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Answers (9)
- John Wurster, "John Wurster"
- Contributions:34
As with all value-related questions, "it depends". But the decision whether or not to make repairs prior to listing it may depend on how the rest of the home shows. Knowing that buyers will discount the home by more than the actual cost of repairs, you may still not want to spend the money on a new roof and plumbing if the rest of the home (floors, stucco, kitchen, etc.) is in disrepair. You may be better off not spending any money and simply pricing it as a "fixer". BUT be sure to ALWAYS disclose the problems your home has or you'll be paying for it in a lawsuit later.
- Maggie Clemens & Janine Richardson, "MaggieandJanine"
- Contributions:2
This it is a tough one.... we don't believe there is any one set formula for figuring the price of your home. Many things must be taken into consideration: amount of work that needs to be done, as well as the overall condition. But right now investors are stepping up! And while the compariables in your area are a main consideration, the location is still a key factor!
We have many investors that will buy your property "as is!"
- Tim Gullicksen, "Tim Gullicksen"
- Contributions:129
Yes, I think there is a simple formula for figuring it out. Get bids for the work that needs doing and then subtract the total from the value of your house if it were fixed up. The market is fairly rational about this stuff so you will likely be able to sell at that price. If not, at least it's a good place to start the pricing and you can negotiate with potential Buyers from there.
Best of luck!
Best of luck!
- Gretchen Papineau, "HomesofAndover"
- Contributions:1016
One way to determine the value would be to have a Realtor research the value based on the current comparables with average or good condition, and then subtract the cost of the estimates of the repairs needed.
The other way would be to compare your property with properties that have similar conditions, or foreclosures that may also have sub standard conditions.
The other way would be to compare your property with properties that have similar conditions, or foreclosures that may also have sub standard conditions.
- Cory La Scala, "San Diego CA Realtor"
- Contributions:419
Hi Diana,
You just need a Realtor to help you out with value, we compare homes every day to determine a likely sale price. Having a contractor give you a cost to repair everything would be a good start, at least so you know what the house could feasibly sell for. You'll likely have lower cash offers from investors of course, but more buyers are using rehab loans too. And, Del Cerro is an area buyers like, so that will help with value too!
Feel free to call with any questions.
Cory
Realtor
Independence Realty
You just need a Realtor to help you out with value, we compare homes every day to determine a likely sale price. Having a contractor give you a cost to repair everything would be a good start, at least so you know what the house could feasibly sell for. You'll likely have lower cash offers from investors of course, but more buyers are using rehab loans too. And, Del Cerro is an area buyers like, so that will help with value too!
Feel free to call with any questions.
Cory
Realtor
Independence Realty
The best way to figure out what your home would sell for is to have a Realtor send you the comparable sales in the area. You can compare the condition of those homes to the condition of yours and adjust the values appropriately. If you would like to email me with your address I would be happy to send you over a CMA, Comparable Market Analysis, which will give you the listing and selling price per sqft, as well as other valuable pricing information. I would also be happy to swing by to take a look at the home to give you an idea of what it would sell for.
As far as buyers getting loans on the property which was mentioned above, there are a lot of rehab loan programs which are designed specifically for 'fixer' homes.
Please contact me if we can help in any way.
Lauren Lombardi
The Graham Lombardi Team
As far as buyers getting loans on the property which was mentioned above, there are a lot of rehab loan programs which are designed specifically for 'fixer' homes.
Please contact me if we can help in any way.
Lauren Lombardi
The Graham Lombardi Team
- wetdawgs
- Contributions:26830
One rule of thumb I bumped into recently is that buyers tend to deduct twice the cost of repairs from the house relative to market value. Therefore, get some estimates for the repairs and price accordingly
- Marcel Lange, "PointLomaHomes"
- Contributions:15
Hi Diane,
Be prepared for most offers to be cash offers from investors since some fixer upper repairs can doom a buyer getting loan approval in today's market. With a good idea of what you home is worth in the area minus the costs to bring it up to fair market value, you can expect offers on your home to be low, yet cash offers are normally 'As-is' and can close fast. If I can be of assistance to get you detailed information on your neighborhood and what you can expect, please contact me.
Sincerely,
Marcel Lange
San Diego Realtor since 1992
Be prepared for most offers to be cash offers from investors since some fixer upper repairs can doom a buyer getting loan approval in today's market. With a good idea of what you home is worth in the area minus the costs to bring it up to fair market value, you can expect offers on your home to be low, yet cash offers are normally 'As-is' and can close fast. If I can be of assistance to get you detailed information on your neighborhood and what you can expect, please contact me.
Sincerely,
Marcel Lange
San Diego Realtor since 1992
- SoCal_Engr
- Contributions:5666
Yeah. Get 3 estimates for each repair (from a licensed contractor, not Pick-up Phil), and then substract the average costs from a realistic CMA...and then be prepared to have buyers bid under that.
Some of the fixes (e.g. "hole in wall") are more aesthetic than structural (i.e., "leaky roof") and you may be surprised at how little the cost is to actually repair these items. An added incentive to fix the aesthetic issues is that these are much more likely to turn off potential buyers on a "first look".
Some of the fixes (e.g. "hole in wall") are more aesthetic than structural (i.e., "leaky roof") and you may be surprised at how little the cost is to actually repair these items. An added incentive to fix the aesthetic issues is that these are much more likely to turn off potential buyers on a "first look".
How would one deterine value of a "fixer" property?
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