Are there any experienced real-estate people here?

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TheBogleWay
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Are there any experienced real-estate people here?

Post by TheBogleWay » Thu May 17, 2018 10:34 pm

I have an important question to ask you all and I'm hoping there may be an experienced real-estate person browsing here so you can help guide my family on what to do.

My grandparents have a large home in one of the fastest booming areas in the US - the PNW. Not only that, but the area of their house is one of the really fast/growing cities, just exploding in the last few years. The issue is, they're ageing and can't support the big house. It's about 3,500-4,000 sq feet, but they have almost no money or retirement due to health issues. They need money badly and we're hoping this house helps them have some sort of income outside of SS.

The house, despite it's big size, overlooking a golf course, and prime location/city is almost a tear down. It was built in the 60s and hasn't really been updated since, and it's very obvious in certain areas like the bathroom with pink tile and an old toilet/etc. The yard is not well kept and certain parts of the back deck are rotting. It's on a hill. Single pane windows, etc. I suspect as it is right now, it's worth maybe $700,000 give or take. They also have a reverse mortgage on it meaning they owe probably $400,000 to the bank, so a profit of $300k with a sale right now.

The house needs to be sold. The longer question summarized is this. I am no real estate expert in any way, just a normal guy with a decent understanding of value. If I were to personally invest say... $15,000 (give or take??) into the absolute basics of the looks of this house purely for the sake of increasing the sales value, would it be worth it?

I can't do something like investing $100k, but I could consider $20,000 to hire some random people to fix up the yard, maybe put wood over the bad parts of the desk to cover it up, and maybe paint the house.


I'm really just wondering if a $20,000 investment in basic looks (curb appeal) would increase the value of the house maybe $40,000 or more. Does it work like that? The profit from this house will be their retirement so I'm hoping to maximize it.


I've heard a few real estate agents say "no, leave it as-is and sell it" but as I looked further into it, I suspect that's because they wanted to invest the $20k for $50k back themselves and flip it. I can't be sure though and would like advice.



Thank you

enclee
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Re: Are there any experienced real-estate people here?

Post by enclee » Thu May 17, 2018 10:50 pm

I wouldn’t bother, there’s going to be absestos, lead paint and mold. You’re in the Seattle market there’s already a line of buyers that will overbid and waive contingencies. I sold my a property in Kitsap county for more than I expected without fixing it up. The new buyer is going to want to add their style anyways, so there’s value in your parents fixer upper.

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El Greco
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Re: Are there any experienced real-estate people here?

Post by El Greco » Thu May 17, 2018 11:02 pm

I've sold a few houses. My absolutely best return on investment has been a fresh coat of paint. Preferably white. And clear out all of the junk. Any reasonably decent paint job will do.

TheBogleWay
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Re: Are there any experienced real-estate people here?

Post by TheBogleWay » Thu May 17, 2018 11:26 pm

enclee wrote:
Thu May 17, 2018 10:50 pm
I wouldn’t bother, there’s going to be absestos, lead paint and mold. You’re in the Seattle market there’s already a line of buyers that will overbid and waive contingencies. I sold my a property in Kitsap county for more than I expected without fixing it up. The new buyer is going to want to add their style anyways, so there’s value in your parents fixer upper.
True, there will be bids over asking, but if a $10k paint job and $5k into the yard returns $40,000 additional dollars for my grandparents, wouldn't we want to do that?

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MP123
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Re: Are there any experienced real-estate people here?

Post by MP123 » Thu May 17, 2018 11:53 pm

Is the house occupied? You'd be better off spending the $15k on a vacation for them and you clean out and paint (inside) the house. Get everything out. The new buyer will want to change everything anyway and if you're in Seattle I'm sure it will sell before they get back.

TheBogleWay
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Re: Are there any experienced real-estate people here?

Post by TheBogleWay » Fri May 18, 2018 12:05 am

MP123 wrote:
Thu May 17, 2018 11:53 pm
Is the house occupied? You'd be better off spending the $15k on a vacation for them and you clean out and paint (inside) the house. Get everything out. The new buyer will want to change everything anyway and if you're in Seattle I'm sure it will sell before they get back.
I'm not sure if the inside is worth painting because a lot of work on the interior needs work anyway. I'm thinking exterior to attract the curb appeal.

I'm also asking if it's an easy investment. Not for me but for them. If $15k is invested on the basics of the older/less kept up house, can I expect that to return 2-3x when selling?

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Re: Are there any experienced real-estate people here?

Post by HongKonger » Fri May 18, 2018 12:17 am

Is the land area big enough to house 2 new builds? I'm thinking if the house is in that bad of a state but the location is outstanding, don't spend anything on the house - just clear it out and clean it and get the yard cut back to show the plot well.

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Eagle33
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Re: Are there any experienced real-estate people here?

Post by Eagle33 » Fri May 18, 2018 12:19 am

Top 15 Home Updates per HGTV
https://www.hgtv.com/design/decorating/ ... me-updates

#2 Landscaping - Average return at resale: 100 percent

#4 Exterior Improvements - Vinyl Siding, Paint, Updated Front Entry - Average return at resale: 95.5 percent
Rocket science is not “rocket science” to a rocket scientist, just as personal finance is not “rocket science” to a Boglehead.

Nate79
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Re: Are there any experienced real-estate people here?

Post by Nate79 » Fri May 18, 2018 12:22 am

I would get the opinion of a top notch real estate agent. You indicate that it is almost tear down which makes me wonder why you would spend a dime on it.

TheBogleWay
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Re: Are there any experienced real-estate people here?

Post by TheBogleWay » Fri May 18, 2018 12:47 am

Eagle33 wrote:
Fri May 18, 2018 12:19 am
Top 15 Home Updates per HGTV
https://www.hgtv.com/design/decorating/ ... me-updates

#2 Landscaping - Average return at resale: 100 percent

#4 Exterior Improvements - Vinyl Siding, Paint, Updated Front Entry - Average return at resale: 95.5 percent
If I'm reading this correctly, these are almost all either a loss of money or just such a slight gain that it isn't worth the investment or time/effort.

Is that what you understood from it also?

MrsBDG
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Re: Are there any experienced real-estate people here?

Post by MrsBDG » Fri May 18, 2018 1:26 am

When my husband's parents needed to sell their home of 50 years, it had not really been updated since the mid 80s, we spent about $25k to clean it up. Removed popcorn ceilings, wallpaper, painted, new carpet, touched up some other stuff. Part of the reason was to rent it for a while and part of the reason was assuming whomever bought ti might want to live in it for a while before upgrading. We wanted to get rid of the hideous stuff. Was it smart? I don't know, for how much and how soon would it have sold had we not done that? No way to know, but it felt right and our realtor agreed. This was two years ago.

CurlyDave
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Re: Are there any experienced real-estate people here?

Post by CurlyDave » Fri May 18, 2018 2:36 am

You do realize that you can get two bites of this apple?

Start by cleaning it out completely and put it on the market as is. There is no law that you have to accept an offer below your expectations.

If it sells for a reasonable amount, good.

If not, start making improvements and try again in 6 months.

surveyor
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Re: Are there any experienced real-estate people here?

Post by surveyor » Fri May 18, 2018 6:44 am

TheBogleWay wrote:
Thu May 17, 2018 11:26 pm
True, there will be bids over asking, but if a $10k paint job and $5k into the yard returns $40,000 additional dollars for my grandparents, wouldn't we want to do that?
The realtor doesn't care about your grandparents. The realtor wants to sell the house asap. An extra $40,000 nets the realtor less around $800.

enclee
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Re: Are there any experienced real-estate people here?

Post by enclee » Fri May 18, 2018 7:25 am

TheBogleWay wrote:
Thu May 17, 2018 11:26 pm
enclee wrote:
Thu May 17, 2018 10:50 pm
I wouldn’t bother, there’s going to be absestos, lead paint and mold. You’re in the Seattle market there’s already a line of buyers that will overbid and waive contingencies. I sold my a property in Kitsap county for more than I expected without fixing it up. The new buyer is going to want to add their style anyways, so there’s value in your parents fixer upper.
True, there will be bids over asking, but if a $10k paint job and $5k into the yard returns $40,000 additional dollars for my grandparents, wouldn't we want to do that?
Simply painting the house and updating the landscaping isn't going to change the value of the house, if you're not updating the kitchen and bathrooms in something you consider a tear down. Plus, you're selling in a higher end area by being near a golf course so you're not going to get away with doing a cheap kitchen and bathroom. You're not going to get much return on 15-20k, if you're not updating a master suite or kitchen with a high end look. Check out realtor.com, redfin, or zillow for some comparable properties and determine the ARV (after repair value).

If you really want to make the most effect:

1) Sell between May-September (peak season)
2) Clean it and eliminate all unpleasant odors
3) Mow the grass, rake some leaves, and pull some weeds

Silk McCue
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Re: Are there any experienced real-estate people here?

Post by Silk McCue » Fri May 18, 2018 7:40 am

enclee wrote:
Fri May 18, 2018 7:25 am
TheBogleWay wrote:
Thu May 17, 2018 11:26 pm
enclee wrote:
Thu May 17, 2018 10:50 pm
I wouldn’t bother, there’s going to be absestos, lead paint and mold. You’re in the Seattle market there’s already a line of buyers that will overbid and waive contingencies. I sold my a property in Kitsap county for more than I expected without fixing it up. The new buyer is going to want to add their style anyways, so there’s value in your parents fixer upper.
True, there will be bids over asking, but if a $10k paint job and $5k into the yard returns $40,000 additional dollars for my grandparents, wouldn't we want to do that?
Simply painting the house and updating the landscaping isn't going to change the value of the house, if you're not updating the kitchen and bathrooms in something you consider a tear down. Plus, you're selling in a higher end area by being near a golf course so you're not going to get away with doing a cheap kitchen and bathroom. You're not going to get much return on 15-20k, if you're not updating a master suite or kitchen with a high end look. Check out realtor.com, redfin, or zillow for some comparable properties and determine the ARV (after repair value).

If you really want to make the most effect:

1) Sell between May-September (peak season)
2) Clean it and eliminate all unpleasant odors
3) Mow the grass, rake some leaves, and pull some weeds
+1

Based upon all that the OP shared I would say don't spend a dime more than you need to,

You can put lipstick on a pig, but it's still a pig. The buyer will buy the pig and ignore the lipstick.

Cheers

NotWhoYouThink
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Re: Are there any experienced real-estate people here?

Post by NotWhoYouThink » Fri May 18, 2018 7:54 am

I've heard a few real estate agents say "no, leave it as-is and sell it" but as I looked further into it, I suspect that's because they wanted to invest the $20k for $50k back themselves and flip it. I can't be sure though and would like advice.
It's going to take a lot more than $50K to flip this house. More like $200K or more.

This is not a job for an amateur. Empty it, clean it out, purge the weeds and interview 3-5 agents, more if you need to. Someone really wants this place, and you won't recognize it when they are through with it.

stan1
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Re: Are there any experienced real-estate people here?

Post by stan1 » Fri May 18, 2018 8:36 am

TheBogleWay wrote:
Thu May 17, 2018 10:34 pm

I've heard a few real estate agents say "no, leave it as-is and sell it" but as I looked further into it, I suspect that's because they wanted to invest the $20k for $50k back themselves and flip it. I can't be sure though and would like advice.
I would run away fast from any "realtor" who I approach to sell my house and then out of the blue offers to buy it. That person might have a realtor's license but they aren't functioning as a realtor in their relationship with you. What you are describing is a conflict of interest. Most realtors are not also flippers/investors. If the market is very strong you don't need to be working with a speculator or investor buyer. A retail buyer will pay a good price and still do the remodel for you.

The house you describe is large so even something simple like painting the interior might cost $10K in a high cost of living area. Deep clean the house, thoroughly declutter or even empty it of furniture if the old furniture would be a distraction, and open or remove any window coverings that make it darker. If it has dusty old draperies or vertical blinds take them down to get more light in and don't replace.

Realtors aren't motivated to sell a house for top dollar. They are motivated to sell it fast so they can move on to the next property. They might only get an extra $250 gross in commission if the house sells for $10K more (probably under $100 net take home by the time brokerage fees and taxes are taken into account). If it stays on the market for 30 or 60 days it takes a lot more of their time than if it stays on the market for 5 days.
Last edited by stan1 on Fri May 18, 2018 8:39 am, edited 1 time in total.

Glockenspiel
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Re: Are there any experienced real-estate people here?

Post by Glockenspiel » Fri May 18, 2018 8:38 am

I'd also be a little bit wary of re-painting the whole thing because you say it's "nearly a tear-down". If it was just a bit outdated, but not close to tear-down condition, painting would be a great investment, but I worry that if someone is planning to tear it down anyway, they don't care about paint.

I'd start with the outside. You can do a lot of work with just a little elbow grease and a very small $ investment. Pull weeds, fresh mulch, wreath on the door, pressure wash the driveway, front porch, deck, make sure it's nicely mowed, prune/clean up any overgrown shrubs, prune low hanging tree branches, de-clutter and temporarily rent a storage unit. Get it on the market ASAP, and if it doesn't sell by September/October, consider taking it off the market to put back on the market next April.

barnaclebob
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Re: Are there any experienced real-estate people here?

Post by barnaclebob » Fri May 18, 2018 8:57 am

There is a big difference between a house that needs updates but is livable vs immediate gut/reno vs teardown. When I'm casually browsing on zillow i've seen a lot of pre 80's kitchens where I think, this eventually needs to be replaced but could live with it for a few years.

How would the house look if its decluttered and cleaned? I'd only paint if there are some really offensive or out of date colors in a couple rooms.

enclee
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Re: Are there any experienced real-estate people here?

Post by enclee » Fri May 18, 2018 9:02 am

barnaclebob wrote:
Fri May 18, 2018 8:57 am
There is a big difference between a house that needs updates but is livable vs immediate gut/reno vs teardown. When I'm casually browsing on zillow i've seen a lot of pre 80's kitchens where I think, this eventually needs to be replaced but could live with it for a few years.

How would the house look if its decluttered and cleaned? I'd only paint if there are some really offensive or out of date colors in a couple rooms.
You're outside the norm, when people house shop they envision their dream home. I've seen people ripping out recently renovated kitchens because they didn't like the back splash color. HGTV has created ridiculous housing expectations for people, but hey it makes the Home Depot & Lowe's stock go up.

Tal-
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Re: Are there any experienced real-estate people here?

Post by Tal- » Fri May 18, 2018 9:10 am

I would try and sell it as-is.

Typically, when putting money into a property, you want to change the type of buyer who would be interested. Upgrading from a "just want 4 walls and a roof" to the next tier (let's call it "dated but nice") is a big upgrade, and I doubt 10K will get you there.

If the market was struggling to get offers, I'd probably sing a different tune. But, in today's market, I would focus on the free upgrades (removing clutter, cleaning, basic lawn care), cap your expenses to 2K or so (bark, fixing broken things, etc.) and try and sell.

Then, if that doesn't work, I would consider putting some money into it and re-listing.

Just my two cents.
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barnaclebob
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Re: Are there any experienced real-estate people here?

Post by barnaclebob » Fri May 18, 2018 9:15 am

enclee wrote:
Fri May 18, 2018 9:02 am
barnaclebob wrote:
Fri May 18, 2018 8:57 am
There is a big difference between a house that needs updates but is livable vs immediate gut/reno vs teardown. When I'm casually browsing on zillow i've seen a lot of pre 80's kitchens where I think, this eventually needs to be replaced but could live with it for a few years.

How would the house look if its decluttered and cleaned? I'd only paint if there are some really offensive or out of date colors in a couple rooms.
You're outside the norm, when people house shop they envision their dream home. I've seen people ripping out recently renovated kitchens because they didn't like the back splash color. HGTV has created ridiculous housing expectations for people, but hey it makes the Home Depot & Lowe's stock go up.
Most people in Seattle and I'm guessing other PNW cities are stretching to buy starter houses in the 700-1mil range. They will overlook flaws.

enclee
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Re: Are there any experienced real-estate people here?

Post by enclee » Fri May 18, 2018 9:32 am

barnaclebob wrote:
Fri May 18, 2018 9:15 am
enclee wrote:
Fri May 18, 2018 9:02 am
barnaclebob wrote:
Fri May 18, 2018 8:57 am
There is a big difference between a house that needs updates but is livable vs immediate gut/reno vs teardown. When I'm casually browsing on zillow i've seen a lot of pre 80's kitchens where I think, this eventually needs to be replaced but could live with it for a few years.

How would the house look if its decluttered and cleaned? I'd only paint if there are some really offensive or out of date colors in a couple rooms.
You're outside the norm, when people house shop they envision their dream home. I've seen people ripping out recently renovated kitchens because they didn't like the back splash color. HGTV has created ridiculous housing expectations for people, but hey it makes the Home Depot & Lowe's stock go up.
Most people in Seattle and I'm guessing other PNW cities are stretching to buy starter houses in the 700-1mil range. They will overlook flaws.
It's only stretching, if you actually feel like you're stretching yourself. Not every home buyer thinks logically about a home purchase, they're often based off emotion and how the house just feels right.

Clemblack
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Re: Are there any experienced real-estate people here?

Post by Clemblack » Fri May 18, 2018 9:33 am

Yes indeed.

Dave55
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Re: Are there any experienced real-estate people here?

Post by Dave55 » Fri May 18, 2018 9:37 am

Sell as is.

Dave

texas lawdog
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Re: Are there any experienced real-estate people here?

Post by texas lawdog » Fri May 18, 2018 11:16 am

I agree with previous posters, put on the market to sell as is, without contingency and see what type of offers you get.
You shouldn't spend unnecessary time, money on a situation that will still get you what you want.

Good luck

TheBogleWay
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Re: Are there any experienced real-estate people here?

Post by TheBogleWay » Mon May 21, 2018 9:59 pm

stan1 wrote:
Fri May 18, 2018 8:36 am


I would run away fast from any "realtor" who I approach to sell my house and then out of the blue offers to buy it. That person might have a realtor's license but they aren't functioning as a realtor in their relationship with you. What you are describing is a conflict of interest. Most realtors are not also flippers/investors. If the market is very strong you don't need to be working with a speculator or investor buyer. A retail buyer will pay a good price and still do the remodel for you.

The house you describe is large so even something simple like painting the interior might cost $10K in a high cost of living area. Deep clean the house, thoroughly declutter or even empty it of furniture if the old furniture would be a distraction, and open or remove any window coverings that make it darker. If it has dusty old draperies or vertical blinds take them down to get more light in and don't replace.

Realtors aren't motivated to sell a house for top dollar. They are motivated to sell it fast so they can move on to the next property. They might only get an extra $250 gross in commission if the house sells for $10K more (probably under $100 net take home by the time brokerage fees and taxes are taken into account). If it stays on the market for 30 or 60 days it takes a lot more of their time than if it stays on the market for 5 days.
OP here.

Thank you, and all of the other posts with the advice, sounds like selling close to "as is" is the smartest way for them.



Quick question to you and anyone else reading this, since I agree a realtor isn't motivated to get top dollar, how does somebody go about getting the absolute most from their sale?

My grandparents badly need something to retire on, so even $20,000 extra will make an impact on their lives. Do we just ask the realtor what it should be priced at, tell them too bad price it for $50,000 more and see what hits we get? I've never gone through this process but having known a few realtors, I know they're all about speed (for their sake) vs top dollar. How do we find someone to go the top dollar route?

PhilosophyAndrew
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Re: Are there any experienced real-estate people here?

Post by PhilosophyAndrew » Mon May 21, 2018 10:53 pm

It may be unrealistic to expect a large “multiplier effect” on money you invest in the house: There may well be no $10.000 Investment that will raise the house’s selling price by $20,000, $30,000 or more.

So, I would consider supporting your grandparents’ financial needs directly, if that is something you or other family members can do.

Andy.

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Re: Are there any experienced real-estate people here?

Post by jalbert » Tue May 22, 2018 12:06 am

I've heard a few real estate agents say "no, leave it as-is and sell it" but as I looked further into it, I suspect that's because they wanted to invest the $20k for $50k back themselves and flip it. I can't be sure though and would like advice.
What is your evidence for that? It would violate requirements for fair dealing and fiduciary obligations that are part of their licensing requirements in most states. Hard to imagine several brokers all independently planning such a stunt.
Index fund investor since 1987.

Slacker
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Re: Are there any experienced real-estate people here?

Post by Slacker » Tue May 22, 2018 12:14 am

The only way you are going to put in $20,000 of cash and get $50,000 of value is if you are a skilled handyman/contractor and are putting in hundreds of hours of labor for free and spending the $20,000 on materials.

The authors of "Freakonomics" seem to believe that Realtors keep their homes on the market longer than their clients and get a higher price due to selling their client's home as soon as possible while holding out for a better deal for their own homes. I'll let you judge that for yourself.

WanderingDoc
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Re: Are there any experienced real-estate people here?

Post by WanderingDoc » Tue May 22, 2018 12:26 am

Beat me to it. This guy is correct.

You have a golden goose there. Personally, I would do a 80% LTV cash out refi, take the bit of cash and give it to your grandparents. Then enjoy rental income and appreciation in perpetuity. Leaving equity in a house is never a good strategy. I would never sell a house in a growing "coastal" market, that is akin to killing the golden goose!
MP123 wrote:
Thu May 17, 2018 11:53 pm
Is the house occupied? You'd be better off spending the $15k on a vacation for them and you clean out and paint (inside) the house. Get everything out. The new buyer will want to change everything anyway and if you're in Seattle I'm sure it will sell before they get back.
Don't wait to buy real estate. Buy real estate, and wait. | Rent where you live, buy where others pay your mortgage for you.

EasilyConfused
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Re: Are there any experienced real-estate people here?

Post by EasilyConfused » Tue May 22, 2018 2:08 am

TheBogleWay wrote:
Mon May 21, 2018 9:59 pm
OP here.

Thank you, and all of the other posts with the advice, sounds like selling close to "as is" is the smartest way for them.



Quick question to you and anyone else reading this, since I agree a realtor isn't motivated to get top dollar, how does somebody go about getting the absolute most from their sale?

My grandparents badly need something to retire on, so even $20,000 extra will make an impact on their lives. Do we just ask the realtor what it should be priced at, tell them too bad price it for $50,000 more and see what hits we get? I've never gone through this process but having known a few realtors, I know they're all about speed (for their sake) vs top dollar. How do we find someone to go the top dollar route?
Meet with three realtors. Be clear that you're not going to put any money into it and ask them to price it as-is. Add about 5-10% to the highest number you get, and list the house. You can always come down a bit if nobody offers after a month or so, but the Seattle market is crazy right now so I bet you get offers above asking.

stan1
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Re: Are there any experienced real-estate people here?

Post by stan1 » Tue May 22, 2018 8:28 am

TheBogleWay wrote:
Mon May 21, 2018 9:59 pm


Quick question to you and anyone else reading this, since I agree a realtor isn't motivated to get top dollar, how does somebody go about getting the absolute most from their sale?

My grandparents badly need something to retire on, so even $20,000 extra will make an impact on their lives. Do we just ask the realtor what it should be priced at, tell them too bad price it for $50,000 more and see what hits we get? I've never gone through this process but having known a few realtors, I know they're all about speed (for their sake) vs top dollar. How do we find someone to go the top dollar route?
If the market is very strong I would price it so you get multiple offers and hopefully there will be a bidding war which will drive the price up (likely to happen in a desirable area of Seattle). It is not a good strategy to significantly over price the house (greater than 10%) hoping a naive buyer will come along. Realtors will tell their clients a house is over priced. It won't appraise if someone does offer to buy it who needs a loan. In a very strong market if the house hasn't sold in 30 days buyers will assume something is wrong with it. Realtors will stop showing it to buyers. Your realtor will be less inclined to actively market it. When you start lowering the price back to market level you might end up at a lower price than if you correctly priced it to begin with.

Interview three realtors who specialize in the immediate neighborhood and have hundreds of sales in their career and a history of dozens of closed sales per year. Ask for a comparative market analysis. Look at list prices and sales prices. Focus on the last 3-6 months only. You want a realtor who spends their time in the neighborhood not all over the city. Never hire a realtor who has not proven her ability to close sales. Sales is competitive. A few years ago my realtor give me a fist bump and yelled "Yeah!" after he negotiated down the price we paid by $30K when we were buying a house. That's the type of personality you want working for you not someone who will complement you on how nice the flower pots are.

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goingup
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Joined: Tue Jan 26, 2010 1:02 pm

Re: Are there any experienced real-estate people here?

Post by goingup » Tue May 22, 2018 8:49 am

Seattle area dweller here. Find the most successful realtor in your zip code and the market here will take care of the rest. I'd try to interview 2-3 and find the one that "gets" you and your grandparents.

Selling the house for lots of money is not the big issue. The issue is where will your grandparents go after it sells and what will they do with all their stuff.

If they aren't ready to move yet, pay for lawn service to keep the yard up and a handyman to fix the deck boards. They may qualify for property tax relief--King County property tax has become onerous for everyone, especially seniors. My bias is to help folks stay in their homes until it's time to move into a retirement home setting. Are they ready to move on?

RudyS
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Re: Are there any experienced real-estate people here?

Post by RudyS » Tue May 22, 2018 3:01 pm

enclee wrote:
Fri May 18, 2018 9:02 am
barnaclebob wrote:
Fri May 18, 2018 8:57 am
There is a big difference between a house that needs updates but is livable vs immediate gut/reno vs teardown. When I'm casually browsing on zillow i've seen a lot of pre 80's kitchens where I think, this eventually needs to be replaced but could live with it for a few years.

How would the house look if its decluttered and cleaned? I'd only paint if there are some really offensive or out of date colors in a couple rooms.
You're outside the norm, when people house shop they envision their dream home. I've seen people ripping out recently renovated kitchens because they didn't like the back splash color. HGTV has created ridiculous housing expectations for people, but hey it makes the Home Depot & Lowe's stock go up.
I get all that for higher priced houses. But consider a LCOL area where a "nice" 2K sq ft, 4 BR house could sell for $200K. How much would you invest in a new kitchen, bath, etc., ro make an older 1960's home sell for that, compared to getting maybe 160K as is? At the lower price the buyer can get their choice of upgrades. House is currently very liveable, but old. HVAC recent, roof maybe 10 years.

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unclescrooge
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Re: Are there any experienced real-estate people here?

Post by unclescrooge » Tue May 22, 2018 3:13 pm

TheBogleWay wrote:
Thu May 17, 2018 11:26 pm
enclee wrote:
Thu May 17, 2018 10:50 pm
I wouldn’t bother, there’s going to be absestos, lead paint and mold. You’re in the Seattle market there’s already a line of buyers that will overbid and waive contingencies. I sold my a property in Kitsap county for more than I expected without fixing it up. The new buyer is going to want to add their style anyways, so there’s value in your parents fixer upper.
True, there will be bids over asking, but if a $10k paint job and $5k into the yard returns $40,000 additional dollars for my grandparents, wouldn't we want to do that?
If you're house hasn't been updated for 50 years, a fresh coat of paint won't be enough. I bought a house like yours. The sellers started rehabbing it and then ran out of money after ripping out the flooring and shoddily installing engineered wood.

Without flooring, no doors, and with exposed wiring the house wouldn't qualify for a normal loan. So they actually wasted a bunch of time and effort for nothing. Actually, since they only attracted professional home flippers, and me, this probably set them back.

I ended up spending $125/sq ft to bring it up to value.
Last edited by unclescrooge on Tue May 22, 2018 10:03 pm, edited 1 time in total.

NotWhoYouThink
Posts: 1951
Joined: Fri Dec 26, 2014 4:19 pm

Re: Are there any experienced real-estate people here?

Post by NotWhoYouThink » Tue May 22, 2018 5:43 pm

If it's worth $700K "give or take" then maybe you're optimistic and it will sell for $620K, or maybe you are too conservative and it will sell for $810K. You'll never know if the time and money put into minor upgrades are worth it, but they probably won't move the needle. If it's empty and the yard isn't a danger zone, that's enough for a flipper or investor or an aspirational young homeowner to make a decision.

J295
Posts: 1502
Joined: Sun Jan 01, 2012 11:40 pm

Re: Are there any experienced real-estate people here?

Post by J295 » Tue May 22, 2018 6:11 pm

Get a good real estate agent, and my guess is they will confirm that it is basically a sale as is property

lvrpl
Posts: 79
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Re: Are there any experienced real-estate people here?

Post by lvrpl » Wed May 23, 2018 10:54 am

One other thing to consider is to sell it yourself without a realtor. I only think this option applies and is realistic in a hot market, which you are in. Do you really think that a listing agent is going to add more value than $21k (3% of the $700k value)? In truly hot markets, people will find your house immediately (I've purchased in a hot market and absolutely found everything myself because time was critical).

I'd say to spend $1,000 or so on a good real estate attorney, and maybe a few hundred (or whatever it is) for one of those services that will list it on the MLS for you. The only thing you really need help with is making sure you're listing at a good, aggressive-but-not-too-aggressive price, and there are ways to do that without paying a realtor 3% of your home value.

And you can always try this, and if you don't get good results after a few weeks, hire a realtor. Again, this option really makes and is less of a hassle in a hot market, which is what Seattle absolutely is. Just my two cents.

TheBogleWay
Posts: 143
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Re: Are there any experienced real-estate people here?

Post by TheBogleWay » Fri May 25, 2018 1:57 am

stan1 wrote:
Tue May 22, 2018 8:28 am

If the market is very strong I would price it so you get multiple offers and hopefully there will be a bidding war which will drive the price up (likely to happen in a desirable area of Seattle). It is not a good strategy to significantly over price the house (greater than 10%) hoping a naive buyer will come along. Realtors will tell their clients a house is over priced. It won't appraise if someone does offer to buy it who needs a loan. In a very strong market if the house hasn't sold in 30 days buyers will assume something is wrong with it. Realtors will stop showing it to buyers. Your realtor will be less inclined to actively market it. When you start lowering the price back to market level you might end up at a lower price than if you correctly priced it to begin with.

Interview three realtors who specialize in the immediate neighborhood and have hundreds of sales in their career and a history of dozens of closed sales per year. Ask for a comparative market analysis. Look at list prices and sales prices. Focus on the last 3-6 months only. You want a realtor who spends their time in the neighborhood not all over the city. Never hire a realtor who has not proven her ability to close sales. Sales is competitive. A few years ago my realtor give me a fist bump and yelled "Yeah!" after he negotiated down the price we paid by $30K when we were buying a house. That's the type of personality you want working for you not someone who will complement you on how nice the flower pots are.
OP here again


Can you or anybody else here now help teach me how to find this experienced agent you're talking about? Is it as simple as Googling them?

I'll also take recommendations from anyone in the area.

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