Art's Real Estate Blog

What can we expect:

• The market for green homes is expected to rise from $2 billion to up to $20 billion over the next five years.

• Existing homes are becoming increasingly green, home owners are using green products for up to 40 percent of their remodeling work.

• Word of mouth is the primary way most find out about green homes, followed by television and the Internet.

• Satisfied with their Green home, owners are happy to recommend them to others.

• Health, reduced energy use, and other home operating costs are the major reasons for buying green homes.

• Lack of education and awareness is a bigger obstacle in the use of green products by a narrow margin over the additional first costs associated with building green.

In most markets buying a basically sound house and updating the cosmetics is profitable. Be careful what you buy or it may cost you more than you make.

Consider these 10 tips when purchasing a fixer-upper:

1. Purchase homes that are selling at least 30 percent below the market value of comparable nearby homes that are do not require fixing.

2. Look for a home with affordable cosmetic improvements such as fresh paint, new light fixtures, new carpets and flooring, and fresh landscaping.

3. Location, location, location with a low crime rate, good schools, and quiet streets. No fixing a poor location.

4. Find a fixer-upper that is close to your current residence so it is easy to visit everyday while the work is being done. Try and keep it under one hour.

5. Stay away from homes that need major unprofitable repairs. Avoid wiring, major plumbing, foundation repairs, major kitchen and bathroom renovation, room additions, and/or a new room. Rarely will you get your money back on these basics.

6. Large house is better than smaller. At least three bedrooms for buyer appeal.

7. Obtaining new bank financing after the work is completed and the home’s market value has increased.

8. Look for, low down-payment financing (i.e. taking over an existing mortgage, lease with option to buy, seller carry-back financing, or a combination).

9. Make sure occupants vacate immediately upon transfer of title.

10. Look for sellers who are motivated to sell and who want to get the sale done.