Many buyers’ dream of living or owning property in Redondo Beach, Manhattan Beach, Hermosa Beach, and other coastal communities in Southern California is often foiled by the high prices of homes in the area turn or the insufficient inventory of homes.
One of the best solutions to these concerns is buying a fixer-upper or a teardown. These property types offer buyers a great chance of owning a home in a highly-desirable neighborhood at a price lower than the market rate.
Fixer-uppers and teardowns also present a great solution to sellers who wish to avoid foreclosure or want to unload their homes without spending on renovations or repairs. In some cases, these properties may have already been foreclosed or has REO (Real Estate Owned) status.
What is the difference between a fixer-upper and a teardown?
A fixer-upper is a property on the market that needs substantial repair and updating. As they typically sell for less than the market rate, you can generate substantial savings in purchasing one. Renovations will bring your investment costs up, but it can also substantially increase the property’s value.
Teardowns are properties purchased by buyers or investors for the land. Houses on the land are torn down to build entirely new structures. In many cases, these houses are also in need of significant repair, or have features that are not up to neighborhood standards. For instance, the lot area of a property may be smaller than the neighbors, or perhaps, new developments have risen in the neighborhood, rendering the home outdated.
Fixer-uppers and teardowns are often purchased by buyers looking for a home or an investment property with a lower price. Teardowns, however, are also highly desirable to developers who are looking for large land parcels on which to construct multiple new homes or buildings. It’s common for developers to buy several adjoining properties in a neighborhood and demolish the houses to build new ones.
Should you sell your home as a fixer-upper or as a teardown?
In many cases, renovating or updating your home can increase its value. However, if you prefer not to spend on improvements and repairs, then selling them as fixer-uppers or teardowns is probably the best way to go.
Buyers of fixer-uppers will look to make improvements on the property after the purchase. Typically, in making an offer for a home, these buyers factor in the potential cost of renovation and repairs, which is estimated after a thorough home inspection.
Buyers of teardowns, on the other hand, are usually not concerned about the condition of the home as they plan to replace it with a new structure anyway. Because home inspections are not part of the process, selling your home as a teardown is often faster and results in a quick closing.
Fixer-uppers and teardowns in Redondo Beach, Manhattan Beach, and Hermosa Beach
There are more fixer-uppers and teardowns than you might think in the upscale cities of Redondo Beach, Manhattan Beach, and Hermosa Beach. The key is to know where to find the property that best matches your real estate goals. While these properties sell for less than a standard home in these communities, generally, the prices are still on the upper end of the scale.
Investing in a fixer-upper or a teardown? Get expert guidance from 3 Leaf Realty. Call 310-546-6300 today or email Realtor@3LeafRealty.com.