Specialist · Hermosa Beach, CA · Member since 2016 · 94 posts · 55 votes
I foreclosed on a non-performing note I bought 2 years ago and now own a house in the Ferguson area of St. Louis, zip code 63135.
The former borrowers, now unauthorized occupants have a lock out date from the sheriff for next Wednesday, the 10th. I want to sell this house "as is", prefer cash. Here are my questions:
1. I've insured the house for $80k, including for liability. Should I offer the occupants cash-for-keys not to damage the property on their way out the door?
2. On the lock-out date, next Wednesday, I plan on having a locksmith there at the same time the sheriff arrives, as well as someone to appraise the property inside, check for vandalism and secure against squatters.
3. After the above transactions, I'd like to then have potential investors / buyers walk the property, make me a cash offer, and I'll accept one of them.
4. I don't believe I need a realtor for this transaction as I don't need to find buyers, I'm already getting postcards from people interested in buying. I'd like to just pick a title company and have them run the transaction and save me 6%.
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
Seems like it might be too late for the cash for keys approach if you already went through foreclosure and had to get the Sheriff involved. It is either already damaged or will get damaged regardless of your cash offer. When was the last time anyone saw the condition of the interior?
Real Estate Agent · St. Louis, MO · Member since 2017 · 74 posts · 20 votes
4y
@Rob Pattison I am a local investor in St Louis and have been active in the community for the last 4+ years. I'd love to connect and answer any questions you may have. I think we may be able to work together.
Real Estate Consultant · Seattle, WA · Member since 2022 · 1k+ posts · 784 votes
4y
Seems like it might be too late for the cash for keys approach if you already went through foreclosure and had to get the Sheriff involved. It is either already damaged or will get damaged regardless of your cash offer. When was the last time anyone saw the condition of the interior?
China, ME · Member since 2014 · 3k+ posts · 4k+ votes
4y
If you're getting postcards, they're most likely from wholesalers. By the nature of their business model, they cannot offer the market value. Some will lowball enough that they can tack on $25,000+ to their offer and still have a good price for an investor. IOW, they will make an offer that is WAY below market price and you'll end up leaving a lot of money on the table.
You might consider running ads on social media or using an MLS-only service that provides you listing on MLS, but no other services. That assumes you're already familiar with real estate law in your area and are comfortable doing all of the legwork that a Realtor does. Schedule showings, qualify buyers, run open house events, fill out disclosure forms, collect multiple offers and respond to them, coordinate inspections, etc.
If you're not already competent in all of those skills, you might consider using a Realtor to do a standard listing and market it as a fixer-upper.
Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
4y
I see nothing wrong with your plan, except that you may be losing money by saving money. Selling on your own saves you the REALTOR fees, but it also means you're likel selling below market.