My sole living parent has downsized into a condo and my childhood home is sitting empty but for some old clothes, furniture, and odds and ends. We are in the process of getting rid of everything inside the house.
The house has a great deal of deferred maintenance and has not been properly updated since being built in the 1960s. It is in a very nice neighborhood but it is one of the must rundown houses in the area. This is largely due to the fact that we have long known we would either sell it as is or fix it up to try to make a profit. Everything needs to be redone (floors, kitchens, bathrooms, and probably the roof). There may be additional repairs needed (HVAC, gas, plumbing, etc.). Cost of remodeling/updating would be about $250,000-$300,000 or more. It might sell for up to $1.1M in its current condition and possibly up to $1.5M if fixed nicely. However, there is always the risk that it will cost much more to remodel and that interest rates may spike during the time we are remodeling, and that we may enter a recession/dip in home prices in the meantime.
My ultimate questions to those who have been in this situation are:
- Should we sell in its current condition to someone who will likley flip the house?
- Should we fix it up first?
- Whether we sell now or after fixing, should we use a full service broker, redfin, or another idea? How much should the commission/selling costs be?
Any additional advice is appreciated.