We had a Buyer who had built several homes, done remodeling and was prepared to roll up sleeves, hire licensed contractors for some necessary and do what was necessary to "make it their own". The Buyer understood the costs...knew how to figure out holding costs if they chose not to move in immediately...the taxes, utilities, maintenance in addition to the cost of improvements To say that this was a "project" was an understatement.
The Sellers had tried selling the house...overpricing it....had very smokey tenant who continued to help the condition deteriorate...and decided that painting the exterior would bring the curb appeal it required to get a buyer. Never mind the sagging garage roof, wrinkled gutters....dated everything....this Pig- Stick (our term for lipstick on a pig.) would be the cure.
The Sellers felt our Buyers offer was too low...and they could easily "paint and re carpet" and some how make a five figure profit ....and would also remodel the kitchens and baths.
To add one more ingredient to this disaster...the Sellers live hours from the property and are going to have someone ....also with no real experience..."Keep an eye on this project."
From that school of "Know What You Don't Know"....profit is a wonderful thing....best determined in this case by two main ingredients...the real costs of the "remodeling" AND the real price the property will command upon completion.
Use some common sense...if flipping were as easy as it is portrayed on TV ....or all you had to do was call that number they gave on the radio...1 800 -MAKE-MONEY...wouldn't everyone do it ? People with common sense realize that this takes experience...reliable contractors...AND a Realtor who will realistically give them a finished price.
If you ...or anyone you know is looking for Realtors with a common sense approach to real estate in southeastern Wisconsin...Call the Hansons, we would be honored to be of service.