Right now, we’re going to discuss preparing a property to sell.
René Nelson, Eugene commercial real estate broker
Marcia Edwards, Eugene residential real estate broker
René Nelson: Okay. She is really Wonder Woman. We’re going to just break this down. Marcia and I have been talking about a listener who is a real life case study. He wants to sell his single-family property, do a 1031 exchange into multiple units. I was able to find him a 14-unit apartment complex that was not on the market. We just had the offer accepted. We know that he’s got his 14-unit bird in the hand. Marcia is going to sell his single-family property and help us do a 1031 exchange. Of course, we’re going to use Cascade Title, Meghan McMahon for our exchange facilitation, but Marcia has the tough job of selling the single-family property that has a tenant in it.
We may have to deal with some cash for keys to get the tenant out, potentially, if the new buyer wants to owner occupy. You just, in that brief moment, got brought up to speed on our last series of shows. Where we’re at now today is we’re going to talk about the single-family property that Marcia has to sell. Candidly, our client has done a great job maintaining the property, but it’s just your older, basic rental. Now talk to me about a buyer that’s going to come in and want to buy it. What are they going to fix?
Marcia Edwards: We often preach that you want to create liquidity in your real estate assets at all times. You want to be pretty ready for when something happens that’s better than what you’ve got today. Hopefully, you’ve been doing that and this person has as well. What we’ve got to look at now is through the lens of the buyer, what’s going to be of greatest appeal that’s not going to cost you more to do than it returns to you in your investment short term to get this sold.
We’re looking at financeability. That means three years life remaining on the roof is still a thing out there. We’ve got to make sure that it’s got a good foundation. It’s got to be financeable baseline, but also first time buyers is likely your target in small homes right now, and those people really are overwhelmed easily on condition.
René Nelson: Yeah. Let’s talk about that because you know when an appraiser goes out, like you said, he’s going to look at the roof, but when you walk through the front door, the carpet, the paint… I mean, there’s just a bunch of things that start to overwhelm a lot of first-time home buyers. How do they deal with that when they’re trying to buy a property?
Marcia Edwards: Well, they’re just going to have to put a gentle lens on it because there aren’t enough opportunities. Right now, there’s less than a month of inventory for homes under 400,000. So you do have to have some tolerance as a buyer, but you’ve got to create a bridge with the condition of the property being palatable enough to proceed for that buyer.
Join Eugene, Oregon, real estate experts: Bob Nelson, Real Estate Investment Broker with Pacwest Real Estate Investments, and Marcia Edwards, Residential Real Estate Broker with Windermere Real Estate, daily at 5:30pm on KPNW for the “Real Estate Today” radio show.