Does the house next door look rundown, shabby or falling apart? Are there cars sitting in the yard? Remember "You can change the house all you want, but you can’t change the neighbors house.”
Mistake #2 - Scope Out the Surrounding Area
How Busy is the Street? How close are Industrial or Commercial sites, Sewage Treatment Plant, Farms, Airports, Railroad tracks or view of a Cemetery? View of a Cemetery is actually 50/50 with buyers, so why eliminate 50% of the potential buyers of your property.
Mistake #3 - How Far Away do you Live
As a general rule, never buy a property more than 45 minutes away from where you live. You will spend a lot of time commuting and wear and tear on your car. Even if you check on progress 3 times a week, that’s about 5 hours driving time alone.
Mistake #4 - Don't Buy One Bedroom Properties
The percentage of buyers who purchase one bedroom homes is 5%. So, you have just eliminated 95% of the potential buyers. Two bedroom homes work better as rentals unless they are typical for the area. Usually, the best bet is 3 or 4 bedroom homes as they appeal to more buyers.
Mistake #5 - Small Rooms, Small Square Footage, Small Baths
Buyers are looking at how their furniture will fit in the house. Visualize fitting a queen size bed and a dresser in all bedrooms when evaluating houses. Overall square footage is also a big factor. More than one bath desirable, buyers prefer at least 1 ½ baths and more are happy with at least two baths. Think of how a family will occupy the home when you look to purchase it.
Mistake #6 - Odd Properties
Fit in, don’t be the Odd Duck. Look at the lot, is it steep or shaped oddly? Is the property in a Flood Zone? Does the home have really narrow staircases? Is the layout of the house strange? Is there only one bath and it’s on the first floor? Does it have less than 8 ft ceilings? Is it twice the size of any others around it? Look at the functionality of the home, does it flow well and is it similar to others in the neighborhood.
Mistake #7 - Parking is a Big Deal
Garages are a big plus to buyers. If the other houses in the neighborhood have a garage, yours should too. Depending on the neighborhood, decent carports bring value. Easy to access off street parking and paved driveway are a minimum. Nobody wants to be dragging groceries through the rain and snow to get them home.
Mistake #8 - Too Much Money to Fix it UP
Additions are costly and rarely do they gain back the return on money spent. Trying to change the layout to make rooms flow better is a costly expense and time consuming. Severe termite or mold damage? It can be a nightmare to re-mediate and to rebuild all of the damage caused. Stick with bread and butter properties that need remodeling and updating and don’t be tempted to take on the Major Project house.
Mistake #9 - Check out the School District
Families like good schools for their children. Check out the proximity to elementary, secondary and high schools. Is it a desirable district where the majority of buyers would want to live? Look up their website and check out the news, building upgrades, activities for students and test scores. Buying in a desirable school district can give you an advantage when advertising it for sale.
Mistake #10 - Hard to Sell
Does the house have 37 steps up a hill to get to the front door? Does it have a ski slope driveway? Or, is it at the bottom of a hill with drainage water pipes in the yard? Does it have lousy curb appeal that can’t be improved? The odder it is the harder it will be to sell.
Hope these actual examples of mistakes by experienced investors gives you an insight to help you avoid some of the pitfalls of buying the wrong type of homes.
HOPE THIS HELPS
Kathleen McKinney, Realtor
Platinum First Realty, 708 Main St, Harleysville, PA 19438
Office 267-647-9800 ext 412
Author:Kathleen McKinney Phone: 215-500-3424 Dated: August 16th 2015 Views: 1,235 About Kathleen: My experience level is at your disposal ! My background in mortgages and rock solid understanding of...
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