New member seeking advice

[wjsliman]

Hello all,

I came to these forums seeking some advice about the house I am currently living in.

Me, my fiance, and her daughter are living together in an older house in houston, TX since january of this year. The house is her (my fiance's) parent's old house, as they have since moved to another house.

Anyways, the situation is this... the house needs quite a few repairs... the major ones being the roof, the siding, and new carpet and painting.

Her parents were in the process of remodeling the house, so there have been some significant upgrades in the house, but were not able to complete it due to some financial issues (during recession) and now are looking to sell before the end of the year.

I came here because I see the potential as a flip, and I want to help them sell because I know the house is becoming a financial burden on them.

My questions to the community:

A) As individuals who are knowledgeable and/or interested in house flipping, what can I do to help market the house to other house flippers in my area?

B) What things should I look for in the house to verify that it is in fact a good flipper house?

C) What would you do if you were in my position? Any general advice?

Thanks alot guys, I really look forward to your responses and I appreciate your time. I would much rather deal with a community than calling homevestors or someone who would try to take advantage of my situation...

[flip_it_fast]

First of all you need to figure out how much the renovations are going to run you and the value of the property. Then you can get an idea of the profit that can be made.

Another thing to think about is should you recarpet? People these days tend to want wood flooring. Wall paint should be in neutral tones and all personal effects removed before showing. Simple decor is great. Don't do too much. Also don't leave the rooms bare. Bareness doesn't reflect homey.

You want people to be able to envision themselves there with their belongings.

I hope that helps you some. I am sure there are others who can add some more suggestions for you.

Oh and by the way.... WELCOME to the forum!

[Lady Flipper]

I wouldn't sell to a flipper, you get rock bottom price that way. I would try my best to sell it as updated as it can possibly be.

Your location is good, you should be able to get top professional advice at little cost.

First, find the realtor who makes the most sales in your area. Have them come over for an appraisal and ask them to make suggestions for improvement. Tell them your budget. Depending on where exactly you are ( the type of neighborhood), the upgrading will have a top and bottom value limit, and a very experienced agent will know what it is. This advice is free, use it!

If you do have money to finish some projects, do the ones the agent recommends. If you have very little money, invest in in hiring a home stager. This person will know how to make the changes that are very cost effective and potentially ( especially in your situation) add tens of thousands to the value of your home.

Given the times we live in, it is very important to hire the proper people for advice, it will pay off manyfold.

A stager may go as simple as rearraging furniture and removing clutter, these guys know what each room needs and you may not always have the same taste, they will make it look bigger and brighter and more inviting and appealing to the broadest group of people. With a small budget for improvements they will recommend such things a painting, replacing cabinet knobs in the kitchen, and a myriad of other small things you can do yourself on a budget. You can weigh their advice against what the realtor said and make decisions.

If you want top money for your house, you need to make it palatable to the largest possible group of people. This is partially defined by the type of neighborhood. If you are strapped for cash, listen to what the pros recommend and use some elbow grease instead of cash.

If you just want to be rid of it, sell to a flipper - agents will know how to word the listing to attract them. I don't think it's the smart thing to do in today's economy though, there are so many very cheap foreclosures for flippers to choose from, you will definitely lose a bunch of money going that route.

[wjsliman]

thanks for all the great info!

Yea due to the financial situation we are in, only minor repairs will be realistic - perhaps clearing things out, patching drywall, etc.

We are also in a bit of a time crunch, because they are trying to sell the house within a few months - so i guess elbow grease is my main option lol.

I also have a follow up question... if it comes down to the wire and we are unable to sell... would selling to homevestors be an option?

I am really trying to avoid them, but does anyone know anything about those guys who "buy ugly houses" or would they rip me off more than even a house flipper would?

Also, how do you guys go about checking recent sales in my neighborhood, so that i can get a good idea of how much the house is worth?

[Lady Flipper]

You can just do a google search for houses in your neighborhood. But - why not ask a realtor? They do not charge and give you a precise estimate.

Ok, if you are on a budget, this is what you want to do:

Clear everything personal out or put in boxes you can remove when the house is being shown.

Including photographs, kids toys, pet toys and bowls and beds, etc. Everything but the very basic furniture must be out of the house on the day you show it.

Clean it spick and span. Not a grain of dust to be found. Wash all appliances, baseboards, cabinet doors, everything.

Patch any holes in walls etc. Paint everything in a neutral color that is not white. Like very pale grey is good.

Clean all the furniture. Put slip covers on if it's awful. If you have a fireplace, make sure the livingroom furniture is facing it.

Get everything off the kitchen counters - everything.

Clean the outside of the house, too.

At the showing, open any window dressings wide, let every speck of light in. Clean all lighting fixtures. Put an applepie in the oven and bake it (can be frozen) one hour before showing. It makes people perceive the house a lot more pleasant if it smells like fresh baked apple pie.

These things are simple things to do, and your hourly pay is in the hundreds of $, if not thousands, if you do it thoroughly. You will add a LOT of value to the house. You can get a free before and after appraisal and pay yourself some of the difference. It will also help you sell faster.

The cleaner, the fresher the paint etc, the faster you sell.

Do not sell to homevestors or anyone like that.

Again, get a good realtor. It's free to get an appraisal, it's free to get advice from the realtor for staging the house for sale. It's solid, professional advice and it doesn't cost a penny, do make use of it.

I can only recommend so much since I can't see the place and I don't know the neighborhood.

[JaredfromIndiana]

I would second all of the great advice you are getting here except 1. Go with carpet. It's cheaper, quicker and easier.

As far as Homevestors go... what is their business? It's making money. How do they make money? They find equity. Is that wrong? No, but I equate Homevestors with a Pawn Shop. They will pay you cash, no doubt, but how much?

Let's say your home is worth $100,000 and you need $10,000 in repairs. How much do you think they will offer? I bet you $100 it won't be over $60,000, and probably will be closer to $40,000. My two cents.

A local Realtor would be a good thing to find the value of the home. Let me know where you are located and I would be happy to find a qualified agent for you.