Selling my father's house

[no_hypocrisy]

I don't get it.

The realtor said I have to update the house, e.g., new kitchen cabinets, another wallpaper in master bedroom, etc.

I don't understand why.

1. Purchasers are buying the house as is.
2. They have their own ideas how initialize the house to make it their own.
3. Even if I do all that my realtor suggests, chances are the Buyers will only tear them out and replace with their own choice.

She wants me to lower the price by $75,000. I don't want to spend the money and/or lower the asking price.

The house is large. 5 bedrooms, 3-1/2 bathrooms. Three blocks to town and the commuter train line and farmers market. Classic colonial built in 1939 with plaster walls and ceilings. Attic and basement. I'd keep it if I could afford it.

[underahedgerow]

1. Most people don't want a fixer upper, they want move-in condition and will pay top dollar for that.

When someone has bought a house, they don't want to spend more money fixing up a kitchen, taking another loan, etc. unless they're looking to buy a fixer-upper at a bargain price.

As for the price, your realtor should know the market pretty well in terms of size, who is looking for what, etc. You can do your own research with MLS I think, and compare the prices in your neighborhood. You could also go to some local open houses that are similar to get a feel for the price and conditions.

You can try a for-sale-by-owner route. Create a web page, weebly is great and free. You can also put a sign out front, but make it a nice sign, by a printer. If you make a web page, you can put that address on there instead of your phone number. If you don't sell via a realtor you then save the commission price, but you must pay a qualified, experienced paralegal to handle the paperwork. On my last home purchase this way, the seller and I agreed on the price and to split the paralegal fee, which was 2500 bucks. We wrapped up the sale in a month after a 20 minute meeting over the dining room table. The paralegal was a good friend that I trusted completely.
Or
You can take a small loan against the house for the upgrades and pay it off when it sells. I did this on my last home sale and thanks to the final details I put into it, the house sold to the first couple that walked in the door. I made 125% profit on that sale, having owned it for just over 2 years, and put a total of 50K into it over the 2 years.

If you go with neutral, classic cabinetry (NO OAK!!!) in the kitchen, the new owners can 'live with it' until they decide what renovations to do, but living with nasty old cabinets is awful.

You can do very well in Ikea, using their mid to upper range cabinetry. I've done high end stuff that you'd never know was Ikea, which usually raises one's hackles as it should. Their cheap crap is utter crap. Their online kitchen planner is brilliant and easy to use.

But if you do these few improvements, you could increase the ease and price of sale substantially. Women are the decision makers when buying a home, so you have to appeal to the feminine sensibility. Clean, white, classic, simple and efficient makes all the difference in the world.

So you have to decide if you want to put a little effort into it to make an extra 50K or if you want to lose out on 75K and hope someone wants a fixer upper.

Good luck!

[NightWatcher]

2. Keep the price but when shoppers comment, then tell them you'll give allowances

If they criticize the carpet, tell them you'll knock off a little to cover new.
If they don't like the kitchen, tell them you'll give an allowance (reduction) for appliances, fixtures, cabinets, or whatever.

Be careful of the realtor who wants you to slash so much from the price just so they get an easy quick sell...and their cut. They don't care how much you make as long as they get theirs. Feel free to ask several realtors to give you their opinion before listing with them.

[calikid]

5. Nightwatchers' route is the one I would take.

For a bunch of years I did nothing but "fix up" houses that went on the market. Most of the time it was for one Realtor who wanted to clean up some old places as cheaply as possible.
As a buyer I would want nothing touched so that I could fix it up the way I wanted, (actually my wifes desires) with allowances given. Other people want it move in ready.
If you are going the spruce up route, there is one thing I would NOT do, that is wallpaper. For years I did nothing but hang wallpaper, it's just to personal.
Just one persons opinion.

[Whoa_Nelly]

7. No. Don't tell the buyers anything when you have a Realtor representing you.

They negotiate through your agent. Period. Do not speak out.

You have a contractual listing agreement with your Realtor. That agent is representing your selling interests via that contract, and if you have issues about what buyers want in allowances, you deal with your Realtor in representing those on your behalf to the buyer.

[Lochloosa]

3. Here is a good article on paybacks. Keep it minor

http://www.hgtv.com/design/decorating/clean-and-organize/which-home-improvements-pay-off

[alphafemale]

4. Can you rent it?

Even as in just the rooms.

One trusted caretaker gets free rent to take care of the property.

Maintenance and the like.

Not out of pocket that would still be you.

But with the 4 remaining bedrooms I can see that as at least $500 each even in a low rent range neighborhood.

A teeny fridge and microwave in each room?

[Whoa_Nelly]

6. The Realtor is looking to their own final value fee

They don't care about you.

1) Get an appraiser out to value the property and house if that hasn't been done yet.

2) Fix anything that needs repair that is basic. (dripping faucets, cracked window panes, etc.)

3) Get a home inspection by a certified ASHI inspector so you can be aware of any issues that you may want or will need to address before selling, (basement water issues, mold, dry rot, foundation, etc.)
And do not, under any circumstance, allow your Realtor to select who that home inspector should be. It's just not ethical. Home inspection stands apart from real estate business, and is meant to be impartial. You are free to share your report with the realtor, (it's your paid report, you own it. Period.) The Realtor cannot demand that you you do so. Buyers under initial contract are also welcome to get their own home inspection done. your report is yours, Their inspection and report is theirs...try not to mix the two.)

http://www.homeinspector.org/HomeInspectors/Find

4) Check the comparables in that neighborhood to see if your listing price really is too high. (dropping the price by $75k is a pretty big deal)

5) Clean the place thoroughly.

6) Buyers are always welcome to negotiate on the house re: carpet replacement, roof condition, water heater, etc., and may ask to negotiate

If you have signed a 6-month listing contract with your Realtor, you have to stay with it, except as in the link below:

http://www.zillow.com/blog/how-to-break-up-with-your-real-estate-agent-74089/

[Whoa_Nelly]

8. PS You should have already had an appraisal on the property

For tax purposes since you inherited the property. Your realtor should know this and should have that appraisal value.

http://www.avvo.com/legal-guides/ugc/legal-and-practical-issues-involved-with-inheriting-real-property

[Hoyt]

9. Exactly, and they want an easy sell.

When I sold my mom's small condo -- in a bad condo market -- I did make a few updates. But I think I would have been better to just sell it as is, and moved on.

I don't think I made more, despite my work, time and the risk involved.

If the OP doesn't need to squeeze every penny out of the house, I'd sell pretty much as is and forgo the cost and headache. I'd also find another real estate agent.

[we can do it]

10. Find another agent. You should interview 3 in the first place.

If you want to sell as-is, you will get less than something updated. It will also take longer to sell. Keep in mind you are paying taxes, utilities and insurance during the time before it closes. Have agents show you comparable IN the neighborhood within a quarter mile and 6 months if in the city. Look at both older estate not updated prices vs. updated prices to make your best decision.
Removing wallpaper is cheap and most people hate it.
All agents aren't greedy and pushy, there are many good helpful agents, you need one of those.

[LuckyLib]

11. Sell as is. Putting money into it without doing a full remodel is just wasting your money. It won't

be realized if you do it just to sell quickly. Repair only those things blatant, and let the buyers have the property inspected if they wish. Then you can negotiate. I agree with poster earlier who indicated that if you contract with a realtor, let that person earn their fee by doing the negotiating work for you. We are in the same situation with my mother's house. We can see what needs to be done, and that is the tip of the iceberg, we're sure. Not interested in spending time and money to get it ready for a mythical buyer who may well tear it down or gut completely.

[no_hypocrisy]

12. And that's what I don't understand and accept.

I'm being asked not to fix a problem like replace the furnace or a hole in the ceiling.

I'm being asked to pay for pre-emptory remodeling the house. That's whack.

[Arugula Latte]

13. Our family recently sold an elderly relative's house.

Did next to no improvements and a company swooped in, bought it, spruced up the yard, kitchen, bathrooms, etc. and flipped it easily.

Sounds like your realtor is far more concerned about her bottom line than yours. I would get a different one.

Also, swapping wallpaper with wallpaper makes no sense. Swapping out wallpaper with a neutral paint job -- okay, that might be sensible in some cases. But it's probably better to just leave everything as is.