November 17, 2008

Can you see this home's potential?

One of the things I love about real estate are the wonderful clients we have a chance to work with. Each have their likes and dislikes, concerns and opinions, and their own set of problems and blessings. Everyday is different which gives a great deal of variety to my life.

One of our clients is a wonderful contractor in California. He has several properties that he has purchased over the years, made repairs, and then rented those units. As you recall, the downturn in the market had a devastating impact on the California construction market, causing his core business to take a tumble.

One of the projects this wonderful client was working to complete was located on the east bench of Layton. This home was built in 1984 with almost 4,000 s.f. of living space. The intent of the client was to update and upgrade the home and then re-market the home or use it as another investment property. As a result, the living room floor which previously was sunken is now raised to the level of the rest of the main floor. Walls in the living room were removed or made as half walls to give a more open feeling. Walls were moved to give bedrooms that were smaller more space with expanded closet areas. Downstairs, the drop ceiling was replaced with dry wall, the bathroom enlarged and additional closet space added. New kitchen cabinets, appliances, and plumbing fixtures were ordered but never installed. New double-paned windows have been installed throughout.

With the crunch in credit, the project never got completed and this 6 bedroom, 3 3/4 bath home is now for sale, as a partially completed home. The financial crisis means that there are some important things missing from this home. Kitchen cabinets, painting, bathroom fixtures, and new carpet would be needed to complete this home. The estimated cost for the contractor to finish this home would be $30,000. One who is handy with tools could purchase the home and pick up some real equity.

The home is located in a wonderful neighborhood where homes are valued from $300,000 and up. One can view the property on a virtual tour at www.tourfactory.com/437346.

You ask what is missing in this house? Along with some of the basics, such as kitchen cabinets and bathroom fixtures, what this property really is missing is a buyer. A creative and innovative buyer will purchase this home, finish the repairs, and add some equity to their real estate portfolio.

Posted By: Steve Randall