I just went on a listing appointment earlier today on a rather interesting property. All went well and the listing is mine.

It's a 3BR/1 1/2BA on stilts in bad repair worth about 29K. The thing is the ground it is sitting on is worth about 1 Million. It's five lots back from the ocean in Fenwick Island Delaware. click to see the location on a map

Question is do I market it as a tear down or a fixer upper? Other rat shack homes in the neighborhood have gone for as high as 1.2M and a new home in the area can go for well over 2M.

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Coastal Delaware Real Estate Sales
REHOBOTH BEACH CONDOS | REHOBOTH BEACH REAL ESTATE | REHOBOTH BEACH MOBILE HOMES
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The way you market it depends greatly on the activity of your market and the type of buyers who are looking into it. If you market it as a tear down then you are attracting the builder/buyer who is going to want to minimize their land costs as much as possible so that they can build a home on it and profit/not being in over their head. When it's a fixer upper the buyer is going to probably get a renovation loan and fix it to become their primary home. I don't know (and I do lack experience in the oceanfront market) of any second home buyers who would want to deal with renovating a home; especially if they don't even live in the area! Based on your market experience I would determine if you are more apt to find a builder/flipper or a primary buyer who is in it for the long haul. Let me know how it works out!

Do you have a signed listing, and if so, what's the asking price?

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Calgary Real Estate
Sarasota MLS
Calgary Luxury Real Estate

I would market that as a tear down. $29k structure on $1m dirt? Unless your market is drastically different from mine, no buyer would touch it w/o the intention of tearing it down.

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Eric Bramlett

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I agree with Eric Bramlett on this one. Looking at it logically, if they can afford the ground, they are going to tear down the house. You almost gotta market it that way.

Eric

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Eric Blackwell
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They buy the lot and you'll throw the house in for free

A place to stay while you build your dream home? And yeah - what price

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Thesa Chambers
Broker, RE/MAX Sunset Realty
Central Oregon Real Estate | Central Oregon Homes
Specializing in All of Central Oregon
First time homes to Resort Properties

Self promotion - nothing to do with the post (hijacking)

Market the dirt, Call all your investors, Builders, Ect. No one is going to fix up a house as it would be easier to just tear it down and start over.

This is a spammer - mod?????

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Aaron

Minneapolis Real Estate | Twin Cities Real Estate | Edina Realty Agent