The investor market in Eugene is generally highly competitive when a good fixer hits the market. Usually, a fixer is defined as a home that needs some repair or updating before someone can live in it. A good fixer would be a property that the repairs and closing costs would still leave the house flipper 10-20% profit after they sell the property. If the property will cover your expenses and leave room for a profit, we call that penciling. If you can find a home that pencils in a desirable location then you have identified a great fixer. Generally when a great fixer hits the market you will be competing with multiple offers, it is important to keep a cool head when navigating these waters and remember what price it will pencil at. There are a few ways to make your offer stand out other than over bidding, work with a real estate agent you trust to explore these options.
There are risks involved when taking on a fixer project. When creating a budget be sure and have a licensed contractor look at the property and give an assessment before you assume you have all the information, also have an inspection period in the contract. Even if they are selling the home as-is you can still back out and get your earnest money back if the inspector discovers damage too costly to repair. When listing your fixer after repairs remember that homes that stay on the market too long can create a black hole in expenses, leaving you with an extra mortgage and tax payments. Work closely with a realtor to establish comparable sales in the area to ensure your property will sell quickly and at top dollar. Before making an offer on a property make sure that it has room for a profit after you subtract you expenses from the estimated listing price. Many of the fixers that go on the market don’t pencil, and you will get burned in the process. To learn more about the investor market in Lane County feel free to reach out to me and make an appointment.