Retail Buyers Not Interested In Fixer-Uppers
May 6th, 2011
Four or five years ago, many retail buyers would have jumped at the opportunity to buy a house cheap because it needed major repairs. Now, however, they were “tolerate nothing” according to real estate agent Maria Rini, and a Coldwell Banker survey found that 87 percent of buyers ranked a move-in ready home as important to them in their decision[1]. In fact, some realtors report buyers “paying a premium, engaging in a bidding war or even overpaying just to avoid buying a ‘project’ house,” though they recommend against making changes of taste, like bathroom and kitchen renovation, and sticking to maintenance and safety issues[2].
This presents a major opportunity for real estate investors who are willing to take projects on because there are many homes on the market today with owners who are either unwilling or unable to do the repairs. These can be purchased at knock-down prices, then fixed up before selling at retail. In fact, many investors simply get these homes under contract and then flip the contract to another investor prepared to put in the work. Are you currently fixing, flipping or both?
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[1] http://www.chicagotribune.com/classified/realestate/buy/sc-cons-0505-fixer-uppers-20110506,0,3085820.story
[2] http://www.ibtimes.com/articles/140814/20110503/home-buyers-bypass-fixer-upper-want-move-in-ready.htm
May 6th, 2011 at 7:48 AM
If you know how to attract the right people, “Fixer - Upper” residential buyers are still available.
Jim Myers
May 6th, 2011 at 11:35 AM
Those are excellent points their are opportunities for the willing, and the aware