Would you buy a relative's home in close-in Bethesda?

[Anonymous]

We have older relatives who live in close-in Bethesda (Whitman district) and are thinking about selling their home. It is a small dump and would be torn down (nothing worth saving at all). It's not a huge lot, but every other home in the 'hood is a tear down. They don't even live there anymore (spend most of their time with grown children out of state).

DH and I currently live in NW DC and have zero interest in moving to Bethesda. This home is probably a good 20 min walk to the metro, and it's just too residential for us (plus commute would be much longer to downtown, probably an hour +). But, I was toying with buying it, tearing it down, building a new house, then selling.

Is this nuts? I am not seriously considering it, but my relatives are looking to sell and would probably be willing to sell it to us so we would not deal with a bidding war, realtor fees, etc. Am I wrong to think that we would make any money off of this?

[Anonymous]

There is so little inventory in close-in bethesda that you absolutely could make money doing this. The issue is whether you would buy it then sell it to a builder or try to build it yourself. I think you would make more money buying it and selling it to a builder.

[Anonymous]

Anonymous wrote:There is so little inventory in close-in bethesda that you absolutely could make money doing this. The issue is whether you would buy it then sell it to a builder or try to build it yourself. I think you would make more money buying it and selling it to a builder.

Yeah, that's what I thought...but I'd think there'd be even more money if I worked with a builder to build the house myself, and then sold it.

[Anonymous]

Anonymous wrote:There is so little inventory in close-in bethesda that you absolutely could make money doing this. The issue is whether you would buy it then sell it to a builder or try to build it yourself. I think you would make more money buying it and selling it to a builder.

But isn't that kind of a crappy thing to do? I mean, why take that profit from your relatives? Unless they REALLY don't want to deal with selling.

[Anonymous]

I'd tread very carefully. There may be hard feelings involved, adding to tensions at family gatherings, so I'd think twice and if I went ahead with, I'd check twice to give the relatives as fair a deal as possible. Remember, this house may be their main source of wealth, so a straight sale to strangers on the open market might yield them a better price and a larger nest egg.

[Anonymous]

Anonymous wrote:

Anonymous wrote:There is so little inventory in close-in bethesda that you absolutely could make money doing this. The issue is whether you would buy it then sell it to a builder or try to build it yourself. I think you would make more money buying it and selling it to a builder.

But isn't that kind of a crappy thing to do? I mean, why take that profit from your relatives? Unless they REALLY don't want to deal with selling.

Exactly. Why should they sell to you at a lower price so you can get the profit? Wouldn't one of the reasons to sell to a family member be to keep the old nostalgia homestead in the family? You really want to be the one who tars down the family home for a profit at your relatives expense??

[Anonymous]

I agree with PPs. Sounds like a selfish plan that will certainly lead to bad blood.

[Anonymous]

I think it's a good deal for you!

But PPs are right - you need to know exactly what the family expectations are if you buy the home. (And in my family, I would have to sound out not only the owners, but their siblings and children as well!).

[Anonymous]

Sounds like you have no comparative advantage to do this. The only thing you have to bring to the table is that you could use your familial relationship to get the house for less than it would be worth on the open market.

You need to ask yourself how much of an asshole you are.

[Anonymous]

Don't do it. Tearing down their house after buying it for little would be wrong. And the family would hate you.

[Anonymous]

Anonymous wrote:Sounds like you have no comparative advantage to do this. The only thing you have to bring to the table is that you could use your familial relationship to get the house for less than it would be worth on the open market.

You need to ask yourself how much of an asshole you are.

I was shaking my head thinking about the OP doing this, trying to form my distaste for this idea into words and bam. There you go, did it far more eloquently than I could have AND used the word asshole. bravo!

OP, you're not a builder so don't get yourself in the trap of thinking you can manage a construction project or lead a builder, and you're not a good relative either. Wow.

[Anonymous]

You are stupid not to want to live there.

[Anonymous]

I may even know the house (not many vacant smaller houses in the area). There are Ride-On buses not far from you, so no need to walk to Bethesda to catch the metro.

[Anonymous]

If they sold at market price and didn't use a realtor the owners would save fees. The potential buyer wouldn't be taking advantage. And could still make money likely.

[Anonymous]

I would not do it to turn a profit. I would do it if you do want to live there and benefit from the schools. In that case I think they would understand your wanting to tear down and rebuild but only if you were planning to live and raise your family there.

We have some distant relatives who live near us. They have a small house in a very desirable N Arlington neighborhood and school district. We recently added on to our home (also in Arlington) and don't plan to move again but always wonder if at some point they will sell the house and I'm sure if we ever wanted it we could get a good deal on it.