Profile picture for barbeehd

Inherited old house (in a trust). Needs so much work, rehab that no one wants it. Can't afford the t

Inherited house is in IL. I live in AZ. My income won't qualify for another loan. The bank trust officer said they can't help. If I can't rehab it, it will sit there, have to pay utilities, taxes, vacant homeowner insurance. Impossible situation. Don't know where to turn.
  • November 27 2012 - US
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Answers (4)

Best Answer

Profile picture for StuartSantana
Speak to a local Realtor, and have them give you their fair opinion on the property.  For SOME of my clients my best advice is:  Let's market this as a sweat equity property and do nothing to it.  Most often my sellers net more than if they had gone through the costly rehab project--but at the same time a potential "do it yourself" kind of buyer walks into a property needing to only worry about materials, etc = win/win scenario.

Best wishes from So-Cal and good luck

  • November 27 2012
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If you price it right, you will have no problem selling it to an investor. To do this, find out what the comparable houses (sq ft, bed/bath, style (ranch, two story) have actually sold for in the surrounding 5 miles in the last 6 months. You can find this on zillow or a realtor can help. Then determine what the average price per sq ft was.  This will give you your After Repair Value (ARV).  Start with 75% of this value. Then subtract the estimated cost of repair.  That will be your starting price for negotiations.  If an investor buys it, he/she will still have to pay another 10% for closing costs and junk fees, another 5% at least for oops fees, something for holding costs while they do the fix up (same ones you have to pay), 3.8% for the new Obama care tax on RE, and then they will need some room for a profit if they sell it after all that work. They will probably not sell it at retail (ARV), because they will want to sell it quickly.  This is a low cash option, but it can quickly solve your problem. If you want to know more, let me know. Good luck either way.  It's a hassle to deal with any property out of state...

  • December 03 2012
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Profile picture for SoCal Engr
Maybe try finding a charitable organization that would accept the house as a donation and invest money/labor to make it habitable again? Kind of the house version of donating vehicles to charity? If you could make it work, you'd at least be able to (a) unload the property, (b) realize some benefit on taxes, and (c) possibly help someone who could appreciate the house.

Without doing any real research, here's a potential starting point. If nothing else, they might be able to point you in the right direction.
  • November 27 2012
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You could try to sell it yourself. Take pics and post it on Craigslist, this will at least let you see if someone is interested in it. Remember , every month you hold on , is a minus. So sometimes selling for a price today may be worth more than double tomorrow.
  • November 27 2012
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