Home Selling in Swampscott>Question Details

Anonymous, Home Seller in Massachusetts

for an old 2-family is it worth renovating, even slightly, in advance or just sell as is?

Asked by Anonymous, Massachusetts Thu Sep 27, 2007

The house needs a ton of work. Just inherited it. It literally needs about $100,000 worth of work (well, guessing, but we've done construction on our own house so we have an idea...) but we don't have that kind of money to spend now on this property. Also not sure when to put on the market -- this fall or wait until the spring, when i know it's traditionally a better time to sell. Plus, now is a bad time here in the Boston area for selling a home. Your help is much appreciated - thank you!

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If the home needs that much work and you don't have the money, sell it. You may consider holding it for a while to see if the market changes, which could happen in the next 6 - 9 months. Spring is probably the best time to sell and get the most money on this investment. Also, consider borrowing the money from your own home (if you can) to make the repairs. Only make the repairs if your return on investment is substantially more than $100,000. Be sure to get several opinions on the current value and what the value may be worth one year from now.
Web Reference: http://www.TheBoyceTeam.com
1 vote Thank Flag Link Thu Sep 27, 2007
An "as is" property is not going to naturally fetch a better price by waiting a few months. Since you inherited the property and you don't have cash to restore the home to fair market value, I'd suggest you sell it right now as is. Get what money you can as soon as possible and move on. Restoring a home isn't a guarantee that you'll get back what you put into it. Much of the time you don't. Don't believe everything you see on real estate "flip" TV.
1 vote Thank Flag Link Thu Sep 27, 2007
There is nothing "wrong" with a house that a price won't fix. Sell it "as is". There are many first time home buyers, construction guys etc who would love to get a hold of something like that ( for the right price) and
do a re-hab. I wouldn't wait out the winter - price it right and sell it. Interest rates are still good. For you, it is all about pricing. Speak to your realtor.
0 votes Thank Flag Link Tue Nov 6, 2007
It sounds like you should get opinions of value based upon the current condition of the home. I would avoid doing any work to the home. Let the future owner renovate. I assume that the house is vacant and not generating any rental income. If vacant, I would speak with several agents to get price opinions and determine who will do the best job marketing the property. Once you choose an agent, place the property on the market ASAP even though we are getting close to the holiday season. While you may find a buyer that will occupy the home, it is also likely that an investor will buy it and rent out both units. Investors are always out looking no matter what the season. On the North Shore, investors also realize that it is a great time to buy - slower market, low interest rates and high inventory levels. Best of luck.
0 votes Thank Flag Link Mon Nov 5, 2007
Unfortunately, there is no traditionally "good" time, in this market. In the spring the home will be worth less. I usually recommend people renovate if they're planning on spending a couple of years in a home. That way the can enjoy it themselves. most improvements don't add that much value in the market, they just make the home SELL! Might as well enjoy those improvements while you can.
0 votes Thank Flag Link Mon Oct 8, 2007
Not nearly enough information, Anonymous! Leaving money on the table is something I would never recommended.
A trusted Real Estate agent would be your first step. Ask Him/Her about your homes' current market value, and it's potential maximum value. Next, list your specific proposed changes and expected return and ask local contractors for quotes on construction costs.
Many home builders and subcontractors are looking for work now, with the new construction market slowdown, and financing your renovation work with the homes equity, or even finding a contractor willing to accept partial payment after the sale is a very real option if the right incentive is provided. This "bad market" is providing many options that were previously unavailable.
And frankly, anyone that can give you next years value on your home, after expenses, would be dealing with a crystal ball which doesn't come with a Real Estate license.
The truth is, the market has only adjusted in most areas of Massachusetts by about 8% over the last several years. If you use a 5% margin of era in calculating your improved value looking towards a springtime sale, you should be able to get the answer your looking for, a significant profit, if it's there to be had, and not be left second guessing your decision.
0 votes Thank Flag Link Mon Oct 8, 2007
I would have to agree with Carrie. Sell in the present condition and I would put it on the market now. This sounds like a project for an investor/contractor and investors look all year round. Make sure it's priced right. A contractor can get all the interior work done during the winter and then finish up any exterior work in the spring and it's ready for sale in the spring. If you wait till the spring to put it on the market, anybody who buys it, will have to do the work during the "prime" real estate season and then put it back on the market in the fall. While whoever is buying it may not buy it just to rehab it, but should consider that as a possibility. That's why I think putting it on the market is the best choice. Good luck.
Web Reference: http://www.go2kw.com
0 votes Thank Flag Link Thu Sep 27, 2007
Ute Ferdig -…, Real Estate Pro in New Castle, DE
I would sell as is and price it accordingly. As far a when to sell. That would be up to you! If you have the property priced right in its present condition, I would be sure to market to investors or folks that would want to buy, fix up and resale. Good luck!
Web Reference: http://carriecrowell.com
0 votes Thank Flag Link Thu Sep 27, 2007
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