sell 'as is' or 'fixed up'

[LRS]

Jug has a point. I recently sold my parents' house as is, cash on the barrelhead. We figured the minimum fix-up for meeting code/loan approval would be in the neighborhood of $10,000. Now we are watching to see if the buyer "flips" it. I figure if they paint, replace carpeting, tear down non-code structures in the back yard, put in all-new gutters, re-roof the garage and a few other niceties, they might be able to get their investment back plus a few thousand. Or maybe not. The market is not what it used to be, and the house is a "unique" property (one bedroom, one bathroom).

I have no regrets. Since it was sitting empty and uninsured, I am glad to have it off my hands.

[cute fuzzy bunny]

Sounds like a good time for a 5 gallon can of gas and some 'careless' activity that ends badly.

[sgeeeee]

A smart buyer will prefer the house "as is" so they can get a lower price and do the repairs their way.

My experience is that there are almost no smart buyers.

If you don't do the painting and needed repairs, you will likely pay for it in time on the market and price.

[cute fuzzy bunny]

Quote:

Originally Posted by sgeeeee My experience is that there are almost no smart buyers.

Ding ding ding!

I remember househunting with a former girlfriend. She'd turn down a property because she didnt like the tile in one of the bathrooms or because the house had too many trees on the property... :

[ladelfina]

Yeah, when I bought my house in '93 (2-family in a desireable area of Boston), it was listed at $180k. I hired a fancy RE lawyer complete with monogrammed shirt to deal with the negotiations (more than worth his $2k fee) who got them down to $133k after inspection. "Comps" were running $220-$240k. One wall was literally peeling away from the rest of the house.. you could stand in the second-floor LR and look down at the sidewalk outside from the 3" crack where the ext. wall and the floor were supposed to meet!*

Charles is right:

Quote:

the average person greatly overestimates the cost to repair issues in a home

Actual cost to re-build about half the foundation and haul the wall back into place about $12k. Big new two-story deck $16k (to replace dangerously rotting old one; coulda been half that with cheaper materials and a more traditional, smaller design). New garage doors $1-2k.

I could have stopped there, but, flush with my "good fortune", I blew the rest of the difference on a swanky new kitchen, new baths, new plumbing, new electrical, architect, moving walls and doors, refinishing floors, painting, etc. ..young and foolish, I guess..but I did love the K&B and miss them to this day. Anyway, upshot was that I got exactly the house I wanted, spending less than I would have for a normal "non-fixed-up" property. All because nobody else could get over the sickening feeling of seeing the street below peeking up through the LR floor.

Even 10 years afterward, there weren't really any similar houses that were as nicely fixed-up so mine sold in a week. Moral: if you're a seller, it's worth fixing up, at least cosmetically and to keep in line w/other market properties (go to some open houses in your area). And, if you're a buyer, it's worth fixing up as well, IF you have a competent inspection, good negotiating skills, and good luck. I think the reason most buyers don't is probably time constraints. 2 people working w/2 kids would not have taken on my poor, broken house. I was renting down the street and worked from home, so I had the flexibility to run over if there was an issue. Also, it's probably easier to finance a higher mortgage off the bat than deal with a mortgage and then coming up with cash or loans for repairs.

As tryan says, absolutely do the paint and get carpets cleaned unless they are ragged, in which case, replace. Some degree of staging is important, as is de-cluttering. The sad thing about selling my house was how great it looked while we were showing it (all spic & span!.. not its usual state, unfortunately).

-in the fixer-upper camp

[brewer12345]

Quote:

Originally Posted by sgeeeee A smart buyer will prefer the house "as is" so they can get a lower price and do the repairs their way. My experience is that there are almost no smart buyers. If you don't do the painting and needed repairs, you will likely pay for it in time on the market and price.* *

Heehee, you should have seen my house when I bought it. In pretty decent overall shape (aside from needing some minor stuff), but the previous owners had an, um, unique sense of decoration. The furnace service guy walked in the house, looked around and said "wow! they must have smoked a lot of pot!" Some paint, spackle and wallpaper and the house looked great. Sat on the market for months and they had to whack their price a couple of times before we came along.

[tryan]

Quote:

Neighbor with same house recently did a 35K fix up with new kitch, top of the line and 2 new bathrooms and new windows.

Yeah ... don't go to this extent thinking of re-sale value; do it because you want to live in it. Your nieghbor got lucky and got his $$ back. Most rehabs like this return 60-70 cents on the dollar ... less as they age.

My MIL dropped ~100k into her kitchen and was told (buy the installer) her house would appreciate 115k. I told her it was more like 70k ... she said I don't know what I am talking about; to which I said "and I am also NOT selling you anything".

[unclemick]

Hmmm

Back in 1993 in ole SW Washington - sold my Mom's 1898 Vic as is - 4 yrs as a rental - new roof and paint visible from the outside - finally got flipped.

Our house in MO had been sitting vacant for a yr(85k for 3 bedroom, 1 bath, handicap modified, 1200 sq ft). Two lots across the street. Adding new wood floor and painting all rooms - needs lawn care and landscaping and a few cracks in the driveway patched.

Then - Spec build on the two lots? Sell *this house after two years?

Alas - life in the burbs gets confusing. Not in a hurry though.
Heck - still haven't bought that kayak yet - and warm weather is almost here. Going to 70 again - maybe.