Having to sell house w/problems - any advice appreciated

[Fishing56]

Ok, here's the deal. Have owned and lived in this house for 25+ years. Done many upgrades internal and external. Sits on clay soil, so had some settling issues on foundation. Had a company come out and install steel peers to relevel. They repaired existing crack on mortar joints.

Re-mudded /taped all cracks then repainted. Now more cracks. Also cracks on bricks again. Foundation company now out of business.

Out of work for quite some time so moving to my wife's house in small town, all paid for and actually a nicer house.

My concerns are getting out from under this beast:

Cracks on exterior bricks
Cracks on interior sheetrock
Addtion of electric sub panels without work permit
Inadaquate insulation in both walls and ceiling - house built in mid 50's.
Cracks in driveway and sidewalks

Positives:
Pool / hot tub
Large fenced back yard
New A/C condensor and heating unit
New paint / wall to wall carpet
Updated kitchen
Updated Den
2150sq ft double car garage
Two bathrooms
Covered patio
Mineral rights
Trees and landscaping

Originally purchases for 71500 back in the early 80's. Tax rolls have it at 110k. Don't think I can get more that 70k -75k in a short amount of time (if that much).

What do you guys think. Need to get this beast off my back fairly quickly since I'm out of work and have two houses to maintain.

All comments will be appreciated.

Fishing56

By he way this house is in West Fort Worth TX. Quiet neighborhood, but cloose to shcools and malls.

 

[Bondo]

Re: Having to sell house w/problems - any advice appreciated

Originally purchases for 71500 back in the early 80's. Tax rolls have it at 110k. Don't think I can get more that 70k -75k in a short amount of time (if that much).

Ayuh,... I'd think only a Good Realtor can tell you what it's worthy of pricing it at....

 

[Mark42]

Re: Having to sell house w/problems - any advice appreciated

You can try selling yourself and down play the issues you listed, or go with a good real estate broker. Have to do some research, just don't walk into an office and say you want to sell your house. Look in the local papers for real estate advertisements, see who is the best (they often list only their best brokers, and often include their annual sales figures). Check them out, then call and make appointments with the specific broker. Don't accept anyone they toss at you.

A good broker will not sell you short, but will let you know when the house is over priced.

Good Luck.

 

[bigdee]

Re: Having to sell house w/problems - any advice appreciated

Decide on what your bottom price would be and sell house ?as is? It is a buyers market right now and most buyers will hire a home inspector and use that as leverage to negotiate a lower price but sometimes this will also scare them off from buying. IMO, I say cut through all the red tape and the hassle of negotiating. I would set a rock bottom price and stay firm with that. In today's economy it may be better to forgo profit over getting the beast off your back.

 

[lncoop]

Re: Having to sell house w/problems - any advice appreciated

It does sound like the foundation company you used was less than optimal. However, with the exception of the unlicensed electrical work, unless you have popped drywall nails/screws or a house riddled with MAJOR cracks I haven't heard you mention any issues that aren't common and reasonably expected in pretty much any house over fifty years old. Sounds like the house is in a good location, which is the most important consideration to serious buyers. The old adage "location location location" is not just an empty saying. Find a good realtor, have a candid conversation about the house and your objective with regard to selling, and then price it according to comps within the context of your need to move the property.

 

[1fishbone]

Re: Having to sell house w/problems - any advice appreciated

Selling a house is like selling anything else, clean it, fix the interior cracks and paint it.
Joint compound and interior paint is cheap.
Fix the cracks in the driveway/sidewalk.

It sounds like you've done a lot of work!
Trim the hedges/trees, turn or add fresh mulch so it looks like it has been cared for. Clean the garage/yard so it looks like you are ready move!
Sure, you don't have much money, but you have time to do a decent job of 'presentation'!
And don't worry about the negatives!

Not much is going to hide from the home inspector!
Acknowledging the cracks in the foundation and other issues will protect you from issues down the road.
Also, priced right, it will sell with the foundation issues, (price - repairs = what you'll get) or a potential buyer could negotiate for repairs done before purchase, that they pay for.
And depending on the issue, it may be put over looked as a small issue, remember, you know every crack...they don't.

Contact a few reputable Realtors, don't settle on the first one, and don't settle on the one with the highest asking price.
The one that tells you to 'stage' the house knows what they are talking about!
http://www.zillow.com/ is a place that you can use to find comparative data...what houses have sold for in your area. A good realitor can/will show you the data.
Use http://www.realtor.com/ and look in your area for houses 'like' yours...#bd, sqft, lot size etc and see what they are listed for.
After the research, set a price 'in your head'...the house selling time of the year is just beginning!

Your area may have a better housing market than you think, for instance, 'Lil' RI is having a mini housing boom, house prices are rising!

FYI I have 5 units I rent, I'm looking for the first house to flip this year!
I did buy a house that had issues, had a co. level it, I painted it, new gutters etc and flipped it 2 years ago...in the 'worst of times'!

Good luck, things are bound to get better for you

 

[lncoop]

Re: Having to sell house w/problems - any advice appreciated

Great advice! +1 on everything Fishbone said. I'm not saying your transaction will be a piece of cake, but I think you'll come out better than you suspect, and it really is amazing what a positive effect curb appeal has on potential buyers. It's purely psychological, but even simple things like fresh mulch and tidying up the front (as he mentioned), a few annuals in the flower beds, stuff like that, can really make a difference. In fact, although I can't prove it, I believe many decisions on whether to make an offer are made in the driveway before the front door even opens.

 

[NoKlu]

Re: Having to sell house w/problems - any advice appreciated

Mineral right's in Texas. I'd get a narrow shovel and start digging. lol

 

[dbkerley]

Re: Having to sell house w/problems - any advice appreciated

When you choose your realtor, be sure to choose one that commonly sells in the price point you wish to sell in. Several of the multi-million producers only sell one or two a year and would have no interest in handling your property.

Believe it or not, the high end market hasn't changed anywhere near as much as the mid-market homes. You need a blue collar realtor.

 

[PiratePast40]

Re: Having to sell house w/problems - any advice appreciated

The lending institution is going to be looking at sell price of similar homes in your area. It wouldn't hurt for you to get those numbers so you know what you're looking at for actual and recent prices. You can set the price at whatever you want but any potential buyer is going to be comparing properties so keep that in mind.

 

[1fishbone]

Re: Having to sell house w/problems - any advice appreciated

Great advice! +1 on everything Fishbone said. I'm not saying your transaction will be a piece of cake, but I think you'll come out better than you suspect, and it really is amazing what a positive effect curb appeal has on potential buyers. It's purely psychological, but even simple things like fresh mulch and tidying up the front (as he mentioned), a few annuals in the flower beds, stuff like that, can really make a difference. In fact, although I can't prove it, I believe many decisions on whether to make an offer are made in the driveway before the front door even opens.

EXACTLY, I put a deposit on the house I live in...before I saw it!
Not to hijack your thread, but this is relative!
I found it on the web, had 'my' realitor take pictures, I did the 'research' and put a deposit on it sight un-seen, or just from the pictures!

Long story short, average sales around $180k to $220k, this house sold for $120k 4 years before me...older home, was in foreclosure, I paid $35k.
$2000+ and my labor...I'm living the American dream!
The real kicker of this deal, the 30x40 out building wasn't included in the listing!!
Nor any of the 'comparative sales data'

Fishy56, the point here is the sales realitor didn't list this house properly!
Take care in choosing your realitor! AND do your research!

 

[dockwrecker]

Re: Having to sell house w/problems - any advice appreciated

Get a good brick mason and fix the exterior cracks. Shouldn't be that much money. The interior ones you can probably do yourself, but you would be better served by an experienced drywall taper to keep them from coming back or showing like a homeowner repair. They WILL be inspection issues. The additional electrical panels might come up depending upon where they are and whether they meet code. You may get away with having them inspected and brought up to date by a licensed electrician. Zillow is sort of helpful if all of the homes in your area are similar in size and age, but not worth a damn if your property has features above and beyond the neighbors'. Zillow thinks my house is 120K under my current asking price. They don't make accomodations for custom work or exclusive neighborhoods, they're totally square foot driven in a local radius.
The insulation is a non issue given it's build date, the sidewalk cracks may be an issue if there is more than 1/2" differential in the slab.

 

[Beefer]

Re: Having to sell house w/problems - any advice appreciated

Ok, here's 2 cents from a home inspector. Keep in mind that as a HI, I am not an alarmist, and I personally try to present things to my customer (potential home buyer) in a real-world manner, although I have seen tons of HI's who think it's there job to keep a house from being sold. Some reports I've seen would make you think 95% of the homes out there should be condemned. Keep that in mind when dealing with a HI.

You're going to present to your Realtor, and subsequent prospective buyer's, that the foundation has been re-inforced on X date, by X company. That's a plus. However, even if you patch and paint the new cracks, a halfway decent home inspector will notice that there are old patched and painted cracks, and that there are also newly patched and painted cracks. That indicates an on-going issue to a HI. That's not so good. The HI will 'strongly recommend further evaluation by a licensed contractor in the field of expertise to determine if this is an on-going issue, and repair as necessary'. This will cost you $$$ if you let it go that way. You can nip this in the bud, by hiring your own contractor/engineer to do and evaluation of the settling/ground movement. You goal is a report stating that it 'does not appear to be detrimental to the structural integrity of the building'. This is the report you want to present to any potential buyers. A sinking house will scare off any buyer at any price. Giving them the piece of mind that it won't sink into the ground, or fall down on them is essential. You need a 3rd party to tell them what you need them to hear. If you hire the specialist, the report is yours, and you get to keep it. If they hire someone, you may not even get to see that report. When it's your report, you get to see if there is something that really needs to be corrected, and can take action long before the buyer sees anything, then you can show that 'necessary corrections and repairs' have been made.

As for the electric panel that wasn't done with a permit. Good news! A home inspector does not (contrary to popular belief) check for code issues, or for permits. Now I can already hear you guys saying "But my home inspector said my monkey chamber (or whatever) wasn't up to code on my report!". The inspector wasn't there when it was being installed/built, and most likely doesn't even know when it occurred, and therefore has no idea what codes were in force at time of installation/construction. Think of it this way, is a house built in 1894 up to code? Not a chance. Does that make it unsafe, not necessarily. Or how about the updates that Grandpa Albert did in the 40's? Anyone know what the codes were back then? Enough of that rant.

What the HI may do, is say something like; 'No evidence of permit for sub-panel in garage, but all appears to be satisfactory. Obtaining permit from homeowner may be desired.' If the new buyer screams for a permit, you can tell them that they can either take it as it is, or you can remove the un-permitted work for them. If the install was done correctly, and there are no safety issues, you should be fine.

I do recommend pre-sale home inspections for sellers. It allows you the opportunity to see your house from a 3rd party's eyes, and you can take care of anything that the HI feels is a real downside. Two things to watch for in a house of this age would include roof condition (if the roof hasn't been replaced, you'll probably want to, depending on the material) (you can also adjust the asking price to allow for a roof replacement), and plumbing supply line material (grey plastic (Qest/Quest) or regular PVC) can be costly corrections.

As for getting people to be interested, spend a couple of bucks (and seriously not alot) on the bathrooms. You don't have to remodel them, just make a few cosmetic upgrades. If the toilet is colored (blue, pink, black, etc.), go to HD and get a new white one. Get rid of wallpaper, repaint, new shower curtain & liner, nice towels, etc. Kitchens and bathrooms are the biggest selling points in a home. You've already overhauled the kitchen, so that's huge.

Hope this helps, and feel free to PM me if you have anything you want to ask or need clarification on.

 

[Fishing56]

Re: Having to sell house w/problems - any advice appreciated

Thanks for all the replies. I really appreciate the suggestions.

Regarding the brick mortar repair. Anyone got ideas on cost? This is a single story with a zig-zag crack in mortar from top to bottom about 1/4" in width.

Going back to city (where house is) on Satuday. Cleaning out attic, shed and doing a good cleaning of inside. Keeping lawn mower and some maintenance items there cause I figure I will have to be going back every few weeks for mainenance.

Turning down water heater, having phone, internet and satellite turned off up there. Guess I need to keep electric and gas service on to show house? Any other ideas? Mail already being forwarded to new house.

Used to think buying a house was a long term investment. In my case, (maybe bad timing) I think I would have been better off renting. Just add up all the mortgage payments, taxes, insurance, and repairs. This was my first house to buy, maybe made a few mistakes, but at my age now am a little wiser, but too late.

But, still have my boat, lake close by (10 minutes), small city life, some of the best whitetail deer hunting in Texas, and my health.

So all is going to be good.

I am open for all opions and suggestions. My wife is amazed at the helpfullness and this type of information on a boating forum!

Thanks,
Fishing56

 

[jonesg]

Re: Having to sell house w/problems - any advice appreciated

RE-point the mortar yourself.
Use an angle grinder with a de-walt diamond impregnated steel disk, $20 home dpot.
Grind out the old mortar( use a face shield), mix up some fresh mortar, add a squirt of dishwashing liquid to make it creamy and push it in there with the pointing tool.
Use cardboard on the ground, most of it ends up on the floor, watch Youtube videos, its really a very simple job.
This guy forgot to hose the wall down first to wet the masonry.
http://www.youtube.com/watch?v=8nk5M5-shOc&feature=related

I did a fair amount of this work, its very simple.