Help me decide-sell directly to a developer?

[Anonymous]

I have a townhouse in NWDC that will likely be a tear-down/total gut. How dumb is it to reach out directly to random developers that are building in the area?

[Anonymous]

Get an agent and get the best price. Unless you just want to be done with it.

[Anonymous]

Talk to several agents and several developers to get an idea how to proceed. Usually developers will give you a lower price in exchange for a fast cash closing. If it's uninhabitable, then the buyer pool would be limited.

Minor point, but if it's a rowhouse in DC, then it might not be allowable to tear it down. Often the inside could be gutted, but the facade must remain.

[Anonymous]

I would list it on the open market as an "as is" property. Price it accordingly. My guess is you'll get more than one offer if your price reflects the condition of the home. There's a lot of money out there and a lot of buyers with cash so it shouldn't matter to you who buys it - developer or "regular Joe".

[Anonymous]

How do you tear down a town house with attached walls?

[Anonymous]

I’m a real estate attorney who represents primarily developers.

If your property is definitely going to be purchased by a developer do not hire an agent. You will just pay an agent commission and not get a higher price.

If there is any chance an end buyer will buy it then you should hire an agent.

This property might do best with an auctioneer, like Alex cooper. They have the contacts. If they don’t sell it for a price you like you don’t owe them anything and can proceed in a different manner. The contract to buy will likely be way cleaner than any contract an agent would use.

[Anonymous]

As a Realtor, I can tell you to get as many eyes on it as possible. I get calls regularly from these vultures who want off-market properties to ensure they get a better deal and I explain to them that I would represent the seller, not them and get the seller more money. The investors may give you 65% of the property value. Don't do it.

[Anonymous]

There are developers in this area who will pay 95-100% of what you could get with a realtor, particularly if the home isn’t renovated and most of the value is in the land. Developers don’t like paying for improvements they are going to demolish. My old house was a total tear down / gut job; my realtor said they could get $900K for it, and a developer gave me $890K.

Generally speaking, the greater the value of your improvements, the less you are going to get from a developer. If someone is actually going to buy your property to live in it, get a realtor.