What to do with inherited estate?

Question

Andrew Black · Answer

Sound advice Michael. Thank you.

Joel: the estate received two appraisals, both with the house "as-is"--one from a licensed appraiser in the area who used 5 recents comps.  The other appraisal I got was from an agent/broker in the area who is very familiar with the local market.  I am finding out that securing a home equity loan from a bank in the area is near impossible, as no one is living in the house and no one will insure the house.  So I think I selling as-is would be best option.

Michael Jobe · Answer

I'm sorry for your loss..I dealt with a similar situation a few years back. I'm pretty sure that in Alabama for a roof that size with two layers of shingles you're looking at a little more than $15k depending on type of shingles, numbers of vents/pipes/chimneys/ridge vents, and how much wood has to be replaced after removing those two layers. Since it seems like you don't want to leave Montana to live on this estate in Alabama I would sell it as-is and reinvest the money in some local real estate in Livingston. Just make sure you get a solid appraisal from someone who knows the area very well and set your price accordingly. Good luck & let us know how it turns out!

Joel Owens · Answer

"The estate appraised around $400k as-is."

What kind of report or analysis was given for that number?? Was it a full RECENT market appraisal or a broker price opinion from a broker/agent etc.??

If the number was just gotten from looking around and things and coming up with a number it is worthless.

I would get a broker/agent out there familiar in that area with those types of properties. I would get an AS-IS value and a AFTER REPAIR value. Calculate not only the expense but the time it would take to make such repairs versus the money you will be getting back.

If doing the repairs is basically a wash in value or minimal but it will take time you might be better off selling as-is now.

Kevin Brown · Answer

Andrew

I would say find a way to get a good contractor and realtor out there. I could be wrong, but the investor market for a property like this is probably not going to bring you the best options. Id definitely beware of wholesalers (there is plenty of info here on BP regarding that style of investing) if any of them try and make you an offer on something like this. Wholesalers can be a great resource for a seller but probably not in your case

Shawn Thom · Answer

Its hard to say without knowing how much repairs are.  Roof repair could be a couple hundred or $10s of thousands.

Anyway to get some estimates quickly?

anybody you got in that area that you trust?