# Fix before selling or not



## fishhead (Jul 19, 2006)

I've got a small (900' sq ft) older lake home that I am just starting to consider selling. I won't sell it for at least a year.

It's not in great shape and there are lots of unfinished remodeling jobs. The property on the other hand is worth 80% of the value according to the county. It's got great road access, south facing for summer breeze off the lake, 300' of lakeshore, 3.5 acres, mostly wooded. Overall the property is very nice in the way it is laid out.

My question is this. Who do you go to in order to get an informed opinion on whether the next owner will just crunch it up and toss it in the dumpster no matter what I do to improve it?

Realtor? Appraiser?


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## po boy (Jul 12, 2010)

If you think the new buyer would need financing, it may be hard to get the property to qualify for financing.


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## ihuntgsps (Mar 10, 2008)

I would start with a well known local real estate agent and get their opinion.

If you want to sell it "as is" let your friends on HT know first please!

Which lake is it on? If you tell me Battle Lake I might have to have it.


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## sweetmusicj (Mar 5, 2008)

Yeah, where is it!? I have a place up near Park Rapids, MN.


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## fishhead (Jul 19, 2006)

It's in the Brainerd Lakes area of MN. The house is warm and dry and livable. I'm living in it now. It's just needs things like trim and floor coverings.

It's small, old and on a lake. That's usually a recipe for tear down in this area so I'm wondering if I can find someone who can give me a thumbs up or thumbs down on finishing those projects. There's no point in putting in the work and materials if it doesn't matter to the buyer because they just want the lot.


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## mnn2501 (Apr 2, 2008)

I would ask 2-3 local real estate agents about what you could sell it for as is verses what you could sell it for fixed up (and describe to them what exactly you would be doing).
Compare the sales numbers to what it would cost to fix it and that will give you your answer.


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## Cabin Fever (May 10, 2002)

I guess I wouldn't care what the buyer does with it. What I would care about is the net you're going to receive regarding the two possible options (as is or fixed up). A good realtor should be able to estimate what both options would sell for.


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## FarmerKat (Jul 3, 2014)

fishhead said:


> It's small, old and on a lake. That's usually a recipe for tear down in this area so I'm wondering if I can find someone who can give me a thumbs up or thumbs down on finishing those projects. There's no point in putting in the work and materials if it doesn't matter to the buyer because they just want the lot.


If most lake front parcels in your area are being sold for the land and new owners are building luxury homes on them, I would not bother spending any money on the house and sell it as land with an old house of no value (we have looked at many properties like this with homes that were livable but the value was in the land). 

If there is a good number of smaller/older houses like yours that are occupied and your lot may be in a price range for someone who would want to live in a small older house, I would fix it up. 

Where we live, if someone was selling 3+ acres on the lake, the buyer would likely be building a $500K-$1M home (or have some commercial plans for the property). Any small older house would be of no value to this type of buyer and just waste of your time and money to fix it up. 

Again, that really depends on your area and local market.


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## fishhead (Jul 19, 2006)

That's kind of what I was thinking. I would not expect a $500,000 home on this property although there is one on the other side of the lake sandwiched between this lake and another larger and deeper lake.


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## Michael W. Smith (Jun 2, 2002)

What is livable to some people would not EVER be considered "livable" for other people.

Have you ever watched some of the TV shows of people buying a house? (Either to live in it or to flip it?) I've seen very livable houses that they have pretty much gutted - tearing up and throwing away perfectly fine flooring, cabinets, etc.

With the value being in the land (and not actually the house / cabin), unless you find somebody who is willing to buy a high priced lake property - just to get away and fish and relax and not care about the house, I'm guessing the buyer you get will most likely tear it down and build a lake house.


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## fishhead (Jul 19, 2006)

I looked at the tax statements of all the properties minus the ones between both lakes. And the county appraisal on this property is pretty closed to the the others with the valuation a little below the average.

I'll have to look again and see the value of the buildings.


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## FarmerKat (Jul 3, 2014)

fishhead said:


> I looked at the tax statements of all the properties minus the ones between both lakes. And the county appraisal on this property is pretty closed to the the others with the valuation a little below the average.
> 
> I'll have to look again and see the value of the buildings.


You could also look at the ones that sold recently. Our assessors website has that info on it and it will tell you how much it sold for and when.


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## fishhead (Jul 19, 2006)

I checked the valuation of the other homes and my home and one other are at the very bottom. Broken into two groups the homes group averages are $50,000 and $90,000.

The two groups home values range are $20,000-$125,000 and $45,000-$255,000.

I think I'll hire a realtor to come and give me a quick appraisal for both scenarios.


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