Zarn, Home Seller in McKinley Park, Chicago...

How do you price out a home that needs a lot of work and want to sell as is.?

Asked by Zarn, McKinley Park, Chicago, IL Thu Jul 16, 2009

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5
Hi Zarn,

The recent sales will be the best indication of the selling price.

In the past three months the McKinley Park single family homes have sold between 160K-$220K. There was also one foreclosure home that sold for $50K.

It is uncommon for a gut rehab house to be listed for sale in McKinley Park. In fact, it is possible that the house you want to sell is in average condition by the neighborhood standards. Most of the homes are over 100 years old and have been gradually fixed up over the years. The existing homes that go on the market are rarely in mint condition.

Two bedroom homes are more difficult to sell in the McKinley Park neighborhood, because buyers are looking for at least three bedrooms. Also, McKinley Park buyers prefer brick homes over frame homes. A location within a few blocks of the Orange Line stop is also preferable to McKinley Park buyers.
2 votes Thank Flag Link Thu Jul 16, 2009
Z
Let the market pick the price.
Price it 20% below market and hang on!

Multiple offers will help you to find true value. Multiple offers will also help justify the price the an appraiser
1 vote Thank Flag Link Thu Jul 16, 2009
Keith Sorem, Real Estate Pro in Glendale, CA
MVP'08
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The process of doing a market analysis is not that much different for the type of property you describe than for a 'regular' house. I compare bedrooms/baths etc and if I cannot find other houses in the area that also need a lot of work, I just need to discount the value based on the prices of similar homes that are in normal condition.
There will usually be fewer potential buyers out there loking for a a house needing TLC and it may take longer to sell, but there also may be people looking for such 'bargains'.....if the price is right. The condition of the house may also affect whether buyers can even get a mortgage for it. Getting a mortgage is much more difficult than 3 years ago, even for 'normal' condition houses!
If I knew more details I could give you a more precise answer. Please contact me via my web site.

philip
0 votes Thank Flag Link Thu Jul 16, 2009
Price it for 10-20% under the comps and wait for the low ballers to call!
0 votes Thank Flag Link Thu Jul 16, 2009
You've got to compare the home to both current available inventory as well as the recently closed sales. Price it accordingly. An agent who knows this area especially well can probably give you an accurate estimate without even seeing the property. Although visiting the property would be a must before pricing and listing the unit. Good luck.
0 votes Thank Flag Link Thu Jul 16, 2009
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