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If I could put 30k-40k into it I would then we are looking at selling around 210k-230k.
It isn't hard to see why someone wouldn't pay 180K then. If you buy it and do this you maybe break even. Even for someone that would want to live in it why would they do it? It would make more sense to just buy a similar house in the same neighborhood for 230K that doesn't need the work and save themselves the time and trouble. 130K sounds about right to me if your numbers are correct.
When I say fixer I mean to restore to orignal period condition. I have a 1914 house and it has some of the orignal windows but some up stairs are vinyl and some down are aluminium. 99% of the walls is lathe and plaster only in the down stairs bath and kitchen/nook are sheet rock.
I just don't have the funds to do all the remodeling. I started 12 yrs ago and put a new roof, furnace, water heater, tiled the baths with period tile. But ran out of money and energy to finish with the flooring and such. It would only need about 30k-40k to finish it off.
So what I am asking in this time in the market are folks still looking for fixers? I have had offers from flippers and they are just insullting. Offering 50K less than what I would need. But then they are looking at fixing and selling for a profit 50k. I am looking for a buyer that wants to live in the fixer. Are they out there?
My answer is some (like myself) would not buy a fixer basically no matter what, including price.
Others do like fixers so let them be the decider on what/how to fix it, not you.
I have had a realtor do some scouting and the comps came back in the 210-230 range. All very nice homes.
You should have that Realtor go back and look for comps that match the condition of your home. You don't want to know what your house would be worth fixed up you want to know what it's worth in its current condition.
In my experience, the majority of buyers don't want project homes anymore. There's not the level of competition among buyers that there was 10-15 years ago so they don't feel like they have to buy a fixer upper. Most buyers want to just move in. Maybe they would do some painting and carpet replacement but most people seem to baulk at anything more involved than that. The lone exception is if you live in a REALLY desirable neighborhood and houses don't often come on the market there.
...the thing is there are always SOME buyers that sorta want to put their own "twist" on period / vintage / historic homes. Sometimes even folks that claim they've "been there, done that, never going back" will get the itch for the right house. You also have a good number of younger shoppers who might want to actually "swing the hammer themselves" or incorporate "green" features in home for the satisfaction of making older homes more "sustainable"...
Of course location is a huge factor as is "price point" and I tend to agree with you that there are overall less buyers willing to settle for a home in a "project state" though $180k sounds like a reasonable price point where a "normal working stiff" could reasonably be expected to have the resources and desire to take the plunge ESPECIALLY if when they are done their equity is locked in.
Of course the "flipper" type buyer needs to get not just a dollar-for-dollar return but a reasonable profit / overage cushion and thus the offer some $50k below what a retail buyer might be expected to offer...
Quote:
Originally Posted by MikePRU
You should have that Realtor go back and look for comps that match the condition of your home. You don't want to know what your house would be worth fixed up you want to know what it's worth in its current condition.
In my experience, the majority of buyers don't want project homes anymore. There's not the level of competition among buyers that there was 10-15 years ago so they don't feel like they have to buy a fixer upper. Most buyers want to just move in. Maybe they would do some painting and carpet replacement but most people seem to baulk at anything more involved than that. The lone exception is if you live in a REALLY desirable neighborhood and houses don't often come on the market there.
Even non-flippers want value -- and $50K doesn't buy much!
Quote:
Originally Posted by chet everett
...the thing is there are always SOME buyers that sorta want to put their own "twist" on period / vintage / historic homes. Sometimes even folks that claim they've "been there, done that, never going back" will get the itch for the right house. You also have a good number of younger shoppers who might want to actually "swing the hammer themselves" or incorporate "green" features in home for the satisfaction of making older homes more "sustainable"...
Of course location is a huge factor as is "price point" and I tend to agree with you that there are overall less buyers willing to settle for a home in a "project state" though $180k sounds like a reasonable price point where a "normal working stiff" could reasonably be expected to have the resources and desire to take the plunge ESPECIALLY if when they are done their equity is locked in.
Of course the "flipper" type buyer needs to get not just a dollar-for-dollar return but a reasonable profit / overage cushion and thus the offer some $50k below what a retail buyer might be expected to offer...
You seem to be offering virtually no margin between the $180K plus $30-$50K renovation that you 'say' it will take to turn this into a $210-$230K house. --- Why, then, should a buyer take a chance on your 'fixer' ... instead of simply buying an already 'fixed' "this old house" at full market price??
Even a quirky buyer who really wants to buy a 'fixer' so he can put his own 'twist' on it, knows that fixing-up an old house is a difficult, costly, often painful, uncertain endeavor.
The fact that you've been working on this house for 12-years suggests that it needs/ed more renovations than meet the eye. It also suggests that you have done the work yourself, thus, your $30-$40K estimate may be WAY off base ... or based on materials only ... or older estimates. What protection does a potential buyer have if your estimate is wrong or if they discover 'surprises' that will run the costs way up?
Frankly, I've done both major and minor renovations over the past few years ... and $50K doesn't buy much. In fact, I recently spent about $30K each on general upgrades to two different condos (6 & 9 years old -- floors, paint, closets, window treatments, cabinet drawer mods and misc). --- Perhaps, if you could provide a recent inspection report and firm, current quotes for doing the specified work ... but, otherwise, where's the buyer incentive?
It isn't hard to see why someone wouldn't pay 180K then. If you buy it and do this you maybe break even. Even for someone that would want to live in it why would they do it? It would make more sense to just buy a similar house in the same neighborhood for 230K that doesn't need the work and save themselves the time and trouble. 130K sounds about right to me if your numbers are correct.
I think this is the best answer here so far.
I'm the type of person who would buy a fixer house. However, I would expect there to be a discount on it to compensate for the inconvenience, time and labor I would need to put into the house. If the house needs $40,000 in materials to be worth $230,000, then it's only worth about $150,000 to me because my time is valuable. Plus, living in a house that is being remodeled is a pain in the butt, even if you enjoy making the improvements yourself. It's chaotic and stressful, even under the best circumstances.
I've purchased several foreclosed or beat up homes. As was said above, you're offering zero margin for a developer to come out with. Even as a homeowner, if I'm going to sink in sweat equity I still want it to be worth my while.
...the thing is there are always SOME buyers that sorta want to put their own "twist" on period / vintage / historic homes. Sometimes even folks that claim they've "been there, done that, never going back" will get the itch for the right house. You also have a good number of younger shoppers who might want to actually "swing the hammer themselves" or incorporate "green" features in home for the satisfaction of making older homes more "sustainable"...
You'll get no argument from me about that. I was simply communicating the attitude of the majority of buyers. There are always some buyers who go the other way with things like this or are willing to way overpay for some reason or another.
You'll get no argument from me about that. I was simply communicating the attitude of the majority of buyers. There are always some buyers who go the other way with things like this or are willing to way overpay for some reason or another.
But very few and a house may be on the market for years first if it even happens at all.
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I dunno Mike...
