By Jay Valento
I have many clients that are looking for fixer upper homes in Long Beach and other cities here in Southern California. Most of them are investors who want to buy, fix it up and flip it back on the market for sale.
Assessing property investments is critical. How much work does the property need? Are you going to do it or do you have a construction crew?
Buying Fixer Upper Homes in Long Beach
I have one investor who has a spreadsheet that helps them figure out the rate on the return of investment (ROI). When I enter the cost of the property, estimate the work that needs to be done based on the size and other characters…and the future value, it yields a percentage ROI. If it is at 10% or close, this investor buys.
Some Long Beach home buyers think that a home that needs cosmetic repairs will cost them hundreds of thousands of dollars, when it may just need carpet and paint. An inexpensive fix.
Does Your Long Beach Fixer Upper Need Kitchen Cabinets or a Full Remodel?
The cost of updating the kitchen or could be only a few thousand dollars not hundreds of thousands.
It just depends on damages or how outdated the Long Beach home is when you see it.
What to Look For When You Walk Through a Long Beach Home for the First Time?
There is an excitement of viewing Long Beach homes whether they are fixer uppers or not. I suggest that you look at the house in a number of ways to evaluate it.
Rate each part on a scale of 1 to 10 based on condition. Where a 10 is perfect and a 1 is not.
Write down what you observe. Ask your Long Beach Realtor Jay Valento® questions.
Walk through the home and look at the floor plan. Does it flow or not? Would that have to be changed to make it more sellable?
Look at the walls and ceilings. Do you see any water damage or something that is just not right looking?
Go into the kitchen and look under the sink. Do you see any water damage there? In fact, look under the sink in all bathrooms too.
Observe the flooring. Does it look like it needs to be replaced?
Check the electrical panel or have a home inspector or contractor do it.
- When you look at the roof from the outside, are the shingle layers flat or starting to peel or bow?
During Escrow You Can Inspect the Fixer Upper Property More Thoroughly
When you are in Escrow with an accepted offer on a Long Beach fixer-upper, the seller will be providing you with disclosure documents to review. During the escrow period, most of the time, you and your home inspector can, with the seller’s permission, check out the property more thoroughly.
Have your home inspector or contractor during this time, evaluate the foundation of the property. This could be a deal breaker for some home buyers. I have investors that love foundation problems.
If the property is on a slope, you want to have a geologist or another appropriate professional evaluate the stability of the slope.
Permits: you can go to City Hall and talk to them about permits on the property. Just give them the address and check to see what has been done that the property. “Jay, will you do this for me?” No. It is better that you go and talk to the appropriate parties.
Get a Termite Report from a local termite company and evaluate the report and expenses.
A plumber can evaluate the pipes at the property after the home inspector gives you some wisdom about them.
Some properties are a mess and the seller wants you to check them out before writing an offer. Each property is different. I will update you as to the best practice for the type of property and situation for that property.
There is a Buyer Inspection Advisory document that shares with you many ways to inspect a property for sale. If you choose to hire a home inspector, you will be paying them to create a report of findings.
All California real estate is sold “as-is” in its present physical condition. The seller is not obligated per our purchase contracts to fix any item that is not working. Keep this in mind when buying real estate.
When you are buying a fixer-upper, the homes are typically sold in as-is condition with no repairs of any kind.
Do You Have a List of Fixer Upper Homes in Long Beach?
Yes. Here are all of the fixer homes for sale in Long Beach.
Do You Have a Home that is a Fixer in Long Beach or Another City in Southern California to Sell?
If so, let’s meet. I help homeowners sell their homes that need work or you might call it a “hoarder home”. I have respective investors that would be looking at your home to help you out. Just fill out the form below or call me at 562-413-7655 for an appointment.