Escondido Real Estate

Escondido Homes With Hidden Potential

Still looking for something lower than the average Escondido home? If you're handy, have the time, and want to avoid the hassles of foreclosure sales, perhaps a fixer-upper is more your style. Neglected and in need of work, they're the kind of  Escondido homes where a little "sweat equity" can create a wonderful home and a substantial return on your investment.

• How can you tell if a fixer-upper is worth fixing up?

There's no hard and fast formula, but there are several factors that can help you decide:

Are the repairs required cosmetic or structural? Generally speaking, cosmetic repairs cost less, are easier to complete, and provide instant eye appeal.

• Are the repairs required worth it?

If a repair (a new roof, for example, or upgraded kitchen) costs more than it adds to the resale price, it may not be.

• Who's going to do the work?
  

Whether you do it yourself or hire others, you'll pay for it - in time, money, and/or stress.

• How well do you handle disruption?

From dust and debris to the daily parade of workers, some people would rather just pay more for a more finished home.

That last one may be the most important of all because, let's face it, repairs and renovations always take longer, cost more, and involve more stress than expected. That may also be why it feels so wonderful when they're done.

The Principle of Progression

A good fixer-upper offers a prime example of one of the main tenets of buying real estate: Whenever possible, buy the worst house in the best neighborhood you can afford. The reason is the principle of progression, a fancy way of saying that nicer, more expensive homes have a positive effect on the perceived value of their smaller, less expensive neighbors.

Why? Because most people want to live in nice neighborhoods and will pay a premium to do so, even if it means getting less home than they might somewhere else. So, even if that long-neglected cottage has a bit more "character" than you'd really like, it may pay off in the long run.

Real Life Example

Who: In July 2004, John and Kelly bought a home for $200,000.
The house: A 1,150-square-foot, 40-year-old home in the suburbs. Neglected for years, it definitely needed work.
The work:  They spent most of their free time painting, putting up gutters, and turning the property's backyard jungle into a landscaped oasis. Two years later, thanks to their efforts (and a hot housing market in general), their home had a market value of $330,000.
They say: "We haven't had much of a social life," says John, "but at least we have a nice home."

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