Deferred Maintenance and Fair Value Estimate

[CA renter]

Glad you brought this up, duncbdunc. Yes, without a doubt, some buyers are jumping in without any apparent consideration for the time and money it will cost to upgrade/maintain these homes. We see it all the time.

Just saw one the other day that we figure will take about $100K to get it up to where we want it (many of the items you’ve mentioned, but no “expensive” granite, etc.), but the price does not reflect the work needed.

[Anonymous]

Greetings all, just joined, first post… I am looking for my last home so you know where I am coming from. Grew up as a kid renovating severly damaged properrties for my Dad.

What is getting me is that some of the places we,ve looked at would be better off without the “flipper remodel” as I call it. They throw down the fastest quick fix, and then the end product is a more expensive property that still needs a true remodel.

There is little to zero craftsmanship involved, yet there are folks like my wife that only see new granite, new vinyl windows, fresh paint, and crown molding and think all is well. Ten minutes later, she gets frustrated after I show her all the questionable “flipper fixes” which are like sawdust in a used cars oil.

I’d consider paying a fee to get the raw property, then I can decide what and where to spend the $$..

As for the Deferred Maintenance vs Fair Market Value, how about Flipper Maint. vs Fair Market Value?

Great resource BTW, I am enjoying the site!

TH

[Anonymous]

Greetings all, just joined, first post… I am looking for my last home so you know where I am coming from. Grew up as a kid renovating severly damaged properrties for my Dad.

What is getting me is that some of the places we,ve looked at would be better off without the “flipper remodel” as I call it. They throw down the fastest quick fix, and then the end product is a more expensive property that still needs a true remodel.

There is little to zero craftsmanship involved, yet there are folks like my wife that only see new granite, new vinyl windows, fresh paint, and crown molding and think all is well. Ten minutes later, she gets frustrated after I show her all the questionable “flipper fixes” which are like sawdust in a used cars oil.

I’d consider paying a fee to get the raw property, then I can decide what and where to spend the $$..

As for the Deferred Maintenance vs Fair Market Value, how about Flipper Maint. vs Fair Market Value?

Great resource BTW, I am enjoying the site!

TH

[Anonymous]

Greetings all, just joined, first post… I am looking for my last home so you know where I am coming from. Grew up as a kid renovating severly damaged properrties for my Dad.

What is getting me is that some of the places we,ve looked at would be better off without the “flipper remodel” as I call it. They throw down the fastest quick fix, and then the end product is a more expensive property that still needs a true remodel.

There is little to zero craftsmanship involved, yet there are folks like my wife that only see new granite, new vinyl windows, fresh paint, and crown molding and think all is well. Ten minutes later, she gets frustrated after I show her all the questionable “flipper fixes” which are like sawdust in a used cars oil.

I’d consider paying a fee to get the raw property, then I can decide what and where to spend the $$..

As for the Deferred Maintenance vs Fair Market Value, how about Flipper Maint. vs Fair Market Value?

Great resource BTW, I am enjoying the site!

TH

[Anonymous]

Greetings all, just joined, first post… I am looking for my last home so you know where I am coming from. Grew up as a kid renovating severly damaged properrties for my Dad.

What is getting me is that some of the places we,ve looked at would be better off without the “flipper remodel” as I call it. They throw down the fastest quick fix, and then the end product is a more expensive property that still needs a true remodel.

There is little to zero craftsmanship involved, yet there are folks like my wife that only see new granite, new vinyl windows, fresh paint, and crown molding and think all is well. Ten minutes later, she gets frustrated after I show her all the questionable “flipper fixes” which are like sawdust in a used cars oil.

I’d consider paying a fee to get the raw property, then I can decide what and where to spend the $$..

As for the Deferred Maintenance vs Fair Market Value, how about Flipper Maint. vs Fair Market Value?

Great resource BTW, I am enjoying the site!

TH

[Anonymous]

Greetings all, just joined, first post… I am looking for my last home so you know where I am coming from. Grew up as a kid renovating severly damaged properrties for my Dad.

What is getting me is that some of the places we,ve looked at would be better off without the “flipper remodel” as I call it. They throw down the fastest quick fix, and then the end product is a more expensive property that still needs a true remodel.

There is little to zero craftsmanship involved, yet there are folks like my wife that only see new granite, new vinyl windows, fresh paint, and crown molding and think all is well. Ten minutes later, she gets frustrated after I show her all the questionable “flipper fixes” which are like sawdust in a used cars oil.

I’d consider paying a fee to get the raw property, then I can decide what and where to spend the $$..

As for the Deferred Maintenance vs Fair Market Value, how about Flipper Maint. vs Fair Market Value?

Great resource BTW, I am enjoying the site!

TH

[EconProf]

Good points The End, and welcome to the Piggs.
Quite right that a lot of flipper properties show hastiness and superficial improvements, while a deeper look will reveal an inferior job that, in truth, should not add much to the market value. Of course, to the seller its perfect, and should be priced accordingly.
On a related subject, I’m a big believer that an “improvement” should not be made until the existing component is really past its useful life. In the example cited, windows in a 1990 house were probably already dual-glazed. Only if they were single-glazed are they truely obsolete and deserving of replacement. Likewise, 20-year old stucco should not need paint or replacement. A 20-year old kitchen and bath? Probably OK unless this house is in a super location and deserves the huge expense of dealing with K’s and Ba’s. Another factor, when the seller does all this work, their designs and color choices do not necessarily match that of the target market. Better to let the buyer decide these choices and keep the selling price low as a result.

[EconProf]

Good points The End, and welcome to the Piggs.
Quite right that a lot of flipper properties show hastiness and superficial improvements, while a deeper look will reveal an inferior job that, in truth, should not add much to the market value. Of course, to the seller its perfect, and should be priced accordingly.
On a related subject, I’m a big believer that an “improvement” should not be made until the existing component is really past its useful life. In the example cited, windows in a 1990 house were probably already dual-glazed. Only if they were single-glazed are they truely obsolete and deserving of replacement. Likewise, 20-year old stucco should not need paint or replacement. A 20-year old kitchen and bath? Probably OK unless this house is in a super location and deserves the huge expense of dealing with K’s and Ba’s. Another factor, when the seller does all this work, their designs and color choices do not necessarily match that of the target market. Better to let the buyer decide these choices and keep the selling price low as a result.

[EconProf]

Good points The End, and welcome to the Piggs.
Quite right that a lot of flipper properties show hastiness and superficial improvements, while a deeper look will reveal an inferior job that, in truth, should not add much to the market value. Of course, to the seller its perfect, and should be priced accordingly.
On a related subject, I’m a big believer that an “improvement” should not be made until the existing component is really past its useful life. In the example cited, windows in a 1990 house were probably already dual-glazed. Only if they were single-glazed are they truely obsolete and deserving of replacement. Likewise, 20-year old stucco should not need paint or replacement. A 20-year old kitchen and bath? Probably OK unless this house is in a super location and deserves the huge expense of dealing with K’s and Ba’s. Another factor, when the seller does all this work, their designs and color choices do not necessarily match that of the target market. Better to let the buyer decide these choices and keep the selling price low as a result.

[EconProf]

Good points The End, and welcome to the Piggs.
Quite right that a lot of flipper properties show hastiness and superficial improvements, while a deeper look will reveal an inferior job that, in truth, should not add much to the market value. Of course, to the seller its perfect, and should be priced accordingly.
On a related subject, I’m a big believer that an “improvement” should not be made until the existing component is really past its useful life. In the example cited, windows in a 1990 house were probably already dual-glazed. Only if they were single-glazed are they truely obsolete and deserving of replacement. Likewise, 20-year old stucco should not need paint or replacement. A 20-year old kitchen and bath? Probably OK unless this house is in a super location and deserves the huge expense of dealing with K’s and Ba’s. Another factor, when the seller does all this work, their designs and color choices do not necessarily match that of the target market. Better to let the buyer decide these choices and keep the selling price low as a result.

[EconProf]

Good points The End, and welcome to the Piggs.
Quite right that a lot of flipper properties show hastiness and superficial improvements, while a deeper look will reveal an inferior job that, in truth, should not add much to the market value. Of course, to the seller its perfect, and should be priced accordingly.
On a related subject, I’m a big believer that an “improvement” should not be made until the existing component is really past its useful life. In the example cited, windows in a 1990 house were probably already dual-glazed. Only if they were single-glazed are they truely obsolete and deserving of replacement. Likewise, 20-year old stucco should not need paint or replacement. A 20-year old kitchen and bath? Probably OK unless this house is in a super location and deserves the huge expense of dealing with K’s and Ba’s. Another factor, when the seller does all this work, their designs and color choices do not necessarily match that of the target market. Better to let the buyer decide these choices and keep the selling price low as a result.

[Doooh]

I can’t find decently priced “fixers” in decent locals.

The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.

This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.

[Doooh]

I can’t find decently priced “fixers” in decent locals.

The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.

This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.

[Doooh]

I can’t find decently priced “fixers” in decent locals.

The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.

This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.

[Doooh]

I can’t find decently priced “fixers” in decent locals.

The investors have driven the prices up to the point it doesn’t matter what condition the house is in… They sellers still use the same comps to list them on the MLS and they sell.

This would be 1 reason I still believe there’s a bit of a leg down left. Until the delapitated homes come in line with reality, then we’re still in the bubble.

[Author]

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