Today we Listed a remarkable classic home in the unique community of Kensington in San Diego. The home is 82 years old and is definitely in need of repairs and updating. The Marketing question deals with whether the owner should make repairs and remodeling before putting it on the market OR sell it to the new owner who will decide exactly what they want in their new home and undertake the repairs and remodeling.
We have decided that if we undertake the renovation and remodeling we will have to spend a lot of money and assume what the new owner will want. Our determination was to analyze the market and estimate the market value of this home if it has a basic, simple renovation and then carefully do a thorough investigation to estimate what that will cost.
Next we subtracted the renovation costs from the future market value to calculate what the value of the home is As-Is.
Our presumption is that this will be the most desirable course for the Buyer who wants to create their own unique home.
We also know that the easiest way to sell a home than needs a lot of TLC will be to sell it to an investor who will pay cash and fix the home to their standards and sell it. We also know that this route will definitely deliver less return to the current owner but it will be REALLY quick and simple.
In our first day on the market we have seen active interest from both future residents of the home and from investors. I am going to track our approach and see if it has worked well for the Owner.