Dec
26
I’m Watching MLS, from Ken Smith
December 26, 2007 |
For two days I've been clicking on homes in the Seattle area, at MLS Online. Some drops in price are noted in the advertising of homes. Some homes have been updated to attract buyers.
All in all I have not found a deal that leaves profit for me in the current economic morass. I found a few properties that come with enough land to sub-divide — if I were a builder. That was the focus for many contractors recently, but I suspect they have backed off on this strategy.
There is an active group that deals in foreclosures. An auction occurs on a regular time schedule and the experts make a living with this tactic. Others are neophytes and some are fools. This old man would not venture into that game. Too many hidden traps.
I need a whole-house rewiring to bring my older property up to code. Hardwood floors need refinishing. Walls need repainting. Yard needs a landscape touch-up. I would take on these tasks if it would pay off; but my offhand guess is that there is so much competition, so many houses for sale, so few dollars available to buyers, that to remodel at this time would not provide an advantage as a seller.
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Just a thought my friend: There is certainly some risk involved in the real estate speculation game. Perhaps even more in foreclosures. However, risk is an unavoidable part of life and investing is certainly no exception. And we all know the higher the risk the higher the reward. I would definitely agree with your assessment of the real estate market and the credit market but your view might not be completely clear. Although placing your property on the market in these conditions does not seem like the best idea at this moment it might be the best time to consider making such renovations to your home. With the market in its current condition there aren’t many people, or investors willing to or capable of managing their may through the obstacles and arriving at profits. However, with the economy being as uncertain about the future and the real estate market in shambles there are few people willing to put up money on contracting workers to make renovations. This lack of work for handymen, sub-contractors, and contractors could very well put you in the position to purchase such materials and labor at steep discounts. I would obviously suggest this if you can 1) afford to wait for the market to recover some before selling, and 2) afford to pay for these renovations without missing the money for the next 6 to 18 months.