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Old 02-04-2021, 12:42 PM
 
3,602 posts, read 7,864,093 times
Reputation: 9174

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Quote:
Originally Posted by Turo_Rudi View Post
Hello! OP here.

I've been reading (and taking notes on!) all your helpful advice. Thanks to everyone who's responded so far.

I just wanted to give everyone time to comment. I've found on other forums that when the OP returns, the thread's often considered "complete" and no further comments are made.

"Don't overthink it," wrote MikeJaquish. OK, I hear you -- but you have a lot more experience than I do. I'm a newbie, and I feel like I need to do the research.

The more I read online, the more it seems to me that selling a house in poor condition really is a niche market with its own set of circumstances. For one thing, bank loans aren't available, so that rules out most owner-occupants as buyers.

Real estate agents will tend to make these houses their last priority because their commission will be low. One source says, "Most agents will refuse to list it until you undertake the recommended repairs and renovations."

You'd think there would be agents specializing in estate sales or as-is sales, but I haven't heard of that being the case.


The last-resort option seems to be to sell to a cash-buy company. I don't feel that desperate. I'm not under time pressure to sell, and we don't need the proceeds from the house right away.

I don't know anything about auctions yet. That seems like another last-resort option.


I've thought about FSBO -- after all, staging the house isn't necessary, and showing it won't require any finesse either. But I've read that not using an agent is a red flag to many buyers.

I'm assuming the buyer I'd make the most from would be an individual investor or flipper. Ideally, what I'd like to do is to offer really easy payment terms as an incentive for a small investor to come in and do their own renovation based on their own preferences. (After all, bank financing will be unavailable.) Perhaps it could be a win-win. But I don't know what kinds of terms I could propose and how that could be structured.


My other questions:

* Would there be any reason not to have a pre-listing inspection done? Personally, I want to be upfront and transparent about all the house's problems (esp. the termites). But some people online think the seller should minimize his own legal liability by staying ignorant and that the buyer should be solely responsible for having all those problems documented by an inspector they hire themselves.

* Is it worth having a contractor come in and give an estimate of all the work that needs to be done? I'd imagine that involves not one contractor but several, though -- and maybe it's really up to the buyer to envision the renovation.

* To find out the house's market value, should I have a pre-listing appraisal done? Seems like a CMA from a real estate agent would not be enough to take into consideration the house's condition.

Many thanks for your input!

You seem to be insistent on not doing this the simple and obvious way.

Good luck.
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Old 02-04-2021, 05:24 PM
Status: "Made the Retirement Run in under 12 parsecs!!!" (set 4 days ago)
 
Location: Cary, NC
43,074 posts, read 76,623,012 times
Reputation: 45393
Quote:
Originally Posted by rational1 View Post
You seem to be insistent on not doing this the simple and obvious way.

Good luck.

Eh.
I incinerate steaks on the grill when it would be easier to have them done right at a restaurant.

And,
Everyone has to try something once in their life, I guess.
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Old 02-06-2021, 11:09 AM
 
Location: NJ
23,804 posts, read 33,292,662 times
Reputation: 30646
Quote:
Originally Posted by Turo_Rudi View Post
Hello! OP here.

I've been reading (and taking notes on!) all your helpful advice. Thanks to everyone who's responded so far.

I just wanted to give everyone time to comment. I've found on other forums that when the OP returns, the thread's often considered "complete" and no further comments are made.

"Don't overthink it," wrote MikeJaquish. OK, I hear you -- but you have a lot more experience than I do. I'm a newbie, and I feel like I need to do the research.

The more I read online, the more it seems to me that selling a house in poor condition really is a niche market with its own set of circumstances. For one thing, bank loans aren't available, so that rules out most owner-occupants as buyers.

Real estate agents will tend to make these houses their last priority because their commission will be low. One source says, "Most agents will refuse to list it until you undertake the recommended repairs and renovations."

You'd think there would be agents specializing in estate sales or as-is sales, but I haven't heard of that being the case.


The last-resort option seems to be to sell to a cash-buy company. I don't feel that desperate. I'm not under time pressure to sell, and we don't need the proceeds from the house right away.

I don't know anything about auctions yet. That seems like another last-resort option.


I've thought about FSBO -- after all, staging the house isn't necessary, and showing it won't require any finesse either. But I've read that not using an agent is a red flag to many buyers.

I'm assuming the buyer I'd make the most from would be an individual investor or flipper. Ideally, what I'd like to do is to offer really easy payment terms as an incentive for a small investor to come in and do their own renovation based on their own preferences. (After all, bank financing will be unavailable.) Perhaps it could be a win-win. But I don't know what kinds of terms I could propose and how that could be structured.


My other questions:

* Would there be any reason not to have a pre-listing inspection done? Personally, I want to be upfront and transparent about all the house's problems (esp. the termites). But some people online think the seller should minimize his own legal liability by staying ignorant and that the buyer should be solely responsible for having all those problems documented by an inspector they hire themselves.

* Is it worth having a contractor come in and give an estimate of all the work that needs to be done? I'd imagine that involves not one contractor but several, though -- and maybe it's really up to the buyer to envision the renovation.

* To find out the house's market value, should I have a pre-listing appraisal done? Seems like a CMA from a real estate agent would not be enough to take into consideration the house's condition.

Many thanks for your input!
Can you post to tell us what you decided to do? I see you're still logging in, obviously reading replies. You don't comment much so I'm not sure who's advice you're liking or not liking. Where is the house located? Are you nearby or far away?

Curious if you're going to call 3 realtors to get their feedback. I think going to the pros for free advice should be the 1st thing you do.

I made this realtor questions thread when I was looking for an agent in 2007. Some of the questions may be dated but some may be helpful to you Agent Questions for sellers. It can be easily copied and pasted into word or notepad.
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Old 02-06-2021, 12:23 PM
 
Location: planet earth
8,620 posts, read 5,597,657 times
Reputation: 19638
Quote:
Originally Posted by Turo_Rudi View Post
Hello! OP here.

I've been reading (and taking notes on!) all your helpful advice. Thanks to everyone who's responded so far.

I just wanted to give everyone time to comment. I've found on other forums that when the OP returns, the thread's often considered "complete" and no further comments are made.

"Don't overthink it," wrote MikeJaquish. OK, I hear you -- but you have a lot more experience than I do. I'm a newbie, and I feel like I need to do the research.

The more I read online, the more it seems to me that selling a house in poor condition really is a niche market with its own set of circumstances. For one thing, bank loans aren't available, so that rules out most owner-occupants as buyers.

Real estate agents will tend to make these houses their last priority because their commission will be low. One source says, "Most agents will refuse to list it until you undertake the recommended repairs and renovations."

You'd think there would be agents specializing in estate sales or as-is sales, but I haven't heard of that being the case.


The last-resort option seems to be to sell to a cash-buy company. I don't feel that desperate. I'm not under time pressure to sell, and we don't need the proceeds from the house right away.

I don't know anything about auctions yet. That seems like another last-resort option.


I've thought about FSBO -- after all, staging the house isn't necessary, and showing it won't require any finesse either. But I've read that not using an agent is a red flag to many buyers.

I'm assuming the buyer I'd make the most from would be an individual investor or flipper. Ideally, what I'd like to do is to offer really easy payment terms as an incentive for a small investor to come in and do their own renovation based on their own preferences. (After all, bank financing will be unavailable.) Perhaps it could be a win-win. But I don't know what kinds of terms I could propose and how that could be structured.


My other questions:

* Would there be any reason not to have a pre-listing inspection done? Personally, I want to be upfront and transparent about all the house's problems (esp. the termites). But some people online think the seller should minimize his own legal liability by staying ignorant and that the buyer should be solely responsible for having all those problems documented by an inspector they hire themselves.

* Is it worth having a contractor come in and give an estimate of all the work that needs to be done? I'd imagine that involves not one contractor but several, though -- and maybe it's really up to the buyer to envision the renovation.

* To find out the house's market value, should I have a pre-listing appraisal done? Seems like a CMA from a real estate agent would not be enough to take into consideration the house's condition.

Many thanks for your input!
Getting an inspection up front protects you. That's why you do it. You have a duty to disclose and getting an inspection illustrates you have done due diligence in going over and above in disclosing - so not hiding anything.

In not getting an inspection of your own, problems down the line could be blamed on you not disclosing stuff you "should" have known. There is no downside to disclosing - you don't claim expertise, just goodwill, from my POV.
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Old 02-07-2021, 11:46 AM
 
10 posts, read 7,926 times
Reputation: 45
Hello! OP again.

I decided to use a real estate agent. I will indeed interview at least three real estate agents beforehand. (Thanks, Roselvr, for your link to a list of questions for agents!) I want to find someone who's experienced and committed and who'll work within my parameters (I'm not making repairs!).

I also want to have a pre-listing inspection done. I'm not sure yet how to stipulate in the contract that "as is" means just that, to pre-empt potential lawsuits after the sale.

As with other parts of settling the estate, when it comes to selling the house, the more I learn about all aspects of it, the more prepared I feel and the better I feel. For me, there's no real downside, and only an upside, to reading up on what to expect. So I'll continue to learn as much as I can.
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Old 02-07-2021, 12:55 PM
 
Location: 89052 & 75206
8,099 posts, read 8,246,716 times
Reputation: 19900
Years ago I sold an inherited house in CA. I learned (back then) that unless sold directly to a contractor/licensed Real Estate Agent that it was mandatory to repair termite damage before the house can close in CA if the buyers need a traditional mortgage. Don’t know if this is true.

Back then, Bay area, the realtor we chose (among 4 interviews) convinced us we could sell as is for about $750K but close to $1M if we had it updated. So we spent about $110K doing repairs (including tenting the house for termite extermination, pool pump and new HVAC) using a great contractor. We sold the place for $1.3M the first week it hit the market. We didn’t need help with paying for repairs but the realtor actually had some financial resources for us if we’d needed them.

Just a thought — it worked out well for us.
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Old 02-07-2021, 02:25 PM
 
Location: NJ
23,804 posts, read 33,292,662 times
Reputation: 30646
Quote:
Originally Posted by Turo_Rudi View Post
Hello! OP again.

I decided to use a real estate agent. I will indeed interview at least three real estate agents beforehand. (Thanks, Roselvr, for your link to a list of questions for agents!) I want to find someone who's experienced and committed and who'll work within my parameters (I'm not making repairs!).

I also want to have a pre-listing inspection done. I'm not sure yet how to stipulate in the contract that "as is" means just that, to pre-empt potential lawsuits after the sale.

As with other parts of settling the estate, when it comes to selling the house, the more I learn about all aspects of it, the more prepared I feel and the better I feel. For me, there's no real downside, and only an upside, to reading up on what to expect. So I'll continue to learn as much as I can.
You're very welcome. You can also google questions for real estate agents when selling there are a few links with questions.

My dad's house was as is. Totally forgot. No issues selling as is


Quote:
Originally Posted by WorldKlas View Post
Years ago I sold an inherited house in CA. I learned (back then) that unless sold directly to a contractor/licensed Real Estate Agent that it was mandatory to repair termite damage before the house can close in CA if the buyers need a traditional mortgage. Don’t know if this is true.

Back then, Bay area, the realtor we chose (among 4 interviews) convinced us we could sell as is for about $750K but close to $1M if we had it updated. So we spent about $110K doing repairs (including tenting the house for termite extermination, pool pump and new HVAC) using a great contractor. We sold the place for $1.3M the first week it hit the market. We didn’t need help with paying for repairs but the realtor actually had some financial resources for us if we’d needed them.

Just a thought — it worked out well for us.
Agree that the OP should ask what the input is for as is verses putting a little cash into it painting and carpets. It may bring a substantial amount. I'm glad we updated my dad's apartment some. We took it down to wood floors.
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