I am a contractor out of Boston thats new to house flipping. This home is offered at $196,000.00 (foreclosure, home is in ROUGH shape) with comparable homes selling in the $300k+ range. My question to you guys is.. How hard will it be to sell this home because of its shared driveway? There is a home behind this home and I'm assuming this is why nobody has pulled the trigger on this home.
-Has anyone out there sold a home with a shared driveway?
-If yes, how did it affect sales price?
-Was there anyone who shied away the property because of the shared driveway?
-When dealing with foreclosed property, is there any negotiating with a bank?
Thank you as always,
It depends on the bank and if they are marketing and selling outright or if they intend to auction. Do you know who the bank is? The shared drive issue is a good one to raise and I'd be curious to hear others experiences. I personally wouldn't buy a home with a shared driveway as I've seen the issues my neighbors have had with theirs. However, to each their own. And while that personal preference may eliminate some buyers, it certainly doesn't decrease its potential value to the point to pass on the project. You just need to adjust accordingly if the market demands.
They are selling this home outright and is a Fannie Mae owned property.
are there a lot of homes around with the "house behind a house" setup nearby? i'd pull a few comps so you can get a good picture. some of the older towns around these parts, it isn't all that uncommon, wouldn't necessarily be a deal breaker.
You bring up a good point. Ill drive around the neighborhood to see if I can spot any.
Funny, I was just having this conversation with my Black Diamond partners, as we are planning on presenting on exactly this topic in October, regarding this and other "apologies". It will be interesting to hear the experiences of the attendees.
Looked at another way, if two houses were substantially similar, one with it's own driveway, and one with a shared driveway, which one would you buy? The one with it's own driveway, of course. So the question is how much do you have to reduce the price to attract a buyer. So far, our estimates have ranged from 5-10% of ARV, but it also depends on the price point and how many other houses in the area have similar configurations. A lower priced entry level house will need less of a price reduction than a high end house in a high end town.
And it's not you, the real estate investor shying away that you need to be concerned with, it's the end buyer.
So i visited the home earlier today and this is the "shared driveway." 10 ft behind this home is a sketchy, uncared for home. Its safe to say this is a no go, and I wanted to wish Fannie Mae luck in trying to get $200k for this home.