Selling House As Is for Cash

[cooliemae]

My MIL is in the process of permanently moving in with our family and we need to sell her house. It is a row house and in need of some work before any bank would finance a loan on the house, so we are looking at selling it to one of any number of home buying businesses in the Chicago area - as is.

My wife and I have never done anything like this and I'm curious if anyone here might have done something similar. Obviously, we want to get as much for the house as we can and understand that selling it as is will lessen the amount received for it.

Anything we should be aware of before we begin this process?

[rennigade]

Those home buying businesses will low ball you beyond belief. Now if you're willing to take anything for it...then they would be a good option. They'll buy it up in no time.

[AnotherReader]

The formula applied by the "we buy houses" buyers is a maximum of 70 percent of the value after repairs, less the cost of repairs with a margin for error factored in. If the house is worth $100k fixed up and needs $15k in repairs, the maximum they will likely offer is $70k less $20k for repairs and a cushion, or $50k. They will offer less to start.

Speak with several real estate agents that work in the neighborhood where the house is located and get their opinions on what the property is worth in an "as is" sale. In all likelihood, you will come out ahead by listing the property for sale on the MLS and selling as is. If the property can be financed, you will get much more than you will if it is cash only.

[snafu]

Have you discussed the probability of financing with at least three mortgage specialists like broker, bank and CU lenders? Is there currently a mortgage on MIL's row home? What do [row] homes of that square footage in that area typically sell for? Have you talked to a couple of experienced real estate agents? What are the major issues? I know from experience that it is a huge amount of work to clear out a parental home and prepare it for sale. Unfortunately, the refurbish firms offer sellers so little so that their profit are as large as possible. What are the upfront costs to list the unit for 3 months or 6months?

[Can DMIL fund the cost of hiring a couple of high school seniors or college students to undertake the initial major, de junk, de-clutter, clean out with supervision? The cost is usually slightly more than minimum wage + a pizza, soda & bottled water. Clean, functioning furniture and household goods can go to auction. There is not much money recovered after cost of transport and fees but it's a fast, efficient resolution. A call to a couple of charity outlets gives their pick up schedule and outline of what they'll take for re-sale.] You'll get a tax voucher.

Sorry...somewhat off your initial question.

[WillieGearhart]

Those home buying businesses will low ball you beyond belief. Now if you're willing to take anything for it...then they would be a good option. They'll buy it up in no time.

You can go for it. A safe option in my point of view.