Home Selling in 60563>Question Details

Marykay, Home Seller in 60563

When is it better to sell to a builder vs. selling as a single family home on double lot?

Asked by Marykay, 60563 Sun Jul 8, 2012

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Answers

6
Price and conditions will advise you as to the direction you should proceed. Are you considering selling as a tear down in Naperville?
0 votes Thank Flag Link Wed Jul 25, 2012
The quick answer is when the price and terms are right for you. However, i suggest some due diligence on your part to determine highest and best use of the property. Is the condition of the home a detriment to the overall value and you are better selling the parcels for the land knowing the house is a tear down? There are many questions you need answers to, to determine which is best for you. Is the home in the middle of the 2 lots or is the home in the middle of just one of the lots such that you can sell the other outright? What is the zoning and future use of the land according to the city? Will the city allow townhomes or multi-family units, which could make the land more valuable? Is the property incorporated or unicorporated? If unincorporated, where is the nearest water and sewer lines? Will the city require you to incorporate if the land is subdivided into 2 or more lots?
If your situation is such that you can hold on to the property, you might be better to hold off when prices start to appreciate again and new construction starts to rebound. If a builder is ineterested now in a down economy, another builder will be interested when the market returns and demand is higher. However, if the property is a burden with upkeep (both interior and exterior) then you have to weigh the expenses of upkeep and property taxes (carrying costs) versus taking the money now and be free of the burden of repairs and upkeep.
Ultimately, the decision is yours to make, but make the decision based on facts so you know you did the best that could be had.
0 votes Thank Flag Link Mon Jul 9, 2012
Hi Marykay,

The best option will be to hire a Realtor or a professional appraiser to first determine the value of the home with the double lot or just the double lot before considering selling to the builder or putting it on the market.
Good Luck.
Shahzana Ripp
0 votes Thank Flag Link Sun Jul 8, 2012
Hi Marykay, the simple and correct answer is of course based on which option is currently valued higher and taking into account your motivations. The tricky part is knowing what the market might bear with each option. Usually, the best way to determine this is to have a professional market analysis done for both options by a Realtor and then put the property on the market in such a way that markets to both audiences and watch and assess the results. This assumes that the value might be rather similar either way. If there is a clear higher value option, then you might just market it in one way. There is some luck of timing involved that might just swing it either way. In any case, marketing the property on the open market (as opposed to a private bid) will usually net the best result. Good Luck and of course I am available to offer my services if you may wish.
0 votes Thank Flag Link Sun Jul 8, 2012
Thank you for your response! The house has been updated with new kitchen and baths, new mechanicals, etc., but I mostly see tear-downs in this neighborhood. It's also a corner lot with some commerical zoning options on a major street. We'll have to think about this and decide if we want to pursue either at this time.
Flag Sun Jul 8, 2012
Mary Kay,

Unless you feel very strongly that the home should remain on the property, it purely depends on which option offers the better price. I would be happy to offer my expertise in helping you determine the value of the single family home versus the value of the double lot (teardown).

Your timing is excellent. Call or email and I'll tell you why.

Sincerely,

Ken Gerrans
john greene, Realtor
630-946-4688
kengerrans@johngreenerealtor.com
0 votes Thank Flag Link Sun Jul 8, 2012
The house has had many new features added in the last 5 years, new roof, fiber cement boarding siding, new HVAC, appliances, remodeled kithcen and bathrooms, all new windows and doors, and backyard patio. Still it's a brick house built in the '50's with an addition in the 70's with virtually no storage, curb appeal, no bathroom on first floor, and odd stairways. I hate to put more money in it without knowing if it would sell as a house or tear down. How much is an appraisal?
Flag Sun Jan 20, 2013
Marykay,

Do you have an offer from a builder? If so, does the price satisfy you? Also, it might matter where your home is located. A family might love to have the double lot. Please let me know if I can help.

Marianne Hofmann
Broker, e-PRO
Charles Rutenberg Realty of IL
630-664-9472
mariannehofmann@att.net
Web Reference: http://mariannehofmann.com
0 votes Thank Flag Link Sun Jul 8, 2012
Thank you for the response. I live in North Naperville near the train, Downtown, schools, and 88. I don't have an offer from a builder, I'm interested to know which options yields more money.
Flag Sun Jul 8, 2012
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