a. I'm female. b. I'm not moaning. I'm being realistic about our finances. We do NOT have 10k to put into doing kitchen upgrades. We have maxed out our budget. That's realistic c,. If I have to accept a lower price, so be it. But we have no more $ to do anything with.
It's not moaning, m'dear. It's realism And we have to deal with it. As soon as our contract is up with the current realtor, I am changing. I've already talked to one and she agrees the marketing the 1st one has been doing is wrong. Yes, I've both houses 2x. No, I've never sold one. I depended on our agent. I was wrong.
But I nor my husband are made of $. We're do> On Mon 08 May 2006 04:56:53p, Thus Spake Zarathustra, or was it Edwin > Pawlowski?
We've already sunk nearly 10K into painting, redoing hardwood floors, repairs, etc. Our renter is working with us. He helped up pack up a lot of our stuff and has been real good at keeping things clean and straight. However, we simply don't have the $ to do other upgrades like kitchens and bathrooms. We're doing the mirrors and medicine cabinets, but that's about it. We painted vanities and changed hardware. The tile has to remain as does the bathtub. It's cast iron, not fiberglass as a lot of new ones are nowadays.
Landscaping isn't an option because that's done by the Association.I can't paint the outside, but we completely repainted the inside and had all carpets professionally cleaned.
The thing that disturbs both my husband and me is that all the realtors we interviewed told us the same range. Had we been quoted a (now) more realistic price range, we would have been better prepared for this. We looked at what units had sold for and all were substancially smaller in square footage, so trying to get an accurate read is hard. Most of our neighbors have had their units for 10+ years. It isn't a 'transient' complex at all.
We're trying to be realistic about what we can really afford to do v. what everyone's telling should be done. It'll come down to negotiating the final price, but in the end, we only have so much $ that we can afford to put into it.
We've already sunk nearly 10K into painting, redoing hardwood floors, repairs, etc. Our renter is working with us. He helped up pack up a lot of our stuff and has been real good at keeping things clean and straight. However, we simply don't have the $ to do other upgrades like kitchens and bathrooms. We're doing the mirrors and medicine cabinets, but that's about it. We painted vanities and changed hardware. The tile has to remain as does the bathtub. It's cast iron, not fiberglass as a lot of new ones are nowadays.
Landscaping isn't an option because that's done by the Association.I can't paint the outside, but we completely repainted the inside and had all carpets professionally cleaned.
The thing that disturbs both my husband and me is that all the realtors we interviewed told us the same range. Had we been quoted a (now) more realistic price range, we would have been better prepared for this. We looked at what units had sold for and all were substancially smaller in square footage, so trying to get an accurate read is hard. Most of our neighbors have had their units for 10+ years. It isn't a 'transient' complex at all.
We're trying to be realistic about what we can really afford to do v. what everyone's telling should be done. It'll come down to negotiating the final price, but in the end, we only have so much $ that we can afford to put into it.
I agree that it doesn't make any sense to spend $10K on upgrades. I'd much rather buy a place for $10K less and make the upgrades I want. That way it suites my tastes, not someone elses. I've seen many articles and reports of how much one can expect to get back for kitchen upgrades, bath upgrades, swimming pools, the whole list. Almost all of them are negative. The only one I can recall adding more in resale value than the cost was adding a second bath to a house that has only one.
I would make some less expensive changes, if they will help. Like if the carpet can be improved by cleaning, get it done. If painting some rooms will help, I'd do that. I would ask some people you know for their honest opinions, as they may have a fresh perspective. If the place is furnished, but the furniture is older and doesn't help, it may be better to take it out and leave it empty. At least that way the place looks bigger.
Some simple things can make a big difference. I recently went to an open house down the street. The house was probably 25 years old and was built in an area that was dark because there were so many trees surrounding the house. The forest virtually came up to the back of the place. The owner of the real estate agency was there herself showing the place. It was dark as could be inside and she didn't have the sense to open all the blinds and turn on the lights. That simple change could have made a big diff. Anyone that walked in was left with the impression that it was cold, dark and dreary.
Are you getting what I mentioned to explain to your agent an escrow account for the remakes of the house. Set your price on those that are in your immediate area. You need comparatives and your local market will dictate that.
You have said this already, give us a break... How will you pay for things like appraisal, warranty, closing, YAWN.
Let me AX you a serious question. Why does the agent that sold your newer/current home of two years to you; not get consideration for the job now? Can it be you are being....whatever?
I really don't want to hear it. Two years ago I had eight (8) mortgages. Today I have one after this morning's closing.
Oren "My doctor says I have a malformed public-duty gland and a natural deficiency in moral fiber, and that I am therefore excused from saving Universes."
A. I was referred to as a guy. I'm not, thank you very much. B. I understood perfectly. However, things have to be paid for before you get to escrow. $ doesn't simply materialze out of thin air, particularly when you don't have it. C. A home warrenty, IF we're asked for one, is around 500. That we can manage. Closing $ comes out of the monies collected at closing, if memory serves me. Preparation of a deed is
Anything that looks worn or would be considered ugly by today's standards needs to be addressed. Addressed does not necessarily mean replaced.
Cast iron is generally considered to be superior *if* the finish is in good shape. If the enamel is worn and chipped it will be a serious liability for showing the place. Tub refinishing can help a lot for perhaps $500 though it will only last perhaps 5 or 6 years before it needs touchup.
Tile that is in good shape and not a color currently considered to be hideous is ok. Most any pattern or print on the tile would be bad. The same tub refinishing folks can refinish tile as well with passable results. Certainly tile refinished in a neutral color will show far better than some 70's monstrosity.
That's fine.
Never trust what a realtor tells you they think they can sell for, they want you to hire them and quoting a price higher than you might really get or hear from a slightly more honest agent is one way to lure you.
I sold a house last year and the realtor indicated they thought it would sell for $150k. I didn't believe this for a minute as I expected and needed to get $120K for it. I listed at $130K to provide some wiggle room for "virtual concessions" and eventually sold for $120K exactly as I expected.
I'm a little puzzled on this, shouldn't all the townhouse units be about the same size?
This also means it's not a "hot" complex and probably isn't generating a lot of interest.
Don't underestimate the power of keeping the price higher and offering a substantial closing credit (cash back) to the buyers for remodeling / updating. As long as the appraisal will support the asking price (and the appraisers somehow always come up with an appraisal to match what's expected), this allows the buyers to finance the remodeling into their mortgage. You end up with the same amount you would get otherwise and the buyers get their upgrades at their own cost without having to get separate financing to pay for it.
We're trying to address as many issues as possible that we can within our budget. The tubs aren't chipped at all and are in good appearance. No, it's not a 'hot' complex in that people move in/out quickly. Most residents buy and stay for several years, not 6 mon to 1 year and then cut/run. My neighbors in the row of 6 have all been there for 10 years or longer. Actually, up until last year, any units that came up generally sold within about 3 weeks to a month.
The units are actually in about 4 - 5 different sizes and layouts. Ours is one of the larger - 4 bedroom, 2 1/2 bath, 3 floors, 2 fireplaces. 2400+ sq. ft. Units range from 2 - 4 bedrooms, and about
1500 - 2400+ sq ft. Some have catherial ceilings, some don't. Some have basements/rec rooms, some don't.
Your last advice is very similar to what the 2nd agent has advised and what we will probably do once my current contract is up. She's advocating taking it off market for a few days and then bringing it back, repriced.
On Tue 09 May 2006 03:55:34p, Thus Spake Zarathustra, or was it JD?
So what is your point exactly, and what are you asking here? There's nothing that anyone here can offer you. You have a house you need to unload. So get with the program and unload it.
Its not about the estate tax. Suppose they bought the house for $100,000, and kept it until they died. If the house is worth $300,00 at that time, the heirs can sell it immediately for $300,000, and pay NO capital gains tax on that amount. Its a great tax savings vehicle, and most people don't even realize it. Maybe not for everyone, but we don't know all the facts about these people either.
Yes, that's all true. However, its not this place has been vacant for a few months. Its been 2 years already, and may be vacant for some time to come. At some point its worthwhile to consider having some income to offset the expenses. Just my opinion.
I disagree. You are not being realistic and you're not dealing with it either. You are keeping your price too high. You didn't have money to do upgrades, but did have money to pay two years of insurance and property taxes. Most people couldn't pull that off so your money situation may be able to support some work in the home. Think of it as an investment.
And don't look for too much in the marketing department. You're talking about a $200,000 townhome, not some grand villa. The realtor's cut will probably be 1.25% less expenses. Thats going to be about $2000. That may seem like a lot to you, but you're not in their shoes. They even have to pay rent on the desk they sit at. And how many houses does an agent sell in a year? You'll be lucky to get 3 lines in the Sunday paper real esate ads.
Marketing is about pricing and writing a description that entices people instead of scaring them off. Waiting another month to make changes is a mistake, you should do something NOW. When buyers go looking at properties, they know how long they've been on the market, and the longer the worse.
Do you know what comparable properties have sold for? What they listed for? Either your current or future agent can review this with you. Get on top of what the right price is, immediately, and make sure you're priced there. And take a good hard look at the description in the MLS. Buyers do look at this before deciding which properties to actually visit. If you're overpriced and not considering reasonable offers, your property will develop a "difficult" reputation, and realtors won't even bother showing it to potential buyers if they believe its a waste of time.
They can sell it right now and pay Zero capital gains, so they don't need to do estate planning and wait till they die to avoid capital gains on this property, which clearly they prefer to sell now. The main advantage to holding on to it as a rental would be as an investment for future capital appreciation. And then, you are right, under current tax law, their heirs would inherit it at current market value, again avoiding the capital gains tax decades from now. But you claimed that there were estate planning "isuues" that would outweigh the capital gains exemption they could have now, implying there was some other tax coming into play here, which just creates confusion.
I'd also point out that passing on a property to your heirs isn't a great tax savings vehicle for most people. A married couple is already exempt from $500K in federal capital gains on their primary residence. So the vast majority of people can sell it any time they want and already pay zero tax. They can even sell it and move up to the next house and start the $500K process all over. It can be a good strategy for people with a low basis on a property that is not their primary residence, provided they really want to hold the property for their lifetime.
And I'd also point out that right now we know they can sell it and pay zero capital gains. No one knows what the tax code will be 20 or 30 years from now, or even 3 years from now. It could very well change so that the heirs will assume the cost basis, rather than market value for tax purposes. With the need to do something to close the ever growing deficit, it's likely politicians will be looking at additional sources of revenue. If I were a politician, this one would look like a particularly inviting target to me.
"Creative Finances" a serious imagination can come up with ways to get what you need.
What was the cartoon? "I'll gladly give you money tomorrow for a hamburger today."
You have equity in the house, use some of it. Ask a family member, ask your banker. Ask a close friend. You're looking for short term money to accomplish the repairs, so the house will sell and not stagnate.
"Can't never could and won't never will."
Oren "My doctor says I have a malformed public-duty gland and a natural deficiency in moral fiber, and that I am therefore excused from saving Universes."
That probably has a lot to do with your problem. A smaller unit would likely sell faster; nobody wants to buy the most expensive house in a neighborhood, they would rather buy a cheaper house in a better neighborhood.
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