Advice needed to prepare for as-is sale - West Hartford, CT

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Advice needed to prepare for as-is sale - West Hartford, CT

Roy Marks
Rental Property Investor · Los Angeles CA · Member since 2019 · 14 posts · 1 vote

Hi everyone,

My parents have owned a 3bd/1ba investment property in West Hartford, CT for 20 years. The property has been rented for nearly this entire time.

The house has a good amount of deferred maintenance, is not updated, and has some water damage which we only recently (two weeks ago) became aware of. We have since gotten estimates from contractors. All in all, the property will likely require north of $50k in repairs/updates to be put into a market-ready condition. 

Since my family and I all live in CA, we are not sure this project is something we want to take on.

The house is in a great location in a "hot" market in CT (West Hartford). 

What is the best way for me to prepare for selling the house "as-is"? My questions are:

1. How can I find cash only, no contingency buyers? Are there online marketplaces/platforms or investment groups that I can reach out to?

2. Do I need to work with a real estate agent? A lawyer?

3. What do I need to do to ensure that we disclose all necessary information (i.e. re: repairs required, damages, that we are aware of) to buyers?

4. The house has some evident water damage. What do we need to do to ensure we are not liable for damage that a buyer might uncover later, that we are currently not aware of?

5. Any tips for how I can get the best price possible? For example, the exterior house could use a good power washing, and also needs a new roof. Are these things that are worth addressing before listing "as-is", or will fix-and-flipper really not care for these things? 

6. Suppose I had a cash buyer ready to go. What is the step-by-step for how to develop and finalize the transaction? Who else needs to be involved?

7. How do I determine the price I should list the house at? 

If you are an investor that is interested in learning more about this property, please do not reply here in the forum, send me a message. 

Thanks for all of your help!

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Karen MargraveBusiness Member
Moderator
Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
5y

As a Realtor I would suggest that you hire a Realtor in the area to list the property in "as is" condition, seller will not be doing any repairs. They can get it on MLS, make sure all the legal disclosures are done, and show the property. I would suggest getting a pest inspection, and home inspection that has photos included, then have the agent upload those and note "bids on some items are available". Be sure to put that Buyer to do their own due diligence, including any and all inspections they feel necessary, and that any inspections, reports included on listing are for buyers convenience only and do not guarantee they cover all items needing work nor the price of doing work, etc.

Get a video walk through so that buyers can see condition, types of finishes currently in the house, etc. PRICE ACCORDING TO ACTUAL CONDITION, NOT POTENTIAL. Getting into doing the work beforehand will be time consuming, materials and labor are very tight right now, so ask if it's worth it. 

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  • Karen MargraveBusiness Member
    Moderator
    Realtor, General Contractor, and Developer · Redding, CA · Member since 2009 · 7k+ posts · 4k+ votes
    5y

    As a Realtor I would suggest that you hire a Realtor in the area to list the property in "as is" condition, seller will not be doing any repairs. They can get it on MLS, make sure all the legal disclosures are done, and show the property. I would suggest getting a pest inspection, and home inspection that has photos included, then have the agent upload those and note "bids on some items are available". Be sure to put that Buyer to do their own due diligence, including any and all inspections they feel necessary, and that any inspections, reports included on listing are for buyers convenience only and do not guarantee they cover all items needing work nor the price of doing work, etc.

    Get a video walk through so that buyers can see condition, types of finishes currently in the house, etc. PRICE ACCORDING TO ACTUAL CONDITION, NOT POTENTIAL. Getting into doing the work beforehand will be time consuming, materials and labor are very tight right now, so ask if it's worth it. 

    2Reply
  • Roy Marks
    OP
    Rental Property Investor · Los Angeles CA · Member since 2019 · 14 posts · 1 vote
    5y

    Hi @Karen Margrave,

    Thanks for your message - lots of good advice here! 

    1Reply
  • William CollinsPro Member
    Investor · Rocky Hill, CT · Member since 2013 · 373 posts · 299 votes
    5y

    @Roy Marks I also potentially could be interested in the property/ there are a lot of investors here on the board.  The investors will understand the as is nature of what you are trying to sell. 

    0Reply
  • Roy Marks
    OP
    Rental Property Investor · Los Angeles CA · Member since 2019 · 14 posts · 1 vote
    5y

    Thanks @William Collins and happy to communicate with you about this, please send me a message. 

    For the forum posts, I'm hoping to receive some advice and tips to prepare for the sale, so that other potential as-is sellers can learn from the experience I'm going through. Thanks again!

    0Reply
  • Ryan AllisonPro Member
    Investor · Connecticut / Massachusetts · Member since 2019 · 65 posts · 38 votes
    5y

    @Roy Marks for CT, there's several real estate groups on facebook that would be a good place to start if you wanted to sell your property on your own.  

    Working with an agent is ultimately your decision.  I would probably recommend one if you don't have a good pulse on the market or if you want to outsource all of the work to list the property.  If you're willing to roll up the sleeves and know what the deal is worth, in my opinion an agent isn't necessarily a must with the big perk of saving the realtor fee.  

    You do need to work through a title company or an attorney since it's in CT.    

    You will have to provide disclosures to the buyer, I would work with your attorney on this.  Generally speaking though, selling "as is" puts a lot of onus on the buyer to uncover issues on the property.  

    As far as improvements, I'd focus on what you can do to the property to get the best ROI, every property is different in this regard. I wouldn't power wash a house that needs a substantial amount of money, why put lipstick on a pig? But if the property is in great shape and just needs a polish with a power wash / paint, that can be a great improvement and appealing for buyers. Curious what others think on roofs, but I think it's tough to get back your investment on that, unless it was an absolute necessity to make it qualify for financing. Personally, even then, I'm not sure I would do it.

    If you have a cash buyer ready to roll, id work with both your attorney and the buyers attorney to get things properly under contract and close out the deal.

    For pricing, agents can be a big help with this, or you can try to run comps yourself to get a feel for what the house is worth.  You can also hire an appraiser to independently evaluate what the property is worth for a fee, usually several hundred dollars.  

    1Reply
  • Roy Marks
    OP
    Rental Property Investor · Los Angeles CA · Member since 2019 · 14 posts · 1 vote
    5y

    Thanks @Ryan Allison! Great tips here, especially re: hiring an independent appraiser. Are appraisers fairly well-versed in as-is properties that require reno? Also, should I get an inspection report as well as contractor quotes *before* hiring an appraiser?

    0Reply
  • Ryan AllisonPro Member
    Investor · Connecticut / Massachusetts · Member since 2019 · 65 posts · 38 votes
    5y

    @Roy Marks they should be but sometimes some are harder critics than others, at least in my opinion.  it also has a lot to do with timing of comps, some help and some might not.

    0Reply
  • Roy Marks
    OP
    Rental Property Investor · Los Angeles CA · Member since 2019 · 14 posts · 1 vote
    5y

    Thanks @Ryan Allison!

    0Reply
  • James McCard
    Investor · New Hartford, CT · Member since 2016 · 282 posts · 104 votes
    5y

    I would strongly recommend going the option of @William Collins and here is why:

    It is the easiest and quickest path to getting money in your pocket. I do not know William personally although I think we would both vouch for each other as movers and shakers in our prospective markets and I know he would come through in closing for you. Selling to an investor basically mitigates questions 3-7. 

    As an investor it is our job to know our markets. I for one always present options and I am sure others are willing to do so as well. We can show you what it is worth now, what it is worth fixed and what the fixes will cost. In some cases it makes more sense for a seller to list the property and I tell them that. Very often they appreciate the honesty and will still want to sell even knowing they might get more listing it. 

    If something doesn't make sense you can ask. Like hey how did you come up with this number. We are happy to share numbers and how we arrived at an offer. 

    That being said we can't pay top dollar, IMO this option is your quickest and easiest to get it done.  

    The market is hot in CT, although in my opinion we have the month of October and then it starts to flatten a bit. You can list it with a realtor and you may find great success going that route.  

    In CT you would want to deal with an attorney - if you do not have one I recommend attorney Keil

    https://www.mlkrlaw.com/Lawren...

    You may get the return back from doing projects, if the house needs a roof and you want to sell it as a done property for top dollar by all means put the roof on and power wash it. 

    A realtor knowledgeable in the market would be able to provide comps for you and suggest a listing price. 

    It sounds like you have a few options to choose and think about. Good luck. Weha is a great little town. 

    0Reply
  • Tyler Cote
    Member since 2021 · 6 posts · 4 votes
    5y

    Good advice above. As a realtor and investor in RI/MA, I think the best route to go would be find a realtor-investor hybrid who can give you three prices: 

    #1) AS IS off-market- the realtor-investor purchases him/herself (likely 70-75% of market value)

    #2) AS IS on-market - the realtor-investor lists on MLS (full market value)

    #3) Light touch ups + on-market - the realtor-investor lists on MLS. Based on your description, the property seems livable and in fair condition with some cosmetic and mechanical upgrades needed, but short of a full gut. In that case, it's worth considering putting a some money into paint and landscaping to help with curb appeal. You could even do yourself. These are the the highest ROI and most DIY friendly "moves" you can make.


    Good luck!


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  • Roy Marks
    OP
    Rental Property Investor · Los Angeles CA · Member since 2019 · 14 posts · 1 vote
    5y

    Thanks @James McCard, great advice! I do have an attorney that I'm working with already, but appreciate the recommendation. Thanks also for the tips regarding how to engage with potential cash buyers. 

    0Reply
  • Roy Marks
    OP
    Rental Property Investor · Los Angeles CA · Member since 2019 · 14 posts · 1 vote
    5y

    Great breakout @Tyler Cote, will keep this in mind! This is exactly the type of calculation I'm doing at the moment.

    0Reply
  • James McCard
    Investor · New Hartford, CT · Member since 2016 · 282 posts · 104 votes
    5y
    Originally posted by @Roy Marks:

    Thanks @James McCard, great advice! I do have an attorney that I'm working with already, but appreciate the recommendation. Thanks also for the tips regarding how to engage with potential cash buyers. 

     Roy, 

    I do have a decent network that I work with, if for whatever reason @William Collins is not interested let me know. I can reach out to another investor I know in West Hartford. 

    0Reply
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