HOWEVER, I have to say that our own buying to remodel was mostly linked to the general refusal of people to tackle real problems. In SF, a home would get a new kitchen, but none ever gets a new fundation. We sunk a lot of invisible money in our new fundations, and this money is lost forever (ROI = zero. Worse.. ROI is negative, because that same money invested in the kitchen would have KaChin).

We took that decision, vs buying all remodeled, because we cannot sleep on both ears in a house not earthquake safe to our best ability – not with 3 small kids. Add some green requirements, european design/lifestyle (vs american), etc.. and there is probably no house that would have fitted our criterias without further remodel (which on a new house is ridiculous).

I have to agree that buying to COSMETIC remodel is usually not financially viable, but there are owners who have a SPECIFIC need, and for those, fixers are the best (ADA compliancy comes into mind. example: a family with MS in early stages.).
And that fixer is not a flip – it works only if it becomes the many many many years family home.

I have a client who is a very successful design-build developer. He has an architect on staff, a large crew, has been in the game for 20 years or more. And he calls this whole phenomenon “the housewife factor.” (Apologies to house husbands everywhere.) Whether or not people can actually pull the work off for less isn’t really the central question. It’s more like, “I’m gonna get my own house and make it exactly like I want it to be, damn the torpedoes, full steam ahead.”

People around here for one thing have more disposable income than many ever took into account. (Not anymore now that Google is flirting with the Mendoza line, right? — well, bullshit on that. I’m talking generations of money.) Not like anybody, rich or poor, enjoys wasting money. I think it has to do with a pervasive and alluring draw … it’s HGTV, Dwell magazine, Metropolitan Home, and everything similar.

It isn’t wasting money to these folks, though others can do it for cheaper. Like this West Portal house. A contractor would spend 400K, a client much more, and it isn’t large enough to be worth much more than $1.5M, in my opinion. In the terms of current markets there are better investments out there. That’s if the property is going to get immediately sold in a few years. If it is not, then it’s that siren song of designing your own place. I’ve seen it too many times by now. Let’s see if a year-long recession and “Flip This House” cancellations and whatnot don’t change things.

I’m not Realtor nor in the RE market .. I’ve just done a lot of shopping in previous years.

-k

If you took that personally I am sorry, and apologize. I just didn’t think there was any way it would get that much money in this hood. But, I also would have said there is no way it gets 8 offers.
I should have said, “I hope you are right Karen.” I would love to see them get that kind of money, as would everyone else around here.

it was just a number i threw out .. I have never seen the property (just the one photo). Not the best curb appeal either. You guessed low – I went for high.

If it needs $500k in work, it is probably closer to a $950 closing price. I doubt it will go for under asking tho. You guessed low, I went for high.