We all know that the plumber makes money by fixing pipes, the mechanic makes money by fixing cars and the builder makes money by building beautiful homes, but here is one aspect that a lot of people
Are They New?
As we all know the real estate market crashed back in 2008 leaving many people homeless and a lot of small builders bankrupt. Even if now the market is back to "normal" I am reminded about the crash every once in a while when showing certain properties to my buyers.
One area of real estate where I saw some interesting turn of events is in brand new condos and townhomes. Over the weekend I had the opportunity to show several townhomes in Sacramento area. In pictures they looked brand new, however they were built in 2008. This usually confuses most of my buyers. For a split of a second they cannot tell if the place is truly new or a remodel.
Here is the story behind those five townhomes that look like brand new, but they are ten years old. They were in fact build in 2008 by a big builder, however when the market has shifted (aka crashed), the builder could not find buyers anymore. So instead of giving up and letting the places go to foreclosure, the builder became a landlord, by renting all unsold units.
Now with the real estate market returning to more reasonable levels, the builder has decided to do what it does best, renovate and sell. The units were vacated and renovated and now they are all listed for sale. They are five units in the middle of a brand new development and looked all new inside and outside as well. Of course buyers will be confused about the age of the units.
For investors and even regular buyers, when spotting a townhome or condo like those, do not think twice. The reason is that those units were certified and renovated by the same builder with the same standards as brand new homes, but the price is lower than the brand new units being developed next door. So you have an almost brand new home for the price of a resale.
As a side note for investors - no matter when you buy, if you can find a way to last thru the hard times, you will come back stronger and wealthier when the market shifts again. If you bought a home to flip and the market changed you can either sell for lower and make less money or rent it out and sell again when the market returns. If you bought a place to rent, and the rental market goes down, then either sell it or ensure that you can rent at a lower amount. When the market comes back you can sell or rent for higher. Either way you will come back stronger and make more money in the end.
I Don't Sell Homes, I Sell a Lifestyle! WHAT I DO: I sell homes where people can make their dreams come true, where families come together, memories are made and goals are met. WHAT TO EXPECT: ....