Should I Fix this House or Not ??? - Posted by Frank Chin
Posted by Frank Chin on July 23, 2001 at 07:38:06:
I have a property purchased as a preforclosure years back at 80K. Recently I found that NO properties were sold in the area for less than 225K.
Problem is the exterior needed fixing. The siding is real old. Parts of the exterior woodwood rotted. Needs a few new windows. Well, you get the picture. One realtor looking at it mentioned its the ugliest house on the block with a dozen other houses.
So I got this contractor who says he’ll start in late May, then, mid June, then early July, and then he’ll call me this weekend. Of course he didn’t call all weekend.
This guy was recommended by my tenant, a former home improvment guy. His son works on and off with this contractor. Having seen horror stories on TV where contractors ripped everthing down, then go start another job, you can understand why I don’t want to call a bunch of people from the Yellow pages.
I called a few realtors already as this is dragging on for too long. They tell me this:
1- Comparable houses list for 249K. Because this one had an enclosed porch, and garage converted to den, it should be listed for more.
2- Its better if its fixed. No problem if it isnt’t if you reduce the price by 20K - say settling for 229K. Some folks like to fix it up the way they want it. Under the circumstances 229K dosen’t sound bad. There’s a big shortage of starter homes in this price range.
3- The contractor gave me an estimate of 8K to do the siding, cap the window frames, replace the rotten wood etc. Not a bad payback to spend 8K and get back 20K.
4- Realtors told me not to wait to long since this is the best time of the year to show the house and find buyers. I tend to agree after trying to sell another property when a tenant moved in January.
5- I have a wonderful tenant of eleven years moving out. The inside is immaculate. He also tells me to let myself in whenever, watch some TV and have a beer. I realize that I might not get this type of cooperation from my next tenant if I re-rent.
6- Wife been suggesting I call some people from the Yellow pages.
So the question is - should I try to get this placed fixed up - or just be done with it - taking 20K less ??? I do enjoy rehabbing and selling a really nice place.