Experience On A Rehab House By The Main Road?
The house is by the main road, what i mean main road is main road with pretty heavy local traffic with speed limit 35 miles and most people drive 40 miles.
Here is the situation, the house has been in the market for a year for a year, and recently, MLS listing expired and now it is relisted with a lower price. I looked at the house one time only, i haven't noticed any water and structure problem, i will walk into the house again tomorrow. It does need paint, carpeting, some plumbing for clogged bathroom and other little fixes. it is 3 bed rooms 3 and half bath 1500 sq footage 50 years old 2 car garage split level house asking $125,000, acording county's website FMV is $150,000 which i think it is over assessed since it is by main road. How much would you offer for this house? And most import thing is : is it easy to sell a house by the main road? M
By the way, no bank, i will pay cash to purchase the house!! pls advice!!!
A three bedroom by Routes 8 and 228 should be easy to sell to a first time homeowner in that area. That is even close to the turnpike and 79.
I would do the walk through, take good notes on repair expenses, have the agent do a comp search on all sales within half a mile within 3 months. Cross reference all sales with similar sqare footage, room count, and lot size. determine what the max sales price COULD be and what the minimum I would want..
Then add repairs and sales price, subtract the max sales price, see how much room is left. If the there is enought room. I would start at 75% of the asking price and move up until I reached my limit.
Lori
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thank you Lori, i had a feeling you would answer my post. Please help me with the number since you are a experienced investor!!!
The asking price is 125000
125000 x 75% = 93750
I estimate the fix about 10000-15000
what about the holding cost for 6 months such as property tax and closing cost for the house.
The house could sell for around 125000 - 130000 when it is fixed. so what is my number now?
thank you lori
If you figures are right you will make at least $10k.. Based on the fact that the house is 50 years old and houses are being built on a daily basis. I would start the bidding even lower. A good friend of mine just won a bid at 50% of the asking price in Mars. You can bid whatever you want the bank will say yes or no or counter. You can keep bidding until you hit your limit.
Good luck l
Lori
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thank you again lori. another question, does you always sell your properties thru agent or by yourself, if you do by yourself what are your method of doing that, put it on pittsburgh post-gazette? because if agent sells the properties, a lots of money is going to go to the commission, but on the other hand does it reduce holding time since i assume they can sell faster?
thank you
sally
I do the advertising while the house is being fixed. Usually in the Penny Saver. I usually have a buyer before the house is finished. But I did sell one house in the Pgh Post Gazete. Based on the money you want, I would go with the local paper once you close in your name. Find a broker who will take the calls for you. I get about 100 calls a week on one ad. But in Pgh 50 couldn't get a loan if I gave them the house. So about 10 would qualify. Still 10 is better than none. I also put a sign in the yard.
Good Luck
Lori
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