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)
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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
(314) 954-6500
Lets find the RIGHT fixer upper to meet your goal
Questions? Need More Information?Feel free to contact us.
