Ben Anton, Residential Real Estate Brokerage » fixer-upper

What if?

benanton — Thu, 27 Jan 2011 00:20:42 +0000

I often wonder what would have happened if insight or experience had not told me to make the call, or second guess. I was half way through negotiating a counter offer on a near east side home for a client. We were hung up on some inspection language. They had checked yes in the c21 line of the condition report, something to the effect that conditions exist that by state or local law require repairs.

There was no mention of citations or violations, just that the electrical was not up to code. Technical language from a lay person is not uncommon in my business and I accepted it as that. This home was in such sad shape even a lay person would know that it is not up to code.

So this AM I decided to call the city and negate the need for additional language. “Are there any work orders or citations?”‘ I asked. That was my only real concern, let’s make this simple.

I was transferred to Al, the guy who had already planned to visit tomorrow after a complaint was made. (That complaint probably came from some agent that showed the house. Sad but true they are mucking up my deal.)

So there were, or at least will be citations against the home. Had I called a day earlier they would have said there were none. The lesson here is call the building inspector and see what the deal is, maybe even twice.

Next step, decide how to best use the information. Post sale to-do list or bargaining power?

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The List Price

benanton — Thu, 01 Apr 2010 18:03:47 +0000

Yesterday I showed a home on the Isthmus with a list price of 141k. It sold just a few years back and had seen some recent updates but was priced below what the current owner paid and was languishing on the market. The home also had a list, as in the eastern edge of the home was probably 6 inches lower than the western edge. Other than the obvious difficulty of frying a decent egg on a stove that was not level, it was a fine house. Keep in mind that in hot markets or even in areas perceived as hot, you may feel forced to accept less than the ideal. Make sure that whatever you buy will be acceptable to the next buyer in a potentially less attractive market and you’re covered.

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Damn Ice Dams

benanton — Sun, 07 Mar 2010 20:23:50 +0000

I spent just a moment talking about Ice Dams in my most recent newsletter, but who wants to read about ice dams. I have been looking for a good cut-away or diagram and have yet to find one. I thought a picture of an ice dam might help but we have all seen them. Its the underside and the damage they cause that is important. One would think the recent warm weather would mean the end of ice dams and the problems they cause. In reality the warm weather has brought on the final insult. Once the ice dam is finished pushing water up under your shingles it will eventually melt. When it does it will often slide of the roof. I have heard stories and seen damage to A/C units and cars parked near a home, but I have never seen in person damage like I have seen these last two days.

I suppose the lesson we are learning is first try not to get them. Proper insiulation and attic venting can help. If you cannot avoid them, then you need to manage them. A roof rake can help clear snow at the eaves. If you can’t do any of that then at least try to control the when and the how of the fall.

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Fixer Uppers

benanton — Tue, 02 Feb 2010 18:38:57 +0000

So you’re interested in a fixer-upper but you have not owned a house before. Consider these points as you begin your search:

1) Buy in the best neighborhood you can – This point sounds obvious but buying right will be the single most important item in determining whether you are financially successful or not. Location is so important. Take your time to find the right house.

2) Make sure the house has the basics 3 bedrooms, 2 bathrooms and a minimum amount of square feet (determined by neighborhood norms). Also, consider things like lot size, lot location and whether there is a garage. If these are things that are norms for the neighborhood, your house should have those as well.

3)Find the home with good mechanical systems – Find a dated house that has good systems. The furnace, A/C, water heater, electrical, plumbing, basement/foundation and roof. These are things that every buyer wants to be acceptable at a minimum level. You won’t get a whole lot extra when you sell for redoing these components, but you might spend a lot extra if you have to improve them. These components are also the ones that you will more than likely have to hire out for. If you go into a house that has systems that are ancient, look closer at the rest of the house and definitely take into account what it will take to get these systems up to an acceptable level.

4) Look for the potential – When I look at a house, the first thing that I look for are unfinished spaces that can be finished inexpensively that will directly add value to the house. These are usually unfinished attics and basements. When you finish an attic or basement, you directly add value to your house for a minimum price. It could also propel the house into a new price category, if for example, you can make a 2 bedroom house a 3 bedroom house.

5) Strongly consider the kitchens and bathrooms – Kitchens and bathrooms sell houses. If you have a house that has a floor plan where the kitchen may always be small or dysfunctional, you might want to reconsider the whole house. With bathrooms, try to get a least 1-½ bath. If you buy a house with just one, you need to figure out how to get that second bath in. Many people will not even consider a house with only one bathroom.

6) Be realistic with your budget – Most of the time, fixer-uppers always have a few surprises in store for you. So when you are looking for that right fixer-upper, plan that it will take more than your budgeted amount and will take more time to finish as well.Even the this old house people take an itemized budget and add about 20% more to it.

7) Work with the right buyer’s agent – Buying a fixer-upper is different than buying a regular house. Having an agent that knows what is involved in projects and remodels is one step better. The seller may be the last person to know (or admit) the house is a fixer-upper and thinks it is just as nice as the nice house that sold down the block. Even when you settle on a price, you are not done. The inspections will be more difficult, there could be defects and you’ll might even have to get reputable bids quickly to get seller concessions. A transaction like this is where a buyer’s agent really earns his/her money.

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