But with housing prices and interest rates rising, he said, fewer buyers have materialized: “I have a lot more property today in my inventory that I’m holding than I ever did.” That means reselling in six to eight weeks, he says, rather than three to five weeks.
Meltcher says the market has attracted amateurs who cut corners, which creates a negative ripple effect.
“I see a lot of armchair investors coming into the market and not taking the time and energy to do things correctly,” he says. “People take a lot of shortcuts. People think it can be done cheaply, that quality doesn’t count. They’ll put in new carpet and paint and walk away.”
When the restoring of a home isn’t up to par, he said, it won’t appraise for top dollar, which hurts comparable property sales nearby.
©2013 The Orange County Register (Santa Ana, Calif.)
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