Hello Maryn,
Thanks for taking the time to meet me today and walk your parents’ property. As we discussed, I don’t think that putting money into the property as a rental makes sense. There is too much deferred maintenance and it would take years to recapture the cost of improvements. Most buyers will see the home as a tear down and value is really in the land. You have a nice location and views of turning basin and looking towards pavilion are really nice. As mentioned, I would do some inexpensive painting, replace the carpet with inexpensive rental carpet, and attempt to get a roofer to address skylights, and potential leaks. I would also look at getting a hard cover for spa in case that is leaking.
There are two comparables attached. The first is an active listing at 211 E Edgewater. The property is 2,665 s.f. and is a complete teardown. The home was recently reduced to $6,998,000 and is not moving. This property is priced incorrectly and has been on the market for over 200 Days.
The second home is 423 E Edgewater which was a 2,289 s.f. home built in 2002. The home was in decent condition and sold for $6,600,000.00 on 5.13.24. The home was also on the market for 180 days and they chased the price down.
I spoke with Steve today and we both feel that the home should be listed at $6,395,000.00 and if you have offers above $6,000,000 you should consider them. Most people will perceive your property as a tear down and we feel that land value is in this range currently. Building costs have skyrocketed and we are seeing $1,200-$1,500 PSF construction costs. A 2,500 s.f. home in your location with an average construction cost of $1,350 psf would give you a build cost of $3,375,000.00 which would put the total cost of the project close to $10M dollars.
Feel free to call if you need any help or have any questions. It was nice meeting you and hopefully we can work together.
Regards,
Tim Carr
