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/u/EauDeFrito
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We have a home inherited from a relative that is located in a popular area, but it's in complete disrepair (Remodeling= $80-$100+k). The real estate agent gave a large range of what the house might sell for (both as-is and flipped), so it is very hard to tell which would be more profitable. As-Is: $290-310k. Flipped: $450-500k (minus $80-$100+k, depending on what "surprise" problems show up during renovations). Agent fees and all other fees total 7.5%.
The agent couldn't tell us how much it'd sell for because they said the strategy was to list it on the cheaper side to attract buyers, then let them drive up the price on bidding wars. Does this sound right? I'm wary of this approach because I previously had an agent sell a house in this way, and ended up coming out $50k under where I wanted to sell at.
It's also very hard to tell which route to take (as-is vs flip) if we don't have a clear picture of what the actual sales price will be, or what the flip will cost. Examples of needs: new windows, doors, roof, plumbing repairs, needs central AC & all duct work, needs 2 bathroom remodels, kitchen remodel, etc.
If it sells for $450, but the flip costs like $130k, then we might as well have sold it for $310k as is without having the stress of managing a 6 month long project while paying electricity, taxes, water, etc.
We don't want to miss out on possible profits from flipping, because there are many family members counting on this estate money for financial stability, but we also don't want to flip and then see the housing market go down. Any advice?
submitted by /u/EauDeFrito
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Flip or sell as-is: Advice for estate home in need of tons of repairs?
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The agent couldn't tell us how much it'd sell for because they said the strategy was to list it on the cheaper side to attract buyers, then let them drive up the price on bidding wars. Does this sound right? I'm wary of this approach because I previously had an agent sell a house in this way, and ended up coming out $50k under where I wanted to sell at.
It's also very hard to tell which route to take (as-is vs flip) if we don't have a clear picture of what the actual sales price will be, or what the flip will cost. Examples of needs: new windows, doors, roof, plumbing repairs, needs central AC & all duct work, needs 2 bathroom remodels, kitchen remodel, etc.
If it sells for $450, but the flip costs like $130k, then we might as well have sold it for $310k as is without having the stress of managing a 6 month long project while paying electricity, taxes, water, etc.
We don't want to miss out on possible profits from flipping, because there are many family members counting on this estate money for financial stability, but we also don't want to flip and then see the housing market go down. Any advice?
submitted by /u/EauDeFrito
[link] [comments]
Flip or sell as-is: Advice for estate home in need of tons of repairs?
Continue reading...