? For The Experienced
I have just won a bid at a realestate auction on a local property for $60500. The 2003 tax assessed value is $64600. the property would be much improved with a new roof and vinyl siding but the inside needs nothing as it is very clean and nicely decorated. Comps in the area show we could sell it with the improvements for about 82,000. Siding/Roof should cost us about 5K (we do this ourselves).
My question is this. if we just purchase and sell the property without roofing or siding we could probably get 72K for it. If I try to find a buyer before I close how would I go about this ?
Thanks
Just depends. Trying to sell the home without a roof will probably cause problems with the buyer's lender - being that they may have stipulations.
As well, almost anyone will ask to have that repaired. None the less, you could always escrow the amount needed to do the repairs and have the buyer collect at closing and do it himself.
Without roofing and siding you will probably only attract cash investors. And cash investors expect to pay about 75% After repair value - repairs. So most investors would expect to pay 82 * .75 - 5 = 56.5. So you did not really get it at a price that you can flip to another investor.
Also, you won it at a real estate auction. They may not allow you to assign the contract. Read the purchase and sale agreement adn any other paper work from the auction to see if they allow you to assign.
Brenda