So you watched hours of HGTV, and now you want to do a fix and flip. Well, while it might look easy on TV and they always get everything just under the wire, there are some realities of this market that you should be aware of before jumping in to a project.
Fort Collins right now is a strong and healthy market. That’s great for home buyers and sellers, but a little less fantastic for those trying to pick up a deal. If a house is priced even remotely well, then it sells quickly at or above list price with multiple offers. We are still looking at low inventory, even lower than last year. Year over year we are down 8.9% in new listings, as well as down 4% for days on market. This means if a deal pops up on the MLS, it isn’t a deal by the time it is under contract with the highest bidder.
But the news isn’t all bad. If you have a handle on what your remodel and construction costs are going into a project (call me and I can tell you who I recommend for things like this), and know exactly what percentage return you are targeting, then you can make decisions quickly when a remodel opportunity presents itself. The key is to find something before it hits the MLS (I’ve helped buyers find properties by targeting neighborhoods where we have seen good appreciation and the appreciation going forward looks healthy), or even something that comes available on the MLS that is in such bad condition not many buyers could take it on.
These types of deals are few and far between, but if you are interested in learning about the opportunities, please give me a call!