Would an investor purchase a house 60K under appraised value?

Question

I am going to an assisted living and had my home appriased at 335K; I want to sell it quickly, if I sold it for 60K under appraisal would an investor purchase it? and where do I look for an investor? the house is 6 years old and needs no fix up, it also comes with a free college education for your child at Oberlin College, ranked 8 in US News and World Report for a liberal arts college; tuition is normally 35K per year there. Dont want to use a realtor as I need to buy into my assisted living now instead of 3 months from now..for your info the free college link is www.oberlin.k12.oh.us/ocscholarship.htm
This is a great deal for someone with kids that are college bound. I have the appraisal for the investor also!

ocscholarship.htm

Answer 1

BE VERY CAREFUL ABOUT INVESTORS. How that works is you quitclaim to them for a price and they are SUPPOSED TO PAY YOUR NOTE. But most do not because they anticipate selling your house within a month and they dont pay the mortgage. Thus after three months, your home will go into foreclosure, your credit screwed and you get screwed. Are you for real though??

Answer 2

Pricing it that far below appraised value may actually backfire. People may think that there is either something wrong with the property, or that you are so desperate for a sale that you'll take any offer.

Case in point:

The guy three doors down from me put his place on the market last summer for $159,000, FSBO. His was slightly smaller than mine but much better quality. I had an appraisal in hand for 170,000 on my property so I knew his asking price was way too low. He held several open houses and got lots of action from them but the offers were all severely low-ball -- $135k - $140k. He got disgusted and finally called a realtor. The realtor comped it out at $192k so he listed it at $189k. He got an offer of $195k, all cash, within 2 weeks and closed in less than a month from the listing date. Even though he had to pay a commission on the sale, he still had more than $24k in his pocket above his original asking price and over $40k more than the offers he was receiving previously.

One more thought: If the valuation includes anything towards the value of the tuition at Oberlin, you may have to factor that out to attract most investors. That may have little value to a pure investor. Even for a young family, a liberal arts curriculum has limited appeal today.

Answer 3

HI, Not sure why you don't want to deal with a Realtor but if you are willing to sell the house below the appraised value, it shouldn't take long to do that with or without an agent. Of course this depends on where you live and the current market, but if homes in your area are selling, my advice would be to contact a real estate firm in your area and tell them that you want to list the house for 299K, and offer 5K in closing costs to the buyer, or down payment assistance. In most areas they will also let you offer a set amount say 2K bonus to the agent that brings you an acceptable offer within a specified time, for example by Oct 20. The thing you don't want to do is waste your time looking for an investor who may or may not be "for real". Whatever way you go, please invest the money to consult with a reputable real estate attorney and make sure the deal goes through correctly. Good Luck.

Answer 4

Use a realtor to sell your house. In order to get the equity immediately you should approach your bank about a home equity loan which can be accomplished in a couple of weeks.

An investor doesn't care what the appraised value is. Appraisals can be massaged to get nearly any value the seller/owner/lender wants and a savvy investor knows this. They'll want to buy it under MARKET value which is measured by looking at the comparable sales in your area.

Answer 5

You're probably going to get better exposure if you use a Realtor and sell at a higher price, therefore selling more quickly. If you have the time, there's no reason you shouldn't try to sell it yourself for less. An investor is probably not looking for a home in that price range--usually investment property is in a lower price range. Like I said though, there's no reason you can't try to sell it on your own. The statistics say that most FSBO's end up being listed (80%) eventually anyway. Good luck!