🔴 Fixer is Sold! | Rates down -so is inventory | Inventory Watch | Should You Fix Up your home?

🔴  Fixer is Sold!  | Rates down -so is inventory | Inventory Watch | Should You Fix Up your home?

Rates are down, but so was inventory.  It's crazy times right now, guys. I don't know what to tell you. We're going to talk about what you get for a million dollars. Should you fix up your home or sell it as is? And my fixer-upper that I just listed last week is sold. And we'll talk about that too. So stay tuned.

Rates are down -so is inventory https://www.reuters.com/markets/us/fed-likely-hold-rates-steady-signal-couple-cuts-2024-2023-12-13/

 Rates are down.  Surprise. We're going into election cycle season. I get it. Now, some newscasters will say that it's not as a result of that, but why did they keep it up and in so painful for so long? Yet the market commanded that we still bought houses and the inventory, and the economy still did well.
The good news is rates are coming down. We're down to 6. 8, 6. 7 pending unquoted, but that also means that we have another 8 million buyers that enter the market. So competition goes up, which means when there's more competition and low supply because we'll talk about supply in a minute, we have more competition, supply stays steady, prices go up, economics 101 or 102, can't remember, but basic, right?

The fact is that when the rates go up, it's going to make the economy healthier. When the rates go down, there's going to be more competition for the supply that we do have, and it's going to, it's going to help. Everybody can afford more but you're going to pay more for what you want. There you go.

Where's this? What's this? What's oh, we're not getting to that one yet. So just show it to you real quick Let me pull this over here so you can take a look at it.  Let me move me over to there See nice.  So you look at these numbers right here  This is what it was in 2016, and 2018, and these are seasonal, right?

So you're looking at December, January. December, January, December, January.  Yeah, we just didn't know we were in a freefall of inventory.  And then December, January. Actually, that was right in April when we started seeing the market kind of turn. And then January 22. This is April right here. 22 last year when we saw the peak of the market. 

Inventory crashed. And now we're down to,  we're still not where we need to be. As I said, we need to be at a million units or 1. 2 units to make it a fair and equitable buyer's market.  And even then there'll still be competition, but at the same time,  we're so far below we're at. We're at 750, 000, 700 and 54,  000.

There you go.  We don't have enough inventory and we'll talk about local inventory in a minute. It goes to selling this thing right here, this fixer-upper, it's less than a thousand square feet. Should you fix up your house or sell it as is now?  There's no definitive answer. It's really what you are ready to do. 
And if you have the means and if you have the people behind you to help fix up your house and the desire. Now, are you going to make more money off of a house that is completely fixed up versus an as-is house? Yes. But let's say your house is worth it. I don't know, a million dollars. And then you put a hundred thousand dollars into it, and then you make a hundred 1.15 on top of it.

Your ROI on that a hundred thousand is 50% or $50,000.  So that's up to you. It really is up to you. Now, let's say that you don't sell it or fix it up and you sell it for $700,000.  I don't know, like this one right here. You don't do anything to it. Yeah. We're going to actually get a fix, a couple of doors and a window, their own order, but  700,  000, we had 15 offers in hand and it went for almost 20 percent over.

So you do the math. They didn't get as much as they thought. But if it was completely turnkey with a car garage, less than a thousand square feet, you're still probably going to make, I don't know, maybe 900,  maybe 925. So all the time and energy and cost overruns and delays and the stress. I don't know if you would be worth the 50, 000 to get out of a house.

Totally up to you how you want to do it.  Happy to work with you both ways, but there's a lot to think about. So factors to consider stay in the market. We're in a short supply, high demand or medium demand, consistent demand market. So that means prices are staying stable or going up in the condition of competing homes for sale.

Everything else that we were selling was tip-top. Shape means if you're going to sell it and want a premium you're going to have it have to make it look really good  Really amazing and put a lot of time money and energy into it.  Is it worth it?  It's totally up to you and this is case by case, okay?

I can't tell you yes or no, you should do that or you should do that, shouldn't do that.  I can tell you that there are certain things that you need to do for habitability issues and certain things that will make your house more saleable and some things that you can do that you'll get a higher ROI, return on investment on that property. 
This house that we sold here, location, right? That's basically what it is. You have the Reed Hillview airport right here. Your  101 is right here. So in that surrounding area, you're taking a chance, hoping that you can fix it up, spend about 100, 000 on it, and get a  profit out of it. 

Because you would have had to do a new kitchen. You would have had to do new flooring. You would have had to put HVAC in there. You would have, I don't even know why that's there. You would have had to really dress this thing up or maybe repaint it.  All that flooring is laminate so there's not much you can do with it.

See there's, and then this right here, you would have had to paint the inside, outside of the house.  We would prefer to have it sold, or we preferred, sorry, the sellers prefer to sell it as is. Get it fixed up, don't make any major changes to it, don't. Invest any major amounts of money into it get it on the market and sell it. 

Either way, you can do it right. If you want us to do it, we will put it

two or three months.  You're like it costs less value.  And when you work with contractors, you wanna make sure that they do the right thing and not the quick and easy way they want to, you wanna make sure that they do it the right way. So we vet our contractors. I. Try new contractors every now and then and sometimes we get burnt.  There are a lot of shady characters out there I was talking to somebody else out there where  I think it was a bathroom job and they gave him like 10, 000 and he just disappeared  So should you do it completely up to you?

What's the likelihood of a return on investment? I'm going to give you the pros and cons and I'm not going to sugarcoat it because to me it doesn't matter  My job is to sell your house. I have a project manager and we pay them to do that job make sure it's done if you want to take the chance and get an ROI out of it Get a higher ROI out of the money that you're spending By all means, let's have that conversation. 

Do homebuyers want fixer-uppers? Yes, especially in a place where it's not as affordable.

Do homebuyers want fixer-uppers? Yes, especially in a place where it's not as affordable. They need to get into a lower-cost house so they can spend time over the years and fix it up. For example, the house I bought 690, 000 and every year I put Five to 10, 000 into the house to fix it up, to make it look pretty and better and more livable for my style.

So my house has an eclectic style of different upgrades, but over time, it's now one of the nicest houses on the block or in the neighborhood, because I've spent the last 20 years. Upgrading it and updating it and fixing it up to my style and painting it and putting papers in and new windows and HVAC And I've done my kitchen twice. 

I wanted that not everybody wants that not everybody has the do it yourself I can fix it attitude. So sometimes people want to have a turnkey move-in ready model like a house and they're willing to pay a premium for it.  However, when there's low inventory,  understand that there's competition for both types of houses.

There are multiple different types of houses. There are condos and row houses and townhouses and luxury and boho all different. So if you're looking at the same houses in the same neighborhood, typically it's single-family homes, three bedroom, two bath. There are two different kinds. It's as-is and completely turnkey.

And you have that choice. It's up to you to deal with it.  Dust, noise, cost overruns, everything,  something to be aware of. It's completely up to you. And if you need the financing behind it, we can help you out. Okay. Enough of that. Yeah. So this house,

yeah, I'm surprised at what we got. We had 15 offers, which, over 20%,  almost 20 percent over list price as is zero contingency. When you have competition like that you want somebody to be able to negotiate. Be no-nonsense, right? And my job is, I tell people, my job is to break buyers.  The break, I break the will of the buyers.

So my job is to push it and push it until that house until that one buyer is left standing.  And that's how you get the highest thing. And yeah, it's me being a prick, but at the same time, it's my job to get you the most money on the best terms.  So I don't know how else to do it. 
What'd you get for a million dollars today? Let's see. I didn't even look at this. There's one here and again, heating more. Let's take a look at this guy.  New listing. Oh, this thing's going to go quick.  That's underpriced.  Four bedrooms, two baths, 1300 square feet heating more. It's a busy street. So that might slow things down.

But at the same time, you're right next to the park.  You're within walking distance of walking trails. This is a great area. There's Black Mountain Bowman. If you're into archery,  right over here. There are all sorts of things you can do. At 1. 3?  Yeah, this thing's gonna sell pretty quick.

And look, it's a pretty house.  Let's open this thing up so you can take a look at it. When I say this one's a million dollars right now,  rest assured that this is priced accordingly.  I could tell you this one's probably going to go one, three,  one, two, five, one, three, maybe one. You never know when people come up and go one, or four, because that's what the value is. 

See, the list price is just the starting price.  And if you have it over price, it's going to sit on the market. Buyers are not stupid. They know how to find houses that are good values and good buys. And it's like little league soccer, where if you have the ball over here, everybody rushes over there and fights for the ball.

They don't play the position. And that's how little league soccer is. Sometimes there's a ball that kind of dribbles on the field and gets left behind. And those are the ones that I like to pick off.  Cooper to everything is doing nothing great. San Jose had a major drop in inventory.  I think they're just because the people are buying it.

Inventory Watch

Nothing else is going on crazy. We're still in good averages all the way across the county.  Palo Alto is low. Mountain View is low.  Morgan Hill is low.  So everybody's tucking in for the season.  Buyers are still out there. I have 15 buyers on my house, on my listing. I wanted to point out, that keeps crawling.
Cape Coral in Florida has crept up to 60, with almost 6, 500 houses for sale.  It's the time for people to sell houses there,  but inventory keeps going higher and higher. Don't forget that's where the hurricane was last year. So keep that in mind.  If you look, these are averages right here.  And you can see that everything is except for Atlanta, everything is about at or lower than the image because lower than the average because right now we're going into the winter and that's when people start to chill out.
We are seeing more people come up. So let's see what happens. All right. Today we talked about rates going up. Supply is still short, especially in San Jose. We just lost 20 percent of our inventory over one week. That's probably because they went into the sale and people are holding off because we're going into Christmas uh, sold our fixer-upper.

And should you fix up or sell as is on veto with Abitano? We'll see out there.

Vito Scarnecchia

Realtor®, Broker, Veteran, Dad

DRE#: 01407676



Website: abitano.com https://www.onereal.com/vito-scarnecchia-1

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