Selling As Is Home

[naranjero]

Investors will typically take 70% of what it would be worth in good repair, and then deduct what the repairs will cost. What is the land worth?

[crestliner]

Originally Posted by naranjero

Investors will typically take 70% of what it would be worth in good repair, and then deduct what the repairs will cost. What is the land worth?

You mean a house that would sell for 100k and needs 25 k in repairs should be sold for 45k? That sounds crazy.

[MrRational]

Originally Posted by crestliner

You mean a house that would sell for 100k and needs 25k in repairs should be sold for 45k?
That sounds crazy.

A house where the comps **that don't need any work** are selling for $100,000...
that needs **an estimated** $25,000 in repairs offers no motivation to anyone but a
speculator to pay anything at all for it.

No one intending to live there could do that deal.
98% of $100,000 buyers will have enough trouble just finding closing cost money.
No bank will finance them on a house that isn't habitable.

But whatever that sale price might be it must be less than the $75,000 implied... right?
Otherwise, what is the motivation for taking on the several risks involved... right?
Breaking even? Of course they'll want some profit for taking those risks... right?

So... how much less than that $75,000 do you consider a reasonable margin?

I can't see a penny more than $50,000 being paid by anyone with a clue...
but I also surely wouldn't start the negotiation at that point. Would you?

[399083453]

Originally Posted by crestliner

You mean a house that would sell for 100k and needs 25 k in repairs should be sold for 45k? That sounds crazy.

Yep. If the house cant qualify for a mortgage because its in such bad condition, that disqualifies almost everyone. That only leaves cash buyers. And cash buyers bid really low, and usually get it because there is no one else to sell to.

As a cash buyer, I can wait for years, decades, to find a place at a good buy, can the seller? Usually not.

[redheadstar]

There is definetly a market for "as is" homes, you will evidently find a buyer.