Pricing Fixer Upper Home?
I’ve found the going rate for 3+ BR 2bath homes in my area to be 0k+ .
My home has 4BRs, 2Baths. I had bought it as a fixer-upper. Due to my unemployment and disability in the family I have to sell.
I know that nobody is going to pay 0k+ for my house. In my estimation it needs about – k worth of work to really fix it up into tip-top shape.
I want to price the house at 5k so a prospective buyer knows I’m taking the fix-up expenses into account, and hopefully drawing in a maximum # of interested people to bring a quick sale. This leaves less negotiation room on offers less than 5, I think someone willing to take on a fixer upper would find this place to be a great deal at 175k.
Alot of people are telling me to price higher, but I need a quick sale – I can’t afford the mortgage for much longer.
At 175k, I can pay off ALL my bills (incl mortgage) and have money in the bank.
Is this a crazy idea? What do you think? Alternative ideas?
Hokie – I’m in New Jersey. In my town, a 2BR 1Bath Condo is selling for 0,000.
i don’t think those condos are gonna sell at that price, since a 3BR house is listed at 9k. I’ve also looked at recent sales information (I have an aquaintance in real estate) and people are getting over 0 for similar homes.
Maria – I’ve still got some wiggle room at 175k. It would come down to how much I can get into the bank. But my minimum number includes a certain dollar amount that I want in the bank in order to make my necessary move happen. I don’t want to shaft myself out of extra $$$ if someone is willing to pay it.
Thankfully, I know I won’t totally lose money even if I had to drop the price to cover the mortgage & home equity loan, without paying off all the bills. I’m close to a job offer, but that is closer to the relative I’m going to be caring for and at a pay-cut.
Doc – I’m planning to do for sale by owner first to avoid paying commission to anyone.
Here’s my strategy – - I’m really hoping to get 0k for the house – that way all my bills are paid and I’ve got enough money to go into the bank.
I figure if I list @ 5, I’ll get plenty of interest and the first offer of 160 or more would get it.
I’m not actually hoping to get 175, although it would be nice. I know not to price the house at my bare-bones, bottom-line absolute minimum I need to sell for.
I know people are going to want to negotiate.
Is 15k enough of a cushion to negotiate on.
If somebody got the house for 160k, put 40k into it and fixed it up, they could easily list it for 250 or more and actually get that price. They’re happy ’cause the house is worth more than they put into it and I’m happy because I sold for what I really want to get.
Tagged with: 2br • 9k • alot of people • amp • aquaintance • condos • crazy idea • disability • estimation • home equity loan • job offer • money in the bank • mortgage • necessary move • negotiation • prospective buyer • shaft • shape • unemployment • wiggle room
Filed under: Fixer uppers Questions
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Hi Nova,
No, don’t listen to what everyone has to say… Stick with your original plan. I think it’s a good one and know that you will come up ahead if you stick to what you’re saying here.
I think that you can go another 10k on the price so that you leave some room for negotiations and stop at your desired amount of $175k.
It’s a good strategy and I’m sure you’ll find a buyer real quick. The person buying knows that they are walking into instant equity even tho the house requires some fixing up.
Good luck on your venture and best wishes. The economy is bad all over the place and you have to be creative on how to sell your property.
Go 200. and be willing to go down to 175
I think that you should price it low and in the notes about the house say that it is "priced well below market due to needed repairs"…this will draw the attention to the fact that the price is low and the repairs are taken into account.
I don’t think it’s crazy at all. If you are pressed for time, just let it be known that 175k is a firm price. It’ll give you a lot of peace of mind to pay off your bills and your mortgage. Good luck, my friend.
I think it depends on what area you live in.
In Virginia and Alabama, (I’ve lived in both) $175k is a lot of money for a fixer-upper.
Where I live, I can buy a 3br 2ba needing NO work for between $125K & $150k
i do think it’s a good idea to have your price reflect the work that needs to be done but is 220k a RECENT going rate? you have to take into account the market right now and that people can get fixer upper foreclosures for DIRT CHEAP. check real estate sites and do searches in your neighborhood to find prices of recent listings because it’s getting harder and harder to make a profit. most people are taking losses. best wishes
Do what your saying….. we are looking into NJ all fixer uppers and to be honest with you, people are lazy peices of crap around us. No one want to fix anything so we have been having a great time bidding. Only thing is that No one is paying asking price so figure out the lowest you will go.
If you anywhere in South NJ- email me-
crack_fashion@yahoo.com
start at 199k – if you get an actual offer for less, but more than 175, take it – if counteroffer is less than 175, counter over by 175 with the target of getting to 175 – don’t forget, sales commission and closing costs will probably be 10-12k subtracted from selling price