaying for a home in
an effort to protect the lender. Fair would also mean that both the buyer and
seller are satisfied with the sale terms.
If you are looking
for a deal, then you need to look at homes that need work, do the math, and hope
that you can make a profit by selling it for more than what you paid for it plus
expenses to fix it up and sell. There is tough competition in the investor
market. Everyone wants to make money selling homes.
Sometimes you can
get a deal if you are a cash buyer and find a seller who does not want to deal
with a buyers financing and wants a quick close.
Discuss your ideas
with a Real estate Broker to see if this is really something you want and can
do.
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