If you’ve inherited a property and you’re planning to sell it, make sure you read this blog post for 3 tips about how to price your inherited home in Prairie Village for sale…
Did you inherit a property that you’re now thinking about selling? While an inherited property can be a wonderful gift from a loved one who has passed on, it can also (quite frankly) be a costly burden. So selling it makes sense and allows you to use the gifted equity for some other purpose. But selling an inherited property may not come easy to you, especially if you haven’t sold a property in a while. So here’s how to price your inherited home in Prairie Village for sale…
Tip #1: Price Quick To Sell
Some people price their inherited property at an amount they think the market might pay for the house. They may be looking at what the updated house across the street sold for or what a house down the street sold for with a several weeks or months of marketing. However, there are many factors that go into this price and one of the biggest considerations is TIME: how fast do you want to sell?
Selling through an agent “on the market” can take months. Most often an agent will want to walk through the home and give you tips to sell the home for more. Those tips quite often mean to clean out the clutter, fix the minor repairs that may have been overlooked by your loved one. Or if the home needs extensive updates and repairs, they might suggest you make those or they might suggest selling as is, with no repairs. However, many agents don’t like to market a fixer upper house because to get you the price YOU want, plus pay their commissions, it needs to sell for more.
So while you might list it with an agent and price it for a quick sale, you are going to have time interviewing the agent, getting the home ready to sell, marketing time on the market, plus time for your buyer to close. And if your buyer is getting financing, well, you will probably have time for inspections and possible request for repairs. During all this time spent, the property still needs to be maintained, utilities on, taxes paid, insurance paid, mortgage payments made if there is still a mortgage on the home. Plus checking up to make sure it was locked up after the last visitor. This can be costly and can eat into the higher price.
Many property owners quickly learn that they’re almost better off to price slightly lower for a faster sale… they might get less for the house but they also pay less on repairs, carrying costs, effort, and time, so it’s ultimately a trade-off that might turn out to be a total wash. Plus would you rather spend a few days finding a cash buyer to know the sale will close next Thursday or spend that same few days finding a Realtor to then go through all the time involved to eventually sell it at some unknown price in a month, 6 months or a year?
Tip #2: Avoid Pricing Based On Fond Memories Or Emotion
One of the biggest challenges that property owners of inherited property face when trying to price their property for sale is separating the happy memories from the true value of the house. The house might be worth a certain amount on the market but you may have such fond memories of growing up in the house or of happy times in the house that you accidentally use that emotion to increase the price. (This is VERY common.)
Emotion also often comes in with just dealing with the STUFF. Some sellers want to take the time with family to go through all the stuff in each and every room, share things with family members, send other things to good will, hold a garage sale and eventually get it all cleaned so the Realtor can sell it. Other people don’t want to go through all that work, they want to go through and grab the few items they want and leave the rest for someone else to deal with. Cleaning out, Boxing Up and Garage Sales is time consuming and unless your loved one had truly priceless items, that old bed frame and dining room table is not really worth very much in dollars or your time.
A better approach would be to work with a real estate company and find out what they can offer you, and recognize that the price might be lower than you were expecting… not because the house isn’t worth as much but because your wonderful memories have accidentally inflated the price! Plus an investor company like ours will help with all the stuff left behind, not only help but deal with all of it . . . furniture, clothing, cars, mowers . . . everything!!
Tip #3: Build In Discounts For Repairs
If you inherited the property from a loved one who had lived in the property for many years then you might find out that the property needs some repairs. You could choose to do this work yourself and then ask for a higher price but why do that when you could save yourself the time and effort (and what you’d have to pay for equipment, supplies, or a contractor) and instead just ask for less and give a “repair discount”.
We often talk to sellers who have taken the time to get bids and realize that the new roof is going to cost $10,000 and the new furnace and air is going to cost another $8,000, plus the kitchen and bath need updated and the whole house needs paint, flooring and light fixtures. For us the average rehab costs between $40,000 and $50,000 and takes about 6 weeks because we have trades people we work with every day. For the average home owner that cost is usually between $70,000 and $80,000 and takes 3 or 4 months, because they don’t have the contacts and expertise and have to rely on guys they find on sites like Angie’s List.
We have also helped a lot of sellers that started the repair process and were in the middle of everything, and much of what they paid to have done, needs to be redone because it was not quite right or because the contractor ran off with the money.
Taking a lesser price this week can actually save you money in the long run over renovating the home yourself. Unless you are in the business, we recommend selling as is, you will still come out better financially and save yourself all the stress and headache.
An inherited house can be a lot of work so if you’re thinking of selling it, you’re certainly not alone. But how do you price an inherited house? These tips will guide you on how to price your inherited home in Prairie Village for sale.