Too many homes are outdated and in disrepair

Posted by Brad Officer on Thursday, January 26th, 2012 at 5:12pm.

#1 Home Buyer Frustration:  Can't find a home that is updated, properly cared for, and priced appropriately.

Why is this so hard?

There are SO MANY home buyers currently shopping for homes, and they can't find a home.  They have cash in the bank for the down payment.  They have already been pre-approved for a mortgage and they have it in writing.  They are carrying around a checkbook to write a binder deposit the second they find the right house.  They've even engaged a professional Realtor.

On the FLIP side: I see SO MANY homes that have been on the market for over a year.  I've even seen homes on the market for over 1000 days on the MLS!  That's horrendous.

Why are there so many homes on the market and there are so many buyers that can't find a home?  Why can't these 2 groups meet up?  My opinion:

  1. PRICE: When it sits it won't sell.  The home has to get showings ASAP from the start.  If showings are happening and no offers are coming in, it's probably a combination of the price and the condition.  Lower the price and correct the condition, and do it fast!
  2. CONDITION: I can't believe some of the homes I see on the market.  Completely trashed.  A full lack of routine maintenance.  All in all a lack of responsibility and pride in ownership.  I agree with most buyers' comments when they see a house in bad condition:  "If the place is this dirty when they are trying to sell it, this house hasn't been maintained....ever".
  3. OUTDATED: When a home is outdated it looks tired and expensive.  Sellers must think like a buyer.  Buyers want clean, crisp, new, shiny.  When buyers look at outdated homes, they are adding up the dollars.  New kitchen, appliances, bathroom updates, flooring, lighting, paint, door handles and hinges, etc.  Most buyers in this market are FHA or VA here in Jacksonville.  They don't have the money for all those updates.  They could get an FHA construction loan called a 203K, BUT and that's a big BUT, the full loan amount MUST be under the repaired appraisal value.  For this to work, sellers have to sell at the appropriate discount.

Advice for Buyers: If you find a great home in great condition and priced appropriately for today's market, you better jump on it.  It will be gone soon and you'll be one of those buyers looking at 100 homes before finally finding another one.  Another scenario:  If you find a great home in a great location, but it's in disrepair or is horribly outdated or it's overpriced, make an offer!  Don't pass it up especially if it has been on the market for a while.  I can promise you the owners want the home sold, and maybe your low offer will help them realize their home isn't the palace they thought it was.

Advice for Sellers: Do the exact opposite of what so many home sellers do.  Do these things:  Clean, make repairs, de-clutter, paint touch ups or repaint, new mulch, flowers, remove weeds, clean windows, and price that home to sell!  Do that, and the home is gone faster than your neighbors will ever believe.  If your home is currently sitting on the market with no showings or showings with no contracts and your listing agent isn't recommending a plan of action.....fire them. 

Thank you in advance for Sharing!

 

Give us a call at 904-234-5196 if we can help you buy or sell real estate in Jacksonville, FL.

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Listing information last updated on October 22nd, 2019 at 6:23pm EDT.