Selling a Difficult House before Thanksgiving
This April, as prices were lofty, I decided not to renew the lease for my most difficult tenant (a Section 8). The rent was paying $1200 pcm. it is a pretty 1300sqft 3/2 with converted garage, and a new roof since 2017 The price after rehab at 180k-190k on Zillow,
My manager expected to be able to renovate as new paint, flooring, and kitchen were needed, and sell above 200k (potentially 220k). I expected 30k-40k rehab.
The tenant left in June, The house needed pest control and we decided to strip to start the rehab. I was busy during summer and September. My manager and her contractor husband seemed busy all the time.
Finally, when I get them to talk about it, the contractor tells me it is likely to cost 120k to rehab. Basically, I went from having a house with a tenant that pays 1200 per month, to having a stripped house without kitchen or toilets.
I asked her how much the house would fetch as is and she thought it might fetch 100k to 120k. She said was potentially interested to bid but at a lower price. I decided to have a second pair of eyes and avoid conflicts of interest with a seller agent who might turn out to be a buyer.
I reached out to other PM and RE brokers in Florida. They all advised me to find someone else in Tallahassee.
Finding an agent for a difficult house is not easy because most of them want a house that is already done. I found an agent and she advised the property would likely cost 60k-80k to rehab, and she also saw it in the 100k to 120k range.
We listed it at 110k, it attracted around 10 bids over the 2 days before thanksgiving. It sold at 121k.
I believe the house has good value for someone with the right contacts to renovate, or someone ready to do much of the renovation themselves. This is a very good market to sell, the house was gone with 48h of listing.
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