23 Mar How To Sell A House That Needs Repairs
Tips to Sell a House that needs Repairs
Houses fall into disrepair for many reasons.
It might be an inherited house, you might have fallen into financial problems, or you might have a rental property neglected by tenants.
Whatever the case is, you have a house in disrepair that you have to sell.
Right off the bat, it is important to know that this is not going to be as easy as selling a house in pristine condition. Extra effort and creativity on your part will come in handy to sell this house, still, you can sell at a good price and within a short time.
Here are some expert pointers.
Realtor vs. FSBO?
First things first: your selling strategy will determine all other actions you need to take.
There are two approaches to use when selling a house. The first is by getting a realtor to handle the sale. The second is by doing an FSBO.
Bringing a realtor on board definitely makes a sale easier. Realtors sell houses for a living. They, therefore, have the processes and connections worked out well in advance to ensure a smoother sale process.
You will, however, need to part with a percentage of the proceeds to pay realtor commissions.
An FSBO, on the other hand, means you carry out the entire sales process yourself. As a result, you also get to keep all your earnings from the sale.
Because an FSBO can get quite overwhelming, the next steps will outline how to navigate this process.
Get All the Help You Need to Sell A House
An FSBO does not necessarily mean you go at it with no help at all. Indeed, there will be processes along the way where you can get assistance.
One example of this is getting an MLS listing.
If you want an FSBO, it means you will not be using a realtor. This does not lock you out of MLS (Multiple Listing Service) entirely.
The MLS is a centralized realtor database that carries all listings by locale. Realtors use this resource to find houses for their clients. By listing your house on this database, you ultimately give your listing more exposure than you would get by being off MLS.
To do this, find a listing agent whose role will be to enter your listing onto the database. Often, you will be charged a flat fee for this, and the proceeds of the sale will be 100% yours.
Sell as Is or Make Some Changes to Sell a House
Something else you need to determine is whether to sell your house ”as-is” or make changes.
Selling your home as-is means you will not be making any major repairs, upgrade, or renovations pre-sale. You need to declare this in your listing so that prospective buyers are well aware of what they will be getting.
Naturally, you will get low offers for an as-is house since the required repairs will fall on the buyer. Still, you can position your house as a great buy for flippers, investors, and homeowners looking to make a house their own, so to speak.
Pricing Matters Sell a House
You already know that a neglected house will not fetch as much as a well-taken care of one. However, how much or how little can you get for it?
If you do not go into the sale process with clear pricing, you will greatly disadvantage yourself. There is a great temptation to take whatever is offered because the house is in disrepair anyway. This is the wrong way to go about it.
Granted, you do not want to go higher than the house is actually worth as you will discourage buyers. You also do not want to be often accepting any offer simply because the houses are imperfect. So how do you find a middle ground?
An excellent way to go about this is to have a pre-sale inspection carried out. This will give you a comprehensive list of the condition of the house.
You can then find a comparative value of the house and deduct the total costs of the repairs. This should give you a ballpark price of how to price the house.
These figures will also help you during the negotiation phase of the sale, as you can show the repair costs Vis a Vis what the cost would be.
Make High-Value Changes to Sell a House
Selling a house as-is does not mean you do not touch anything. Most home buyers are happy to buy a home that requires cosmetic changes, as long as the home is structurally sound. If you can spare some cash, consider fixing the major problems.
Think water damage, a leaky roof, termite problems, and so on. These are big-ticket items but can prevent your listing from being stuck for months on end.
Figure out how much you would be willing to spend, then find a few upgrades that would give the highest return.
If money is tight, you will need to determine a few high-value changes that will cost close to nothing. These are often surface cosmetic changes that help get buyers through the door as you work on your negotiation and selling skills.
Changes that have the most pull include:
- Working on your curb appeal: mow grass, trim bushes, and hedges add potted plants
- Clean the house inside out, including the wall siding and the windows
- Do a deep cleaning of carpets to remove stains.
- Declutter the house and place unnecessary items in storage
- Change door knobs and light fixtures
- Paint the house
Focus on the Positives
Aside from the house being in bad shape, it must have some things going for it that made you buy it in the first place.
Determine what these are and focus on this in your listing. For example, is there a park a few minutes from the house? Families with young ones will love that.
Does the house have larger than average storage space? There are buyers happy to put in some work to get a lot of storage.
Looking to Sell a House Quickly?
If you want to sell your house quickly as-is, you have options. House buying companies buy houses in disrepair exactly as they are. If this sounds great, fill in the form below, and get a cash offer for your house today.