Whats It Gonna Take?
Hi all!
I've been reading & studying RE investing for several months. Unfortunately (or not)Im being being forced to make some decisions. My Mother passed away in June. (Father 7 yrs. before) Mo's house is in SD. I have an older Brother in Pheonix(executor of the estate), and older Sister in SD. My problem is this. There are very few things to be fixed on the house for a max sale. The main thing (I.M.H.O.) is the roof. Shingles are curling & gutters are rusty. Bro's wifes Brother is doing the rehab. He says there is 5-10 years left on a shingled roof (1200 sqft house) Bro-inlaw says "he can blackjack the curls, paint the gutters & flashing and call it good enough" I however feel that a new roof would be the strongest poss. selling point. (2 layers of shingles on now, so needs a tear-off) Sister had roof w/tear-off done on her house (close comp) for $1600 3 yrs ago. Brother thinks its a waste of time/$. What can I tell him to convince him that a FHA or other inspector will gouge the price of a new roof (probably 5K or more) and we will probably have to replace it anyway to get funding approved by the buyer lender. Am thinking of getting it in writing that I'll pay for the extra IF I get paid off the top when we sell.
ANY advice will be Greatly appreciated!
Thank you.
JD
Hi again,
In regards to my previous post, I feel I NEED to talk my Brother into getting the roof done (bottom line) What can I tell him to Convice him that it will pay off with a larger sale price? or will it? Somebody tell me if Im wrong please. Thank you.
JD
My sugestion is to Get an appraiser in the area and a few R/E agents to give you thier opinion if you feel you are right.
Do not tell them your opinion or real situation: Call some in that area tell them "my Parents home is at XX and we (the heirs) are interested in possibly putting the house on the market and would like to get a fair price.
You need some advise on how they would market the house and what "minor cost" improvements they recommend, ask them to give you theirs based on their experiance in their area without it costing you any large investment on your part.
(ask them if they could give you some comps to prove their suggestions both in an as is state and with repairs)
Ask the appraiser you call what his fee would be do give you an opinion via fax without a "real appraisal" at this time, you are not looking for value but opinion of selling the property on the market. If it is low pay for it, otherwise see what you can get from the realtors, get several if you can some may be over priced and some on the money for what they value and suggest, you want an Honest opinion not fluff for a listing.
If you are correct they will prove you out.
You may have to pay the appraiser a consulting fee as I do, but this can be most benefical when dealing with difficult persons who can not "see" the "best" option. Good Luck!
If the roof needs replacement, go ahead get estimates for it. Whats the big deal?