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There are 3 Responses to “Are The Words “great Investment Property” On A Private Residence Listing A Red Flag?”
#2 Daniel R. - 06 November, 1:36 PM
The flowery language in the listing is meant to entice your interest so that you inspect the property and consider purchase. Most of those terms have little actual meaning except for “fixer-upper” which you know translates to “this house is a dump”. And in this economy and housing market, no one can guarantee the appropriateness or the validity of the investment. In fact, if the agent states in writing that it is a good investment, the agent could be liable if it is not.
In any real estate purchase, the buyer should perform “due diligence” including a physical inspection of the property (and purchase subject to another inspection by a licensed home inspector), Additionally, you should drive the neighborhood to get a feel of the other homes and the residents (are the homes kept up?) and see what si there locally regarding shopping and services as well as the traffic (visit at rush hour to see wat the worst conditions are). And check out the local schools whether or not you have children as that is a major factor in the desirability of an area and impacts real estate values.
Have your agent perform a check on what other homes in the area have sold for lately (to compare values) and also what else is on the market in that local area (if there is a lot of inventory waiting to be sold then prices may come down).
Bottom line – is this an area and a home in which you would wish to live for the next five years or more?
#3 kchick80 - 06 November, 2:36 PM
The best thing to do would be to arrange a viewing, then you can see for yourself. I would be thinking the same as you though.
#1 C W - 06 November, 1:15 PM
I’ve been looking for houses and I’ve observed that this either means:
1. The house is in a horrible neighborhood – and the investment is that you clean it up and rent it to someone who doesn’t have a lot of money. Other code words for this is (“great cash-flow property” or “convenient location”)
or
2. It needs work (another code word sentence in the listing is “it needs a little tlc”).
The amount of work that the place needs might be minimal. It could be mostly cosmetic – or perhaps there is a major problem. There is no way to tell.
If you are truly interested, go and take a look at it. Look for stuff like visible evidence of mold, termites, water leaks. Look at how old the appliances are, particularly the heat pump, water heater – look at the roof – what type is it? Does it need a lot of work? Look at the condition of the house. If you think it looks ok and you want it, when you make an offer, do it so that it is contingent upon your right to inspect the property. Hire a professional to inspect it (should cost you a couple of hundred bucks). They should inspect all major systems in the house and give you a report of the findings. If they find problems, then you can back out of the contract for the house. Simple!