Specific Niche - Posted by Carmen_FL
Posted by Carmen_FL on January 20, 2003 at 10:58:16:
These guys are more than likely working a specific niche market. If the house itself can appraise for $425,000, then there will be no problem. I do think that appraising is an “art”, not a “science”, and as long as you stay within reasonable boundaries, you can get the number you ask for.
They probably waited almost 6 months so that most banks wouldn’t consider it a “flip”. They could also be working with several relocation departments in big companies, who work specifically with executives, etc. to find them a place to live, maybe for a few years only. Especially foreign individuals. I have worked with these executives, and they don’t want to lug their furniture over from Europe or Latin America for a couple of years … but would rather buy than rent (for the appreciation, dollar-based investment, etc.) So they store their furniture, and buy new stuff here, and sell it again when they move back. If these guys could find a “turnkey” house, they’d jump at the chance!
So, assuming you are only looking for a specific type of buyer (and if Joe Blow off the street walks in and LOVES it, so much the better for you), it could be a good niche.
It may also be a good idea for another reason: many people, when they move, don’t have enough money to buy new furniture, but they would if they could since their “stuff” won’t fit in so well (especially first-time-homebuyers, divorcees who had to split what they already owned, etc). So, if you sell them a “fully furnished” house, which is, technically, financed by the bank … all costs included in their mortgage payments, with no more out-of-pocket expenses … I can see where this would be appealing! In S. Florida, it’s often the case that retirement homes are sold furnished. Me, personally, although I’m supposed to be an “emotional woman”, I’m not attached to my furniture; nor am I a “home decorator”. So, if I have a chance to buy a fully furnished, decorated “model” home … I’d jump at it over a blank-walled empty house (all other things being equal) … and would even pay more for it! So, where there’s a niche, there’s a profit to be made.