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Port St. Lucie - Sebastian - Vero Beach St. Lucie, Martin, and Indian River counties (Treasure Coast)
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Old 04-08-2013, 11:33 AM
 
1,257 posts, read 1,858,143 times
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Recently we decided to put our 2450sqft 4 1/2 year old home up for sale. All we want to recover is what we put into the house (not trying to make a proffit) Our intention was to retire and move in however circumstances with the Federal Government telling me where I can and can't live if I expect to keep my health benefits prevents us from moving in.

At any rate, short sales and repos are keeping the prices down to the point that our house is very under valued on paper. My question is say you buy a short sale house like ours that has been sitting empty for a couple of years with no AC or proof that AC and electricity was turned on for $150k how much do you think you should have to pay in order to bring it up to the level of a house that has been cared for like new?

My guess is that first you would have to completely gut the inside because of mold. You would have to replace the AC, all or most of the wiring, drywall, appliances and flooring. I would venture to guess that would cost upwards of 50k unless you were buying a house from a flipper.

Now all you have to do is watch t.v. to know that flippers cut corners in order to mask and hide issues in order to maximize proffit. I have a neighbor who bought from a flipper over a year ago and they are still fixing issues.

Has anyone had any experience purchasing a short sale or repo and had good luck? How many bad luck? I know when we bought our new un lived in home we looked at several and decided we would not go near any of these train wrecks.

Lastly how much would you pay for a house that is well kept of this size vs having to do all of that work. The house does not have a pool but is in a very desireable neighborhood near Tradition and the new hospital going in.
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Old 04-08-2013, 07:24 PM
 
Location: Port St. Lucie, Florida
4,507 posts, read 9,164,187 times
Reputation: 1997
Some times..... depends on the lender... they will pay to go ahead and REDO the a/c etc for a buyer.

As for buying a house that needs major "fixing up".......when they flip that house they have to PROVE to the new lender how much money they spend to do it in order for them to be able to ask a much higher price for it...otherwise, the lender won't mortgage it.

AND ...there are SOME things NO lender will mortgage on if the house doesn't have it in working order.

Of course, if you're paying cash......that's up to you to know what you're doing... or get taken.

IF you are buying ANY KIND OF HOUSE that needs major repair... DO YOUR HOMEWORK and find out how much it costs to do something like replacing the a/c... the carpets, the kitchen cabinets, countertops, APPLIANCES....etc. How about redoing a POOL that you can't tell what is wrong by looking at the green slime?

AND... if you think a bad house is not appraised accordingly because its a wreck, you are wrong. You have to do that.. and you can't compare that kind of house with a house and no problems... it doesn't work that way.

Houses for sale or sold are "supposed" to be priced according to the MARKET VALUE at the time. That means you have to find similar homes in sq footage, and more in the SAME NEIGHBORHOOD, sold within a 6 months time frame. You adjust accordingly if they have or don't have things that the primary house does or does not have.

This is not a market you go in to blind.... you need to know what you are doing... or pay too much or price your house too high and sit there wondering why other homes are selling and your isn't.

If you owe more than the house is worth.... that's a short sale.

the last thing

MOST people will move in to a house that DOESNT need things done to it....its just they way people think.
Instead of actually looking to see what it costs to replace the carpet, they think.... omg! it will be a fortune to do that.. when it's actually quite cheap. Instead of looking at a house that is really dirty... and ewwwwwwwww I can't live here..... they don't think about sendiing in a cleaning crew and then a painting crew to make it the house of their dreams. THAT is what a flipper does....and you would never know it (unless you know what to look for)
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Old 04-09-2013, 05:57 AM
 
1,257 posts, read 1,858,143 times
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That is my point. We looked at a lot of houses that were foreclosures and short sales that needed major work. Some may take them on because they like a fixer upper but I don't have the time for that. My question was that would you rather buy a fixer upper or a well cared for home and what would you be willing to pay for the difference. I am seeing junk homes going for almost what agents are telling me I can get for my home.

I can afford to sit on the place or rent it out. There is no need for me to sell other than I would just like to get it done. I know that in a couple of years I would be able to get what I want so if I have to hold no problem. In the meantime it is a great vacation home and a place to unwind from Miami. I love my neighbors because they all look out for each other and am very sad that I will more than likely never be able to live in the house.
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Old 04-09-2013, 06:49 AM
 
2,956 posts, read 4,977,431 times
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I can only tell you from my own experience. I looked at a lot of short sales and foreclosures when I bought my home. Out of all the places that I looked at, the most comparable depressed property that I looked at was about $40k less that what I paid for my property which was in excellent condition. I think most buyers would go for that. I'm glad that I did.
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Old 04-09-2013, 07:09 AM
 
Location: Port St. Lucie, Florida
4,507 posts, read 9,164,187 times
Reputation: 1997
Your price (appraised price) will be made up of what the SOLD houses are around you. If that means they were in need of cleaning up, or a new A/C, or lots of things not seen in the photos, they will be counted.

Appraisers go by how old the house is, square footage, if it is CBS or Frame, and any obvious upgrades (granite counters, all tile floors) that a house has. They can't go see an already sold house so I try to direct them to the houses that are REAL comparables -- although some of them you are not allowed to talk to at all anymore and we have a problem with banks sending appraisers from another area of Florida who know NOTHING about the area they are looking at.
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Old 04-09-2013, 07:52 AM
 
1,257 posts, read 1,858,143 times
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Harry that is what I thought. The problem is that the focus is to sell the foreclosures and short sales now and kind of ignore the cream of the crop houses. They are faster to sell now because the rules have been changed so there is a quicker proffit even if it is not that much. The volume sales approach is what is going on.

This in a way is good for contractors and Home Cheapo Lowdowns etc... Not good for those of us who have good homes for sale. Once the inventory of these wrecks gets low enough or the buyers start to demand better quality (as we did) the market will turn it's attention back to the better homes.

My experience was that the agent showed me crappy houses first to see if I would either bite or would be so disgusted that once I saw a decent house I would make an offer. I don't blame them but that is not the kind of buyer most people are who are looking for a home they intend to live in for a long time.

At one point it was very hard to buy a short sale or foreclosed home and for the most part they were avoided because of the headaches. Now it's SELL SELL SELL!!!!
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Old 04-09-2013, 07:54 AM
 
1,257 posts, read 1,858,143 times
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Again, I was a picky buyer and I can afford to be a picky seller. I know what good houses are selling for because I keep an eye on them.
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Old 04-09-2013, 08:08 AM
 
Location: Port St. Lucie, Florida
4,507 posts, read 9,164,187 times
Reputation: 1997
why would you say that "The problem is that the focus is to sell the foreclosures and short sales now and kind of ignore the cream of the crop houses" ....that makes no sense at all

EVERY SINGLE HOUSE is on the market by price -- good bad or ugly. Some people do not want short sales. Some people do not want rehabs. Some people only want "ready to move in houses". The ONLY houses I can separate from the list of homes for sale is a short sale. Otherwise .....you get them all.

The BUYER does the picking out of what they want to see, not anyone else. You have to listen to what people want or you waste a lot of time -- and gas. Not worth it.

PSLHomie... you had a different kind of Realtor back then. Most of us don't work that way - we don't have time. We have other people to work with and finding you the house you want is the priority.

Short sales and foreclosures are NOT faster either. Especially JUNK HOUSES with lots of PROBLEMS. I don't need problems to hold up an inspection and a closing. That's just plain logic.


The fact is... INVENTORY is LOW.....there aren't that many homes on the market.
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Old 04-09-2013, 11:37 AM
 
1,257 posts, read 1,858,143 times
Reputation: 690
You yourself was on her a few months ago pushing buying short sales. Every add I see says "Good news we now have short sale specialists who will close the deal in 72 hours" If inventory is so low and there are so many buyers then why aren't prices going up quicker?
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Old 04-09-2013, 04:07 PM
 
Location: Port St. Lucie, Florida
4,507 posts, read 9,164,187 times
Reputation: 1997
Your post and then your question dont match..... ???? Short sales take less time than they used to. It used to take 6 months or more. Will new laws, they can't do that anymore.

Short sales are not always houses in disrepair. Many are great houses that need little if anything done to them.

Say a short sale that is a nice home comes on the market against your home. Similar square footage, age, etc. It WILL be priced lower than yours-- you even said so---and the bank is willing to take less to get it sold. You want to price yours to "get what you paid for it"....and that's not going to happen right now. So, which house do you think a buyer is going to choose? Yours or the cheaper, just as nice, house?

Prices of homes HAVE gone up --- at least 7%! You've already seen that and its even been said on this forum (not by just me) that homes are going for more and there is a LACK of houses on the market.

You can ask anything you want for your house. That's up to you. The market will dictate how much it will actually sell for if it's a mortgage buyer and a mortgage lender. If its a cash buyer....be my guest and hope he hasn't done his "homework."

I'm just being real and logical .....I can't help what the answer is
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