Investor · Denver, CO · Member since 2018 · 52 posts · 16 votes
My Father recently passed and I simply don't have it in me to fix and flip this home myself. It seems the Denver market is slowing down a wee bit? Seems so to me. This is an ideal home and neighborhood for raising a family. Homestead to be exact. My Father did zero updates since it was built in 1976. That said great bones and location location location. It seems to me though going to market this time of year, the updates required etc....a cash buyer might allow me to walk away with about the same amount as taking it to marketing. Are the bidding frenzies a thing still? All thoughts appreciated and thank you in advance.
Hey @Cherie Tormey! I am sorry for your loss, and I totally understand where you are coming from with not knowing where to head. The market has cooled off, but definitely not to the extent of getting us out of the seller's market, the market is still extremely competitive, and there is still an inventory problem. You will definitely net more by listing to the open market, but sometimes that isn't the best course of action. Hiring an agent, in general, will bring you more, whether they end up listing it, or just bring you a buyer. I recently helped another couple in a similar situation get above what they were hoping for (after commission), didn't have to bring it to market, and they were closed and funded within 10 days. [Solicitation Removed by Moderators]
Hey @Cherie Tormey! I am sorry for your loss, and I totally understand where you are coming from with not knowing where to head. The market has cooled off, but definitely not to the extent of getting us out of the seller's market, the market is still extremely competitive, and there is still an inventory problem. You will definitely net more by listing to the open market, but sometimes that isn't the best course of action. Hiring an agent, in general, will bring you more, whether they end up listing it, or just bring you a buyer. I recently helped another couple in a similar situation get above what they were hoping for (after commission), didn't have to bring it to market, and they were closed and funded within 10 days. [Solicitation Removed by Moderators]
It's helpful to understand the nature of the market's cooling. What has happened is that owner-occupiers who were in a huge mosh pit earlier this year outbidding each other for homes got themselves under contract and found out the hard way that the bank appraisal came well short of the bid-up price and they didn't have the cash to cover the difference. Some of those have recycled back into the market with a lower price range but still with loan contingencies, and some have given up and gone the rental route for housing. Some, a smaller segment, are cash-rich but picky on condition and location of the property.
New construction inventory is down 20%, some hoovered off the market by big capital groups, and in some cases the builders refusing to build under extremely gouged prices for materials (e.g., Canadian lumber).
To get all cash, which some investors are willing to do, especially some of the more established flippers or BRRRR-nauts, it'll be more of a sure thing going with an agent as stated above. If you FSBO you will get a number of characters banging on your door that in hindsight you'll wish you could have sent to an agent instead of having to say no to 30% off asking lowballs all day.
It's helpful to understand the nature of the market's cooling. What has happened is that owner-occupiers who were in a huge mosh pit earlier this year outbidding each other for homes got themselves under contract and found out the hard way that the bank appraisal came well short of the bid-up price and they didn't have the cash to cover the difference. Some of those have recycled back into the market with a lower price range but still with loan contingencies, and some have given up and gone the rental route for housing. Some, a smaller segment, are cash-rich but picky on condition and location of the property.
New construction inventory is down 20%, some hoovered off the market by big capital groups, and in some cases the builders refusing to build under extremely gouged prices for materials (e.g., Canadian lumber).
To get all cash, which some investors are willing to do, especially some of the more established flippers or BRRRR-nauts, it'll be more of a sure thing going with an agent as stated above. If you FSBO you will get a number of characters banging on your door that in hindsight you'll wish you could have sent to an agent instead of having to say no to 30% off asking lowballs all day.
Also I have a listing for the property on BP in Centennial. GRATEFUL for you all.
It's helpful to understand the nature of the market's cooling. What has happened is that owner-occupiers who were in a huge mosh pit earlier this year outbidding each other for homes got themselves under contract and found out the hard way that the bank appraisal came well short of the bid-up price and they didn't have the cash to cover the difference. Some of those have recycled back into the market with a lower price range but still with loan contingencies, and some have given up and gone the rental route for housing. Some, a smaller segment, are cash-rich but picky on condition and location of the property.
New construction inventory is down 20%, some hoovered off the market by big capital groups, and in some cases the builders refusing to build under extremely gouged prices for materials (e.g., Canadian lumber).
To get all cash, which some investors are willing to do, especially some of the more established flippers or BRRRR-nauts, it'll be more of a sure thing going with an agent as stated above. If you FSBO you will get a number of characters banging on your door that in hindsight you'll wish you could have sent to an agent instead of having to say no to 30% off asking lowballs all day.
Thank you. That sounds about right. Because this is a total rehab a cash buyer would be ideal for me. I guess I am not convinced that a realtor could get me what I want and pay commissions and closing costs.
If you're looking for a retail buyer who wants to do a live-in flip, it might sit for a little while, but if you're looking for the cash buyer who's just going to flip it, you shouldn't have any delays selling it on market.
From my experience with selling both on and off market, both work if you are okay with the numbers.
When you buy off market, trying to save on the commissions, so is the Buyer. They want to negotiate the price and take advantage of no commissions either. You might actually net the same as with an agent. The difference, however, is someone has to manage the process from a legal standpoint. Realtors are no attorneys, but at the very least they have the disclosures needed for your protection.
You have a number of options here. That said, going the cash buyer route, you did not mention how you would get in touch with these cash buyers??? In almost all cases, exposure onto the MLS will produce the largest buyer's pool and as such, the highest offers (in most cases).
Option 2 would be to find a local flipper (any real estate meet up in your area or someone right here on BP. You could partner with an experienced flipper, have them bring in and manage the crews (and pay for the rehab), then list retail and split the profits above and beyond the existing current market value (and you will need an agent to pull comps to give you that number).
@Cherie Tormey Sorry for your loss! The Denver market may have ever-so-slightly cooled but that just means a handful of offers on most listings instead of a dozen. The market is the hottest for move-in ready properties as many buyers are not wanting to take on major remodels at the moment, but demand is still high for most property types and in most price bands. Where is the property located and what will the price range be that you’re expecting it to sell for?
@Cherie Tormey Sorry for your loss! The Denver market may have ever-so-slightly cooled but that just means a handful of offers on most listings instead of a dozen. The market is the hottest for move-in ready properties as many buyers are not wanting to take on major remodels at the moment, but demand is still high for most property types and in most price bands. Where is the property located and what will the price range be that you’re expecting it to sell for?
@Cherie Tormey Sorry for your loss! The Denver market may have ever-so-slightly cooled but that just means a handful of offers on most listings instead of a dozen. The market is the hottest for move-in ready properties as many buyers are not wanting to take on major remodels at the moment, but demand is still high for most property types and in most price bands. Where is the property located and what will the price range be that you’re expecting it to sell for?
Thank you. I have a listing on BP in Centennial. My asking price plus closing costs would be ideal.
@Cherie Tormey Hi Cherie, I am a Realtor in the metro area and I would suggest getting an agent to come look at it. I have a few cash buyers that I work directly with because I know they are fair and reasonable. I also have listed a few flips because there are some flippers out there that will pay too much for a home.
As for the market it appears to had the normal seasonal slow down and we are seeing some bidding wars but not like it was a few months ago.
@Cherie Tormey Hi Cherie, I am a Realtor in the metro area and I would suggest getting an agent to come look at it. I have a few cash buyers that I work directly with because I know they are fair and reasonable. I also have listed a few flips because there are some flippers out there that will pay too much for a home.
As for the market it appears to had the normal seasonal slow down and we are seeing some bidding wars but not like it was a few months ago.
I think I have two good realtors to choose from but will likely interview one more. I have a listing on BP in Centennial in Homestead. Homestead is very desirable for many people.