Expert: liznarr - 4/2/2008

Question
I have a home in the FL Keys. It needs about 150K in repairs. We do not have the money to fix it. We were wondering what our options are for selling it. Is it possible to sell a home in this condition? Do you have to tear it down first? How do you determine the value of the lot? Any help you can offer would be appreciated.

Answer
Hi Charlee,  

Yes, it is always possible to sell a home needing extensive repairs.  There are any number of investors in all areas who are always looking for “deals.”  Remember, however, that an individual buying such a home is looking for a reduction from the fair market value (in good condition), less the amount to fix up, plus something extra for their time to tackle the project.

Keep in mind, also, that we are in a true buyer’s market now.

If you don’t have the money for repairs, you may not want to spend money tearing the house down.  There could be someone out there who has the money for repairs and is willing to take on the project, whether it be an investor or a fixer-upper buyer.

A Realtor in your area could help you determine the value of the lot.  If you cannot get help there, ask your county assessor’s office what your lot is assessed at.  Assessed values are, most of the time, not the true “fair market value,” but that would be a starting point.

You can also check at your county Clerk’s office and determine if there have been any recent lot sales in the area of your property from which you can then make comparisons.

Good luck to you, and feel free to write again if you have additional questions.

Regards,
Elizabeth