Uncovering Goldmines in Real Estate
THE STORY CONTINUES (and HGTV wants to tell it) The fun part is just beginning!! This new family is full of personality and plans for a total renovation. And you'll get to watch! Follow our Facebook page "chadandsandy" for live updates, filming, and interviews. We'll be tracking this story for the coming months. And you may just see your new neighbor's story on your favorite HGTV channel. Stay tuned, there's more to come! Click here to follow on Facebook.
STORY UPDATE: This savvy young family spotted the potential almost immediately. Albeit, he is a contractor with an eye for such projects. ; -) And the perfect match for this family home. They purchased the home in "As-Is" condition, even with a loan. This made things much easier for the sellers. The original family had all grown and moved away. The closing process went a little long, but the buyers scored a great loan only offered to professionals (doctors, lawyers, etc... Ask us about your options if you're interested!) The selling family closed "virtually" without even having to travel. All the details were managed by their trusty Realtor, Chad.
Ah, to take something old and make it new! Nothing compares to the accomplishment of renovating a property. But the real talent isn’t in choosing the upgrades. It’s spotting the potential.
We have a saying in real estate: make money when you buy. That’s because our buyers purchase BELOW market value. Buy low and sell high. True, you don’t get your money until you sell. But when you buy low, you have room in your budget to make your property irresistible.
ANOTHER MAN'S TREASURE
Recognizing a deal isn’t easy. To get a bargain price, you must be able to spot value in something that others have discarded.
Have you seen the reality antique shows? People are sometimes sitting on a goldmine and don’t even realize it.
REAL ESTATE EXAMPLE
It’s like this home for sale in Atlantic Beach. In it’s prime, it was probably the envy of the neighbors. A luxurious home in a highly desirable location. Custom built. Soaring ceilings with beams and built-ins. Cedar-accented walls. Stone fireplace. Great outdoor living spaces. Nestled under a canopy of oaks on a hill at the end of a long driveway. Barely visible from the street. This home has character. Not like the new cookie-cutter developments so popular today.
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But it was built in the 80’s. Occupied by only one family. They lived there until all the children were grown and everyone gradually moved away. It stood vacant for a little as the family members struggled to keep up with their busy lives.
Now people walk by and see only the work required. Not the potential. Pricing a property for sale is difficult. When the seller and the real estate agent set a list price, they are essentially telling the market what they think the home is worth. This opinion, although not always accurate, is very powerful in the mind of buyers. Price it too low and buyers (unless highly skilled) will value it low.
Think of the antique show again. Imagine a family has a portrait that hung in the hall for years. Everyone thought it was ugly, an eyesore. But it had always been there and eventually it went unnoticed. Years later someone takes it to an appraiser and discovers it’s worth thousands. Do you think the family has a different opinion of it now? I’ll bet it’s polished and moved to a prominent location for all to see!
As with our example, the “family fixer” in Atlantic Beach. It is priced low (mid-400's) because the family members are the straight shooter type. They know the house requires a significant investment ($100K even). But they also know the surrounding homes are selling in the $600-800K range.
Viewer reactions are very telling! Some casual lookers are turning up their noses. But the neighbors? And a few local realtors and investors? They are clamoring over the opportunity. I guess beauty is in the “mind’s eye” of the beholder!
QUESTION OF THE DAY: What do you think, flip or flop? Share with us in the comments below!