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Fixer-Uppers:
Wise Investment
Or Money Pit?
Would
you spend $650,000 for a beachfront home
with sagging shutters, no landscaping,
peeling paint, old appliances, outdated
wallpaper and a generally drab exterior?
On paper, the
house sounds less-than-desirable -- okay, it
sounds hideous. But before you answer,
consider that this potential fixer-upper is
located in California just steps from the
Pacific. Drab as it may be, could this home
sparkle one day? With a coat of paint, some
"sweat" equity, and thorough
revamping inside and out could this property
be an investment gem?
All homes are
different, but there are
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certain
criteria which can help you spot a
fixer-upper with good potential.
Here are a few basic questions to
ask:
What
needs to be changed? There are some
homes which are structurally
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Which
Repairs Should You Make Before the Sale?
If
you're preparing to place your home on the market,
it's inevitable that you'll need a couple of minor
repairs and slight improvements before that
"For Sale" sign can be driven into the
front yard.
Practical projects
like a fresh coat of paint require little time or
money but can make your home more attractive -- and
more attractive homes are likely to sell faster and
for more money.
But what if an item
needs repair, something which doesn't jeopardize
anyone's health or safety -- a problem of the
"out of sight, out of mind" variety.
Should you simply disclose it and leave the buyer to
deal with the problem? Or should you fix it before
placing your home on the market?
Before making any
decisions, consider that repairing the problem could
result in a higher sales price. It's sweet music to
any buyer's ears to hear the terms "new"
or "just replaced" as they walk through a
home.
Think of it this way:
A move-up buyer or transferee has a good idea of
what it takes to operate a home. The goal here is to
move in with the fewest costs and
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Five
Keys To Successful Negotiation
Whether
you're a buyer or a seller you want to succeed in
the realty marketplace. That's natural and
reasonable, but what are the steps you need to
triumph?
Negotiation is a
complex matter and all transactions are unique. Both
sides -- buyer and seller -- want to feel that the
outcome favors them, or at least represents a fair
balance of interests. In the usual case there is a
bit of bluff, some give-and-take, and neither party
gets everything they want.
So how do you develop
a strong bargaining position, one which will help
you get the most from a transaction? Experience
shows there are five basic keys which will determine
who wins at the negotiating table.
1. What Does The
Market Say?
At various times
we're in a "buyers" market, a
"sellers" market, or a market where supply
and demand are roughly equal. If possible, you want
to be in the market at a time when it favors your
position as a buyer or seller.
Because all
properties are unique -- it is possible to
buck general trends and have more leverage than the
marketplace would seem to allow. For instance, if
you have a property in a desirable neighborhood with
few sales, you may be able to get a better deal than
elsewhere. Or, if you're a buyer who can quickly
close, that might be an important negotiating chip
when dealing with an owner who just got a new job
500 miles
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Dining
Rooms Are Back, Say New Home Builders
If
you hardly ever use your living room but you would like a
larger dining area for parties or those big family
gatherings, you're not alone.
The National Association of
Home Builders surveyed homebuyers last year to find out what
they wanted in new homes. According to their survey,
"more than a third of prospective homebuyers were
willing to buy a home without a living room in order to have
more space for other rooms."
However, when it came to
dining rooms, "nearly four-fifths of respondents in
NAHB's survey rated dining rooms as desirable or essential
features in new homes." In the NAHB's words, dining
rooms "appear to be making a comeback."
Dave Bradstreet, Director of
Architecture for Pulte Homes' Midwest region, says,
"for the most part, dining rooms never went away --
especially with bread and butter plans."
However, Bradstreet says
people are viewing them differently these days. He finds
that in the smaller square footage plans, "dining rooms
have become kind of a flex space." Bradstreet notes
that
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