Phoenix, AZ · Member since 2015 · 17 posts · 8 votes
I personally love the mid-century modern 'sensibility' but having a hard time convincing my client that it would be a worthwhile investment.
It's a hi-rise apartment unit being sold in "vintage" condition - the kitchen is original from 1964, even the oven! Which is retro-cool and still works, btw. Client would rather gut it and bring it up to date, but that would run at least $35K (still waiting for contractor's final numbers). I would rather he keep the original features and work around that (also le$$ to remodel).
My question - is that something mainstream Arizonans would be interested in? Seems like mostly young, urbans gravitate towards that style, which might limit his re-sale market. (ie, young meaning 'no money to buy')
Or should he just go with the newer townhouse which is $20k more, but would require just cosmetic updates?
Property Manager · Seattle, WA · Member since 2010 · 60 posts · 8 votes
11y
Hi DeAnna, This is a question dear to my heart. On one hand , as an investor you need to look at trends to know your end game, but on the other hand there is an environmental concern as well. (You have to sleep at night right. ) If your client is looking to flip this property and folks are going for the "midcentury vibe, I would recommend that the rehab be done with some of the " timeless architecure intact. Keeping items like ;Slate entry way, fun lighting, layout etc.. while changing items that are functionallly obsolete like the stove( sorry) , maybe electrical , cabinets etc. Some of the materials used in the 60's were and still are superior quality to what you can buy. This would be kind of a Hybrid type of rehab.
If however, midcentury styles are not the rage, I would sway on the newer townhouse as this makes more sense , especially if the market is hot.
Of course , all of this really depends on the end game of your client.. Which as a Realtor is what you would need to determine from him.
I can't attest to Arizona , but in Seattle they pay a little more for "Modern" amenities, as well as " Craftsmen style " homes. And buyers with money include both young and old.
I think in any profession it's easy to throw your "Biases" into a scenario but ultimately your client is paying you for your experience in laying out the pros and cons and then letting him/her decide.... Which is not always easy.
Aurora, CO · Member since 2012 · 2k+ posts · 1k+ votes
11y
well, the last thing you want to do is talk your buyer into anything. One speck of buyer's remorse and who's the goat? You.
Personally I get the aesthetic appeal of a retro 60's apartment, but from a practical point of view: 1960's high rise condo = maintenance nightmare = ever rising HOA fees = no worthwhile exit strategy. I've seen beautiful old high rise condos selling for 30k that have monthly HOAs in the $600-700 range.
IMO: from an investment standpoint the townhouse wins, hands down
Property Manager · Scottsdale, AZ · Member since 2015 · 113 posts · 77 votes
11y
I think hipster is making a big push in AZ (at least in Tucson it is). I really like the concept of freshening the place up while leaving in some of the components from the past. You could market it as "retro chic" and get a higher asking price. And for the record I say keep the stove but see if you can get it refurbished, maybe in a bright red!
Phoenix, AZ · Member since 2015 · 17 posts · 8 votes
11y
@Elizabeth Blazina, I feel your pain, lol. As most investors, they're just focused on the $$ bottom line and don't have the vision to see the bigger potential. I think it's my job to educate them :-) that's why I'm trying to convince him the vintage hi-rise might be better as a buy/hold; whereas the townhouse would be better as a flip. Whichever one he chooses, I suggested he can have it listed both for sale and for rent ... whichever happens first.
This is the oven/burner that's in the unit now - I like that it's SS and can easily fit in with modern appliances - so charming!
@Elizabeth Blazina, I feel your pain, lol. As most investors, they're just focused on the $$ bottom line and don't have the vision to see the bigger potential. I think it's my job to educate them :-) that's why I'm trying to convince him the vintage hi-rise might be better as a buy/hold; whereas the townhouse would be better as a flip. Whichever one he chooses, I suggested he can have it listed both for sale and for rent ... whichever happens first.
This is the oven/burner that's in the unit now - I like that it's SS and can easily fit in with modern appliances - so charming!
Property Manager · Seattle, WA · Member since 2010 · 60 posts · 8 votes
11y
DeAnna,
I must admit that is very cool... And in all likelihood it was probably made to last... But if it ever does need repair that could be a problem...Ask me how I know.
You will have to keep us posted on your clients decision..