5 O’fallon Fixer Upper Myths

And the 5 Facts to think about first

5 O’fallon Fixer Upper Myths

No Matter How Many Upgrades Were Made, or How Much Money You Invested In Upgrades,

A HOME WILL ONLY SELL FOR

WHAT THE MARKET CAN BARE.

A Home Will ONLY Sell For What The MAJORITY Of Homebuyers Are Willing To Pay

BUT there are some

points that a homebuyer

should be aware of

Before making that offer.

Fixer Upper Homes Can Represent a Good Deal…

Myth #3 – It’s Better To Buy A Fixer-Upper

In an undesirable area than in a better area

5 Myths To Think AboutBefore You Purchase A Fixer Upper

Myth #1 – I Can Make a “Killing”

Buying a run-down property and fixing it.

Myth #2 – I Don’t Need An Inspection

Just save the cost and aggravation

Myth #4 – Once Fixed I Can Double My Money

I can sell it for double what I paid for it

Myth #5 –Make More By Turning It Into Something Else

Turn it from a single family into a multi-family

1

2

3

4

5

I can make a “Killing” in

the real estate market

by buying a run-down

home, fixing it, and

selling it for full price or

more

Myth #1

Most homeowners selling their “fixer-upper”

have reflected the fixes in their pricing. If you

upgrade your fixes too much … you may NOT

recoup your investment.

Fact #1

I don’t need to bother with

the cost or aggravation of a

home inspection.

Myth # 2

A home inspection should always be included in an Offer To Purchase and Sell agreement –

Many time inspectors will find structural defects that are NOT visible to the untrained eye

Fact # 2

It’s better to pay a lot less

and buy a “fixer upper” in an

undesirable area, than to

pay more for a comparable

“ fixer upper” in a better

neighborhood.

Myth # 3

The 3 most important

things to consider

when buying a home

Fact # 3

Location, Location, Location

Once I fix this house

up, I can turn

around and sell it

for double the

price I paid

Myth #4

A home will only sell for what the

market can bare.

Fact # 4

I can make a lot more money

by turning this single family

home into a multi-family

dwelling

Myth # 5

While this is generally true …

it may not be possible.

Most towns / cities have

strict zoning laws that not

only dictate the maximum

allowable occupancy, but

dictate the size and type of

home.

Fact # 5

After investigating the pro’s

and con’s of the purchasing

a fixer upper … you need to

run the numbers

Investigate the Pro’s and Con’s

Estimated Cost of Repairs from reputable sourcese.g. Referred renovation company

Run Your NumbersBefore You Purchase A Fixer Upper

List Price of Fixer Upper

Average Recent Sale Prices of Similar “Non Fixer Upper” Homes

Buffer Amount for “Unexpected” Repair Costs(usually ½ of estimated total)

Selling Expenses ( real estate fees, closing costs, etc)

1

2

3

4

5

6 Amount of Profit You Desire vs Amount of Actual Profit

1. $200,000 = List Price

2. $255,000 = Average Sales Price

3. $ 25,000 = Estimated Repairs

4. $ 12,500 = Buffer for Repairs

5. $ 17,000 = Selling Expenses

6. $ 20,000 = Desired Profit Versus Actual

Profit of $500

For Example

If you were looking to just Buy, Fix, and Sell for a $500 profit this wouldn’t work for you,

BUT

If you were looking to Buy, Fix, and Live for some time you would normally show a nice profit

The Big Question …

CribbinRealty.com

[email protected]

(314) 954-6500

Lets find the RIGHT fixer upper to meet your goal

Questions? Need More Information?Feel free to contact us.