L/O marketing: to prehab or not to prehab? - Posted by rayrick

Posted by Krista(WA) on March 03, 1999 at 13:47:41:

Personally, I would probably do the clean-up. The reason being that you could do it very cheaply, and it would probably make a huge difference in curb appeal. And curb appeal is what gets people in the door.

You said the inside is clean and attractive. Then you are probably not necessarily going to attract people looking for a “fixer.” If you are asking top of market value, you may loose a lot of people before they’ve even seen the inside if the outside is that scary. If you’re not asking top dollar because of the outer appearance, the little bit of clean-up will probably add quite a bit of perceived value, and enable you to.

I’d do the clean up, ask high FMV, and take as much option $ as I could get. My 2 cents. Best wishes on wrapping up the deal!


L/O marketing: to prehab or not to prehab? - Posted by rayrick

Posted by rayrick on March 03, 1999 at 10:47:29:

Hi all, it’s looking very likely that I will sign up my first L/O this afternoon (fingers still crossed though).

My question is this. The place is neat and clean, even somewhat attractive, on the interior; the problem is, it looks like a bit of a dive from the outside. The house is fine, it’s the lot: piles of cinderblock and old fence around the edges, stained grass and swampy place where the sump pump pumps out water (the basement leaks like a sieve), and partially dismantled and crumbling retaining wall on one side of the house. I told the seller I could take care of the retaining wall if he could forgive a months rent (I think it’s about a wash, and I want to be in control of getting it done)

I’m wondering how to deal with the rest of it. I can get someone to haul away the debris for around $150. I wonder if I should go any further (or even that far) or just market it as is and don’t ask for much option consideration. I was contemplating barking the bare “garden” areas along the perimeter and maybe getting a load of dark stones to fill in and cover the swampy, stained area. Not worth the trouble?

I guess I’m just nervous about finding a tenant/buyer for the place when it’s got so little curb appeal. I’ll be selling the place for around 75K (getting it for 61K) and was thinking about something like $2500 for option consideration (as I said, it’s no showpiece). Should I offer a discount on the option consideration if they’ll do the clean-up? Okay. Enough already. Thanks in advance for the input.


Re: L/O marketing: to prehab or not to prehab? - Posted by GregN

Posted by GregN on March 04, 1999 at 15:32:07:


I’d do the clean up, but I would ask the seller to pay for it. I tell them I’ll handle the work, show them the receipt and they can pay for it. They don’t have to worry about lining up the folks and coming out while they do it. I remind them that if they were going to rent or sell the place, they would have to do the work anyway (well, they don’t have to… but that’s what I tell them!). Most of the time they agree. If not, I’ll spring for some small clean up on my own nickel. It’s worth a try with the owner first, though.

Good luck. See you in Dallas.


Re: L/O marketing: to prehab or not to prehab? - Posted by Russ Sims (Wa)

Posted by Russ Sims (Wa) on March 03, 1999 at 11:14:40:

Hey: I won’t congratulate you on your first deal because I don’t want to jinx it. Good going, none the less. What you perceive as a mess might be seen as opportunity to a tenant/buyer.I certainly wouldn’t discount the option consideration unless you absolutely have to. Remember, you’re offering a rare commodity. How many L/Os are being advertised in your area? Probably very few. As I’ve heard one guru say, demand for L/Os exceeds supply by 100 to 1.You’re in the driver’s seat. Pre screen your TBs and let only the ones with cold, hard cash through. Let them determine the down payment. You never know, someone might come through with 5k to burn. If they do, take it! It’s okay to set $2500 as your bottom line price, but don’t advertise it. Let the market decide and you may be pleasantly surprised. Good luck!