Agents Online Real Estate Forums, Discussion, Realtors Marketing Tips

Follow AgentsOnline on TwitterFollow AgentsOnline on Facebook

Click Here to display our logo on your site and link to us!
AgentsOnline Real Estate Discussion Forums Logo

Realtor CommunityA popular online real estate community since 1998!


Advertisements


Sponsored Links
Advertisements
How To Advertise Here
How To Advertise Here

Good Idea!
Realtor Promotion Service

Sponsored Links
(Views)Popular Topics
I MAKE 100 COLD CALLS EVERY DAY & LOVE IT! 28309369
No new orders today 13116958
Stupid MLS comments. 3291740
What do you know about Froy Candelario, top agent in USA 1195507
Stupid QC comments and BPO requirements. 1068813
New HUD Listing Brokers---Any Update? 1032028
Is there religious content in Buffini class? 825217
Let's talk about our cars 672658
Name that Flick. Great movie Lines. 605193
Pay it Forward - BPO/REO Tips & Tricks I & II 595640
Most common items found at an REO 581522
EML 459233
REOTRANS 442288
Main Street 424844
asset val seminar in colorado 408789
assist 2 sell or 1 percent realty? 341222
HOMONYMS - There, Their, and They're 310143
Evalonline 300205
Land America 285052
Mainstreet 261860
Matched Content
Topic Options
Rate This Topic
#453066 - 06/15/16 08:07 AM Selling a property in need of repair and no viable comps
Tarheel Man Offline
Junior Member

Registered: 06/15/16
Posts: 3
Loc: NC
Looking for advise from a reputable and experienced real estate agent. I inherited a rental property from my deceased father approximately 14 months ago. I've allowed the tenants to remain in the property on a month to month agreement until the property is sold. I hired a real estate (friend of a friend) approximately 12 months ago and listed the property 15% over the tax value based on her advise and we've gotten practically no interest.

However, the dwelling is in need of some repairs, including a new roof. And the other major obstacle is that they're practically no comps for the property in the area. So I have no idea what I can realistically expect to get for the property and apparently my real estate agent doesn't either. It's a 10+ acre property with a pond in less desirable part of town and surrounding by properties 0.25-0.5 acres. The average value of properties within a 5 mile range is probably 1/3 or 1/4 of the value of this property so I'm very doubtful that I will get anything close to the listing price and would probably settle for 50%-75% of the appraised value.

My contract with my current realtor is up next month and I plan on hiring a new one, preferably one that has more experience and is a better resource than my current one. But my most pressing issue right now is an active leak that has developed in the roof and I've had three leaks patched on separate occasions but it just seems to keep migrating. So I'm trying to decide should I go ahead and have the roof replaced prior to hiring a new agent or should I wait so that we can determine what, if any, of the improvements I have done will help sell the property or increase the sells price once a more accurate listing price can be determined. My concern is that I likely won't be able to sell the price as a primary residence and any interest will likely come from an investor or developer wanting the property for the land. In that case, any money I shell out for repairs to the dwelling will be lost. Any advise someone has would be greatly appreciated!

Top
Advertisements
#453067 - 06/15/16 09:58 AM Re: Selling a property in need of repair and no viable comps [Re: Tarheel Man]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7745
Loc: Vermont's North-East Kingdom
I think you've placed altogether too much importance on the Valuation set by the Town for Tax purposes.

The Tax Assessment IS NOT an "Appraisal"; it's to assist the Town in collecting Revenue.

I suspect that you're way over-priced and that explains why your activity has been Zip . . . . who suggested an Asking Price at 15% over the Assessment ?

Ever look into whether your Ten Acres could be sub-divided into lots more consistent with the other property in the immediate area ?

I suspect that the presence of that Pond indicates that your parcel is Wetlands, and was grandfathered in when Zoning came into your Town, and that's why it's of limited value . . . . EXCEPT for collecting Tax Revenue.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

Top
#453068 - 06/15/16 10:31 AM Re: Selling a property in need of repair and no viable comps [Re: Vermont]
Tarheel Man Offline
Junior Member

Registered: 06/15/16
Posts: 3
Loc: NC
Well I definitely understand the difference between an appraised value and the assessed tax value, my mentioning of the 15% over the tax value was just to give respondents a frame of reference for how much the property is listed. Because the realtor couldn't find any viable comps, we both agreed on a price that was slightly higher than tax value just to see what kind of interest the property would draw. The thinking was we didn't want to list the property a lot lower than what someone might be willing to pay for it and it's a lot easier to adjust the price down if and when more comps became available or if offers or interest came in. I will add that the listing price is about $100k less than what my father paid for the property almost 15 years ago.

As far as subdividing the land, it's possible and would likely be approved since future landuse shows it as Single Family .25 acre parcels. However, that's a road I would let the buyer or potential developer go down and the pond does present an obstacle in development, but there isn't wetlands on the property. I believe the pond is an old farm pond used for irrigation. I would estimate that at least 7-8 acres of the 12 can be built upon and developed.

Top
#453078 - 06/16/16 12:37 AM Re: Selling a property in need of repair and no viable comps [Re: Tarheel Man]
Bigtoe Offline
Major Contributor

Registered: 10/14/07
Posts: 2245
Loc: Outer Banks
Originally Posted By: Tarheel Man
we both agreed on a price that was slightly higher than tax value just to see what kind of interest the property would draw. The thinking was we didn't want to list the property a lot lower than what someone might be willing to pay for it and it's a lot easier to adjust the price down if and when more comps became available or if offers or interest came in.

this is a viable strategy if you follow through with part 2. You forgot to lower the price when the current list price generated no interest. Start lowering the price until you start getting interest.

Also have the property listed in the mls twice, once as a house and also as a tract of land. Developers might not be seeing that the property is available.
_________________________
Your Outer Banks real estate agent. Helping people buy and sell OBX real estate since 1989.

Top
#453079 - 06/16/16 01:29 AM Re: Selling a property in need of repair and no viable comps [Re: Bigtoe]
Vermont Offline
Major Contributor

Registered: 04/12/08
Posts: 7745
Loc: Vermont's North-East Kingdom
Originally Posted By: Bigtoe
". . . Also have the property listed in the mls twice, once as a house and also as a tract of land. Developers might not be seeing that the property is available . . ."

I once had a property entered into MLS Four (4) Times.

It was a 50 Acre Parcel with two rented Mobile Homes on it.

I listed it as:

Residential;

A Multi-Unit Income Rental Property;

A couple of Mobile Homes; and

A Sub-Dividable Parcel of Land (suitable for hunting).

In retrospect, I could have also advertised it as Commercial; for a SugarBush or a Christmas Tree Plantation . . . . I wouldn't have been way out of line.

I forget which category actually got it sold (I sold it twice 5 years apart) and it produced countless Leads in several categories; but someone's still collecting Rents off those old Trailers !

Like BigToe suggests, sometimes you have to cast a big net to catch the attention of ALL your fishes.
_________________________
Dale C. Hittle of GOLDEN RULE PROPERTIES in Glover, Vermont
Where We're Always Striving To Put Together "THE FAIR DEAL"

Top
#453082 - 06/16/16 03:21 AM Re: Selling a property in need of repair and no viable comps [Re: Tarheel Man]
Tarheel Man Offline
Junior Member

Registered: 06/15/16
Posts: 3
Loc: NC
Thanks for the feedback regarding multiple listings in the MLS, it's something I hadn't thought of or my current realtor hadn't suggested. I assume with the two listings, both would have the same sales price? and if so, I think coming up with a listing price that is attractive to a potential home buyer, but not too high for a potential developer is critical.

Top






Google Custom Forum Search

This Google Custom search may do a better job of searching the forums for some keywords than the old forum search does. The results do not include threads from the Asset Managers Forum however. To search that forum you will need to be actually in the Asset Managers Forum and you will need to use the old forum search below.
Search

Newest Members
jerrberr, JeanneSells4U, tpierce, Akingofhomes, LiamOliver
29848 Registered Users
Who's Online
2 registered (copenwbpos, 1 invisible), 67 Guests and 4 Spiders online.
Key: Admin, Global Mod, Mod
Shout Box

Top Posters (30 Days)
FlyerRE 41
Long Walk 33
Vermont 25
Mr. Clean 13
Lucky Leonardo 9
Trouble 8
Bigtoe 7
estatereal 7
JohnN 6
HOT-TUB 5
TheTexasGal 4
Mayra Kelley 4
RE Student 4
moonstone 4
DolceVictory 3
Featured Member
Registered: 06/13/06
Posts: 1398
Facebook

How To Advertise Here


This site presented by RNC Internet Services