G’day all,
I have been watching this house down the road from me that has taken almost 2 years to be built. It’s got 2 houses on the one property. I presume that the title has been spit.Anyway one of the houses has been up for sale now for almost 6 month. It is incomplete, at least on the outside and it is a bit unusual in its design when compared to other similar properties in the area.
I’ve been thinking that the owner may be interested in selling it for less that some of the other new houses around just to take away the burden of having to finish it.
Most of the New deal houses that are on the one property around the area, have gone for about $400.
What question should I ask to determine if this property is a good candidate to buy and finish and sell for a profit?
Richard
Hi Richard
Can I suggest that you do some research on recent sale prices of similar houses in the area (ones that have actually sold say in the last few months), work out how much you need to spend on it to finish it, how much to hold the property whilst you complete it and also work out a profit % and also include the purchase and sale costs you might incur.
If these all stack up and make sure they are realistic, then it could be worth making an offer based on all these figures deducted from a potential sale price.
If the numbers don’t stack up then don’t buy.
Also make sure in terms of you finishing off costs that you don’t go over budget. Keep the finish in the house at a similar standard to those sold recently, keep the emotion out of the deal and manage the project effectively, you should be ok.
I do have to ask though if it is “unusual” whether there is a market for such a house, it may make it more difficult to sell?
MIT | Owen Real Estate
Email MeHello again Richard
It just occurred to me that maybe the “For Sale” sign has gone up but that the house is not really “on the Market” so to speak until the place is finished. It may also look subdivided but the titles may not have been issued yet so there si no point buying till that occurs. Check with the agent to see if the place is likely to sell prior to completion but not for settlement until completion and whether the “land dividision” is actually complete yet. The seller may be planning to sell completed in spite of the sign going up early.
Either way you now have a few questions to ask.
I hope this all helped
SueMIT | Owen Real Estate
Email Me
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