Specialist · OH · Member since 2019 · 59 posts · 18 votes
How do you find buyers for a home that needs some work? Offering seller financing. I’ve tried all the online methods. But where could I take some flyers, talk to people, etc? Or should I just make the repairs and be done with it
How do you find buyers for a home that needs some work? Offering seller financing. I’ve tried all the online methods. But where could I take some flyers, talk to people, etc? Or should I just make the repairs and be done with it
Lots of ways to do it. But location within the city plays a major role, too. The amount of work makes a difference. And just making the repairs yourself doesn't mean that it will sell any faster. If it won't pass FHA or VA inspection it will be tough to get a buyer who has financing. So, let's start from the top:
1. What zip code is the property in?
2. Does the roof have 5 years of life left to it? Is the kitchen livable? Are the bathrooms livable? (I don't care about the paint color or how "out of date" it is. The toilet has to flush and the kitchen sink has to work.
3. Is it near a hazardous dump or a major freeway or in a "crack" neighborhood?
4. Does it have "curb appeal" (Can you make the front of the house and the landscaping look good enough that someone would want to walk inside?
5. Does the guy next door have chicken fights in the back yard at 3:00 in the morning and have his 1974 Pinto Wagon on blocks in the front yard?
I'm not a huge fan of people who do this but sometimes it is justified. You could list is as "rent to own", some people who do this are straight up theives who are looking to rope people in with realy stringient terms that basically amount to live here for 30 years and if you miss a single payment you lose your property and have to start over. Now you can choose to be a more forgiving bank but it is a system that more low income people understand and it gives you more eviction rights than offering traditional owners financing.
Specialist · OH · Member since 2019 · 59 posts · 18 votes
6y
@Mike M.
Love your reply, thanks for taking the time.
1. 78415
2. Roof might last 5 more years, it’s actually a 1 BR 1B home in the front that is livable just needs updated, and an efficiency building in the back that will need a few grand to become livable.
3. Many homes on the street are boarded up. Although some are being worked on- the street isn’t great.
4. Definitely has curb appeal compared to the many houses immediately surrounding it, it has a nice newish fence surrounding the big yard and both homes.
5. It is most DEFINITELY possible, if there were any city in America that would happen in, I would put money on this one.
Rental Property Investor · TN · Member since 2018 · 2k+ posts · 2k+ votes
6y
I would think that the worse part is that the monthly price is twice what one would expect for a 30 year mortgage so that will scare someone off. Are taxes and insurance that bad? I'd just advertise the price and then if they want help with financing go into the details you want, but let them work on a lower monthly payment.