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Its not like the house is in bad condition or that it "needs" the renovations, its if the house was restored to "vintage condition".
Taking out the newer windows and putting in wood ones, pulling the carpets and redoing the hardwood floors. Stuff like that.
I understand what you are saying; however, if you can buy a house that has already been restored for $230,000 and it would cost $40,000 to do that to your house, then your house is not worth $180,000.
If the renovations weren't a big deal you wouldn't be worn out on doing them. Renovating is a pain, even for people who like doing them. People will expect compensation for taking on that work, even if all they have to do is live through it while someone else actually does it.
That's my opinion, anyway. Believe me, I wish things were different, especially because I live in a house that is fully fixed up and given our current market conditions, I will end up taking about a 25% loss on it in order to sell it. I'd love to be able to move into a fixer, personally.
OP it doesn't matter what you THINK the house is worth. If no one is willing to pay your price then its not worth that much. I dont care what anyone says its worth, if no ones buying, it aint worth that much. Price is affected by the current demand
Some people, me included don't want a fully updated home with the previous owners taste. While the kitchen and bathroom and windows can be fully updated to the nearest tenth of a second, if it isn't your taste, it becomes worthless.
I rather buy a cheaper home and pick out my own kitchen, bathroom and windows...I am very anal, so no ones taste would be good enough for me. LOL
I've bought my fair share of fixers... it was my game plan to buy 1 every year or 2.
Here's the deal... Fixers usually require either a cash buyer or the seller to carry the loan and this eliminates nearly all potential buyers... here anyway.
The people that are left do this for a living and they need to see the profit or they will simply move to the next deal...
I was able to buy my first house as it was being condemned by the city... in the time it took the city to go through the notification process I had moved in and made enough improvements to permanently stave of condemnation.
Over the course of the next year I spent time and money making the home shine... then I was able to get a first loan and pull my money out to let me buy another distressed property and so on and so on...
A few years ago... when lending was loose and furious... I couldn't believe the dilapidated homes where buyers were able to get financing... just not seeing it now.
The market value is what someone is willing to pay for it. A fixer is hard to sell. Few people today want them. They prefer '"ready to move in without making improvements." Its old time frugal shoppers like me who like the fixer uppers. Usually the price is less for the house, and many of the improvements are just a matter of relatively and I can do many of them myself. If the house is beyond my ability to repair, I'll pass, and so will most people. Dealing with contractors on fix ups is a pain.
JollyOgre, where in Portland is your house? My wife and I recently were shopping for a house in the Portland area, and we briefly considered the idea of buying an older home in a close-in neighborhood, and having someone renovate it before we moved in. From a buyer's perspective, there were many considerations. For example, there are neighborhoods we perceive as having higher-than-average crime, and we wouldn't live in them under sany circumstances. Other people might not be bothered and would consider us paranoid. Then there are neighborhoods in our price range we love (mostly because of the tree-lined streets), like Arbor Heights and University Park, that occasionally have bargains, but none that we've seen recently. We would have taken a risk on a nice fixer-upper there. Then there are the many NE Portland areas that have no particular charm for us but that would have been acceptable because of their proximity to the city. However, we wouldn't have taken a risk on a fixer-upper unless it was priced significantly less than comparable houses that have already been fixed up. If I can get a house for $220K that's already been fixed up, why would I buy one for $180K when I knew I'd have to put $40K into it? First, there would be the time and the trouble involved in renovating. Second, I've seen enough home renovation shows to know that there are almost always hidden costs that aren't discovered until renovation gets underway. The rule of thumb is that it's always going to cost twice as much and take twice as long as you'd originally figured. People who are offering you $130K are factoring that in. Also, if they're flippers, want to make a profit, so there's nothing in it for them if they pay you market value minus the cost of renovation. Portland has a lot of old houses, so unless there's something really special about yours, your expectations might be unrealistic. My wife and I were on your side of the deal, too, so I understand. We thought we knew what our house might go for, but comps revealed that we'd have to list it for $10K less than we were hoping to ask, and we'd have to put $10K of repairs and upgrades into it before we put it on the market. Ultimately, we decided to stay.
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