Are “Fixers” a good deal?

Often we sell properties that need something. Even brand new homes usually require the buyer to install window coverings and landscaping at a minimum. However, most of the homes we sell range in age from 30-100 years old! Some have been updated, but the truth is, a “turnkey” property is rare. The improvements a typical home needs vary anywhere from simple maintenance items to “Oh my Gosh, where do we start?

In November, I sold a “where do we start” project to clients who intend to live in the home long-term. The house had a lot of square-footage, a good location and a great bay view, however, most everything else needed updating.

Built in the early 1970’s, the kitchen and baths were original, no retrofit work had been done, the floors needed refinishing, the windows and sliding doors were aluminum, the roof needed replacing, there was some termite work to do, some landscaping needed and of course, paint. That’s 10 projects for starters! Luckily the foundation, electrical plumbing and heat were in good shape.

My clients have graciously allowed me to track their project and share their trials and tribulations with you. Finding good contractors, coordinating the work, and of course, paying for it all can be a definite challenge. However, although we had looked at a number of other homes, including some that had been completely renovated (and therefore quite a bit more expensive); none spoke to them like this one. They could both envision the possibilities and decided that if they were going to spend the money, they wanted to be able to select their own finishes. We’ll see if they think it was worth it in the end!

During the inspection phase of the buying process, prior to close of escrow, I provided them with a series of estimates for floor refinishing, painting, retrofitting, and bids from contractors for window and door replacement, tile work and landscaping. Since the price of cosmetic work can range widely depending on the finishes used, the new owners had a fair idea of what the minimum to maximum range for the kitchen and bath remodeling would be. The grand total came in (even allowing for a 20% margin for error) at a price that made sense for them and for the ultimate value of the house, an important consideration.

Off to a good start with contractor referrals from me, they additionally consulted contractors referred from family and friends. They ended up hiring their “team” from both pools of resources. We always ask our clients fro feed back on the contractors they use so that we can keep our own list of resources up to date and pass on the good ones to you.

They closed escrow on November 15, 2007. By December, contractors had been hired and permits pulled. By January 15, 2008, the floors and retrofit were done and windows and doors underway with the painter waiting in the wings.

This story will be continued in the near future …