Canton MA Events and Real Estate

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Buyers Can Afford the Renovated House - Not the Renovations

Buyers Can Afford the Renovated House -Not the Renovations

At recent holiday gatherings, people not involved in the real estate business always want to know how is the real estate market?  I tell them I have been busy.  Buyers are out looking to buy.

confused personThe next comment is usually something along the lines of there are a lot of homes for sale in Canton! 

They are surprised when I tell them that the inventory is lacking.  The problem is that many of the homes on the market are in need of some serious updating (and I don't just mean painting the walls).  Some need more than updating.  There are very few well-priced, move-in ready homes for sale.  The ones that come on the market move quickly.  

Sellers do not seem to understand that. They either do not understand that their house is very outdated or think they have made a price adjustment for those renovations.  And maybe they have. 

However, while that is an option for some, it is not an option for many.  Buyers can afford the renovated home but not the renovations.  

For example, buyers looking in the $400,000 - $450,000 range (around the median price for single family homes in Canton MA) may have a decent downpayment saved up.  Let's say 10%.  They may still have enough cushion in savings to make them a great candidate for a mortgage in that price range.  They may also have excellent jobs, great credit scores and more!  They are solid candidates.   The problem is that many of the $400,000 - $450,000 houses would be $500,000+ homes if their condition were different.  And the same could be said for the $350,000+ homes.  

You see, these buyers, who can afford the $400,000 mortgage, cannot afford the renovations necessary to make the necessary improvements.  They do not have an extra $50,000 - $100,000 in savings to renovate, nor do they want to borrow above their means, even if they could get approved to do so.  

So I have buyers looking to buy and in spite of the numbers of homes on the market, there is no appropriate inventory for them.  Here's hoping that this Spring's home sellers are busy getting their homes move-in ready now!  We willl be waiting for you - assuming the price is right.

Buyers who are getting ready to buy a home in 2012 or who are ready to buy a home now in Canton MA, Milton MA or elsewhere in Norfolk County should contact their Canton MA Buyer Broker for a free consultation so they will be ready to buy when the right home hits the market.


 
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Christine Smith is an Attorney and Exclusive Buyer Agent with over 25 years of experience in the real estate field. 

 

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Comment balloon 7 commentsChristine Smith • December 19 2011 11:07PM

Comments

Christine,

Well said.... some things just never change in this business.

All the best for 2012!

Posted by P.J. Virgilio Jr., Realtor 408-568-6578 Selling homes in the Greater San Jose area and South through San Martin, Gilroy, San Juan Bautista and Hollister as well! (Keller Williams Realty Silicon Valley) almost 7 years ago

Christine, this seems to be the case in most areas.  Very well written post.  Happy Holidays!  --Krystal

Posted by Krystal Knott, Breckenridge CO Real Estate & All Summit County CO (LIV Sotheby's International Realty) almost 7 years ago

I share your pain. There are those who just don't get it that just because they like it doesn't mean the buyer's should like it. Then they get so offended when you tell them that it's outdated, as if I said they're old or something.  Aggh!

Having fun spending time with my family. Today we spent time with little nieces and nephews.

 

Santa's Wonderland, Bass Pro Shops, San Antonio, Texas

 

 



 

Posted by Cathy Criado, Making Real Estate Profitable (Criado Realty ) almost 7 years ago

Christine - WOW!!!  Canton sounds a lot like Los Angeles & Ventura counties.  The totally rehabbed, move-in ready homes go fast and with multiple offers.  The ones that languish on the market are the run-down, dilapidated, dumps that no one wants except for the all-cash buyers and they want them for peanuts.

Most of my borrowers end up settling for a half-way decent property that only needs a few minor cosmetic changes for which they can budget for and anything more they will just do over time.

Posted by Donne Knudsen, CalState Realty Services (Los Angeles & Ventura Counties in CA) almost 7 years ago

Patrick...I think several years ago they may have dealt with the outdated kitchen.

Justin and Krystal...that is what I am hearing.

Cathy....and I understand...this is their home of many years.

Donne.....they are not really dumps.  Many are nice homes that have even been well maintained but they need some updating.  Buyers would rather pay more for a house they do not have to do a major fix to because they can afford the house, just not the fixes.

Posted by Christine Smith, Exclusive Buyer Agent & Attorney, Canton, MA (Buyers Brokers Only LLC - www.BuyersBrokersOnly.com) almost 7 years ago

Christine - Sellers may understand, but in a lot of cases, they have no money to do the renovations, so they get the short end of the deal. Inventory is shrinking fast here.

Posted by Larry Brewer - Benchmark Realty llc (Benchmark Realty LLc) almost 7 years ago

Larry....that is true.  But in some cases around here they can do the renovations - or at least some of them but they don't understand why a buyer would not just pay less and do the renovations themselves.

Posted by Christine Smith, Exclusive Buyer Agent & Attorney, Canton, MA (Buyers Brokers Only LLC - www.BuyersBrokersOnly.com) almost 7 years ago

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