Sometimes a seller has to cut their losses. Dad's house has to sell.

Yesterday I was called by a former client's mother (Jane)(I love referrals!).  I knew this lady for 15 years since she used to work at Eyemart Express in Boise.   We have 4 out of 5 of us in glasses.  One starting at 5 years old and the other at 8 years old.  Eyemart has a good warranty and prices so that is where we went.   Everybody knew the me and the Holmes' boys.

Jane's dad died a year ago in May.  At first they had a friend live there.  All he had to do is pay for the utilities.   His wierd girl friend moved in (even though she wasn't allowed) and she claimed he beat her and he was arrested.  In the end Jane had to evict the girlfriend (who was never allowed to live there).  It was a bad experience for the family. 

Jane called because she wanted to know how much the home was worth.  I live a couple of minutes away so I told her I would just come without my computer work since she was there at the moment.  The house and workshop are in poor condition.  The roof needs replacing, the electric needs updating, all the floors need work.  When you go downstairs the problems multiplied.  The staircase was scary and downstairs has a leak as the cieling is wet and spongy.  The floors have water damage.

The workshop was interesting.  I would convert it into another rental unit if I didn't want the shop but that would take a lot of work and resourses.

Long story short I probably could get $75 to $80K as it is.  By fixing it up I might get $120-$130 K.  My gut reaction is that unless I was a contractor it would cost around $30 K to fix it up.  If they were fixed up I could rent the house for $800/month and the shop (now apartment) for $500 a month.  Of course one could fix up the  house then convert the shop with the rent money.  

Now I asked how many ways this would be split and I was told 4 ways.  My next question was who would pay for the fix?  My friend said she would have to.  I told her I didn't think it was worth risking $30 K for a potential $5 K profit.  Things often went wrong in this type of deal.  I suggested she should sell it as is/where is and they should split the assets. 

The next question was is there any title work that needs to be done.  This is always important when dealing with an estate.  She thinks so but I will check it out before I list it.   

If the family is willing to carry with $15 K down I might have a buyer for them.   Today I am trying to find my buyer and am hoping that they go on with the listing.  I think anything else will lead to heartbreak for them. 

Just another day in the life of a real estate agent.