Investing in a Laguna Beach home that screams ‘fix me’ definitely can lead to handsome profits. But you need to be clued into certain realities. Otherwise, you could get caught in a fixer-upper fantasy that turns your sweet Laguna Beach home into a house of horrors. Here are the key facts to be aware of before committing time and money to that bargain-priced Laguna Beach real estate.
Instant Riches. Buy an ailing home dirt cheap, make a few repairs, and sell it for mega bucks more than the purchase price. What could be better?
Yes, profits are in your future ... so long as you don’t overspend on frills that force you to price the home higher than the going rate. Remember, a house sells for a price determined by the market, not by acres of designer carpeting.
No Inspection Necessary. After all, you already know what you’re getting, right?
Structural problems often lie hidden from plain sight. And believe me, correcting these defects likely will cost light years more than paint jobs and wallpaper. Do yourself a BIG favor and include a full inspection in your Offer to Purchase and Sell agreement.
Price Over Area. Buying a fixer-upper in a less desirable area definitely will pull less cash from your pockets than a comparable home in a better location.
Consider the sacred mantra of real estate – location, location, location. This absolutely applies full-force to fixer-uppers. Sure, a fixer in a desired area will drain a bit more from your bank account. But you can expect juicier payoffs and fewer migraines in the long run.
Double The Money. Once your chosen fixer-upper is irresistibly renovated , the property will fetch double the purchase price.
As mentioned earlier, a home sells for whatever buyers are willing to spend ... and not a cent more. To grab the best price, be sure to consider the following factors that come into play: Location, Neighbors, and Surroundings.
More Families, More Money. Converting single family homes to multi-family translates to heftier profits.
This is possible only if zoning laws permit the necessary restructuring. Check with local ordinances to see if your fixer-upper qualifies for single-to-multi status.
And Don’t Forget Patience ...
As with most other things in life, healthy profits don’t happen overnight in the world of fixer-uppers. Oh sure, it’s possible to turn around and sell a renovated home for a modest gain. But a much bigger bonus is yours if you live in the home a few years before unloading. Why? Because, history dictates that homes appreciate over time, which translates to heftier profits. Also, you’ll be paying down your mortgage and increasing your equity over this time period.
If you’d like to learn more about profiting with fixer-uppers or about the many other opportunities in the Laguna Beach real estate market, The Coastal Property Experts are ready to assist you. Contact our award-winning team today to schedule a complimentary consultation.
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