My plan to get 1413 Vista Ridge Cove sold
by Alfonso "Fonz" Rodriguez @ Pinnacle Realty Advisors
The purpose of this presentation is to provide the main points of consideration to get the property sold for the highest price possible.
The 2 main strategies I'll cover will be selling the project to an investor as is or rehabbing the home then selling it at full market price. I've helped families do both of these & below are the best practices I've found to be highly effective.
I'll also include how I will help manage the process & represent your best interest when you decide to hire me as your Realtor.
Selling the property to an investor:
There are investors willing to buy this homes as is. I've found that the best way to work with investors is to be realistic on what work the home needs to capture the average market price for the area that it's in.
In the investor industry, this is call the ARV or after repair value. All investors use the ARV to determine what they're going to offer & my role is to emphasize a top end ARV for the area so that we can negotiate a better price.
Each investors will have a different formula on how much work the homes needs for labor & materials cost so that they can resell the home at market value.
I will contact as many investors as possible off market & on market to come look at the home. I will provide them with your asking price, a project overview of what I think the home needs to be market ready along with a market analysis of what the ARV could be in the future. I'll then invite all of them to make an offer on the home.
At this point you're not obligated to accept any offer & if we don't hit a number that makes everyone happy then we'll continue to shop the project around and/or move onto plan B.
I believe that the top end ARV for this home is around $360,000 based on the home sold at 12005 Rotherham Drive for $360,000. That home sold on 7/22/2024. It was on market for 55 days & was originally priced at $415,000.
12005 Rotherham Drive looks to be the same floorplan & was built in 1983. It looks to have been recently remodeled but it does not have the large cul-de-sac lot & it's within the Pflugerville school district.
You can see the full PDF report here: https://cloudcma.com/pdf/1f9e3351ac827ad36f0487f0e231b258
In my experience, selling the property to an investor is the most convenient way to get a fair price with very little work from the owners. Most of the time the investor will allow you to leave trash & undesirables behind because they're going to remodel the home & generate a bunch of trash of their own.
Rehabbing the home & selling at market value
This will increase the sales price of the home but it will also add an additional cost, time & effort that may not increase your net value of the home over selling it as is to an investor.
If you were to go this route then I would suggest keeping the rehab criteria to minimum. This will reduce your cost & increase your chances to net more when the home sells.
You typically will not get a dollar for dollar return on any improvements you make. In fact the average return on investment (ROI) for repairs/upgrades is between 60%-70%.
There are so many things that can be done to increase the home's presentation value & I've found it best to get at least 3 bids to properly gauge what your costs are going to be.
When it comes to hiring someone to do the job there are a lot of choices & here are 3 that I beleive are good options:
- Using a 3rd party company like Curbio that will manage the project for you. Curbio will coordinate & pay for the repairs upfront. Then when you sell the home you will pay them back. Curbio does charge a premium & a margin for their services because this is how they make money as a business. It's convenient for the sellers because they do not have to invest any of their own capital upfront & most of the project is managed by their contractors.
- Interviewing & vetting a professional home remodeling company to do the work for you. This will save you money over the option listed above because you can negotiate on the price a little, shop the project around & you won't have to pay a margin. Most of these companies will require you to pay for the remodel/repairs upfront in full or in a portion. You will have to manage the project to make sure it's going the way you want.
- Hire a small 1 or 2 man crew to do the work. Most of the people that work for professional remodeling companies will do work on the side for a lot less. I've had a lot of success hiring these types of people for work at my own home & at clients homes. You will have to be very specific on the work you want & you will have to pay for the work upfront.
Next Steps:
In order to start off in the right direction I believe that below are the best steps to take next:
- Agree or disagree to hire me to represent your best interest & manage the above plan/s.
- Figure out how the home will be sold & how funds will be disbursed
- Get 3-4 estimates on work needed to bring up to market value
- Call in 5+ investors to give as is cash offers for a quick close
- Compare selling as is to rehab then sell to determine an estimated net & effort
- Make a decision on the direction to move forward in then create a plan of action
- Execute the plan to a successful closing & get paid for the sale
Let me know your thoughts & feedback. I'm available for a phone call or text directly at 512-809-0091.