Selling my house Dilemma, need advice!

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Gadget728

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If any of you read my new comers post, you'll know I work and live most of the time 60 miles from my home. I set up shop in my home town to take care of my aging Father. He may have to go into an assisted living place soon, which will free me from the duties I have been happily doing and I feel I owe him.  He ALWAYS took care of me when I was a young hell raising, beer drinking, car crashing, know it all. MY brother & 2 sisters are glad I'm helping him, but they don't really care too much what's happening, and only call him occasionally. I have been living in a small studio type Apt. for 6 of the 11 years I've owned my house, and have paid approx. $12,000 in utilities on a house I'm not even using. I go there once a week and check the mail and mow the yard. The house and land are mine free & clear. 
Sorry for such a long post, I just wanted all the specifics out in the open. Asking for advice can't be productive without you knowing all the facts.

Now for my current situation and call for advice. After watching many videos and reading many posts here on this great forum, I decided to quit throwing money away and go mobile when the opportunity finally arrives. 

I've started the downsize by selling the junk I don't need, and the next step will be to take the remaining stuff to Goodwill and the dump. It amazes me how much of the stuff I've collected up over the years doesn't really mean that much to me now. I'm also kind of surprised at how a lot of my junk, really is junk, and needs to go to the dump, good riddance! 

MY current dilemma - I've hinted around the small town where my house is at, about selling my place for $20,000. My house isn't really a house, it's a 16' x 80' park edition mobile home with a slide out that makes for a bigger living room and a dining room off the kitchen. Attached to the East side is a 12' x 40' add on, which adds 2 nice size bedrooms and a storage room. This adds up to 5 bedrooms and 1 1/2 baths.  All this has a pole barn over the top of it and with the fence I built around it is a very cool place.   

My Sister that lives behind me in another park edition MH wants to buy my place, and has offered $15,000 in a letter. We also spoke on the phone and she kept saying "it's a done deal, I'll buy it when my money gets released". I told her would love to sell to her, but I didn't tell her about the other offers I'd had.  She thinks she is coming into about $40,000 in 3 weeks, although everything she says is more fiction than fact.  She is a struggling alcoholic, meth head, crack freak, who is very unstable. Her husband died leaving her about $500,000 and she has blown through it in 8 years. Within a year of her moving from Wichita to here in Cheney, after she got her money, she was being mean to me and the rest of the family. Her letter and phone calls wanting to buy my place are the only civil words she has spoken to me in years. I imagine she is on her best behavior, so she will get what she wants. She has always been very manipulative. I want to be clear, during our phone call I told her that I would sell to her, but nothing has been signed, no handshake, no documents, just an informal agreement. 

Before ever talking to her,  I've had 2 gentlemen tell me the would buy it when I got ready, and no quibbles about the price of $20,000. They are buddies and flip houses together, so they don't care which one pays, they just are pretty sure, with some new paint and a little carpentry, they can make a profit. These guys made me the offer before she did, and I KNOW they have the money. 

MY question & dilemma is, should I go ahead and sell the the Gents, or sell to my sister for $5000 less, OR tell her she can have it for $20,000 because that's the highest offer?  She is currently under the impression, that the house is hers for $15,000 and she is making arrangements to rent out her MH out to a friend of hers who has a steady, good paying job. I'm still not 100%  sure if she's getting her big money, but it's a REAL GOOD possibility she is.  She does not give a hoot about me, and I could sure use the extra $5000 to finance my new journey. 


                              Blood vs. money dilemma!! This is a great forum and I really appreciate any comments or advice I can get. - Gadget
 
Sell to whoever comes up with your price first......Like you said, she doesnt really care for you, so why should you worry about her feelings.
 
How much would it bother you if you never spoke to your sister again?

Sounds to me like the two guys would be willing to wait a couple of weeks.  If your sister actually comes into her $40,000, tell her you've had an offer of $20,000 on it, but you will sell it to her if she will match that price.  If the money turns out to be a figment of her imagination, sell it to the two guys.
 
It's important, tax wise, that you sell it at fair market value. If what your sis pays for it IS fair market value, no problems. If it's not, you need to talk to a tax man--she may be required to pay tax on that amount that she does not pay, and you might have to, too.

Also remember, the dudes that do the flipping are paying you X amount LESS than what would be fair market value. They factor into the price they are willing to pay for a property the amount they will pay for materials and labor, and still make a profit. They are probably offering you at least 25 to 30 % LESS than what you might get for it otherwise. They will probably pay all closing costs and associated fees, and you avoid the hassle of dealing with either an agent or selling it yourself.
Seems to me that sis would be paying somewhat below them. The money she's expecting may not materialize, and even if it does, she may have other pressing needs. You're her BROTHER after all--surely YOU'LL understand that all she can afford is the 15K after all, which she'll get to you ASAP.

Don't forget, a bird in the hand is worth two in the bush. Or, in your case, two in the hand, etc...
 
Thanks for the replies. This is a mobile home and a 75' x 100' piece of property. I'm going to talk to guy who has a bunch of rentals and quiz him a bit too. The taxes I pay each year go up $10 on my property and down $10 on my MH. This year I paid taxes for my land, valued at $10,000 and my house $5000. All these mobile homes were 2 blocks outside of town for many years. My street was dirt when I moved here. Now there are $200,000 homes across the street from me, they hate our junky houses, although I keep mine very tidy and neatly trimmed. $20,000 is the fair market value of this place right now.

As far as the family angle goes. I could always consider it doing her a favor letting her spend that $5000 on a house and not dope & booze. Our other sister Beth and our Dad have power of attorney until the middle of August, then Karan gets access to her money free & clear. Karan made the wise decision when her husband died to give them, Beth & Dad, POA, so she wouldn't waste it. She lost her job recently and hates begging for her own money, this is what prompted her to revoke the POA of Beth & Dad. I feel no matter what I do, she will waste what's left anyway. If she buys this place, and rents out her own, she will still have rent coming in and 2 properties to sell when she runs out of money. Thanks again for the replies, I'm not trying to screw anyone around, and $5000 IS $5000.
 
If there are $200,000 houses across the street from you, then there's a VERY good chance your land is worth more than the $10,000 it's assessed at.  Somebody might demolish your present home and build new on it.  Since the lot is already "grandfathered" in, it's possible that any zoning about minimum land needed wouldn't apply to it.

Have you actually talked to a knowledgeable local  Realtor about your place and what it might be worth?
 
Something to understand about the Alcoholic / Addict. They are selfish and self centered to the extreme. You are not negotiating with an adult, but a spoiled child. Maybe explain that although you love her, you also have to do what is in your best interest, (just as she would). Have it appraised, and offer her a family discount of say 10%, (you would be paying a realtor 6% to sell it for you). If a house flipper will give you $20k, they probably figure they can toss on some paint and sell it for $35k. Prices have gone up for most things. You can not buy a new Van for $20k. How ever it comes down you will most likely be in her eyes the bad guy. Remember the selfish self centered part?
You may be able to get a free appraisal from a bank or realtor. If not, spending $300, (for an appraisal), to make sure you are not getting screwed out of $3,000 isn't a bad deal.
 
Based on "real market value" comps and all from realtors, which may be hard to come by given the circumstances of 200K houses across the street, you really need to check on your own--DO NOT TAKE THE WORD OF ANY REAL ESTATE AGENT: they do not get paid until a house is sold. Check your county land office, assessors office, tax agency, use Zillow.com and REALTOR.com to check the values of your land and land and improvements.
As was suggested, the land itself may be worth more than what you think.
Zillow is notorious for being way off on values, but they (Used to) have "sold" information and property history info on their site. Realtor.com used to be somewhat more reliable. In the end, any house is only worth what someone is willing to pay for it.
You really should check for values. Comps should be based on sales within just a few miles (I forget what is recommended) and within last 3-6 months if I remember correctly. That's why it may be hard to get usable comparable sales numbers.
 
Well, if I was wearing your shoes, I'd say "Money talks" and so the ones who can speak cash, get it.

I have 2 sisters BTW and I speak and meet with only one. she was my friend through childhood, the other one? Self indulgent and Mom's pet....
 
Having dealt with addicts I can tell you that the alcohol &/or drugs come first, before anything else. Before family, before friends, certainly far before furniture. If your sister is still actively using and you sell your house to her, someone in those $200,000 houses across the street may become quite annoyed. Possibly to the point of trying to sue you if they can prove you know about her condition and she causes trouble such as a meth lab.

In any case if the certain buyers can offer you a good contract now, you should consider the risk that they may find another investment before (if) your sister actually comes up with the cash.

It sounds cruel, but often the worst thing you can do with an addict is help them out. Telling her you can't sell to her because of addiction/reliability issues may be a step towards getting her to hit bottom. (That's a good thing)
 
If your sister is a true addict, as you say, she will never come up with the money. Problem solved.
 
Well personally I'd sell it for as much as it's worth for a few reasons. You mentioned the additional money would help you and that you have a less than perfect relationship with you sister. Now if you didn't need the money and you and your sister were very close, then I'd go the other way. I'd also look at it like this.........would your sister hand you 5k out of the kindness of her heart? Because that's essentially what you'd be doing if you sold it to her for 5k less than you could get. If she wouldn't be willing to do it for you I certainly wouldn't be willing to do it for her.

So many people get stuck in positions they aren't comfortable with because "it's family" however, family is a two ways street and I don't feel obligated to help out family that isn't willing to help the rest of us. However, i'll bend over backwards for both friends and family when I know they'd be just as loyal if the situation was reversed. Everyone has that sibling that contributes nothing to the family but is the first to have their hand out.
 
Money before blood on this one given the info at hand. I think you will regret selling to sis.
 
I'd tell the sis $20,000 was offered and that's what she needs to come up with. It could be that one day she straightens herself out and you could have a relationship with her again. I don't think I'd want to sell the place to anyone else because of your sister being an addict and such and I'd feel very bad to sell it to an unsuspecting stranger. I wouldn't want anyone to sell me a home knowing there was a meth head next door. I do try to live and treat others how I'd like to be treated. I said "try".... When I'm perfect though I'll make sure the world knows...


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Sis has blown through half a million dollars in eight years ($625,000 per year) and you want to give her $5,00 more. WHY???

Meth maggots lie like rugs. Have you been to her house personally and looked to see how many other junkies are living there? They will all move to your house if you sell the house to her. See reference to lawsuit above. Why you are even considering selling to her is beyond my understanding.

I suspect that you don't really have any idea how much the property is worth. Twenty thousand wouldn't buy a dog house here. What is the value of the property (vs the structure) on your tax bill? If a house flipper is willing to pay $20,000 as-is, it's likely worth more, as mentioned above.

You need to do more homework, enlisting people who know something, yet don't have a vested interest. Just a passing thought: ask your local banker how much he would loan you on that property, in round figures. I don't think that he would loan you more than it's worth.
 
Thanks again to everyone who has chimed in, all great points to consider.
Well, I sent her a friendly letter informing her of the price change and she agreed to it. She forwarded a letter from our sister Beth that had the timeline of when she get access to her money and it has been moved up to Aug. 1st. i told her she could take possession anytime after handing me a check.

I am aware of what it's worth, I only paid $5,000 for it 11 years ago, and it's a 1978 Shulte mobile home. The place was sweet 35 + years ago when it was new, and I have cleaned it up to be nice looking from the street, but it's still an old mobile home. I does have nice trees and I've done enough work to it through the years so it's very comfortable. If I seem ignorant or lazy about it, $20,000 is more, way more, than I ever expected to get out of it, and I'm tickled pink. If, in a few years, she sells and makes a profit, good for her, it will take the sting out of the extra 5 grand I got out of her. She will still own the other place and can sell it too if she wants to.

As far as neighbors suing anyone, it will never happen. One thing she does, is keep up a neat appearance to the public. Her house was always well trimmed and no trash or junk in her yard. She keeps to herself, and although she has had a few room mates and pets, she is in survival mode until she settles into her new place, and the gal starts paying her rent.

I can get most of my important stuff out today, but I'll have to wait until the rain passes. It's an hour+ drive over there and I'm taking my pickup bed trailer with me for the big stuff. Anything else I'll get Mon. or Tuesday. I'm also going to give the yard one good final going over before she moves in.

She claims to be clean currently, and she did stop all drug use for 4 years and can do it again if she wants to. I'll be done with her when I get paid, and be ready to buy a used Van and start fixing it up. Thanks again everyone!!
 
I am glad that you are at peace with the outcome. Hope to hear from you in other posts.
 
Rule 1: Don't do business with relatives.

Rule2: Don't do business with substance abusers.

Rule 3: Money talks, bullshit walks.
 
The house isn't worth anything. It's the land that is Real Property.
 
Hey trainchaser - Thanks for all the advice, but 625,000 per year for 8 years equaling 1/2 million or 500,000 is some new math. :)

You are semi correct about the land being the biggest part of the value. I did a lot of work on the inside, but that usually doesn't mean as much as a pretty outside. Minor carpentry repairs and a fresh coat of paint was next on the to do list out here until I decided to downsize and go mobile. The fact that SHE thinks SHE'S taking advantage of me is GREAT!!! The house is very mechanically sound which important to a widow woman.

You know that saying about things happening for a reason: About the time I was deciding to go mobile, was the same time she was coming into money and WANTED to buy my house. The timing was perfect, and the fact I had other people interested too was just a bonus.

I did get my first load in the van & trailer. I'm finding a lot that will go straight into the dumpster, the things I'm leaving behind she can use or sell. Probably one more trip out here and I'll be done.
 

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