I know the houses on my 19148 block that sold for very cheap (140k or less) had major issues including: the entire roof needing replacement; all new plumbing in basement and/or all new electrical to upgrade from pre-1940's knob and tube wiring. Sadly, the owner of one of these cheap houses died in the home and wasnt discovered for several days creating a biohazard situation reuiring the house to be gutted and the wood floors beneath to be heavily sanded down to remove the odor and stains.
Additionally the neighborhood is transitioning from Italian-Americans to Asian, who approach the home buying process very differently. Many are still seeking the rock bottom prices of a couple years ago while others only look at the final price on the last home sold and expect the same price regardless of the condition of the house.
Either way, the trend for these bargain hunting buyers seem to be lowballing offers by 20% without budging and just moving onto the next house on the market if their offer is not immediately accepted - no negotiations, no exceptions.... more
Capital gains tax. If you bought it for 20,000 and sell it for 100,000 when you sell it you have to pay capital gains tax on around 80,000. It gets added to your income The amount of tax is determined by other income etc. Good thing its a long term gain so its taxed lower than normal. Also you can delay the taxes by reinvesting into another investment property through a 1031 exchange. There are specific rules involved with 1031's so be sure to consult an adviser.
As they will either have to sell the home on the open market or sell to an investor, they will probably offer you substantially less than you might gain on the open market. In the past, these kinds of companies specialized in distressed properties, estates, etc where the owner wanted to cash out quickly and wasn't concerned with getting top dollar.
You can certainly talk to their representative about what they would offer for your home. But before signing with them (signing ANYTHING) talk to two or three local real estate agents and ask them what you could get for your home on the open market. And also ask them to provide a rough estimate of what you will NET from the transaction after real estate fees, taxes, etc as this will give you a clearer comparison between the offer you get from 1 800 sell and what you would get selling the traditional way.... more
This may well be a curb appeal issue. It may also be an issue of the cleanliness of the street, or parking in the vicinity. Also, what are the lifestyle upsides or your property? What you are trying to determine is 'Who is the ideal buyer', so that you can fine tune the marketing.
Although you have reduced the price, it may remain 'Overvalued'.
I strongly recommend that you speak with a seasoned realtor to digest the entire problem and come up with an effective plan of action.
If you are not already working with a professional, I am happy to work with you.
Charles Balducci, 215.531.2000
What is 'lots of showings'? A house like you described could take a little longer to sell, but that doesn't mean anything is wrong. If you have had 10-15 showings, then you might want to think about dropping the price a little and being patient. If it is more like 30 to 40 showings, then you really need to think about making a change.
A lot of buyers in a lower price range don't have the spare cash to fix things up themselves, so they may be looking at your home and thinking that they will have to live with it that way for several years until then can save the cash to renovate. So doing some of the work yourself may pay off.... more
i wouldnt walk away from the home and let the bank foreclose. that will be a mess for you for years to come. If your home is getting the showings you are priced right or near right. have your agent contact the prospective buyers agent asap after the showings and see if the floors are an issue as well as any other reasons they chose not to buy your home. It is your job as the home owner to take measure to correct the negative feedback. If the floors are the only issue with the house than find a way to fix them and offer to pay for it or credit the buyers at settlement. i think it would be better for you & your credit to spend a little now rather than be denied for everything you want or need to buy in the future.... more