If the land is as you say, large and in a great area then the house will not take value away from a builder/developer seeing the true potential of the site.
Make sure when you put the listing to list it both under land and SFR on the MLS. Market it just for what it is "A KNOCKDOWN"
Emphasize the lot size and the location. You can also list that you will knock down the house before closing for any full price offers or if they buyer closes before a certain date.
In many areas it is easier to remodel an existing house than to build a new one. If someone is looking for lots to build a new house, I doubt that they would care that there is an existing house if you already have a survey and know the easements.
My dad had an awful house on a great lot on the water. I young professional couple bought it an lived in the house for a couple of years before they could afford the total remodeling. They knew that the land was the value - but it was all the money that they had at this time and having the hous allowed them to afford the land.
Same thing here. Seller priced house on a building per square foot basis (discounted for condition). I follow the land market closely here and I knew with its oversized lot, it was worth much more just for the land. I also keep in touch with many builders in topwn and know they are searching for in-fill lots in certain areas. Value discrepency was confirmed when I was able to get loan on land only with only 10% down (so that I could take down house if necessary). Appraisal on land came in higher than total sales price.
how about leaving the house in place but putting a large sign at the front of the lot with an artists rendering of what the new house on the lot might look like?
Every problem can be fixed, it is just a question of "time & money". The idea is to find the right balance to solve your problem and make you a profit.
Without looking at it personally it is hard to tell what would be the solution on each project. If you had one in mind and emailed me a digital picture I would give you an "opinion" of the best solution.
I have made money on houses like the ones that you describe, generally this problem scares the neophytes away and leave the profit for the experienced rehabber. Generally the problems are not as serious as they appear or as expensive to fix.
I would have an experienced contractor look at one or two of the houses with you and give you his opinion and ask as many questions as you can. If you have to pay 1-200$ it is a cheap education on the subject.
generally you want a HM lender that will lend over the amount of the purchase price.
[addsig]
If the land is as you say, large and in a great area then the house will not take value away from a builder/developer seeing the true potential of the site.
Make sure when you put the listing to list it both under land and SFR on the MLS. Market it just for what it is "A KNOCKDOWN"
Emphasize the lot size and the location. You can also list that you will knock down the house before closing for any full price offers or if they buyer closes before a certain date.
In many areas it is easier to remodel an existing house than to build a new one. If someone is looking for lots to build a new house, I doubt that they would care that there is an existing house if you already have a survey and know the easements.
My dad had an awful house on a great lot on the water. I young professional couple bought it an lived in the house for a couple of years before they could afford the total remodeling. They knew that the land was the value - but it was all the money that they had at this time and having the hous allowed them to afford the land.
Recently we had a property looked at that came in with land value at 200k with the house on it and 250 without it.
[addsig]
StockPro:
Same thing here. Seller priced house on a building per square foot basis (discounted for condition). I follow the land market closely here and I knew with its oversized lot, it was worth much more just for the land. I also keep in touch with many builders in topwn and know they are searching for in-fill lots in certain areas. Value discrepency was confirmed when I was able to get loan on land only with only 10% down (so that I could take down house if necessary). Appraisal on land came in higher than total sales price.
how about leaving the house in place but putting a large sign at the front of the lot with an artists rendering of what the new house on the lot might look like?
Tom:
Happy to help. I applaud your efforts both in RE, but especially in the Corps. Best of luck to you!
Every problem can be fixed, it is just a question of "time & money". The idea is to find the right balance to solve your problem and make you a profit.
Without looking at it personally it is hard to tell what would be the solution on each project. If you had one in mind and emailed me a digital picture I would give you an "opinion" of the best solution.
I have made money on houses like the ones that you describe, generally this problem scares the neophytes away and leave the profit for the experienced rehabber. Generally the problems are not as serious as they appear or as expensive to fix.
I would have an experienced contractor look at one or two of the houses with you and give you his opinion and ask as many questions as you can. If you have to pay 1-200$ it is a cheap education on the subject.
Luck,
Randall Wall
[addsig]
thanks, i know a contractor that can probably help me out.