It’s the homes that are all dolled up that sell for the most money. I see it time and again. In this market, buyers are flocking to the properties that are plug and play, meaning they don’t need to do any work. There’s an emotional tug that comes with new floors, custom paint, crown moldings, tastefully remodeled bedrooms and baths. Note to seller: if you’re looking for a higher price, you may want to consider some smart upgrades. For many of my listings, I’ve encouraged my clients to do some minor remodeling. If for every dollar they put in, they can get back $3-4, then it’s worth the effort. It may even be worth it if you can double your investment.Case in point, 1918 Farrell Avenue in Redondo Beach came on the market this week. It immediately got a tremendous amount of traffic. This home was purchased at the end of 2012 (just before the crazy growth) for $661,000. The new owners remodeled the home and re-listed it now (3 years later) for $925,000. And it will probably sell for more. For one, there is still very little inventory out there. Two, this house looks all shiny and new. It’s a quality remodel, the owners definitely improved on the house… and they didn’t have to change the footprint at all. Buyers walked through this home and got a warm and fuzzy feeling. By the end of the weekend, there were multiple offers and although the offer prices were not made public knowledge, I can safely assume that they are at least at the asking price, if not higher.
Note to Buyers, if you want a deal, if you have to buy the ugly house. Or maybe I should say, the ugly duckling. Because with some work, it can be just as pretty, but you probably didn’t have to pay as much money. Now, in crazy seller’s markets, you usually have to pay a premium on everything, but we’ve slowed down a little now in the Southern California. There are homes in Hermosa, Redondo and Manhattan Beach that are staying on the market longer. There could be deals to be had, but you have to be willing to pick up a hammer or pay someone to do it for you.