ELLEN JAMES MARTIN, Smart Moves
SMART
MOVES
A Solid Fixer-Upper May End Up Being Good
Deal
If you're a determined bargain hunter, you
shouldn't rule out a home with problems that are relatively
easy to surmount.
The U.S. Air Force major and his homemaker wife
felt deeply discouraged. They had just spent four long days
searching for a home in a neighborhood with top-flight schools
for their kids. All the properties they visited were obviously
above their financial reach -- except for one Tudor house in
dingy condition.
The decorative trim on the exterior was falling
off and the landscaping was in a jungle-like condition. Also,
the home's interior was burdened with dated, loose wallpaper
and worn carpet in colors ranging from orange to
navy.
Still, given his background in civil
engineering, the Air Force major could see that the home's
structure was fundamentally sound. So he and his wife arranged
to visit the place again, this time in the company of an
estimator from a remodeling
firm.
The estimator said it would cost no more than
$13,000 to give the house a complete face-lift -- including
extensive landscaping, new siding, an interior paint job and
replacement carpet throughout. With that in mind, the couple
proposed a bargain price for the vacant house. They felt they
had the upper hand, given that the seller had received not a
single bid since the place was listed two months
earlier.
''Because the owner was so highly motivated, my
clients got the house for $40,000 under market value. And
after it was fixed up, the place looked absolutely gorgeous,''
says Merrill Ottwein, owner of an independent realty
firm.
More important than getting a bargain on a
property is making sure you choose one in a neighborhood where
values are strong and likely to ascend -- even if you must pay
full list price, says Ottwein, former president of the
National Association of Exclusive Buyer
Agents.
For some buyers, purchasing a flawed home is the
only route to obtaining a home in a desirable neighborhood,
given the level of housing inflation in recent years, says
David Nix of Coldwell Banker, who has logged a dozen years in
real estate sales.
If you're a determined bargain hunter, you
shouldn't rule out a home with problems that are relatively
easy to surmount. Here are four other types of properties you
shouldn't automatically
reject:
• The
''off-color'' home. For decades, listing
agents have been counseling property sellers to ''neutralize''
their interior walls, painting them in colors with names like
''shell white'' or ''linen.'' The idea is to appeal to the
largest possible swath of the home-buying population -- just
as hoteliers do when decorating their
rooms.
Still, some stubborn homeowners ignore the
advice, hanging onto a personalized decorating scheme that
makes their properties tougher to sell. This stubbornness can
mean few bidders, a long sale time and ultimately the
opportunity for a discount at sale
time.
• The lazy
housekeeper's property. Just as a home with an
unusual color scheme can offer the possibility of a
below-market price, so can a place that shows like a
pigsty.
It's bad enough for outsiders to see unmade
beds, a sink piled with dirty dishes or a laundry room heaped
with soiled clothes. But the most serious housekeeping breach
of all is a dirty bathroom. ''If there's mildew in the shower,
that makes a deadly impression,'' Ottwein
says.
However, a dirty home is not necessarily a
rundown home. You should investigate further, he
says.
• The place
that reeks of tobacco. Smoking is now so
widely considered an offensive habit that many home buyers --
including some who are addicted themselves -- are reluctant to
purchase a smoker's place.
''Most of the smell is in the carpet and window
treatments. Replacing those should take care of the problem
and not cost too much,'' Ottwein
says.
• The home
that's a rental property. Many would-be
purchasers are unwilling to consider a home occupied by
tenants. Some rental properties are unkempt and, to make
matters worse, the tenants can be hostile to prospective home
buyers, figuring that a sale will lead to their
eviction.
You should have second thoughts about buying a
property that is rundown because of years of neglect by the
landlord. But not every rental unit is necessarily ridden with
expensive problems. A home inspector can help you determine
the true situation.
''Sometimes there's a jewel out there that's
available for a good price simply because it was a rental
property,'' Ottwein says.
-----------------------------------------------------------------------------------------------------------------------
Ellen James Martin is a nationally syndicated
real estate writer.
