Ah, to take something old and make it new! Nothing compares to the accomplishment of renovating a property. But the real talent isn’t in choosing the upgrades. It’s spotting the potential.
We have a saying in real estate: make money when you buy. That’s because our buyers purchase BELOW market value. Buy low and sell high. True, you don’t get your money until you sell. But when you buy low, you have room in your budget to make your property irresistible.
ANOTHER MAN’S TREASURERecognizing a deal isn’t easy. To get a bargain price, you must be able to spot value in something that others have discarded. Have you seen the reality antique shows? People are sometimes sitting on a goldmine and don’t even realize it.
REAL ESTATE EXAMPLEIt’s like this home for sale in Atlantic Beach. In it’s prime, it was probably the envy of the neighbors. A luxurious home in a highly desirable location. Custom built. Soaring ceilings with beams and built-ins. Cedar-accented walls. Stone fireplace. Great outdoor living spaces. Nestled under a canopy of oaks on a hill at the end of a long driveway. Barely visible from the street. This home has character. Not like the new cookie-cutter developments so popular today.
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But it was built in the 80’s. Occupied by only one family. They lived there until all the children were grown and everyone gradually moved away. It stood vacant for a little as the family members struggled to keep up with their busy lives. Now people walk by and see only the work required. Not the potential. Pricing a property for sale is difficult. When the seller and the real estate agent set a list price, they are essentially telling the market what they think the home is worth. This opinion, although not always accurate, is very powerful in the mind of buyers. Price it too low and buyers (unless highly skilled) will value it low.