Newton Realtor Marie Presti has Advice for When a Stranger Calls

Some of you may have seen one by now – a nondescript envelope arrives in your mailbox. What’s inside is a Xeroxed copy of a letter on cheap paper that isn’t personalized (“Dear Homeowner”). The missive is from a developer who is “reaching out to homeowners in the area.” The offer sounds sweet: a quick sale, no real estate commission and the house can be sold “as is.” Getting top dollar -- all in cash -- is icing on the cake.

Before you make a move, Newton broker and Greater Boston Realtor of the Year Marie Presti has some advice.

The Grass isn't Always Greener.

Some homeowners think a developer will pay a lot for their property. Particularly if they live near a village center with public transportation, restaurants and shops – quite often the case in Newton. But they’re looking to make a profit, so they’ll generally offer a homeowner less money, compared to someone who will live there and take care of it the home. To maximize your options, it’s always a good idea to put your home on the open market. Doing so generates multiple bids, and developers will sometimes match what an individual would pay. When choosing someone to sell your home on the open market, choose carefully. Talk to several Realtors. Make sure they have the credentials to target market the home to include a developers’ network and qualified consumers. Most importantly, they should be trained to negotiate on your behalf to get you top dollar.

Remember that decrepit house on the corner that looked like Boo Radley’s house in To Kill a Mockingbird? The one that transformed into a House Beautiful showpiece? Most likely, a developer bought it for short money and flipped it for a profit. Developers love old, run-down homes. (Not hard to find in Newton, which has one of the oldest housing stocks in the region.) They’ll look up places that have been owned by one person for a long time and drive by to check out what kind of shape they’re in. If a rehab is in order, that’s music to a developer’s ears. Especially if the owner doesn’t have the money to make repairs.) If you’re approached by one of these developers, do the calculations (the cost of renovations vs. the market value). Your house may be worth much more than what they would offer you – even when you deduct the cost of improvements.

Know the true value of your property in today's marketplace.

If you decide to sell to a developer, find out the zoning code for your property first. (This can be obtained easily from the City of Newton Assessors’ Database.) If you have a property with a single-family code, but it’s in a multi-family zoned area, you might be able to change it to the latter. (In order to convert a single-family zone to a multifamily zone, you have to go before the zoning board, and getting approval can be difficult.) If it turns out you can rezone, figure out how many units can be put on it, calculate the market value and use that as a negotiating tool. If you find out your single-family is in a multi-family zone, it’s going to be very enticing to a developer, regardless of what sits on top of it.

Look before you leap.

Lastly, no matter how tantalizing a developer’s offer may seem, be sure you are dealing with a legitimate outfit. Ask around. Check online reviews, the Better Business Bureau and the company’s website. Realtors can be also be an excellent resource. Recently, one of my client’s got a letter on cheap paper with typos asking if she wanted to sell her house. There was no return address, only a phone number and no website. That letter went right into the “Newton Recycles” bin. Of course there are plenty of reputable developers out there. Taking the time to do the research will lead you to them.