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Old 09-05-2019, 08:54 AM
 
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What would be the best strategy, in your opinion?

We are having a house built out of state that will be completed in one year. Our current home, that needs about $20k in repairs to have it in almost perfect condition, is in a fairly hot neighborhood, in which all the homes were built in 1988-89. There were 26 homes listed in our community as of June 1, with 21 being sold and closed within three months. Average listing price was $426k, average sold price was $422k, and average time on the market was 20 days. A home that was almost an exact duplicate of ours in perfect condition, that had been a "flip", sold for $444k in three days. (The flip price was $326k, so the buyer made a heck of a profit, I think.) Another "duplicate" home of ours sold for $442k, and it took 16 days to sell. Of the five homes that did not sell, three were removed for unknown reasons, and two of the home sales fell through between the time of the accepted offer and closing.

Now, from what I have read in this forum and also heard elsewhere, people are reluctant to buy a house "as is" or one that looks "worn" and/or neglected. So, even though our house is basically in good shape (we spent about $50,000 in repairs and remodeling in the seven years we have lived here), based on the feedback we received, if we do not fix it up, (1) we would get much less than the appraised value of similar houses, or (2) we would not be able to sell it at all next summer. (We would not like to list it before then, just in case it does sell, because our new house won't be ready in time, so we would be "in limbo".)

When we tried to sell our house three years ago at $395k, the two main drawbacks were our worn carpet and the oddly shaped back yard. Additional work needed now includes replacing a bathroom vanity and sink, sodding the backyard, repairing/replacing the front door that is out of alignment, possibly replacing a couple of large windows, installing a new garage door opener, and doing some touch-up paint on both the interior and exterior -- so if we do go the "fix it up" route, it would be much better for us to move to temporary quarters (because of not wanting to risk ruining the new carpet) while the repairs are being done and after the house is listed, but that would both be very expensive and a PITA.

So, in your opinion, as we MUST sell it next summer, would you advise:

1. Listing it for $400k-$425k, without doing any fix-it work, and taking a chance that it will sell
2. Going the sure thing "We Buy Ugly Houses" route without doing any fix-it work, although it will probably mean less profit for us
3. Fixing it up at huge expense (about $30k total including the expense of living elsewhere for about three months), and realizing that it might not sell, anyway, in our desired time frame
4. Another suggestion?

Of course, we would like to get as much profit as we can, but as long as it sells for at least $350k after commission and repairs (including temporary living quarters), we would be fine.

Thanks in advance!

P.S. I did start a similar thread last spring, but I now have more accurate information, so I am hoping for some new opinions that are based on this updated info.

Last edited by katharsis; 09-05-2019 at 10:14 AM..
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Old 09-05-2019, 09:07 AM
 
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List at a good price, with a credit toward new flooring. The buyers may want wood/tile/laminate for all you know.

List early in the "buying season" and you'll minimize your time in transitional housing. Expect to have some expenses and PITA here, as it sounds like you'd be better off doing this than carrying both houses at the same time.

Do not try to time everything perfectly. Plan now for a "worst-case scenario" of 3-4 months in some type of temp situation. I've never built a house that closed on time.
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Old 09-05-2019, 10:00 AM
 
Location: The Triad (NC)
28,942 posts, read 63,105,012 times
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Quote:
Originally Posted by katharsis View Post
When someone absolutely MUST sell a house by a certain time
What would be the best strategy, in your opinion?
Best? Expect to forego any notion of selling at any certain price.


TL;DR... if you want (need) to also get the best price then deal with the petty question mark issues.
Condition, repairs, appeal, etc so the only discussions held are the ones that lead to the contract.
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Old 09-05-2019, 10:33 AM
 
Location: Raleigh NC
9,837 posts, read 7,449,632 times
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so you're saying 420K - 20K - costs of selling must > 350K? I'd definitely spend the money, because the chance you sell for under 400K without prepping the house are pretty good.

I'd add - the "oddly shaped backyard" ... nothing you can do about that, and will it deter enough folks from buying? Does it make yours worth LESS than 420K?
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Old 09-05-2019, 10:41 AM
 
7,327 posts, read 1,605,169 times
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Quote:
Originally Posted by BoBromhal View Post
so you're saying 420K - 20K - costs of selling must > 350K? I'd definitely spend the money, because the chance you sell for under 400K without prepping the house are pretty good.

I'd add - the "oddly shaped backyard" ... nothing you can do about that, and will it deter enough folks from buying? Does it make yours worth LESS than 420K?
Thanks to you and the others for replying, but I am not sure I understand what you meant when you said that you'd "spend the money because the chance of you selling for under $400k without prepping the house are pretty good." So, does that mean that you think that if we make no repairs whatsoever and list it for, say, $399k, that we would almost definitely sell it in less than a month, if the market in our neighborhood is the same next year as this year?

Also, if the house is listed and sells at $399k, with the Realtor commission and closing costs, we are looking at a net of slightly under $375k, but then we would not have to deal with all the things that could go wrong between an offer being accepted and the actual closing. I am just wondering if "losing" about $25k by going the "We Buy Ugly Houses" route would be worth not having the worry finding a buyer the usual way. (I think this would be more of a question for others who have gone that route than for real estate professionals. )

Also, in other posts, I have read that people will see a low price on a house that needs repairs and try to take it down even further, and that listing a house "as is" is an instant turn-off to most buyers. Is that true in your experience?

Thanks again for your reply!

Last edited by katharsis; 09-05-2019 at 11:02 AM..
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Old 09-05-2019, 11:41 AM
 
Location: Columbia SC
9,232 posts, read 7,981,684 times
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Low price and do not say as is. Wait for an offer with contingencies and deal with the contingencies. Like do not answer a question before it is asked.
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Old 09-05-2019, 11:44 AM
 
Location: North Idaho
23,079 posts, read 29,414,289 times
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If average sale price is $422 for a house in good condition and it will cost $20,000 to get your house to that point, simply list the house for $402K and someone will snap up the bargain if the market is hot. If you give up another $2,000 and list at $399,000 you will bring in a lot of interest.



Odd shaped backyards are easy to fix with clever landscaping and that doesn't have to be expensive.


I always recommend new paint inside. It makes an enormous difference for not a lot of cost. Light neutral color, every room the same color.
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Old 09-05-2019, 01:45 PM
 
Location: East Coast
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What are you doing to the carpets that you think you will destroy them in three months?

I would NOT move out -- that negates waiting to list your house.

Put in the new garage door opener now, so you enjoy the use of it. Repair the front door and do those paint touch ups.

Consult a realtor -- actually consult 3 or 4 of them and ask their opinions on list price, when to list, whether to replace the carpet, and any other repairs they think need to be done. What happened in the three years since you last listed to the vanity and sink in the bathroom? Did something break? Did it somehow get destroyed or severely blemished? Or is it just that it seems older and more outdated now? (And it doesn't seem like it would really be more outdated now versus three years ago).
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Old 09-05-2019, 01:55 PM
 
7,327 posts, read 1,605,169 times
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Quote:
Originally Posted by chicagoliz View Post
What are you doing to the carpets that you think you will destroy them in three months?

I would NOT move out -- that negates waiting to list your house.

Put in the new garage door opener now, so you enjoy the use of it. Repair the front door and do those paint touch ups.

Consult a realtor -- actually consult 3 or 4 of them and ask their opinions on list price, when to list, whether to replace the carpet, and any other repairs they think need to be done. What happened in the three years since you last listed to the vanity and sink in the bathroom? Did something break? Did it somehow get destroyed or severely blemished? Or is it just that it seems older and more outdated now? (And it doesn't seem like it would really be more outdated now versus three years ago).
Thanks for your reply.

1. We have senior pets, including a cat who can destroy a patch of carpet in a matter of hours. (And, yes, we have tried scratching posts and scratching pads to no avail. Our stairs are his favorite place to do this.)

2. The bathroom vanity counter has a large crack, and my husband wasn't happy with it or the sink faucet and sink after we replaced them because the water splashes outside the sink. (It was just a bad fit, our fault.) He has been "living with it" for about five years and it is an irritation to him. We are now thinking of getting an all-in-one vanity instead. (It is his bathroom.)

Again, we do not want to move until next August, minimum, depending on when our new house will be finished, so we don't plan on making a final decision in May AFTER we talk to at least two Realtors. (There is one Realtor that is very active in our specific neighborhood, and most people think very highly of her.)

Last edited by katharsis; 09-05-2019 at 02:21 PM..
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Old 09-05-2019, 02:18 PM
 
Location: Columbia SC
9,232 posts, read 7,981,684 times
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Kat

Get the sale/money as soon as you can. Rent temporarily near your new home and get use to the area. We had to do this one time as our new construction home was 6 months late in being delivered.
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