I'm in a very hot Boston neighborhood (places go under contract within days, I've seen about 10 places go for $20-$80K over asking in the past year, prices are up probably 20-30% since 2 or 3 years ago) and I am planning to sell in the next couple of months. Could probably get at least 40% more than I bought for 12 years ago.
House needs some cosmetic work (kitchen and bath both old and we are about to paint the exterior, which really needs it) but even so, I am pretty sure it would sell quickly because the location is spectacular, it's a really cute little 3-bed house w/finished attic, and inventory is low.
Many houses are in pretty battered shape here but people (developers?) buy them, do a gut reno and pretty much double their money. There are also new houses/multi-units being built everywhere, on every spare scrap of land, with finished sale prices for say 3 beds upwards of $700K (and selling very quickly at those prices, which in Boston are a bargain for new construction).
Note that my house is odd because it is actually deeded as a condo -- there are 2 SF houses on 1 lot, and we are a condo association of 2. Both houses need work (especially my neighbor's).
Through a family connection, we already have a developer asking if we want to talk --especially if my neighbor (call her M) got in on the conversation (which I think she would be interested in -- FYI we get along very well and have actually discussed this possibility before).
Also -- theoretically another neighbor right next door (who we also get along with), whose 2-family house is also in rough shape, might be interested as well -- so developer could potentially get 2 large lots with 4 units in an amazing location. (M's house is big enough to be divided into 2 or even 3 units also.) We are pretty much the only houses left on our street that haven't been renovated in the last few years : ).
How do you suggest we approach the idea of selling to a developer in this market? I would of course get a couple of market-rate appraisals and would likely talk to more than one developer if we were serious about going that route, get a good lawyer, etc. Obviously I'm not interested in giving the developer a sale price in such a hot market, but I am wondering what people might advise regarding entering into any sort of negotiation with them.
I am also wondering if we could potentially do better with a developer, given that all houses need work, than we might on the regular SF market where we'd probably be paying an agent etc. Or would we do worse?
Thanks!