Here is the short version,

Dad passed away in Sept. He was a builder. Left mom with several properties and three houses. The main house of concern is on Ono Island, Orange Beach Alabama. The house was built in 05 and is not fully finished. It needs light fixtures and appliances and carpeting on the third floor. The house is approx 6000 s.f with 2500 s.f of screened in decks. It is located on a canal lot that limits the size of boat that the purchaser can have. It has been lowered from 1.4 mil to 1,195,000.00.

We have it listed with an agent. What else can be done to move this type of property? It appraised at 1.5 mil.

John

I would finish it out if that is an option. Buyers in that price range and area are not looking for the headaches of an incomplete house. Without alot of information, that is the best I can do.

Also - where is the agent advertising? A house like that should have a national or at least regional (all of SE US) audience, as a likely buyer could be looking for a vacation home. The agent stands to make well over $30K, I assume. Adequate advertising is their responsibility, so make sure it is happening and on an appropriate level.

How long has it been on the market? What are the average days on market for that area? For that size/priced home in the area? That will help you to know if your expecations are reasonable, or if you may need more aggressive representation. If your agent hasn't already provided you with that kind of information, they should. If you do not live in the area, you will likely need to stay on top of the agent. It's all too easy for agents to neglect absentee owners.

I am sorry you lost your dad, and know how hard it can be to get everything in order. I wish I had the bucks! That is one of my favorite areas to vacation. I bet it is heaven. Good luck!

Definitely finish it out,buyers in this range expect a finished product.

More importantly what are the most recent SOLDS in that are.Forget the appraisal that doesn't repreesent what market is when it comes to value.

When they see things unfinished it puts thoughts in there head as to "what's wrong with this property,why wasn't it ever finished,what secrets is it hiding that once I buy it I will be stuck with massive repairs?"

When you have a finished product you take all of that away.

The canal thing there is nothing you can do about that.The market will tell you how much the buyers are willing to pay.

Forgot to mention that if you don't or can't finish it out you have a few options.

You can sell to an investor or another homebuilder,or you can find a buyer that's a handyman although it will be tough in that price range as most contractors do not make that kind of money.

You can go to the national association of homebuilders

http://www.nahb.org/local_association_search_form.aspx#


Find you local area chapter they will have a list of phone numbers and e-mails for builders,investors etc. that you can contact.Be forewarned they will only buy at a discount.

I agree as well on finishing it off. Could it be rented in the meantime until it sells? This may help to offset the investment you will be making to get the deal done.

This house is very large. I believe it will run 50k just for the fixtures. There hasn't been much traffic on the " Island" and there are a few people trying to buy millon dollar homes for 500k. This property is costing about 5k per month. Should we try and hold out until the market comes back? Who knows how long that will be.

It was originally listed at 2 million. My dad lowered the price when he found out he was sick. Lowered it to 1.4 mil and we have since lowered it to 1,195000.

Sadly without being there it would be impossible to advise you.I hope you are not using a new agent or one that is listing it on a discount basis.

Have any buyers been looking at the house?What feedback has the agent gotten from the potential buyers/agents good or bad?

Once again what are the SOLDS on that island?How much do you guys have in the property to turn a profit?What are absorption rates for the area?(How fast homes are selling compared with what's being built and inventory supply)

If homes are selling for 500k it sounds like there is blood in the water and you will need to hold for awhile.You would HAVE to finish it in order to rent it out as it had to be in liveable condition and you would need to review your state's landlord tenant laws.I feel for your situation and if this is just an agent you probably need to call the head broker and ask for more help with your property.

There are so many things going on here that you need local assistance.

good luck-no legal advice

Thanks for the advice.

What are your thoughts on doing a trade? Maybe trading for a condo that can be rented out? Would this be an angle to turn a negative cash flow into a positive cash flow and far less maintenance?

John

That goes again to what your local market is like which I have no clue.If this property is an investment property you would need to do a 1031 exchange and the money left over would be "boot" and taxable by capital gains.

If you sold your property and you inherited it you might not pay much gain because of a stepped up basis.Has the estate already been probated and who has the executors authority?

I think you need to run these ideas by the head broker.

good luck-no legal advice