Archive for September, 2011

TOP 12 BAD REAL ESTATE INVESTMENT

by: Maria Hass

1. Home that Backs out to a Busy Road – When it comes time to sell, this home will sell last for 10-15% less than the other homes in the neighborhood. It is a inherited problem that you cannot change.
2. Very Small Backyard or NO Backyard – Most buyers would like a decent size yard for their pets to roam, kids to play or entertain guests. Unless it is a condominium, a good size yard or bigger yard adds to the value of a single family detached home and is more marketable.
3. Homes with one Bathroom less – Most buyers would like 2 Bathrooms for a home that has 2 or 3 bedrooms. A 4 or 5 Bedroom home is expected to have at least a 2 baths for a one story home and 21/2 baths for a two story home. Anything less than this would require bathroom addition that can be costly. You can certainly get more house if you drive farther.
4. Do It Yourself Projects Gone Wild – Many homeowners try to save money by doing home improvement projects themselves. In some cases, the workmanship is inferior and or unfinished. It will be costly and twice the work for the new homeowner to correct the mistake and to redo the home to a level that is tastefully done.
5. Funky Layout – An open floorplan is a popular layout liked by many buyers. On the other hand, a choppy floorplan with many walls dividing the rooms is a waste of space and makes the home look smaller than it really is. If you own a home built in the early decades, it maybe a good idea to tear down some non-bearing walls to make for a bigger home.
6. Mold – Existence of mold that is significantly present in a large area or wall is costly to repair and maybe viewed by potential buyers as a health hazard. The price has to be reduced significantly to sell.
7. Swimming pool Backyard – A backyard that is taken up by a swimming pool and nothing else is a hard sell. Most buyers would like a pool with a decent size grassy play area to make it a fun place to entertain. A grassy backyard is more desirable than just a swimming pool backyard or a desert landscaping backyard. However, a rock landscaping is appealing to investors looking for minimal maintenance.
8. Home that backs out to Commercial, Industrial or low income neighborhoods – Home buyers perceive this as an eye sore or unsafe.
9. Home located next to a huge power structure – Home buyers look at the power structure as a health hazard that could develop cancer. Although, studies may prove otherwise, buyers don’t really care to know because there are many other homes that don’t sit next to a huge electrical pole. It may also be viewed as an eye sore by many buyers.
10. Bad Neighborhood – Due to safety reasons. Every buyer would like to live in a nice neighborhood with low crime and where people maintain their homes . You can always change the house, but you cannot change the neighborhood.
11. Homes with significant cracks and foundation issues – Be prepared to sell this home at clearance price. The home can shift as the crack continues to extend. Be sure to consult a residential engineer , builder and other resources before buying this home. You may get it for a darn cheap price but the headache that comes with it might be more costly than you paid.
12. Flood Area – Homes located in a flood zone will require a flood insurance. Flood zones are classified into different levels. The good news is, Arizona does not rain as much. Consult the flood department to find out the details on flood restrictions and flood history of the home.
Of course, in any real estate investment, location comes with a price. The closer you are to the city, the dollar per square foot of the home increases. As you move further out into the remote areas, the value depreciates.

September 23, 2011 at 11:08 am Leave a comment

Lessons Learned by a Realtor “Realtor Beware”

I recently had a buyer who I took out multiple times to find a home for. My understanding was she needed to vacate her current home as soon as possible due to a relationship gone sour and had to find a home quickly. I showed her close to 30 homes and made three offers. None of the offers were accepted by the seller because each time, she low-balled her offer by as much as 40%.
After many hours spent driving her around, preparing, submitting and monitoring the offers, she decided that she did not need to move-in to a home quickly. Unless she buys a home for a smoking deal, she could stay at her sister’s house who by the way, is selling her house by herself without a Realtor’s help. The best scenario is, have her sister sell her house to her at a smoking deal. Afterall, it is in a perfect location she wanted and family members go a long way to help each other.
Despite all the hours put in, I never got a thank you or I’m sorry to put you into too much work.
There are lessons learned in this experience. 1. Understand that it is a seller’s market at $200,000 and below. You will end up with nothing if you keep low balling. 2. If you want a chance at a smoking deal, pay cash. 3. Do NOT base your decision to buy a home on PRICE alone. What good is a house that is priced ridiculously low because of significant cracks if you cannot sell it later on. 4. Work smarter, not harder. Work with clients who know what they want and appreciate the work that you do. I come across people who care only about themselves and will drain you up but for the most part, I have been lucky dealing with people who are respectful of my time and service. It is not easy to be a Realtor. But, if you select the people you like to work with, it could help you last longer in the business.

September 19, 2011 at 5:34 pm Leave a comment


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