Home Selling in Torrington>Question Details

Ms. Fitzgera…, Home Seller in Torrington, CT

What is best way to sell distressed 2 family home in torrington. Needs cleaning, updating, plumbing work.

Asked by Ms. Fitzgerald, Torrington, CT Mon Jan 19, 2009

Woud accept 100,000 as is condition . House is valued at $140 to 160,000. Has new roof, huge garage and carport. Are there financing programs available now to potential buyers? Any market for fixer-uppers?

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There is a huge market for Fixer-Uppers. Your going to have to price it under value to give the buyers some 'sweat equity' to work for. You will start to attract Cash Buyers / Contractors / Investors at about 75% of the After_Repair_Value minus Repairs.
0 votes Thank Flag Link Mon Feb 23, 2009
I just sold one at the end of last year and one so far this year. If your not already represented by a Realtor feel free to contact me. I am in the center of Litchfield and would be more than happy to offer representation.
0 votes Thank Flag Link Thu Feb 5, 2009
I agree with Dan. You need to figure out who your target buyer is. The highest sale price will always come from someone who intends to live in the home. If the property is livable then you can target these folks. However if the home is inhabitable, then your buyer base gets a lot smaller. Most banks don't lend money on homes that need lots of work. While fix up money is out there, that like all money is harder for buyers to get nowadays. Also most folks are not interested in taking on a big project unless there is a significant financial gain involved.
If you can't find an owner occupant buyer, you'll likely sell to an investor. While that may be the way to go to, you will net less going that route. Investors won't pay top dollar, unless the place is just a complete a cash cow.
In a perfect world you improve the property before selling. That may not always be possible. Like Dan said, I think you need to get a professional to come evaluate your home so you know exactly what your proceeds look like from every direction.
Good Luck-
Web Reference: http://www.homesbyminna.com
0 votes Thank Flag Link Tue Jan 20, 2009
Ms. Fitzgerald,
There is always a market for distressed properties. The best way to sell it will depend on what the most likely buyer will be (owner occupant or investor). If you look at the property from an investors viewpoint, does it make sense? An investor will look at all of the expenses, purchase price, rehab costs, operating costs, etc. and the potential income, then see what the potential cash flow could be. If those numbers don't work out favorably at or near your asking price, then the only investor offers will probably be below what you want to get for it or you are left looking for an owner occupant.
Don't be discouraged by this. For first time buyers that can't afford a mortgage on their own, this is a great way to get started owning real estate. There are many financing options available, but they would depend on the condition of the property. Is it habitable now??? How did you determine the value?
The bottom line is that you need an agent that is familiar with multi-family properties to sit down with you and evaluate what you have, and then discuss with you the best way to accomplish your goals.
Once you have determined the most likely buyer profile, all marketing efforts should be designed to best capture that target audience.
Hope this helps
Web Reference: http://www.danrossre.com
0 votes Thank Flag Link Tue Jan 20, 2009
My suggestion would be to have a home inspection completed prior to putting it on the market. Have the inspection available for potential buyers who will then know exactly what they are getting. Otherwise you risk selling it and then having a buyer back out if his inspection reveals more than he was expecting.

There is a decent market right now for fixer uppers much of it investors.
There is FHA financing available for home buyers that need repair money.
0 votes Thank Flag Link Tue Jan 20, 2009
As a buyer I would never trust a seller initiated inspection. I don't even trust my agent's recommendation and yes, I speak from experience on both sides of the transaction.
Buyers, do your own search for an inspector independent of what your agent recommends. Agents will say and do anything to sell in this market.
Flag Thu Apr 19, 2012
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