How to avoid losses and sell a property that needs repairs or cannot be appraised
Lately several clients on the Oregon Coast have needed exceptional support in order to sell their home for the price the property is actually worth.
Often it's not the owner or seller's 'fault,' living on the he Oregon Coast is like living on an island.
The land is majestic, the availability of reliable and reasonable contractor's or construction crews on the coast, is not.
That leads to deferred maintenance, and in an unrelenting environment, neglect can lead to a decline in quality or value.
One solution, particularly for absentee or older owners is to partner with a quality contractor.
A very good company might allow an owner to pay for the materials, complete the work and accept a portion or entirety of their fee due at closing, with interest.
The could have financial incentive, and it helps to procure the quality of work delivered.
Furthermore if this is in coordination with a quality real estate broker or representative, it's possible for the property to be marketed for sale during the construction or completion period.
Some lenders, in some circumstances, will even permit an escrow hold back at closing. In other words, the transaction can close and the balance of the work due will be withheld at closing from the seller's proceeds for remittance to the licensed contractor or company.
I'm working with several sellers that due to various restraints are holding incomplete properties, or essentially liabilities, until they can be converted back to tangible assets.
Alternatively sellers could consider cash sales or working with private or personal lenders to borrow the time and funds required to restore or improve asset salability.
Lastly seller's with a low cost base, could consider an owner carry, in which the transaction would not necessarily be subject to a third party appraisal or conditions.
Real Estate Agent California (#02071578) and Oregon (#201231202)