Author Topic: selling a tear down?  (Read 4487 times)

spartana

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selling a tear down?
« on: June 06, 2017, 11:01:45 AM »
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« Last Edit: June 27, 2018, 02:06:16 AM by spartana »

Thinkum

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Re: selling a tear down?
« Reply #1 on: June 06, 2017, 12:02:40 PM »
Are you certain that a buyer would actually tear it down? I think it might fetch a better price if you just cleaned it up and sold it as is to anyone who wants to buy it for your preferred price. SoCA is still pretty hot and people are buying all sorts of heaps to actually live in, not tear down. Also, I would look into using an online broker like Redfin or a member here's site Faira. This way when you sell it, you're not stuck paying the full 6% commission fee. Good luck.

ncornilsen

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Re: selling a tear down?
« Reply #2 on: June 06, 2017, 02:28:54 PM »
Are you certain that a buyer would actually tear it down? I think it might fetch a better price if you just cleaned it up and sold it as is to anyone who wants to buy it for your preferred price. SoCA is still pretty hot and people are buying all sorts of heaps to actually live in, not tear down. Also, I would look into using an online broker like Redfin or a member here's site Faira. This way when you sell it, you're not stuck paying the full 6% commission fee. Good luck.
Its in good condition and not a heap but every original house here that has been bought recently, whether highly upgraded or not, has been torn down and mcmansionized so pretty sure that'll be my houses fate as well. Zillow says it worth $578k (its not and especially not as a tear down) but will check out Redfin. Thanks

You need to do what you can to maximize your value. If it's in good enough shape to be financed (or can be with minimal work), I wouldn't treat it differently than any other house. Let the person who wants to ruin the neighborhood further with another mcmansion eat that lost value.

Dee18

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Re: selling a tear down?
« Reply #3 on: June 06, 2017, 09:26:01 PM »
Definitely keep it furnished. 

Goldielocks

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Re: selling a tear down?
« Reply #4 on: June 07, 2017, 12:41:11 AM »
I would have a copy of the land survey, with city zoning bylaw setbacks noted, (shown and described), and a recap of what the utilitiy connection sizes are, sitting as a handout on the table, for buyers as they walk in.

If it has potential for subdivision, provide the city information on it.  "Can be subdivided into two properties with city variance process"

If most places near your are rebullt with secondary rental suites, pull a listing of going rental prices of suites around you for their reference.  (unit address, 2 bd, $ per month, etc).

If you have a view, if they built a second storey, get a drone to take a picture of the view from that level,

etc.   



PathtoFIRE

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Re: selling a tear down?
« Reply #5 on: June 07, 2017, 09:52:11 AM »
In my neighborhood, there are a lot of house bought as tear downs, but I never understood the realty listing offering a house as tear down, lot value, etc. Yes, my lot accounts for probably 75% of the value of my house, but in order to maximize your return for selling, I think the number one objective would be to get as many possible buyers looking at the house in the first few weeks as possible. I know sometimes it can't be helped, maybe a house is in such disrepair or there is some other hopefully very important reason to state that the house itself will not be shown, but otherwise, I'd treat your house as someone else's potential dream home, and do all that I could within reason to stage and make that home appealing.

Your best bet is to attract multiple people who can see themselves living in the house, that creates the hook to maximize your selling price. Even if that plan doesn't pan out, you'll be in a better position to extract top dollar for those looking at the lot only. I guess there is a small chance that a high asking price will scare away those looking for a tear down though.

There are four houses in a couple block radius of me that are old, small, and each had been on the market for more than 6 months. One changed to one of the high power sellers realtors in this area (I see her name on many of the 5-10+million homes), dropped the price to something closer to lot value, and sold quickly after doing that. Two others languished and were scooped up by two different friends who lived next door to each, one to flip and the other to expand their yard. The third, the one closest to my house, is _still_ on the market, though at least they've dropped some. You could end up like that last one, but why assume that from the beginning and limit yourself.

SBuck

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Re: selling a tear down?
« Reply #6 on: June 07, 2017, 01:27:32 PM »
I would have a copy of the land survey, with city zoning bylaw setbacks noted, (shown and described), and a recap of what the utilitiy connection sizes are, sitting as a handout on the table, for buyers as they walk in.

If it has potential for subdivision, provide the city information on it.  "Can be subdivided into two properties with city variance process"

If most places near your are rebullt with secondary rental suites, pull a listing of going rental prices of suites around you for their reference.  (unit address, 2 bd, $ per month, etc).

If you have a view, if they built a second storey, get a drone to take a picture of the view from that level,

etc.
My city doesn't allow multiple dwellings or subdivisions only one sfh per lot. The lots aren't that big as they are still city lots of around 8,000 - 10,000 sf  ( mine being 10k since its an end house on a cul-de-sac), with public utilities. But most new construction are 2 story places in the 4000 sf range with attached 3 of 4 car garages rather than individual units that rent separately since they aren't (legally) allowed. However most of these big houses care rented rather than owned it seems.

Why not just renovate the property, and sell it? What am I missing here?

PoutineLover

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Re: selling a tear down?
« Reply #7 on: June 07, 2017, 01:39:47 PM »
where granite and marble are desired instead of pink and mint green tile ;-).

I too have pink tiles. and blue. and green. all in the same tiny bathroom. Who the fuck decorated back then? why???

PoutineLover

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Re: selling a tear down?
« Reply #8 on: June 07, 2017, 01:58:01 PM »
where granite and marble are desired instead of pink and mint green tile ;-).

I too have pink tiles. and blue. and green. all in the same tiny bathroom. Who the fuck decorated back then? why???
.haha. Was LSD invented in the 1950s ;-)? I have the mint green kitchen and the baby blue bathroom and the second (both tiny) bathroom is pink. I love it but realize its not most peoples idea of attractive. I think both bathroom are 5x5 plus the tub which are 5 x 3. 2,Bedrooms are around 9x10 with 3x4 closets. And the "master" bedroom is about 12x 10 with a 5 x3 closet. Dining room is huge though.
It's definitely because of drugs :P I like mine too, and I actually just painted a green accent wall that complements the bathroom and kitchen counters, but when people walk in there they always comment on it. Luckily mine is just a rental but I can see how prospective home owners might be turned off. Unless they are also hippies?

birdie55

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Re: selling a tear down?
« Reply #9 on: June 07, 2017, 08:00:10 PM »
Spartana,
In another thread you mentioned possibly selling your house without a realtor. 

Since we do not use Real Estate Attorneys in CA, you might either contact an escrow company and see if they will do the paperwork for a fee.  Or look for a Help-U-Sell in your area.  I used them to sell a house once and they charged a flat fee if I bought in the buyer, and a higher fee if they brought in the buyer.  I handled all the open houses and they did the paperwork.  It was much more reasonable than hiring a realtor and paying up to 6% in fees.

Cadman

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Re: selling a tear down?
« Reply #10 on: June 07, 2017, 08:12:14 PM »
Spartana, sounds like your house has an MCM vibe. If the tile, fixtures, etc are as original as you say, I would NOT rip them out. Those features are likely the thing you have going for you to prevent a tear-down situation. I run in a circle of folks that spend their time and money stripping paint from brick and cedar, ripping out the granite and faux SS appliances and removing vinyl plank floors to restore such homes to as close as original as possible.

If someone's really buying it as a tear-down, they're not going to care about your upgrades. And if you remove the originality, then it's just an old house with updates.

Goldielocks

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Re: selling a tear down?
« Reply #11 on: June 07, 2017, 11:20:05 PM »
In my neighborhood, there are a lot of house bought as tear downs, but I never understood the realty listing offering a house as tear down, lot value, etc. Yes, my lot accounts for probably 75% of the value of my house, but in order to maximize your return for selling, I think the number one objective would be to get as many possible buyers looking at the house in the first few weeks as possible. I know sometimes it can't be helped, maybe a house is in such disrepair or there is some other hopefully very important reason to state that the house itself will not be shown, but otherwise, I'd treat your house as someone else's potential dream home, and do all that I could within reason to stage and make that home appealing.

Your best bet is to attract multiple people who can see themselves living in the house, that creates the hook to maximize your selling price. Even if that plan doesn't pan out, you'll be in a better position to extract top dollar for those looking at the lot only. I guess there is a small chance that a high asking price will scare away those looking for a tear down though.

There are four houses in a couple block radius of me that are old, small, and each had been on the market for more than 6 months. One changed to one of the high power sellers realtors in this area (I see her name on many of the 5-10+million homes), dropped the price to something closer to lot value, and sold quickly after doing that. Two others languished and were scooped up by two different friends who lived next door to each, one to flip and the other to expand their yard. The third, the one closest to my house, is _still_ on the market, though at least they've dropped some. You could end up like that last one, but why assume that from the beginning and limit yourself.
Thanks for the advice. I did put it up for sale a little over a year ago at a high price just to test the waters as I wasn't 100% sure I wanted to sell then. I only had low ball (but still high) offers from investors just interested in the land. I think if I lived in a different community the size of my.house and its funky retro 50s vibe (original 1950s tile and kitchens and bathrooms for the most part but in pristine condition) would be a plus but not here where extended families of 10 or more is the norm and where granite and marble are desired instead of pink and mint green tile ;-). But I think I'll take the advice given by everyone and leave it furnished and in current condition (all freshly painted already) but not do anything else and price it accordingly but be willing to accept lower investor offers.

Here, an older building on a nicely sized property goes for more money as a teardown than a 20 year old, rebuilt/ renovated home does.    They see it as easier to get the home off the lot when it is smaller, or perceive that the home in great newer shape is a waste to tear down, but they have a specific home idea in mind.

Another Reader

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Re: selling a tear down?
« Reply #12 on: June 08, 2017, 10:00:07 AM »
"But I think I'll take the advice given by everyone and leave it furnished and in current condition (all freshly painted already) but not do anything else and price it accordingly but be willing to accept lower investor offers."

If you have priced it accordingly, you should not have to lower the price for investors.  That's what investors are paying.  BTW, a 10,000 sf lot should be more valuable than most because of the potential lot coverage.  More marble and stucco will fit on your lot and you should price it higher on that basis.

Another Reader

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Re: selling a tear down?
« Reply #13 on: June 08, 2017, 10:27:18 AM »
It would help you if you got an agent to provide you all the comparable sales in the area, independent of structure size, where the house was demolished or gutted and rebuilt into an equivalent of new structure.  Figure out the price per square foot of land for those sales.  That will probably be a better indicator of value than analysis of comparable improved sales without regard to what happened after the purchase. 

A visit to the Huntington Beach planning and building department with the Assessor's map of your parcel will help you determine how many more square feet could be built on your lot vs. a typical city lot.  It may make a difference if you are on a corner, because of setback requirements.  With some knowledge of setbacks and lot coverage ratios, you should be able to analyze the comparable sales and come up with an accurate value of your property.

Most residential agents will not know enough to do this calculation.  It's best to talk to listing agents that are familiar with what is happening and price their listings based on the correct comparables with the correct adjustments.  I would not talk to any agents that represent the buyers of these properties nor would I talk to the principals in those transactions.  You will find yourself swimming in a pool of sharks if you do that.

Dicey

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Re: selling a tear down?
« Reply #14 on: June 09, 2017, 07:30:40 AM »
Piling on to suggest checking out Redfin vs. HelpUSell. Also, the holy grail for the Ugly House buyers is the under informed/distressed seller who doesn't know what their house is worth or is hard-up for money. You are neither. Clean and decluttered is my vote. Best wishes for a good transaction!

Dicey

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Re: selling a tear down?
« Reply #15 on: June 10, 2017, 12:45:04 AM »
Homevesters is actually a franchise. I used to be friendly with a couple of very early franchisees, so I know a little bit about their business model. Empire Today Carpet uses a similar strategy. Does anybody really believe you can buy one room of carpet and get two "free"? Why yes, yes they do. Sukkas.

I think hiring an agent who speaks the language and understands the customs of your most likely buyer is an excellent strategy. Good luck to you!

Bicycle_B

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Re: selling a tear down?
« Reply #16 on: June 11, 2017, 05:10:17 PM »
Spartana,

Good for you on researching the details of similar properties in the city, and even more so on contacting people who bought similar properties. 

Maybe visit a few real estate groups in your area, get feedback from people there, and implicitly circulate word of mouth to their investors?


Bicycle_B

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Re: selling a tear down?
« Reply #17 on: June 15, 2017, 02:01:04 PM »
I talked to a couple of people, one guy who owns a house construction/design company and did both of the houses across from me and owns one of them as a landlord. He's very interested but I can tell he wants a very low ball deal. He doesn't speak much English (I live in a Vietnamese community and don't speak Vietnamese) and I'm mostly deaf so who knows what he really said. Will get my sister to talk to him on my behalf in a couple of days. We exchanged info and he took a walk thru my house and I pointed out the things I knew were wrong with it. So we'll see. I also met with a couple of agents and will most likely go with one of them. Too big of a financial transaction that I'm don't think I'd feel comfortable going it solo especially with my hearing problem. Hard to talk to people.

Sounds like having someone on your side in this transaction is a good idea! 

Fwiw, it seems like you're in a great position and making a good move.  I always like hearing your stories.  It's uplifting to know you're out somewhere enjoying the world.  Anyway, best of luck with this adventure.