Selling a home "as is"

bulletandpima
Fri, 16 Apr 2010 12:05:38 +0000

As far as window screens, I also tell my clients to spic and span the garage, after they do I have them placed in a visible place so that any and every client entering can say OH, there are the screens. Honestly that can go for or against you because there are clients like you that question why they are in the garage and not in the windows. However, most get over it because they than think, what’s the biggie I don’t ever open my windows anyway!

Again that is like everyone else says…KNOW YOUR MARKET. In Alaska people open their windows, in NC they don’t!

I do agree about the blacktop issue. I sell to flippers, usually they are general contractors and this is their side business. They are good flippers because they understand that spending a little bit more means making a lot more, additionally, they have connections to get good rates from the subs.

The flipper to be concerned about is the one that believes I can do it myself and flips using all products from Lowes. They are paying retail and that means they need to cut costs and go with inferior products.

As a realtor it is easy to see when entering the home which type of flipper the owner is by simple things. For example, the DIY flipper will buy the low end cabinets, no raised panels, no self closing drawers, no knobs. However, they will put in the high end appliances to divert your attention. The professional flipper will go median on everything. The cabinets will not be stock supplied, but the appliances will be Kenmore Elite and not GE Professional. FYI They are both the exact same, but GE is more due to the name.

The DIYer will place in the bathroom high end faucets, but skimp on the ceramic tile The professional will put in high end flooring and skimp on the faucet.

The DIYer will put in the 7 arm brass chandelier in the dining room. The professional will pay 50 bucks more for a unique chandelier AND put it a dimmer switch in as the light switch.

The DIYer will put 2 inch base molding. The professional will put in 4 inch.

The DIYer will buy higher quality carpeting and lower padding. The professional will do neither, except for bedrooms and put hardwoods in.

The DIYer will put all new landscaping in and fresh mulch. The professional will trim back, plant flowers and new mulch.

The professional flipper knows where to cut corners to their best advantage, while getting a higher return. They work in the field and know what is trending, the DIYer eventually tires out and throws their hands up in the air because of exhaustion. It is apparent because you can see how the house is disconnected. Master Bath out the door, guest bath looks like they slapped paint on and called it a day.

If the house you are looking at is not on the same par in quality across the board regarding each room, LOOK deeper, because you might have electrical, plumbing, or other issues.

TIP:

Ask the realtor to pull the tax record before you write.

The record will tell you how much they bought it for and when. This will give you a better idea of what to write as a price.

For example, if the home was bought in 05 for 200K and now they are selling at 210. The fact is they have no wiggle room, they are at the bare bones…they will be required to pay RE agents, plus closing costs.

The home was bought in 09 for 200, and now they are asking 400. Tally in your mind how much it would cost to hire someone to gut every room and bring it to this level. Now add in RE and closing. That should tell you how much profit they are walking away with. Be honest, this is their business they are expecting to make some money, and do have additional costs like carrying the mtg for X amt of months, and then they will pay cap gains since they did not own it for 2 yrs. Don’t get to the point that you see them as an owner of a home and not as a business owner. This is business to them, it isn’t their hobby.

Treetop I don’t know where you are, but in NoVA I would say it is a DIYer because the professional would look at the neighborhood and have paid for blacktop, but looked into stamped pavement which would have been the middle of the row. If not that they would have placed pavers on each side of the drive to give a unique curb appeal, while cutting the cost of concrete. They are very aware the curb appeal is a top issue.