Contractors are flipping Marin homes again!
When the Marin housing market went bust contractors were the first to get out, after all it is hard to make a profit, in housing or stocks, in a down market. That is all changing now as you can see when we compare the first half of 2012 with the same period in 2011 the Marin housing is heating up.
If you just look at the average price of a single family Marin home that might not be so obvious considering that number is essentially flat at $1,009,008, however, the average price per square foot is up 3% (from ($449 to $461). The bigger news is the number of sales are up 16% and the inventory of homes for sale has not been this low for years. That is good news for sellers. It is now very common to see multiple offers but unlike San Francisco prices are not going crazy…yet.
What all this means is contractors are back in the market looking for fixers, foreclosures, or just a good deal. I have seen many homes where it appears the contractors have made a very large profit. Flipping a home is not something recommended for, or easily done, by the average homeowner. Often they can improve a home for almost half of what it cost the typical homeowner. They are also willing to take on projects that most people don’t want anything to do with such as gutting a house down to the studs, foundation issues, adding or converting space, etc.
The other issue is when taking a house down to the studs in a remodel is you are less concerned with the present condition of the home; after all you are going to half demolish it anyway. Compare that to a homeowner that remodels a kitchen only to find bad plumbing or electrical upgrading they did not anticipate; if you are planning on upgrading those items anyway it makes no difference what condition they are in.
Check back again soon for my upcoming article on how to research and understand the building permit history on that home you want to buy. This can be a huge issue on foreclosures…
If you want help or information on finding or selling your home give me a call or send me an email.