How To Sell A House That Needs Major Repairs?

A time may come in your life where something prompts you to move out of the house you have called home for many years. This situation could be the result of starting a new job, a change in marital status, long-term deployment to a different country, or even the desire to downsize after your children have moved out and you no longer require the same amount of space. If you’re wondering how to sell a house that needs major repairs, you’re in the right place!

There are countless reasons why making a move like this may be in your best interest, but the outcome is the same; you need to sell your home. That, however, is not always a straightforward path.

One factor, in particular, that may make things difficult when trying to sell your home is the current condition it is in. Perhaps your home is in relatively poor condition, meaning that anything less than a complete overhaul would make it extremely hard to sell.

But, renovating and revamping your home to attract a great buyer may be completely unfeasible based on the time you have and your financial situation, among other things. If this is the case, then the only option that may be available to you at this point is to sell your house as-is.

Who is Likely to Buy the Home?

Your house, in comparison to many other homes available on the market, might be worlds apart in terms of how much work it requires in terms of restoration. Don’t let this factor put you off, though. Regardless of your home’s current condition, it could be a diamond in the rough for someone who comes along and recognizes its underlying potential.

Not every potential buyer out there is looking for a newly renovated house with brand new appliances and a perfectly manicured lawn to match. Sometimes, it’s actually in their best interest to purchase a property that requires some initial work but will end up providing them with a great return on their investment.

Here are a few examples of some individuals and organizations that could be interested in buying your house as-is:

House Flippers/Real Estate Investors

You may already be familiar with the fact that some buyers purchase homes to “flip” them rather than keep them for themselves, and then turn around and sell these properties for a profit. A house flipper will find a house that they can buy as-is, or they might ask the owner to make some minimal repairs before they purchase it.

After buying the home, they will then renovate it in whatever way they that see fit and in the shortest time possible. Once this work is complete, the buyer will put the upgraded house back on the market for a significantly higher asking price to make a profit from their investment.

This kind of buyer will often express immediate interest in your home since they are familiar with successfully evaluating a property’s potential. Keep in mind that even though you may be looking to offload your house quickly due to your current circumstances, you should perform due diligence before you accept any offers. The first buyer that comes along may have a decent offer, but are you confident that it’s the best you can get?

Your best option is to get a real estate agent to help you list the property on various platforms and market your home to potential buyers. Doing this will help draw in a variety of buyers and provide you with many more options to ensure that you get the best possible value when selling your home.

Prospectors

Is there a location that you’d love to live in, but the prices in that area are too high, or right now is just not the best time for you to make this sort of move? These temporary setbacks do not mean you can’t start planting some seeds today and begin building slowly in the direction you want to go.

That is exactly what prospectors, or people who desire to purchase property in a particular area, will do. A prospector may also face the problem of an area they favor being just a notch above what they can afford. But, their options can open up tremendously when they look beyond only buying a home that’s in excellent condition.

A prospector searching for a property in a specific area may view your home as a worthwhile project that they can take on, regardless of its current condition. This project may take them a while to complete since they may not have the money to put into renovations right away, but it can be a very rewarding investment since they now own a property in a location they love.

Remodelers

Your home has probably served you well for all of the time that you’ve lived in it, but its weathered exterior or dated interior may not be very attractive to a potential buyer. The property might be situated in a great location, yet its current condition could be enough to deter someone from making you an offer.

Fortunately, a potential buyer may have the time and money to invest in your home to make it better suit their needs. After buying your house as-is, they would then remodel it to their liking or possibly even demolish the structure altogether and build a brand new home on the property.

What Options Do You Have for Selling the Home?

Even though it is quite possible to find a buyer for virtually any property, regardless of its current state, the condition it’s in can considerably impact how quickly that can happen. The reality is that many buyers are not willing to put extensive renovation and repair work into a home.

It’s also important to factor in how quickly you are looking to sell your house. Do you have the patience to wait for the right person to come along who will agree to buy your home as-is, or are you willing and able to spend the time and money needed to improve its condition and potentially increase its value before selling?

Sell the Home As-Is

Selling a home not only puts money in your pocket, but it can also take money out of your pocket when you consider things such as making repairs and marketing the property. While marketing is necessary to advertise your house to potential buyers, you can choose to go ahead and sell your home without making any changes.

Selling your property as-is, meaning whatever state it is currently in, is what the buyer will have to accept if a sale is to go through. Your agent can communicate all of this information to the potential buyer to ensure that everyone is on the same page.

Keep in mind that you will have to be willing to accept a lower price for your home if you choose to sell it as-is since any restorations and repairs will be the buyer’s financial obligation. They may be okay with buying the home as-is, but they don’t really know what may lurk under the surface or cause them potentially expensive problems down the road.

For this reason, you can choose to have your house inspected, which can range anywhere from $300-$500. A good home inspection will list everything that is wrong with the property in full detail so that there are no surprises for the buyer. This way, you both know precisely what is needed to restore the home to perfect condition, and you won’t have to accept as low of an offer just for the sake of completing a sale.

Make Improvements

Selling a home is not easy, and selling one that requires extensive repairs or a complete overhaul can make things a lot more difficult for you. Many buyers will be okay with fixing basic cosmetic things themselves, but making major repairs such as replacing a whole roof may be a bit too much for them.

Your home may have other critical issues that you need to address as well, such as a leaking foundation, an infestation of mold, or a faulty HVAC system. If this is not the case, and all vital components of the house are in good condition and working order, many buyers will not mind how bad it looks cosmetically.

You could also decide to make some improvements yourself, such as fixing the siding, repairing the roofing, replacing old windows, or applying a fresh coat of paint to all of the walls. Generally, improving the curb appeal of your home is a great way to attract potential buyers. A property that is in decent enough shape is much more likely to sell, even if a few components of the home need some work.

What You Need to Do to Attract Serious Buyers for Your Home

Selling a home as-is often requires several tries to find a buyer that’s willing to accept it in its current condition, whether you have made a few improvements or none at all. However, there are some things you can do to get your home sold quickly and without having to fork up a ton of extra money to make that happen.

Set a Fair Price

On the one hand, you want to secure the best deal possible for your home. On the other hand, the condition it’s in makes it a bit tough to sell and requires you to cut down on the price.

If you want to price your home competitively, you first have to consider the current market in your area. Is it a good market for selling? Are houses getting sold at their best value?

Your home may end up sitting on the market for much longer than anticipated in a declining market, so it’s important not to overprice it. You also have to factor in the cost of any repairs the buyer will have to make to get the home up to par.

If you find that the value isn’t close enough to where you would like it to be, you can use the home inspector’s report to determine what needs to be fixed and what you should repair before selling to help raise the value.

Put in a Little Extra Effort

Selling your home is a lot of work, and there are additional challenges you will face if you cannot afford to make major repairs and renovations before putting it on the market. However, this in no way means that you are powerless when it comes to improving the chances of selling your home.

There are some little things you can do yourself that can take minimal effort but make all the difference, ranging anywhere from:

Fixing the plumbing, i.e., repairing and cleaning out leaky or blocked pipes
Removing mold, if present
Hiring an exterminator to clear your home of any pests
Mowing and maintaining the lawn or getting a landscaper to spruce it up
Patching holes and cracks that may have developed around the house.
Replacing old hinges on the doors and windows
Replacing sockets and knobs around the home
Removing stains that may be an eyesore

Clean Out the House

Your home may not be in the best shape and has definitely seen better days, but that doesn’t mean your yard has to match. A well-kept yard will indicate to a potential buyer that this isn’t just some abandoned home. Your yard is one of the first things they will see before even stepping foot into your house, so why not try to make it welcoming?

Rather than turning tidying up the yard into a huge project, keep it simple and just focus on removing any overgrown weeds and old clutter that may be lying around. Keep the grass cut, and if you have trees in your yard, use shears to remove any unsightly branches. Also, use a rake to clear away any leaves or other debris that have accumulated in the yard.

Now, it’s great for potential buyers to have a good impression of your property from the outside, but it’s important to help them like what they see on the inside as well. A popular technique that real estate agents rely on when trying to sell a home is staging, which involves making sure the house looks presentable to a buyer.

This process includes removing any clutter, such as an excess of furniture, decorations, and other personal items that may take up too much space and distract a buyer from seeing the home’s full potential. Clearing up floor space and rearranging furniture into a more welcoming layout that best emphasizes the house and its greatest features will help buyers imagine what it is like to live in the home.

If it’s possible, hiring a deep cleaning specialist to go through your home and get it in tip-top shape would be an excellent choice as well. A professional can make mundane things like window sills, baseboards, and any dirty windows look spectacular. Even though this additional step may cost you several hundred dollars, it can potentially add at least $3,000 to the value of your home.

Yes, your home may need some work, but don’t let that discourage you or make you feel that it will be impossible to sell. There are plenty of prospective buyers out there that are more than happy to buy a fixer-upper, whether for themselves or to flip and put back on the market.