Real Estate stories from Central Valley area Merced and Atwater

In a market where inventory is low and the banks tend to hold back on releasing the foreclosed homes it’s time for buyers to pause and see the potential in any home they view rather than saying no too quickly.

There are many homes that require cosmetic fixes such as new paint and flooring. Many buyers upon first impression tend to rule these homes out. The bigger the mess inside the home the more likely a buyer is to say no way and cross the home off their list. Often these repairs are rather inexpensive but to the buyer they seem too much to handle.

Society has taught us that first impressions are everything. While there’s truth to this statement it’s time to view things differently. Location and layout often trump first impressions. Buyers seeing the potential with a home often overcome their initial negative feelings and turn it into the best home they found and often at the best price too.

Investors may see the potential more often than first time homebuyers. They also have the upfront capital to make things happen quickly. They have their inspectors ready to determine the extent of any damage. They have their "fix it" vendors to handle electrical, plumbing, painting, flooring, roofing and landscaping. They analyze all costs and if it makes financial sense they swing into action. We see it all the time in the form of cash offers on homes that within weeks are either for rent or re-listed on the market at $40,000 or higher above the previous listing price.

The transformation of the cosmetically challenged homes into the "wow super nice buy me today " homes is incredible to witness. It’s amazing what some new carpet, new flooring, some new appliances, a few new fixtures, a clean out and new flowers or well placed bushes outside the home can do for the sales price. Many think this would cost $20,000 or greater. Would you be surprised to find out that often a home in the 1500 sq ft range can cost as little as $5000 to redo with new flooring, paint, appliances and some outside curb appeal. The cost varies depending on the materials used and the labor cost involved. Granite and stainless steel may double, even triple the cost. But many times that’s not the case when they find mark downs and have connections to obtain the wholesale prices.

I recently entered one home that the neighbors told me was stripped bare by the previous owners. They told me that all the appliances were taken out along with the fixtures. They believed it was a real mess inside. I entered the home and to my surprise I saw a beautiful home with clean walls, spotless carpets, new Whirlpool appliances (white but sharp looking) and updated fixtures. The location of the home was very nice and the design was excellent. This home had 5 bedrooms (2 master bedrooms each with own bath), a living room, dining room, bonus room, a large kitchen and best of all it was 3200 sq ft with dual furnace and air conditioners. The home sold for less than $270,000. I later found out that the home was purchased at auction and fixed up to sell well over the previous purchase price. This will be a great home for many buyers. This one was purchased at auction but what if a buyer had purchased this home ‘as-is’ from the bank and fixed it up over time? Many buyers are doing just that. They are starting to see the potential.

Investors see the potential and weigh out the costs on each home purchased. First time home buyers need to stop, pause and weigh out their options before crossing off a home in today’s limited inventory market. Both the Central Valley and the East Bay have very limited inventory. Seeing the possibilities with each home you enter is very important. Cost is a concern but often things can be fixed over time and the location, design layout or other factor may outweigh the cosmetic challenges.

See the potential and contact us for more information on any home. Reviewing the other recently sold homes in and around the same neighborhood will help you discover the value of the home. We also provide our clients with vender contacts that give free estimates on repair costs. Property profiles, trends and more we are here to help you with your real estate needs.