Sell A House As-is In Georgia
This is Brad from probatehouseguy.com. I am a real estate investor based in metro Atlanta. My area of expertise is dealing with probate and inheritance properties, and I have been doing this for many years. I have closed hundreds of deals and gained a lot of experience.
As an investor, I buy a lot of houses in their current condition. However, I also sell a lot of properties in their current condition. Sometimes, I come across properties in really desirable neighborhoods, and I buy them off the market. If I have a lot of flips going on, my pipeline might be full, and I may not be able to take on any more properties. We could choose one property that requires minimal work, perhaps it’s just a bit outdated, and sell it as it is.
Hiring A Professional Junk Removal Company
Before listing it on the retail market, it’s crucial to clear out the property. Don’t try to sell it with all the clutter inside. I can refer you to some professional junk removal companies if you need. We work with them to clean out the house and get it ready for sale, which is much easier than renting a dumpster.
If you have a hoarder house or a big mess, it is cheaper to get a 40-yard dumpster delivered and pay laborers to clean it out. This is especially true for larger jobs like the one we had a few months ago, which required five 40-yard dumpsters and two dump truckloads to remove all the stuff. However, for smaller jobs, it’s cheaper to do junk removal from a time perspective.
Knowing Your Target Market
When selling a house as is, it’s crucial to know your target market. Is the house suitable for a DIYer, a new couple, or someone who likes to watch HGTV and wants to put some sweat equity into it? In that case, make sure that the house needs some work but not a ton of work. Also, ensure that the house is loanable.
FHA Financing
If you are selling a property that is likely to be financed by the Federal Housing Administration (FHA), you need to be mindful of certain life and safety issues. FHA appraisers and inspectors will be looking for these issues, and they won’t approve the loan until they are fixed. This is important because FHA appraisals stay with the property, and if another FHA buyer comes in later, they will also be subject to the same requirements.
If you are selling a property “as is” for a client, they may have to make repairs if these issues are called out on an FHA inspection. It’s important to let your clients know ahead of time about these requirements. You don’t have to give in to all of the buyer’s demands, but if there are specific life and safety issues, they will need to be addressed before the deal can be closed.
It’s important to be transparent with your clients from the beginning and understand who your target buyer is for the property. Although you cannot advertise it due to fair housing regulations, you can usually identify who the potential buyer might be based on the neighborhood, type of house, and price point. For instance, if the price is suitable for a first-time homebuyer, the buyer will likely be a first-time buyer. However, if the house requires significant repairs, it’s essential to assess the pricing accurately. Many realtors make the mistake of assuming that they could sell anything to anyone, which is not the case now. Therefore, if you’re advertising to investors, make sure the pricing is reasonable and in line with what an investor would pay for the property.
Getting The Price Right
I was recently looking at some comparable properties in Atlanta and was running a comparison on a house that needed some work. We were getting comps in the range of 250k, and all these properties had been renovated with new kitchens, bathrooms, and other updates.
We then came across a house that was listed as is for 240k, and had been on the market for 120 days. Although I understand that sometimes the client may pressure you to sell the house for a certain price, it seemed odd considering the condition of the property compared to the other renovated homes in the area.
I noticed a house down the street which is priced 10 grand less than all the other houses that have been recently rehabbed. It seems that the house won’t sell at that price because all the other houses in the area have had 50 to 75,000 dollars invested in them to be renovated.
As a real estate agent, you should be aware of the target market for the house, and if it’s an investor, you should price it appropriately and inform your clients that investors might come in with low-ball offers. They’re going to offer a price in this range because they are investors and they need to make a profit.
We often receive direct offers from people who want to sell their houses to us, but sometimes the prices they ask for are not reasonable. For example, they may ask for a price of 300 when all the houses in the neighborhood are selling for that price and their house needs updates.
I was looking at a property and the owner wanted to sell it for $250,000. However, the property needed around $50,000 worth of work. If I sell it for $300,000, I would still need to invest $50,000 into it, leaving me with no profit. Hence, it’s crucial to be honest with yourself and your client, and make sure that everyone understands the expectations upfront.
I have experience in selling and buying properties in their current condition, without making any significant repairs.
Let’s Connect
If you are new to the real estate industry and have questions, feel free to call me. I am willing to help you out.
If you have a client who wants to sell their property as is, whether it is a probate, inheritance property, or any other property, I can make an off-market cash offer on their behalf. I will pay your commission for the sale. Additionally, as a realtor, I can refer you to other realtors whom I have worked with before.
When I buy houses for flipping, I don’t take a commission. I don’t have the 3% commission, but the investor is not taking any commission on this sale. Let me know if you want me to buy it. I would be happy to do that. Thank you for watching this video. My name is Brad and I am with Probate House Guy.