selling a home - questions

[luvmyfam444]

my deceased mil left her home to my dh & his sister. They put it on the market in Nov (terrible time I know - but his sister insisted). It is a home built in the 70s & nothing has been updated (other than the roof). It has not been appraised but they went a bit lower than the agent suggested. They are selling it as is. It is next door to a trailer & around the corner are several other trailers which once gone will not be replaced (which obviously could still be 20 yrs).

My questions are:
1. do we pull it off the market & wait til spring (March or so?)
2. do we lower the price? how do you decide how much?
3. is there an advantage to buying out his sister? how would that work?

 

[barkley]

speak to an EXPERIENCED realtor in the area to see what the traditional, recent and current marketplace is like.

time of year to sell varies by area-when i lived in california (in a traditional market) it was spring and summer, where i live now it's fall and winter (crazy for me-but it's what happens).

buying out sister? gotta figure out if it would pay off-is she a pain to deal with? if so and values are low right now it might be worth it. if values (or her perception of them) are higher-then you could end up overpaying her.

 

[disykat]

I would not buy out his sister. Like Barkley said, you don't know what price it'll get.

I sold my parents early 60's home as in October. We used a realtor that lived nearby and knew the neighborhood. We priced to sell and it did. We did have to pay for some things that needed to be fixed, but that was expected. We were careful to put things on the sellers disclosure documents so they knew we were aware and priced accordingly. We agreed to pay for roof replacement and some mold remediation (paid out of the proceeds) because we knew those things could prevent the sale from going through. (Buyer was still going to have a lot of work to do.) We were happy to have a buyer interested! Overall we came out ahead of where I thought we would. I had to keep reminding myself that 60 years of life in a house that was purchased for around 30K and ending up with enough for a couple years of expensive memory care for mom is a pretty good investment no matter how you slice it! (Kind of like Marie Kondo who says thank the item for its service and then let it go!) We missed the height of the housing market by quite a few months because my siblings are slowpokes, but I just reminded myself it was still more than we could have sold it for a year or two earlier. We were lucky in the location, as it will be a good investment for someone once the work/updating is done.

We thought for sure it was someone flipping it, but we understand from the neighbors that they've moved in and are fixing it up for themselves. That would have made my folks happy.

Because it needed so much work, I tried to look at it as anything we got from it was gravy as opposed to looking at it as getting the most out of an investment. I think that helped me feel positive about the process. I wanted to run down the street singing and dancing after I completed all the negotiations and the paperwork - such a relief!

 

[holden]

Not sure what kind of contract you signed with the realtor, but I'd try a different realtor.

 

[_19disnA]

I am not sure what 'buying out' your sister would accomplish. While you (or DH) might be able to work directly with a realtor and eliminate the problem of having to get your sister to agree on decisions being made, what happens if it sells for much less then you were thinking? I don't think there is any magic in which realtor you choose. There are so many online places where listed homes can be found, anyone interested in that area could find it for sale. Second guessing when to list it also doesn't accomplish much since you just never know what others are looking for and when. Trying to 'time' the economy/interest rates/etc. is probably not going to result in any better end result.

You didn't inidicate if there were many showings or how much interest there may have been from potential buyers. Selling 'as is' sounds like it makes sense since I doubt putting a lot of money into redoing the interior would ever result in you getting back the money you put in. You might also choose a design direction the buyer doesn't like and simply redoes it themselves once they move in.

 

[GAN]

I'm not sure what taking it off the market would do ...you want the money rather than hold the property and values are not going up these days. I would empty the house out(if not already) and fix any glaring issues ..other peoples "stuff" hurts to visualize any potential. I think buying out the sister would be a bad idea in a market that's declining, especially with what sounds like a less than perfect location ...you'd be likely to sell the property for less than you bargained with the sister. Leave it on the market, take whatever you can get, and move on....

 

[GreatLakes]

Around here any house priced correctly is gong quickly. I'm not sure what the market is by you but if it has been sitting since November it is likely not priced correctly to account for the area and need for any buyer to make updates.

If there are simple things you can do to make it more desirable without doing an entire remodel (paint, basic hardware update, cabinet refacing, etc) look into that. The cost could be negligible and you get it back in the sale.

Are you working with a Realtor or doing this on your own? If it is the later call a Realtor. If it is the former I'd discuss with them why they think it isn't selling and if you aren't happy with them move to a new one after the listing agreement expires.

 

[Darcy03231]

I wouldn't buy out the sister.

If the house is still full of stuff I would clean it out and only leave the bare minimum to stage it. Definitely empty out all the closets, cabinets, etc. Do a really deep clean from top to bottom.

I would also consider giving the interior a fresh coat of paint. It's amazing how much that can freshen up a house.

 

[kymom99]

I bought my parents house built in the 1950s. I’ve lived there since 2011. It’s been a good place to live but we are now building a new house elsewhere. The house is old and needs updating but has nice hardwood floors. It’s also in a very nice area surrounded by upscale houses. We had a relative wanting to buy it, but they backed out. So now we are scurrying to clean it out so we can list it. I too do not plan to do any updates. I’m hoping the location will sell it and I’ll make some money. I got it for a good price.

I’ll cross my fingers for both of us.

 

[SteveH]

How many times has it been shown, have you had any offers? Those things matter when considering if you should change agents. If it has been getting looks your agent should be reporting to you those items as well as giving you feedback from the other agents that are showing the property.

Without updates from the 70s and several trailers around, I'd say its a depressed condition home and you'll need to price accordingly. With the cooling off due to interest rates you probably need to take a bigger price cut to get it to move. What did the comps (other homes in the area) sell for?

If you are not getting the type of information above, fire your agent and start looking for another. Read your contract first though.

 

[dvcgirl67]

Definitely do not buy the sister out....that's a nightmare waiting to happen if you happen to get more for the home down the line than anticipated when you bought her out for whatever number you decide on now.

As others have said...I'd probably speak to your realtor if you have one. However, a realtor would likely just tell you to drop the price. During the home buying frenzy a year ago when houses were selling instantaneously for more than listing I never heard from a realtor about listing my house. Recently I've gotten postcards and even a couple of text messages from local realtors asking if I'd like to sell my house. Inventory has plummeted...and they're all out hunting for listings.

Personally, if you don't need the money immediately, I'd probably pull it off of the market until the spring. There's a lot of pessimism about the economy right now....possibly recession coming etc. Spring is always a better time to list a home.

 

[kymom99]

Definitely do not buy the sister out....that's a nightmare waiting to happen if you happen to get more for the home down the line than anticipated when you bought her out for whatever number you decide on now.

As others have said...I'd probably speak to your realtor if you have one. However, a realtor would likely just tell you to drop the price. During the home buying frenzy a year ago when houses were selling instantaneously for more than listing I never heard from a realtor about listing my house. Recently I've gotten postcards and even a couple of text messages from local realtors asking if I'd like to sell my house. Inventory has plummeted...and they're all out hunting for listings.

Personally, if you don't need the money immediately, I'd probably pull it off of the market until the spring. There's a lot of pessimism about the economy right now....possibly recession coming etc. Spring is always a better time to list a home.

I was told by a realtor that January is actually a good time to sell for a number of reasons. One being that there is less competition.

 

[Miffy]

I may be wrong, but from your post I gather that your DH and his sister are selling this house themselves. If so, please urge them to get an experienced Realtor to sell the house. We're in a buyers' market right now and you need all the help you can get.

It's understandable that they might want to avoid paying the real estate agent's fees, but every month the house doesn't sell is money they're losing, since they still have to pay the utilities and taxes, so it's to your DH's and his sister's advantage to sell it as quickly as possible.

Also, I agree with the other posters: it's inadvisable for your DH to buy out his sister. The only circumstance where that might work out is if your DH planned to keep the house, which I gather is not the case here.

 

[momz]

what kind of repairs does it need? is it just cosmetic needs? or is there issues with hvac, plumbing, foundation, structural problems?

Having owned investment property, I recommend paying for an inspection. you will find out a ton of information and this will make determining a price much easier. It may also, help potential buyers, if you decided to share what the needed repairs are.

a listing that says "as is" will scare off most buyers, except for investors who have the means to make the repairs.

 

[barkley]

Having owned investment property, I recommend paying for an inspection. you will find out a ton of information and this will make determining a price much easier. It may also, help potential buyers, if you decided to share what the needed repairs are.

great advice! despite it being a seller's market and my (then) home being only 7 years old our very experienced realtor when we last sold recommended a 'light inspection' which cost a couple hundred to have someone come in and take a look at what could be bigger negotiating issues if discovered by a buyer's inspector. ended up finding out we needed a couple of shingles repaired on the roof (not visible unless you actually got up there), an issue with a leak in a small double pane window (again never noticed b/c of placement/curtain, an area of slight discoloration on one of the kid's ceilings (not due to water damage but as realtor pointed out-could have been argued as a 'possible cause' to negotiate a few thousand's lower price 'just in case there's a roof leak') and a couple of minor cosmetics. we spent less than $500 all in for repairs. buyer's inspector was unable to find anything they could use as a negotiation tactic.

 

[tvguy]

I may be wrong, but from your post I gather that your DH and his sister are selling this house themselves. If so, please urge them to get an experienced Realtor to sell the house. We're in a buyers' market right now and you need all the help you can get.

It's understandable that they might want to avoid paying the real estate agent's fees, but every month the house doesn't sell is money they're losing, since they still have to pay the utilities and taxes, so it's to your DH's and his sister's advantage to sell it as quickly as possible.

Also, I agree with the other posters: it's inadvisable for your DH to buy out his sister. The only circumstance where that might work out is if your DH planned to keep the house, which I gather is not the case here.

Her post says they have an agent.

 

[tvguy]

Around here any house priced correctly is gong quickly. I'm not sure what the market is by you but if it has been sitting since November it is likely not priced correctly to account for the area and need for any buyer to make updates.

That was the case here until September. October on, sales just ground to a halt. After years of houses selling within hours of listing, now similar houses have been on the market for 70 or more days. One house on my street sold in March to investors and they took their time doing a light remodel before relisting it. Interest rates have soared, and at this point, they will be lucky to get their money back between what they paid for the house and the improvements. They just sat on it too long.

 

[tzolkin]

My questions are:
1. do we pull it off the market & wait til spring (March or so?)
2. do we lower the price? how do you decide how much?
3. is there an advantage to buying out his sister? how would that work?

1. I don't see any advantage to pulling it off the market unless you were planning to do some updating.

2. Price (and how quickly a house will sell) totally depends on the location. Are you working with a realtor who specializes in this area? Do you and sister-in-law live locally so that you are familiar with the market the house is in?

It could be that the house is appropriately priced, but homes in that area just take a while to sell on average. (Maybe a rural area with less people moving in/out). Or it could be that your price is way off if you're from another area. (Our first house was a gorgeous 3500sqft Victorian that had been completely renovated that we sold for like $115k. Most people we know from other places thought we were absolutely insane, but that was really all we could hope to get due to the location it was in.)

3. I think that would be setting yourself up for resentment-- either on her end if she feels like she got paid too little, or on your end if you wound up overpaying her and then can't sell.

I was told by a realtor that January is actually a good time to sell for a number of reasons. One being that there is less competition.

Yes, (at least around here) there are fewer people looking in January/February but there are also way fewer houses on the market. So someone who needs to buy now may pick your house because it's the best option at the moment, but they may not have even come to look at it if there were loads of other houses available.

 

[gmi3804]

I wouldn't buy out the sister.

If the house is still full of stuff I would clean it out and only leave the bare minimum to stage it. Definitely empty out all the closets, cabinets, etc. Do a really deep clean from top to bottom.

I would also consider giving the interior a fresh coat of paint. It's amazing how much that can freshen up a house.

Real estate broker here. I always have my sellers have the windows washed. Even more than paint, I think, sparkling windows register with buyers.

 

[disykat]

I agree with above. We had someone come in and do a "whole house clean" and I'm sure that helped the buyer see the potential.

We left it totally empty. Because of it's age, we felt that total transparency was the way to go. We didn't say "as is," but it was clear that was the situation.