Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Don't overthink it.
It's just another property to sell.
Make it as clean as possible.
No junk in it.
Comply with all disclosure requirements.
Get it on the market with clear stipulations that you will repair nothing.
If your local market is a sellers market, like so many are, you will have no problem getting offers.
You sound like you might benefit from having a good agent help you. It should be easy to find an agent who can help you get the best deal selling a fixer.
Quote:
Originally Posted by evening sun
Find the right agent, be upfront that you are not spending a dime on repairs & price it realistically. It is not going to sell for the same price as a home that has been remodeled. When we have been looking for homes to buy, it astounded me, how many people expected top dollar for dumps. Waste of time, even looking at them.
MikeJ is 100% right. The greater Sacramento area is a strong sellers market right now (I have property in Rocklin) so you should get it listed ASAP.
When I sold my parents' house a few years ago, we just cleared out all the furnishings, hired a cleaning service (recommended by the R.E. agent) and put "no repairs will be made" in the listing. The house sold within 3 days for $50K over asking.
First thing I would do is get an inspection. That is for your future protection, re: disclosure. Put it in a binder for people to peruse when showing the house and also make it available digitally to forward to prospective buyers.
Have the house cleaned within an inch of its life.
If there is carpet over hardwood, I personally would have it taken up, no mater what the state of the hardwood floors are, just to show there are hardwood floors and not nasty carpet.
Have all of the windows/screens professionally washed.
Paint all the walls white.
Get rid of all furniture and junk.
I would use an essential oil diffuser, but that's me.
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!
Last edited by Turo_Rudi; 02-03-2021 at 04:28 AM..
Reason: word choice
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!
Auctions are not always a last resort option. When my husband died I sold our house at auction because I was moving immediately to an investment property I already owned and wanted a quick sale. I didn't want to pay for any repairs and knew that the house was in excellent condition anyway. I knew the auctioneer and he got the auction scheduled for 3 months after my husband's death. The price paid was full market value according to local comps. The buyer paid the buyers premium which took the place of seller's commission fees. I ended up with a decent profit and was happy with the whole process, as there was only one preview day right before the auction instead of repeated showings.
What kind of things are wrong with it (how much termite damage? What is wrong with HVAC?) How about roof, siding, interior, etc, what does it look like visually?
What kind of things are wrong with it (how much termite damage? What is wrong with HVAC?) How about roof, siding, interior, etc, what does it look like visually?
Termite damage is limited to one corner of the house (caveat: as far as we know). HVAC needs full replacement. House is inhabitable, it's just very dated and has had minimal upkeep for decades. The buyers are going to want to do a comprehensive renovation.
"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.
Honest OP, MikeJ was right. Make life easy on yourself.
Quote:
For one thing, bank loans aren't available, so that rules out most owner-occupants as buyers.
Not generally true. It depends on what is wrong with the house. When we sold my parents' place the HVAC hadn't worked for years. The purchasers had no problem getting a loan.
Quote:
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."
Oh, 100% not true, especially in the strong Sacramento area sellers market we're in . WTF? What is this "source?" Inventory is the lowest it's been in years. Facebook & NextDoor are loaded with pleas from people wanting to buy who've been looking for months. RE agents need listings to do business. They will be happy to take yours. Have you spoken to any RE agents yet?
Quote:
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.
Sure there are, but I'm not sure you need one. You just need somebody who can get the place on the MLS and set up showings.
Quote:
The last-resort option seems to be to sell to a cash-buy company.
Your instincts are correct. Stay away from these guys, they are looking for desperate sellers and that doesn't sound like you.
Quote:
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.
The big issue you have with FSBO is that you are a self-described RE "newbie." You don't have any idea what goes into a RE contract, how to research comps, and how to protect yourself if things go south. Save the FSBO for when you've had a little more experience. (I almost sold a condo FSBO trying to save the 6% commission. I ended up not completing the deal, listing with an agent, and selling for about 25% more than what I would have accepted FSBO.)
Quote:
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.)
Again, do you know this for a fact? Have you even talked to an agent about your options? I don't understand why you would want to enter into a contract with a "flipper" in this hot market when a clean sale would be so easy to get! Keep it simple! List it, sell it, be done with it.
Quote:
* 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.
Save your money. If you know there is termite damage, all you have to do is disclose the fact in the contract. It is up to the buyer to do an inspection & determine whether the infestation is active and how extensive it is. If I were a buyer, I wouldn't trust your inspector and would hire my own anyway.
Quote:
* Is it worth having a contractor come in and give an estimate of all the work that needs to be done?
No, let the buyer decide what work he/she wants done.
Quote:
* 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.
Again, save your money. If your buyer wants bank financing, the bank will get its own appraisal anyway. An experienced RE agent will have a good feel for the market and will certainly suggest an appropriate listing price for the property, given its condition.
OP, the Sacramento area is in an extremely strong seller's market, with both RE agents and prospective buyers starved for listings. We are also in an era of historically low mortgage rates. Either one of these very favorable conditions could change quickly. You have an opportunity to take advantage of the current market. Talk to a good, experienced RE agent or two or three.
Termite damage is limited to one corner of the house (caveat: as far as we know). HVAC needs full replacement. House is inhabitable, it's just very dated and has had minimal upkeep for decades. The buyers are going to want to do a comprehensive renovation.
My dad's old house was the same, he didn't do much while living there except keep up on the hot water heater and furnace. It hadn't been painted in over 20 years. They both smoked in the house, it reeked bad.
My neighbor was a jack of all trades, he painted after I washed the walls and moldings in the worst rooms. He also used Killz. I painted the front door. My neighbor also updated the kitchen counter. My hub updated the lighting fixtures. They both ripped out the carpets. I did a good cleaning. It looked like a whole different house. The only thing that really needed done after that was renovating the 1967 blue tile bathroom. Kitchen cabinets were in great shape, just needed cleaned.
My dad got a really good price for the house.
Quote:
Originally Posted by Turo_Rudi
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!
There are plenty of people looking for cheap houses to flip. The real estate agent that lives down the block from me has contacts looking for them.
You really should call 3 local real estate agents, have them look at the house as is and give you their opinion. It's free. Some may tell you to paint and rip out carpet and call it a day, maybe even update the lighting like we did. They should be able to tell you what you'll get as is and what you'd get if you put a little money into it.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Just do it!
