Should You Sell to an Investor?

October 21, 2024

Should You Sell to an Investor?

Introduction: Should You Sell to an Investor?

Should you sell to an investor? Talk about that as well as a retired teacher wants to downsize. Cupertino House of the Week, Willow Glenn House of the Week, Luxury Home of the Wee,k, and the 12 Bay Area housing stats. Let's get moving. All right.

Understanding the Investor Option

Should you sell to an investor?

Should You Sell to an Investor?

It really depends on what you want, right? If you're okay with walking away with a little less money than you thought, becoming an investor might be a good way for you to go. There's less hassle, and there's less preparation.

There's less turmoil. So that's a trade-off. So it depends on what your house is worth and what it's worth to you.

Evaluating Your Home's Worth

Is your house worth a million dollars? What could you do to make sure that it's worth a million dollars put it on the open market get it listed on the MLS And sold correctly there's some stuff that you have to do to it Now if you don't want to get at the stage, you don't want to do the repairs You don't want people coming through your house and you have to deal with your pets.

I completely understand This is an option. However, is it the best option? That's something you have to ask yourself I'm sure ads all over the place on social, on Google, on everything saying, we'll buy your house, hassle-free, no realtor fees, all that stuff.

It comes at a cost and that cost is the investor is there to make money. They're there to do this as a business.

Investor Offers and Market Realities

So when you're thinking about this, typically when I talk to investors, because if I have a house, that's not in the greatest condition and the people don't want to deal with it I am going to reach out to my investor list, and say hey this house is available for sale if you want to put an offer down and typically what I get is 60 cents on the dollar So if your house is worth a million dollars, you're looking at six hundred thousand dollars Because a lot of those people are what we call bird dogs So they'll get into contract and then they'll assign it to another investor and they'll do the takeover and either fix it up and flip it or hold it long term or Sell it on the investor market Now is it worth your time again?

That's up to you and I can't tell you yes or no if you do Understand that you're going to be at 60 65 cents on the dollar. Now what happens sometimes you're out of state and your parents pass away and you have something that's in Florida or something that you just have to get rid of, or maybe it burnt down, or there are some major problems that you just don't want to deal with, like a foundation issue or the kitchen, caught fire or what have you.

And there's just, I just don't want to deal with it. That's a great option for an investor. There are buyers out there who will do it too. But typically what will happen is you put it on the market and then the investor groups will come through. Typically they have their financing all taken up because it's a machine, right? They have people that will close in 10, 15, 20 days, depending on who it goes to and who's buying it. And you can. Sell it to institutional investors like BlackRock and Vanguard.

Again, they're going to give you a little bit more because there's no middleman, but I understand that those houses will either turn into flips or into long-term rentals. So if that's something you're okay with your house being done, that's up to you, right? They will buy the house as is. However, they have the right to do due diligence and they are going to do that So they might offer you six hundred thousand dollars, but then once they do the inspection They're going to ask for another credit for fifty seventy-five thousand dollars.

That's just the way it is All right, they get you in on a price and then they bite your arm off one inch at a time You don't have to do a lot of prep work. Absolutely you can Sell your house as a matter of fact you can stay in your house another two months after you close they can do all these things and they might even pay for Closing costs and all this other stuff.

So but here's the thing. Are you willing to walk away from that 40? That's totally up to you. The downside is the potential. You're going to get a lot less money in cases than you would on the open market.

Making the Decision: Investor vs. Open Market

Now let's take a real quick look here. When we put things on the open market, tempo is something I talked about last week.

If you take a listing at say 250, 000 and you sell it at 15 percent over, which is. What the going rate was at one to seven days you're looking at another dollar, right?

It's a lot of money That's hard to walk away from if you're selling it and it's worth two and a half million dollars You have to ask yourself. Are you willing to walk away from that plus? That so not only is it almost 375 million that you're walking away from, a two-and-a-half million dollar house, it's the same ratio. These are averages, right? So I can't tell you specifically what your house would get, but at the end of the day, your house is really looking at getting 12 to 10 percent over the list price.

When you're on the open market, things have changed a little bit as more is sliding towards a buyer's market. Things are slowing down right now, but when you're walking away from that kind of money, it might not be worth your time. So just keep that in mind.

Do you need to sell your house quickly? Is your house in good condition? Do you have the cash on hand to do repairs? Especially here in Santa Clara County, your house can be worth a whole lot more if you put it on the open market. And if you think about it, your house will be open to the public.

Think of it that way. It's going to be like a park for about seven to 10 days, right? And after that, it closes off the blue lock box goes on and then there's a combo box and only two people have it. It's you me the buyer's agent and then The appraiser will get that and the inspectors will be done beforehand So there you go up to you if you want to do it or not.

Home Inspection Checklist

Home Inspection CHECKLIST HERE https://abitanogroup.com/homeinspectionchecklist

I know I can get the house sold in seven to ten days this Segment of this episode is brought to you by the home inspection checklist. If you're thinking about selling your house, get that honeydew list started. This home inspection checklist is a list of what inspectors will look at so you can get those things repaired before the inspector comes through.

If it's an appliance or cracked window or what have you scratches on the floor. Broken switches can be handled before the inspector comes out and calls it out. Now if you do those repairs as With everything you have to disclose it. So it's better to over-disclose and scares away that crappy buyers I always tell people, so just remember that.

A Retired Teacher's Downsizing Journey

A retired teacher decided to downsize...

So this is a little story about a lady who lived here and she was a teacher, a retired teacher, and she decided to downsize. So she's looking for a house, winds up being a condo after 40 years she downsizes and she's just sitting there. She has her friends. She has her community. She has her family.

She has everything here. So she didn't really want to move out of the area, but she knew that her house was too much She moved from a four-bedroom two-bath 1960s house and decided to look for a Condo.

Condos vs. Townhouses: Key Differences

It's a two-story condo Now typically the difference between condos and townhouses is a condo is one flat one apartment and a townhouse will have different levels that's not a rule of thumb. It's not written in stone and in a condominium complex typically you own Let's say there are 50 units in that property You own 1 50th of the community of that property and in a townhouse you own a square plot of that land as well Typically not always You also have HOAs that you have to deal with.

So this one right here was a two-story in Santa Clara near Santa Ana Roa. It looks like it's recently updated. Looks pretty nice inside. And then this one's the bungalows in Los Gatos. And this is a 55-plus community and it's right off of 17 and Lark. It's a really nice area. But again, you're looking at multiple levels, right?

So you're dealing with stairs.

Choosing the Right Condo

There's a two-bedroom condo in Sunnyvale. Which one did she choose? Ultimately she chose the agricultural-inspired development in Santa Clara, which I think is that one up in Santana Row, in the middle of a lot with no established vegetation, master gardener.

I needed someplace with trees around me. She felt like the unit was, Just two stories. So she did get a two-story trade-off- you go to a condo complex or what have you, you're going to deal with stairs with the house. You're going to find there are a lot of houses that are still single single-story houses is going to be single-story. I hope we'll see.

Tax Benefits for Seniors

But she got to transfer her tax basis over because of Prop 13 and Prop 19 which is nice. And since she's over 55, she gets to take advantage of that. So there you go. There's a little story, something to think about as we all age.

If you have questions, happy to walk you through it.

Cupertino House of the Week

Cupertino Home of the Week

Cupertino house of the week, Linda Vista Drive, not my listing, four bedroom, two bath, 2100 square feet, built-in 1975. This is a nice little ranch. It's amazing how crazy expensive these have gotten, huh?

But here's the thing, right? An average house right now is 2 million. So if you want something nice in a nicer area, not steering, You're going to pay for it, right? And this is all updated and beautifully done. It's a really nice house. So there you go. And it's really close to Monta Vista High, Kennedy, and De Anza because I went to these schools when I was a kid.

I graduated from Monta Vista High. I went to John F. Kennedy Middle School. I have a friend who actually taught there. So pretty cool. Let's show you where it is on the map. Right there. So Kennedy, Monta Vista. Oh, the house looks like it backs right into it. And when I was a kid, I lived, where is that? Oh, McClellan. Yeah. I lived right here. Did I? No.

Oh, right here. This is where I lived right here, in that building right there. Funny thing, huh? So there you go. Okay.

Willow Glen House of the Week

Willow Glen Home of the Week

The Glen house of the week, this is not a ranch. This is more of a cottage, 2 million, three bedroom, two bath, not my listing 15, 23 square feet built in 1955. The reason why I picked it is because it's within walking distance of Lincoln Ave.

Age is 69 days on market 12 walk score 90 see Being downtown in the heart of things you can walk downtown have some fun get a little drunk And stumble home crash out. There you go. It's a perfect place for you. And this one is It was it these are updated these pictures I tell you guys if you're going to do this Do it right hire a professional photographer.

So this looks like it was updated back in the 2000s This is a very popular design back in the 2000s maple toffee cart cabinets and stainless steel with Granite the brownstone. I think it was called but it's a nice small house 1500 square feet.

Luxury Home of the Week

All right, and then Floribunda the luxury home of the week I wish this was my listing but it's not eight bedrooms eight full baths two half baths, and only 18 000 square feet 1900 built in 1924 And this is right by the manor this is decadence, opulence, luxury, everything, fine tooth comb. Everything is worth it. If you have, how much was it? Only 68 million.

And that's what you get.

One day I got to start playing the lottery though.

And as As these are all available to you in the blog. So go to the blog, and check it out. Links The links are here. You can play with it. There's no entry. You don't have to give me your information. You can just go freely play with it and have fun with it.

Homebuyers Checklist

FREE HOME BUYER CHECKLIST HERE https://abitanogroup.com/Homebuyerchecklist

And this. The segment is brought to you by the homebuyers checklist when you're looking at open houses You're going to four or five houses This one will allow you to compare and contrast each house if it has dual pane windows air conditioning New kitchen new bathrooms floors that kind of stuff. It walks you right through it and it helps you compare Four or five or six homes that you go to so it doesn't get fuzzy and it allows you to it's a pretty well Written document.

There you go.

Bay Area Housing Report

This is the You Bait area housing report for the 43rd week of the 2024 year to date. We're looking at Santa Clara County punched it out of the park, 400 million in close transactions last week. We're now officially over 15 billion in transactions in Santa Clara County half or San Mateo only has half of that. And their difference is their houses are a little bit more expensive, a little bit more opulent. It's a lot more expensive there. And the reason why is because Santa Clara County is the heartbeat of Silicon Valley. So there you go. Santa Clara County has the most, Alameda County is there and Alameda by far is a lot more affordable So if you're thinking about buying maybe look at the Ayward area Fremont area is going to be expensive still But the further up you go, that's a great place to go And as always Napa is the best buy because you're looking at 96 cents on the dollar versus even Santa Clara where it's seven percent or seven cents on the dollar.

So just keep that in mind. Alameda County is pumping up pretty quick. It's going to take a while for them to get up to these averages. All right. 43rd week of the year. Everything's moving forward.

Conclusion and Sign-Off

Happy Monday. I'm Vito with Abitano.

Vito Scarnecchia Real Estate Broker, Veteran, Dad DRE#: 01407676 408-705-6817 Vito@abitano.com Website: abitano.com https://www.onereal.com/vito-scarnecchia-1 update your home value: https://hmbt.co/bT7qRJ RELOCATION@ABITANO.COM FREE DESKTOP APPRAISAL https://www.propertyrate.com/agent/vitoscarnecchia If you are moving ANYWHERE in the world - Let me know! I know a LOT of AMAZING Agents! Book appointments here: https://calendly.com/abitano/15min Home Buyers Course YT YouTube.com/SanJoseLiving IG https://www.instagram.com/abitanogroup/ FB https://www.facebook.com/vito.scarnecchia/ LI https://www.linkedin.com/in/vito-scarnecchia/ Blog http://blog.abitano.com/ POD https://spotifyanchor-web.app.link/e/oxdH1Hwfcvb Professional Photography by Kim E https://photosbykime.com / Local Real Estate Market and Home Value Report https://hmbt.co/bT7qRJ Financial Intelligence https://docs.google.com/forms/d/e/1FAIpQLSc0R5pjHIAPguZ5GDEB-fTbGJXKpWK3coK9Khymv_GTWkMnyQ/viewform?usp=send_form https://www.onereal.com/vito-scarnecchia-1 Willow Glen's five most expensive homes https://youtu.be/3A_E2ck0ePg

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