Why Fixer-Upper Homes Are So Unpopular Now | WSJ Your Money Briefing

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  • Опубликовано: 30 дек 2024

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  • @ReginaJune
    @ReginaJune Год назад +65

    Flippers took them all. Now rehab is what’s left. Rehab is waaaay different than a fixer with a 70’s kitchen.

    • @paxundpeace9970
      @paxundpeace9970 Год назад

      that is a theory, but not all flippers are equal. The amount of work put into it is different each time.

    • @paxundpeace9970
      @paxundpeace9970 Год назад

      Still they said they were unpopular, this would imply that nobody would buy them but anyway the were talking mostly why nobody would sell.

    • @daisymillikin3425
      @daisymillikin3425 Год назад

      shut up just say you cant afford to buy it...and afford to finish it

    • @taipizzalord4463
      @taipizzalord4463 Год назад

      No. Its another trend that boomers blame millennials for killing like Home improvement stores and Napkins. Because if you are asking for 300K to buy a house. They think (rightly) that it should be in a habitable condition. But I guess they are entitled for that.

  • @lambertois11
    @lambertois11 Год назад +35

    Flipper have caused irreparable damage to fixer-upper, because buyers have come to realized the true face of flipper.
    Flipper are just a cosmetic operation: like putting new drywall on rotten timber eaten by termites!

  • @shanerob681
    @shanerob681 Год назад +14

    Before even watching this video I’m going to guess that it’s because house prices are so inflated (at least in my city) that most people can’t afford to buy an expensive house that requires extensive repairs or upgrades on top of the purchase price.

  • @Seanpfree
    @Seanpfree Год назад +10

    Realizing at 36 years old we will never be able to own a home in Middle Tennessee. 77 bids over 3 years all outbid by cash.

    • @daisymillikin3425
      @daisymillikin3425 Год назад

      survival of the fittest if you cant buy with financing or cash dont buy at all...who says the world has to give u a home?

    • @NoNo-ng9sl
      @NoNo-ng9sl Год назад +4

      ​@@daisymillikin3425Spoken like a realtor or recent home buyer. I don't think they said they're owed anything or that they can't buy. They've lost on a bid more than a few times. These things come in cycles. Nothing last forever. And homes aren't magic beans that buck risk. If theres ever a reason a housing crash needs to happen? It's bc of people like you....I currently own three investment properties and even I know this market isn't healthy long term. If it comes crashing down? I'll be ok.

    • @boby115
      @boby115 Год назад +4

      My daughter sold her Old South Home (run and gun builder in middle Tennessee) in 2020 for $50,000 more after 15 months of ownership. The girl she sold it to, owned it 12 months and sold it for $100,000 more then she bought it for . Middle Tennessee Real estate is crazy.

  • @privettoli
    @privettoli Год назад +52

    Finding a reliable contractor is really really hard, majority are a waste of time and money. And even if you find them, they're extremely expensive. It's cheaper to quit full time job and do the repairs yourself.

    • @Luther_Luffeigh
      @Luther_Luffeigh Год назад +3

      True that

    • @TitusAzzurro
      @TitusAzzurro Год назад +3

      In what world are people able to do the work of a plumber / electrician / carpenter without being one of those?
      I'm 33 and can't do either of those things. Did I miss a special course or something?

    • @privettoli
      @privettoli Год назад +1

      @@TitusAzzurro, certainly, I may be overstating, but it's disheartening to see how the dynamics of supply and demand have led to a decline in quality and an increase in cost within this industry. Perhaps there exists an elusive list of top-tier contractors or perhaps they are only accessible through referrals, remaining absent from online searches. I'm at a loss...
      The issue with many contractors is their lack of understanding of your needs. They expect you to provide direction and control the outcomes, or else you risk receiving subpar work while still having to foot an exorbitant bill. Some might even resort to dishonesty or deception if they sense your unfamiliarity with the subject matter.
      If you don't steer the ship, they'll choose inappropriate materials for the task, you'll end up paying double or triple the fair price, or worse: you'll pay more for disastrous results.

    • @cherylcarlson3315
      @cherylcarlson3315 Год назад +3

      not so good contractors ,bless their pitiful little hearts,do more damage than the DIY first timer...

    • @robotmanx2009
      @robotmanx2009 Год назад

      @@TitusAzzurro I'm 32 and can do all of those things. I think some of it comes from working on house projects growing up and A LOT of youtube videos teaching myself. I also can do HVAC and installed 2 furnace/AC combos myself.

  • @watwudscoobydoo1770
    @watwudscoobydoo1770 Год назад +11

    Where I live, Bay Area California, fixer uppers sell fast and are torn down quick to be replaced by McMansions. But empty lots will sit for years with no sign of ever being developed.

    • @paxundpeace9970
      @paxundpeace9970 Год назад

      That's true because they have building permit that pretty much granted about the previous size of the building so nothing difficult to tear it down and build it new. The permit mostly just requires to do some minor changes to keep up to date with code.

  • @specialk9999
    @specialk9999 Год назад +17

    Permits for certain renovations can be a pain to get depending on where you live too.

  • @Luther_Luffeigh
    @Luther_Luffeigh Год назад +37

    Because what’s more expensive than current mortgage rates is the cost of contractors and specially the ones that do honest work.

    • @paxundpeace9970
      @paxundpeace9970 Год назад +4

      Construction material was very expensive too for example lumber prices, which have come down since but are still elevated.

    • @taipizzalord4463
      @taipizzalord4463 Год назад

      No. Its another trend that boomers blame millennials for killing like Home improvement stores and Napkins. Because if you are asking for 300K to buy a house. They think (rightly) that it should be in a habitable condition. But I guess they are entitled for that.

  • @peterfrank1572
    @peterfrank1572 Год назад +12

    The contracting business is a minefield and the government actually assist the corrupt system that leaves home owners so vulnerable.

  • @paxundpeace9970
    @paxundpeace9970 Год назад +26

    Construction loans are often even more expensive then a mortgage.

    • @edmund6392
      @edmund6392 Год назад +3

      Construction loans are ALWAYS more expensive than a mortgage.

    • @taipizzalord4463
      @taipizzalord4463 Год назад

      No. Its another trend that boomers blame millennials for killing like Home improvement stores and Napkins. Because if you are asking for 300K to buy a house. They think (rightly) that it should be in a habitable condition. But I guess they are entitled for that.

  • @alexandra109
    @alexandra109 Год назад +6

    Existing homeowners are also being REQUIRED to do renovations on their homes. HOA and Homeowners Insurance are requiring more work than ever before. I’ve heard stories on the HOA side and personally have had issues with my Homeowners Insurance. I’ve had several people I know have inspections in the last year and required work on their home including, work to cut trees, gutters, install new shutters, replace windows/doors, etc. So that they won’t have large claims they will need to pay out. I’ve had 2 companies threaten to cancel me if work wasn’t done timely and I haven’t had a claim in 15 years and my home is in good condition. But claims in my area have gone up with some recent disasters and this is how homeowners companies are addressing these issues.

  • @jon6309
    @jon6309 Год назад +22

    I think it depends on the situation. I’ve seen people buy really good deals with fixer uppers but it requires a lot of work and that’s where the value saved really goes to so you have to value your time to determine if it’s worth it. If I inherit my home I would fix it up but my sister thinks it’s more economical to knock down the home and rebuilding.

    • @yaimavol
      @yaimavol Год назад +4

      The professional flippers are thinking twice though. It's a lot more risk now

  • @michellekaiser-eo6lg
    @michellekaiser-eo6lg Год назад +2

    We bought a rehab house. It eats money and time. In about a year, it will all calm down. Though I'm absolutely done with friends pretending I'm in a typical fix up. Have you ever replaced rotten subflooring? Or found out that your ductwork was MIA? Most people have small issues that can wait. This house is a job right now!

  • @debbiecreter2005
    @debbiecreter2005 Год назад +2

    That’s not what’s happening in our area and surrounding areas around us! Fixer uppers and outdated houses are going above asking prices which are already exhorbitant! The supply is so low in desirable areas that people are grabbing at everything.

  • @jamesd6717
    @jamesd6717 Год назад +1

    Misleading title... Thought they were talking about the finished product. Ehhh whatever. It's situational either way!

  • @jerrynadler2883
    @jerrynadler2883 Год назад +6

    No data provided, just a bunch of nonsense being spewn. You can't even find an affordable fixer-upper home. They've all been picked up by sleazyhome flippers instead of young couples with energy, time, and a budget.

  • @johnsmith1882-x2i
    @johnsmith1882-x2i Год назад +4

    Who wants to carry a 2nd home (cant live theee while fixing), overpay for contractors (if they even show up), and risk prices falling?

  • @tritondriver1
    @tritondriver1 Год назад +1

    It's no HGTV - finished after the commercial break

  • @carefulconsumer8682
    @carefulconsumer8682 Год назад +5

    I like these short "Money Briefings." Great interview. Contractors are very expensive now. New houses are selling within 12 days where I live and prices have not dropped one iota.

  • @Jgjginkg244
    @Jgjginkg244 Год назад +2

    Not true as of July 07, 2023 in Silicon Valley SF area. Fixer uppers are $2M with highest interest in decades, there is not enough fixer uppers are available for developers to buy. Fact.

  • @stoundingresults
    @stoundingresults Год назад +6

    Anybody remember the Family Guy episode where Stewie and Brian go into the house flipping business? Giggity.

  • @danjohnston9037
    @danjohnston9037 Год назад +2

    The way she draws out saying " certain timelines, certain costs "
    You know she has personal experience with that
    She has been there

  • @525Lines
    @525Lines Год назад +4

    A tenth of an acre where i could put up a tent would be nice.

  • @daisymillikin3425
    @daisymillikin3425 Год назад +2

    cause people are too broke to buy in cash and need banks to approve the cost of a finished home

  • @tom.733
    @tom.733 Год назад +1

    I’m working on a house for a customer in Santa Cruz, Ca and it’s made of redwood and is 102 years old. No Sheetrock, no insulation, no paint. He’s trying to sell it but no one wants it because it’s a total fixer upper. It’s a $650k wood cabin. 😂😂

    • @18_rabbit
      @18_rabbit 8 дней назад

      interesting. Is the fire insurnace a problem for it there? How about other expenses for it annually? How far from the ocean?

  • @25787fdshj
    @25787fdshj Год назад +1

    Flipped homes with Gray floors 👹👹👹

  • @NathanBChampine
    @NathanBChampine Год назад

    There are homes under $80K that are in need of repair. However since most mortgage lenders don't want to touch anything under a $100k these days most of the properties are going to have to be cash deals only and if you are a first time home buyer you are SOL

  • @Reezy884
    @Reezy884 Год назад +1

    Ummm cause it’s expensive….

  • @DrDRE4391
    @DrDRE4391 Год назад +2

    We've heard this hype from Realtors for decades. "You want to have the house in the best presentation to get the best buyer".
    The house is the house. If the buyer wants something different or improved, it's up to them. They are the buying the house as it is. Changes are up to them.

  • @motiftripper
    @motiftripper Год назад +2

    It's definitely the contractor thing.

  • @eegernades
    @eegernades Год назад +2

    Let the people who do fixer uppers lose money. Especially the flippers.

  • @RB-kh6fo
    @RB-kh6fo Год назад +3

    Bad contractors. Duh

  • @typxxilps
    @typxxilps Год назад +1

    From 2% to 6% mortgage is just 3 times the previous costs and therefore not much to expect.
    Also buyers had to negotiate longer to get the seller on the new value of the home cause demand is stalling which is a hard job.
    Right now people have lost motivation to build a new home due to high interest and therefore it gets easier to find someoone to fix a home but prices are still high for the service or a lot higher than before.
    And who knows if once the inflation had been fought back to the 2% we have had before if the interest rates will become that low as before. Most likely in the EURO zone cause the weaker economies from the southern half rely on cheap money to achieve the investments needed to create new jobs. Too high interest rates would kill the investment and job generation so there is a huge pressure from the south for cheap money and guess what ?
    Governments in the Euro zone also prefer low interest rates which makes it a lot easier to add more debts to the budget.

  • @auro1986
    @auro1986 Год назад +2

    better to live in tents

  • @BradSmith-ej3pq
    @BradSmith-ej3pq Год назад

    Cash app investing platform has been tampering with My dividends. I have reasons to believe they're holding on to My dividends for more than 2 days & stealing it from Me.

  • @PG-tc6os
    @PG-tc6os Год назад +1

    This is no news!!! We all know that 😂😂😂

  • @PG-tc6os
    @PG-tc6os Год назад +2

    This investment could be a good move if the economy is coming out of recession but right is not the time

  • @bobroberts2371
    @bobroberts2371 Год назад +1

    Don't forget the current crop of younger buyers don't want to work for what they want. ( RE pay my student loans off because I don't want to )

  • @edvinlopez9420
    @edvinlopez9420 Год назад

    I disagree if your a honest contractor u will get the work but the only problem are the customer they want it cheap they think they are in the era of 2016 or 2018 they don’t think contracts have to spend money to do the job on gas and their workers and tools on trucks on trailers on insurance etc they think all that money on the estimate will be a huge profit to the contractor. And then when they hire someone that does it cheap the either steal money from them or never complete the work or they do a bad job.

  • @ebutuoy5088
    @ebutuoy5088 Год назад

    Hiring a contractor is easy. Remodeling your own home is alot more work.

  • @derpskipfukington6578
    @derpskipfukington6578 6 дней назад

    She sounds like AI. He sounds like AI too. Come to think of it, all of these WSJ interviews sound like AI.

  • @MrWaterbugdesign
    @MrWaterbugdesign Год назад

    Entitlement.

  • @IsmailAuston
    @IsmailAuston Год назад +1

    1st

  • @jsmith2132
    @jsmith2132 Год назад +1

    Veronica .. you are uniformed and unqualified !