Real Estate Question - What would you do?

[JavaBrewer]

Definitely sounds like you should get out of the area. I agree with the above posts - finish upper level before going on sale. Use neutral colors on walls. A craftsman home really needs wood floors - skip laminate and go real wood. A bit more in price but given the market it will definitely make your home stand out over the competition - which it sounds you really want right now. Buy pre-finished wood floors that you can nail or glue down. It's an easy DIY job with simple tools. You won't regret it.

Edit

All that is left is finishing the stairwell, flooring in the hall and bathrooms, adding fixtures to the bathrooms and caulk and paint.

Sorry I missed that. Skip the wood floors then and get something that matches the existing flooring.

[willtel]

Originally Posted by Evans, Marv

Agree with everybody else. One thing that came to mind in your description was the 4 bedroom, 1 1/2 bath comment. The first thing that entered my mind was, "What, 4 bedrooms and only 1 1/2 bath?" To me a 4 bedroom house should have at least 2 full baths+. I think it might sell just as well of you turned one bedroom in a likely location into a den or study. Then it wouldn't strike people (at least the way I think) as being less deficient in bathroom availability. Then market it as having the den/study available as another potential bedroom if needed. Just my $.02.

If I listed it today it would be a 4 bedroom 1.5 bath. There is another Jack & Jill 1.5 bath upstairs that I will need to complete with fixtures.

Once it is done there will be 1.5 on the main floor and the Jack & Jill (one shared toilet and shower, two separate vanities) on the 2nd. Sorry if I wasn't clear.

Originally Posted by JavaBrewer

Definitely sounds like you should get out of the area. I agree with the above posts - finish upper level before going on sale. Use neutral colors on walls. A craftsman home really needs wood floors - skip laminate and go real wood. A bit more in price but given the market it will definitely make your home stand out over the competition - which it sounds you really want right now. Buy pre-finished wood floors that you can nail or glue down. It's an easy DIY job with simple tools. You won't regret it.

Edit

Sorry I missed that. Skip the wood floors then and get something that matches the existing flooring.

The majority of the main floor is hardwood, only the bedrooms have carpet. The only other space that needs to be wooden for continuity will be the landing and a very short hallway at the top of the stairs. It should be pretty straightforward and cheap enough.

[aigel]

One thought that hasn't been discussed is having a contractor finish the work. How much more would that cost? Would it help you get out faster, possibly avoiding further loss in value? You may get stuck with a balance / signature loan to pay off, but it may pay in the long run!

G

[azasadny]

Yep, beautiful house, but you need to have it completely done prior to putting it on the market...

[mepstein]

I'm a Realtor - You need to finish it or take a $20K+ hit on price. Not nice to hear but that's how buyers think and how the market works. Price it lower than the competition so your house is the one everyone wants. Then the market will be on your side when you're a buyer so it all pretty much evens out. Make your house perfect, especially the kitchen and you'll be away from your neighbor ASAP. GLWTS. Mark

[john70t]

Originally Posted by willtel

My dilemma at this point is that any further time and money I spend will be lost when and if I sell. I need to pay the loan down to about $160000 before I feel it will be worthwhile to list..

This was a truely heartwrenching sentance in light of recent economic history.

There is good advice here I think.
Cheaper fixtures and materials with matching neutral colors(browns, greens, tans) would "finish it" for the buyer. Consider edged berber or dark stain/poly to finish the stairs, anything to cover the surfaces.
Couples tend to notice things they touch and see, rather than the big picture.

Also research the incoming market as well, and gauge the value of your property to others. Research Zillow/Realtot/Trulia to find where the market is at now. Don't sell yourself short if possible.
-What makes this property unique and better than others?
-What are the buyer's desires and fears?
-If crime is the incomming buyer's main concern/fear: Motion lights, alarms, outdoor cameras, fencing, etc. is a couple hundred dollar solution.

[john70t]

To raise your offering price with lower monthly payments, you could consider owner-financing, or an applied-lease(i.e. rent-to-own) situation through an attorney while waiting for prices to come back up...
This should be done carefully.

If you're absolutely sure the neighborhood is in a fatal slide, and not a dip, the cost of expected(deductable) future repairs, along with micro-managing to lower loss, would not be worth it for your family.


Forget the car. Look at the market. Step back and take a look at 5-10 years from now.

[tevake]

"forget the car" Easy to say when you have one that is running and you are getting your fix on a regular basis. :-)

Cheers Richard

[Heel n Toe]

willtel, sorry to hear about your situation. Lots of good advice and options have been given here. I don't have much to add.

Do you happen to be in the Eastland Road / 30316 zipcode or close to it? I know a young family who bought a just built house there a few years ago in the $220-240K range, 3BR, 2B... hoping the neighborhood would begin to improve... and it has, some... but they would like to get out and it's almost impossible to do so and not lose their shirts.

They have been broken into once, but almost nothing was taken... and they got an alarm system and haven't had a problem since. They have a 6-7' tall, treated fence around the backyard and parking area, and when they close and lock the gate, it pretty much means someone would have to scale the fence to get in the back door off the deck... or break in the front door or a side window.

They are considering just staying and riding it out and continuing to figure out ways to improve security. Stronger doors, maybe some nicer looking bars on the more vulnerable windows, etc.

Maybe that's something you could consider. Best wishes on your decision.

[willtel]

My zipcode is 30318 but 30316 is in the same boat. There are so many neighborhoods like this in Atlanta that are just waiting to prosper but the city government always finds a way to hold them back.

We had a serious rash of smash and grab type burglaries a few years ago and while my house was targeted once they weren't able to get in because of some door reinforcements I made. My neighbor scared them off after they got about six kicks in.

I had a real estate agent come by last night that lives and works in my neighborhood and he gave me some honest opinions about my situation and they echo what everyone here has stated. Finish the upstairs and take care of any outlying maintenance issues before listing. He doesn't think I am too far off on money because I paid a two bedroom price and will be selling a four bedroom so I have somewhat offset my losses. Many people in the neighborhood are not so lucky. One couple on his street paid $390k for their home in 2007 and he guessed it was worth $225k today!

I have a ton of work and spending ahead of me but at least now I have a clear goal. Finish the upstairs on a budget, pay down my mortgage ~$25k, and get out. I've been so slow to finish the upstairs until now because we really don't needthe extra living space. Now that I have some motivation I'm hoping things will move quicker.

[aigel]

Sounds like your mind is made up. If you'd stay, you could put together a group of neighbors and pay the local coppers to cruise the neighborhood on a regular basis. Makes a huge difference. I had rented from a landlord before who would buy up whole blocks of bad neighborhoods off campus, fill them in with students and pay the local police to cruise through off shift. He turned places around this way pretty effectively.

You could also fence your place with just a 4' hurricane fence and get 4 legged help that runs in the yard. That would deter most every opportunist petty criminal. Put a nice auto-gate and you'd be doing okay.

Of course, your kid has to go to school too and make friends eventually - that's another story ...

G

[nostatic]

Might be cheaper to get a couple of dogs.

[aigel]

Well, the dogs are part of the plan, but for getting the neighborhood up, the moonlighting cops will make a big difference. They will go after any suspicious behavior and folks you don't want in your neighborhood will start going elsewhere, including people that had a residence there. In return, your crime numbers will go down across the board, the streets will look better and your house will go up in value.

Sadly, you will have to pay for it yourself.

G

[willtel]

I already have two dogs. They are expensive too.


IMG_8541 by willtel, on Flickr

There is a neighborhood patrol that some people pay for, I'm not a member. At this point I'm not interested in fixing this neighborhood's issues, I just want to leave them behind.

[Bill Douglas]

I buy and sell a few properties as a job, and all I can say is I love the house and best of luck to you. And yes, the place does need to be finished but don't go too hard on expensive qualitiy. Just make sure all the boxes are ticked and the place smells of fresh coffee

[jhynesrockmtn]

Not to start a realtor bashing thread but once you are done (and I agree with all who've said finish it) consider some form of selling it yourself. I've been in and out of the housing market both with my personal homes and rentals. If I were to have to sell today I'd at least give one of the services like owners.com a look and a try if they could save you 4-5% which might help you recoup some of the $'s you are putting in to finish it. If the commissions and other sales costs are similar to this area you are out 9-10% of the sale price when you sell.

[Bill Douglas]

You are selling and buying in the same environment, so the person you buy your next house from has also taken a hit.