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My house is in a very hot location and builders will demolish it to build a very expensive home. They have already demolished 2 on my street. What is the best way to make the most profit from selling it. thanks
My house is in a very hot location and builders will demolish it to build a very expensive home. They have already demolished 2 on my street. What is the best way to make the most profit from selling it. thanks
If it were me, I'd run a FSBO (For Sale By Owner) ad on the house/lot and put a high price on it. If someone meets your asking price, then sell it. If they want to dicker on price, tell them you'll consider their offer along with the other offers you expect to get in the next couple of months and then get back to them. You'll quickly find out which ones are tire kickers and which ones are serious buyers.
My house is in a very hot location and builders will demolish it to build a very expensive home. They have already demolished 2 on my street. What is the best way to make the most profit from selling it. thanks
I don't think selling a teardown is really much different than selling any other houses. You really have three choices:
1. Use a real estate agent
2. Sell FSBO
3. Sell to an iBuyer
Quote:
Originally Posted by Chas863
If it were me, I'd run a FSBO (For Sale By Owner) ad on the house/lot and put a high price on it. If someone meets your asking price, then sell it. If they want to dicker on price, tell them you'll consider their offer along with the other offers you expect to get in the next couple of months and then get back to them. You'll quickly find out which ones are tire kickers and which ones are serious buyers.
You could do that but if you could hire a pro to help you and it would cost almost nothing then why not do it? At least in my area, agents will often work for very low commissions to sell your house as a teardown. The expectation is that the builder who buys your house will then list the new construction home with them. So, you can get all the benefits of working with someone who sells houses day-in and day-out without having to pay the normal commission structure.
This is #3 on my list and without a doubt the absolute worst option on the list. These guys are typically flippers and not home builders. So it sounds like they're not the right fit for this property. Also between the fees they'll charge, the inspection items they'll require you to repair, and the below market price they'll likely offer you; you would likely net more if you were to hire an agent and list it.
These services are really only for people that need money fast and/or want to avoid the time commitment of the traditional selling process. Getting money fast or easy though always comes at a cost.
Also, don't be too quick to forget about companies like Zillow cancelling all of their iBuyer purchase contracts at the start of the pandemic. Many these companies left home sellers high and dry this past Spring and these sellers had no recourse or compensation to make them whole.
My house is in a very hot location and builders will demolish it to build a very expensive home. They have already demolished 2 on my street. What is the best way to make the most profit from selling it. thanks
FSBO. What I would do if I was selling FSBO is tell the buyer no agents. In turn I pick up closing costs to be reimbursed at closing. This way they get something in return which is fair and I keep more of my money.
So you're saying that agents are selling pocket listings "off market," en masse in Silicon Valley?
Wow.
Wonder what the State Board of Real Estate thinks about that.
Who cares. It’s not like it doesn’t happen. If it didn’t happen there wouldn’t be a term for it. When I was home shopping 5/6 years ago there were a lot of houses that just showed up recently sold but were on the market for literally hours. And poof pending then sold.
Now I know every agent out there will tell you they are all on the up and up but I bet not all of them run straight and narrow.
You really think every house out there that sells goes through the list wait pending sold princess? I bet there are areas in cities where agents have people who are pocket buyers. You really think every agent out there doesn’t play around a bit? Money tends to make people do things they ma not usually do. Anyone remember the agents who would throw dead rats over fences, sabotage listings, go have affairs in listed homes...yeah agents are all angels. They never skirt the rules.
Dude I used to work with a guy who was a agent. Guy had money cars houses. Ended up going to jail for all kinds of stuff. falsifying records, liar loans and applications, he said back in the mid 2k’s he said the fraud was rampant but nobody checked. The only reason they arent doing the same crap is because the more stringent loan rules which have loosened imo.
Wait till these Bespoke Tranche Opportunities start failing. It’s just another name for CDOs.
Last edited by Electrician4you; 12-04-2020 at 06:00 PM..
My house is in a very hot location and builders will demolish it to build a very expensive home. They have already demolished 2 on my street. What is the best way to make the most profit from selling it. thanks
I think the question has been answered already, so let's add a twist first before repeating those options:
You hire a builder to put a new house there, and then you sell that house. You could probably find one to do a cost + 10-13% for you. The general model for builders is to ALSO profit from the lot; builders typically shoot for at least 15% and these days perhaps 20% of the TOTAL cost of the home.
So, instead of you "profiting" just from selling them your lot, you'd also get an extra 2-10% of the total sales price of the final home.
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