WHAT DO WE DO WITH MOM’S HOUSE?

Last week I spoke to the most common question I get: “Should we spend some money and fix the place up to try and get a higher price?” My answer was generally no! But there are exceptions. When I get asked to evaluate the return on investment of putting money into Mom’s house or not, I look at the home and transaction in a few ways. First, let us assume that your home is pretty dated, from the 60’s or 70’s, let’s say, and it has deferred maintenance items like some rotting fascia boards, worn out kitchen cabinets and appliances, AC and furnace are very very old, and other common items like carpet, paint, fixtures, landscape that need attention. Then I like to weigh the following questions: 1. Will the average home buyer want to buy this house, and can they get a loan to buy it based on its condition, then what price would that be? 2. Will only an investor want to buy this house because there is too much work for the average buyer, and what price would that be? 3. What will be your return on any money you might invest? I have a ratio I commonly use. 4. How much money is available, who will front it, and who will run the improvement project? All are important items to consider. It takes a real good eye to make the correct decision on how to approach this type of sale. As a general contractor and after many years helping families in this difficult situation I have the experience needed to get you the most out the transaction. Give me 20 minutes and I will give you a solid recommendation on the best approach. Thanks! - Sean O’neill