buy fix up and sell
If you think you want to buy and flip homes, consider this. Directly in front of my working-vacation cabana is an ancient lava site — the free lawn art of Big Island — where I am privileged to observe a Rikki Tikki Tavi dashing about, scurrying across black rock, then resting to catch his breath, protected under clusters of sea grass before scampering to another spot. As a kid, I was enamored by Rudyard Kipling’s, The Jungle Book, foreign places and exotic animals and especially the story of the brave mongoose. The closest critter to a mongoose I’d ever seen at that time in Minnesota was a gopher.
As long as that fixer home in Elk Grove has not lost its integrity, I would consider buying it, providing the price was right. Many people would agree with this premise — I should more clearly define “many people” as the people who don’t mind doing repairs or fixing up homes. Because not every buyer wants to buy a home if it presents a few challenges. As with life, I suspect most don’t enjoy challenges. They would prefer a challenge-free life, a marshmallow life.
Trying to pick a sales price when there are few to none comparable sales is a little bit tricky in our Sacramento real estate market, but this is when an experienced real estate agent can be very helpful. Sometimes it comes down to relying on gut instinct, mixed with a bit of pixie dust sprinkled on top of those dusty old comparable sales, to come up with an accurate and reasonable number.
Further, I might do goofy things that are right on target such as grab a random sales price from 2005, divide it in half, multiple that result by 50%, and then slap another 25% on top to arrive at an estimate of value, which is often much closer than Zillow’s screwy Zestimate and computed about in the same fashion. But that’s just to double-check the ballpark. It’s not to pick a sales price.