Fixer-Upper Aptitude Test . . .
. . . Should Buy One?
. . . Should you sell YOURS?
SHOULD YOU BUY A FIXER-UPPER?
YES: You’re a contractor who needs to keep his/her crew busy.
YES: It’s all you can afford. You have the time, skills, patience - - - plus lots of friends, and/or a strong marriage!
YES: You can judge values well. You know how to keep costs (and emotions) under control, and can act decisively. A certain degree of risk energizes you.
YES: You’re a smart husband whose wife is handy. You don’t know how to fix things, and you’re tired of pretending otherwise. Oh, and . . . of course, your wife wants to buy the property!
NO: You’re an armchair shopper with every “Fix it Up & Get Rich” book, but you're indecisive. If you won’t jump in the water, it's no problem . . . it's fine to step off the board & plunk your money elsewhere! Real Estate investment can be frightful, and the payoff is seldom immediate.
NO: You enjoy “fishing,” only at 30% below asking price. It works . . . in Home-Improvement Fairy Tales. You’re waiting for a foolishly under-priced home, or a seller who is asleep at the wheel. Yes, we all dream of that elusive pot of gold that “just needs paint & carpet to double your money.” Dream on!
NO: You have extremely high standards for improvements, are not available to bring your own tool box to the jobsite . . . and yet, you like to pinch pennies. If you DO buy a "bargain" home, you might just make your contractors rich! Fixers are seldom a great choice for the thin-skinned . . .
NO: Your Realtor buys all the great deals.
YES: You found a Realtor who doesn’t do that! (Guess who?)
NO: You’re an endless optimist, attested to by your F.S.F.S. (friends, spouse, and/or former spouse). You see a potential swimming pool in a mud puddle. Gazing at a sinking foundation, you mumble, “Heck . . . just a few weekends . . .”
SHOULD YOU SELL YOUR FIXER-UPPER?
YES: It’s falling apart, you can’t keep up; life is a drag! Your F.S.F.S. tell you it’s time to throw in the towel. You’re a victim of pride or optimism; worse yet, you’ve been short on skill, time or judgment . . . until now!
YES: You've been waiting for the market to "peak," in order to reap the greatest profit. Well, if you're alive you know the news . . . the peak is gone, and the next one might be years away. The mountaintop isn't easy to see when you're too close!
NOTE: Buyers have many more homes to choose from than in the recent past. Price appreciation can no longer be taken for granted; rather, for most, the name of the game is "loss prevention." I suggest you sell as soon as possible. In fact, if home values decline another 5-10% (as some experts predict), waiting to sell could cost you thousands per month.
YES: Your investment rental is occupied by a ne’er-do-well cuzzin-in-law. You’re tired of keeping it up, have trouble with tenants; perhaps you’ve moved away and can’t manage it well. Maybe it’s draining your cash. Neglected repairs threaten your solvency/sanity. My advice: sell now, before the roof leaks (again)!
YES: Your dream failed; in fact, you regret ever buying the house you live in. It's NO FUN, and you secretly crave a condo, mobile home, Mom’s house, a Winnebago. Dr. Casey says, “Friend, life is short. It’s time to swallow your pride . . . BE FREE!” Heck . . . you’ve probably made money regardless, even as the paint peeled.
NO: Are you deluded . . . or simply greedy? Yes, you'll sell your ‘64 Ford Falcon, BUT . . . only at the price your neighbor got for her ’64 Corvette! Your house might be a “classic,” but sadly, only the market will determine its value. Please, just wait until you’re ready to face that fact!
YES OR NO: You and two siblings can’t agree whether to fix up your inheritance, or sell now. You argue while it sits vacant. Is this what Mom wanted?
(Mom's advice from the grave: Make a decision and get on with your life. Call Casey Spencer! Just one number: 530-277-6405.