Need advice on selling old house

[wincrasher]

As some of you know, I purchased a new house this spring. My old house is sitting empty right now.

My grand plan was this: When my current project assignment is over, I'd probably have a few months off. I'd work on finishing some things in the old house, clean it up, prep for sale and put it on the market. It does need quite a bit - I've remodeled the kitchen and 2 bathrooms and put hardwoods in the living/dining room, and a new heating/cooling system. But it needs carpets, some light carpentry, paint inside and out, new garage doors, new driveway, fill and landscaping in the backyard, etc., etc. The basement is gutted down to the block walls. I figure about $30k-$50k in materials and subcontracted work.

But I've had some interest from people to buy it as a fixer. I think a fair value as it is is about $75k to $90k. All fixed up, about $150k. A similar house in the neighborhood was professionally remodeled completely and it sold for $197k.

So what to do? My time is expensive, so I have to consider that (about $24k/month). I worry about how an appraisal would go in it's current condition if I sold as a fixer. How would that work if you are selling "as is".

[cschin4]

But I've had some interest from people to buy it as a fixer

I think you would be much further ahead to sell "as is" rather than sink $50K of work into a $90K home. The problem with remodeling is that it will increase the home's value but not as much as you hope it will. And, usually, the value goes up but not to the amount you sunk into it unless you are in a hot market. In addition, your vision of the remodel may not be what someone else would have done. Many people want to come and fix it up themselves and put their "stamp" on the home. If you have interest now, then you should sell it now. With taxes, insurance and contracting costs, I doubt you will make any money and possibly could lose money undertaking a major remodel. That might be fine if you are well off financially and can afford the risk and possible loss. If not, sell. But, obviously you should clean, clean, clean with bleach and scrub it from head to toe, paint and do all the other inexpensive fixes that make a home look well cared for.
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[wincrasher]

Since that orignal post (back in August). I've actually gone under contract with a young couple that wants to fix it up. So I sold as a fixer.

This couple actually is the son of my neighbor. They actually knocked on my door and asked me about selling it to them. So the transaction was rather convenient for me, and a good deal for them.

We should close this month and they can get their first time buyer tax credit.

[creditcardfree]

Originally Posted by wincrasher

Since that orignal post (back in August). I've actually gone under contract with a young couple that wants to fix it up. So I sold as a fixer.

This couple actually is the son of my neighbor. They actually knocked on my door and asked me about selling it to them. So the transaction was rather convenient for me, and a good deal for them.

We should close this month and they can get their first time buyer tax credit.

That's great news! If I had seen your post in August...I would have suggested selling as is, too. You did the right thing.

[wincrasher]

Better yet, they are fine with me leaving many things behind - I don't even have to clean up.

I'm leaving them what construction materials I have left over as well as a few furniture items and alot of what I'd classify as "junk".

[cschin4]

Good job!

[LuxLiving]

Ta-da!!! Nice.

[arthurb999]

Nice. They might be able to even fix up some furniture items... repair, sand, paint. Good for them.