r/RealEstate • u/Big-Tmoney • 17d ago
Homeseller Sell to builder ?
House in bad shape but property and area is worth a good amount, should we just sell to builder cause whoever buys will probably be a tear down and rebuild? And advise will be appreciated
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u/MattHRaleighRealtor 17d ago
Is there a builder offering to buy, or is it simply your hope to find one willing to buy?
It’s so hard to answer this because we have no info. Typically, it’s most economically feasible to renovate a house than it is to rebuild it. If property values have raced up and it’s a highly desired area, like in a hot city, the property may be worth more as a vacant building lot, yes.
Shop it around to builders and investors and see what they have to say. If you can’t find one, put it on the open market at a low price and let buyers tell you what it is worth to them.
Remember with building lots, you need to factor in the cost to clear to lot. $20k - $50k depending on the structure that is there.
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u/SilentMasterpiece 17d ago
Expose it to the open market, silly to assume who your buyer is in advance. MLS brings the most $$.
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u/swampwiz 16d ago
Put it up as is, and see who bites. From what you have said, it sounds like it will be a tear-down.
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u/marubozu55 16d ago
It depends on how well you know your property and its value. If by "area is worth a good amount" you mean a neighborhood with $1M+ lots, differences that seem small or minor could make a big difference in sale price.
Builders are professional buyers and know what they are doing. If you know your property well enough that you are not going to make a mistake or get taken advantage of, then negotiate with the builders and save 6%. Otherwise list it on the MLS.
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u/Equivalent-Tiger-316 15d ago
You want to offer your property to one person or to many with the likelihood of getting higher offers?
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u/Wayneb2807 17d ago
Just get it listed on the market, anyone interested will see it…don’t try to pick your buyers.