I live in east Texas and I recently purchased a brand new duplex from my father…which was a pretty great deal. Actually walked into a nice chunk of equity right off the bat.
I am looking to sell it. It appraised for 220K and I was wondering if and/or how much over the appraisal value I should set my price.
It is a great location…as the city in Texas which I live in is moving southward towards this duplex.
Any help and advice in trying to sell this propery would be appreciated.
From what I understand, you should increase your price 5% over your appraised value as your price.
Why was it appraised? When was it appraised? How is the market in your area: good, bad, flat? Are properties appreciating or depreciating?
If the appraisal was a recent appraisal and it was for determining the true FMV of the property, then why would you price it anywhere above that value, unless you’re in a market where it is routine for you to get offers over the asking price?
Answer a few of these, and we can better answer your question.
Raj
The property had to be appraised in order for me to buy it from my father. This was performed about 2-3 weeks ago.
Similar duplexes in the area (that actually happen to be about 100 square feet lareger and a two car garage vs a one car garage) sold in May 05 for 225,000. Mine appraised for 220,000.
The market is appreciating in this area…as everything in my town is moving southward towards this duplex area it really strengthens the value.
Also, the town I live in in Texas has about 100,000 and it is SO hard to find quality rental property…especially new rental property.
Thanks for the input
It is located in Tyler Texas…halfway between Dallas and Shreveport. It is actually in the southern part of the town…and if you ask anyone in Tyler or anyone who knows anything about Tyler they will tell you that is the direction that this city is heading. In fact, they are building new elementary and middle schools in this area to account for the growth of population.
Tyler proper has about 100K people…but any direction you go outside of Tyler for about 30 miles would total about another 100K people…so Tyler itself is growing rapidly. In fact, we have MANY residents who work in Dallas and commute daily to Dallas from Tyler.
The duplex itself sits on .75 acres of land…however, we own the 1.25 acres of land next to this tract and are looking to sell that as well. We bought it with he intention of building another rental on that property and having two rentals side by side…and both are great locations to do so.
The duplex was completed about 6 months ago. It has had a resident in one side of the duplex…but she is about to have to move out…as she is in college and has some family issues that have to take her back to the Dallas Fort Worth area. I am totally understanding of that.
The other side is brand new…no residents.
You may ask why it isn’t rented out…and I will tell you.
My father, who started building this duplex, was sent to Camp Lejuene North Carolina to do some training with the Marines…so obviously this took precedence over trying to rent the duplex out. I went ahead and bought the duplex not long ago and am in the process of getting it rented out or completely sold at this time.
I have a very recent appraisal…about 2-3 weeks ago that we had to have performed before the sale and purchase of this duplex. We also have the most recent survey that was completed 2-3- weeks ago as well.
1410 sf (each side)
3BR/2BA/1 car garage that joins the duplex together.
Let me know if you need any other information and I will be happy to accommodate you with whatever you need. If you are not interested in this location of Texas…maybe you can pass this listing on to someone who may be.
Here’s my take:
Rental property is worth what revenue it will generate. From your description, one side is currently vacant, the other side will be soon. What sort of rent amount was the one unit generating? What is market rent?
I understand that property taxes in Texas are ugly…what sort of taxes do you pay?
Keith
Looks like Tyler is in Smith County. You can get tax rate info here.
http://www.smith-county.com/ta_desc.htm
http://www.tylermls.com/taxes.htm
If you purchased the home for 200k, you need to decide whether you’re going to use an agent and what type of financing you’re going to accept from the buyer. Agent fees, loan fees, and concessions can account for perhaps 8-10% of your transaction. FHA and VA loan have higher costs. You’ll also have to pay to the buyer any taxes owed.
Once you calculate the fees, you’ll know how much you’re walking away with. You can then decide if it’s worth it.
Thanks for all of the info. I am trying to put stuff together regarding the sale of this rental duplex.
I have been asked numerous times why I want to sell it…and the only answer I have is the truth of the matter that I am going back to medical school and am not looking to have anything else to worry about.
It is one of those situation where if it sells great…if it doesnt sell then I am not out any money as it will rent rather quickly.
as we all know, there is a lot more room to negotiate without the realtor involved.
If anyone knows of investors in the east Texas area looking for property I will make them a pretty nice deal on this property.