September 15, 2007
What do saavy investors look for when buying a home?
In a nutshell, they look for the “right things wrong”.
That is, there are things that will make an investment untenable, and other things that will make it attractive!
The home must have these things:
– a good floorplan
– good structure (roof, plumbing, foundation, electrical)
– good location
To get it at a good price, the home probably should have these things:
– been overpriced and on the market awhile
– be structurally sound but ugly (wrong color carpet, paint)
– need simple fixes (change countertops, paint cabinets, change lights, floorcovering/paint, and landscape)
– be in an area with good appreciation (housing shortage)
Often when Realtors go shopping for their own homes, they consider houses that have been on the market too long, that are really decent homes but simply ugly! It’s easy to change paint and carpet, to add skylights and to fix landscaping. A home like this that’s been on the market will be a good buy – provided the seller is motivated to sell – in any market!
Going shopping? Ask your agent this question: “what home would YOU buy?”
Only thing is… to make the money, you have to be willing to do a little work!
This is true in Los Gatos, Saratoga, San Jose, Santa Cruz, or anywhere!