How much to discount when selling "as is"?

[jackie]

Hi all, I'm looking for some advice on pricing strategy.

We've decided to sell our duplex in Orillia. It needs some lipstick & rouge (minor repairs and cosmetic work), especially in one unit, but we prefer to sell "as is" and leave the work for a new buyer. We figure this gives them the chance to put in some sweat equity while saving us the time and effort. I realize this means discounting the price and that's fair. However, the property is not a dog. It has a great long-term tenant in one unit and loads of potential for higher and better use.

So my question is how much to discount the price (compared to average market prices) for the "as is" aspect of the sale vs how much is "higher and better use potential" worth?

Any thoughts on this greatly appreciated.
Thanks,
Jackie

 

[Thomas Beyer]

What is the price of "lipstick and rouge" ? Use that figure times 1.5 to be close to "as is". Anything is a function of the market and comparables. If land is 90% of the sale price then the lipstick might not matter, but if the land value if perhaps only 50 or even 30% then lip stick is far more relevant.

That is where a competent realtor comes in.

 

[jackie]

Thanks, Thomas, for your reply!

Land value is as a % of the sale price is interesting to consider. In this case, it's an unusually large lot for a residential street so it can be tied to higher and better use potential if an owner wanted to build an addition.

Any opinions on how much weight to give to a property's potential? Or is it similar to "good will" -- nice to have but hard to quantify?

 

[Thomas Beyer]

You need local, property specific insights based on comparables. Any competent realtor will do that for you.