Can You Still Sell A House That Needs Work?
While your property is, generally, in a livable state, there are flaws here and there that make it more of a fixer-upper type rather than a new structure.
12/03/2021
You've finally decided it's time to put the
'For Sale' marker on your front lawn. But, when
you look around, you notice your house is far
from ideal. Although your house is, generally,
in a livable state, there are flaws here and
there that make it more of a fixer-upper type
rather than a new structure.
Even if your home may not be as neat, fresh, or newly built compared to others in the market, your house can still fetch a decent sum even if it needs work. The key to selling your house as-is is to emphasize the value of your home. You can even make it look spotless with some minor repairs that give the impression that you’re taking good care of the property and that it’s still structurally safe and sound to welcome a new owner. Aside from the needed upgrades, you can even choose to disclose the house's repair needs to temper the buyer's expectations. This way, they can look at the house as a canvas to personalize according to their own taste.
Selling a house is possible, but it can become quite a challenge since people mostly want a house with a move-in condition. However, if you know your market and you have some reliable property experts on your side, you’ll be able to sell your house for what it’s worth, despite its imperfect condition.
How To Sell A House That Needs Work
There are several things you need to consider when you sell a house that needs work. These include knowing your buyers, pricing it right, and establishing a timeline and budget for necessary repairs.
• Know Your Market
First, you need to consider who you’ll be selling your house to. Fixer-upper homes are popular with flippers, deal hunters, and remodelers who see potential in your home. Flippers and deal hunters see flaws as future gains since they can renovate and eventually sell the property. On the other hand, remodelers may even be more than willing to take on the challenge of a few repairs here and there to create a home that suits their style or liking.
• Price It Right
Once you know who’ll be interested in your place, you can determine how much you're going to value your home. Fixer-upper homes often fetch lower than fresh and flawless structures, so you might need to do some extensive research regarding the prices of similar homes in your area.
You might even need a real estate agent who can run a comparative market analysis and give you a current price for homes, like yours. Real estate agents can also assess your house and estimate its value when renovations are made. This way, you're prepared to take on negotiations without discounting too much from your intended selling price.
• Consider Timeline And Budget
Aside from the buyer pool and the price, you also need to consider your timeline and budget. These two often go together, and they can have an impact on your home's resale value and the money you can cash in on the sale.
When you have both, you can undertake a few upgrades to make the property more appealing to buyers. You can even improve your home's curb appeal by doing some landscape work to create gravel pathways, or planting a few flowers and shrubs.
Suppose you're pressed for time, but have some amount set aside to improve your home. In that case, you can choose to prioritize essential repairs, such as replacing the roof and adding in solar panels, taking care of mold and mildew problems, checking on electrical, heating, and cooling systems, and making sure you have reliable plumbing. These essentials will surely enhance your home's inspection report, and it will assure future homeowners that of the building's integrity.
In case you don’t have time or the resources to undertake the much-needed repairs, you can consider doing some minimal upgrades instead. You can replace doors and clean windows, install new light fixtures, patch cracks and paint walls in a neutral color, or even add some accents to cabinets and drawers.
• Wording the As-Is Sale
Once all the necessary repairs are made, you can now concentrate on crafting your ad to launch your house into the market. This step is crucial since it has the potential to make or break the sale. You would need to include as much information as you can to set buyers’ expectations and, at the same time, lure them into taking an interest in your terms and your home.
• Highlight Home Features
The success of your fixer-upper home lies in your ability to highlight its good points against minimal flaws. You can emphasize the advantages of the house's floor plan, draw attention to spacious rooms and storage, and even showcase added amenities, such as a swimming pool, home office, or garage space. Besides the home's interior, you can also mention its strategic location and proximity to parks or schools.
• Disclose Flaws
Emphasizing your house's good qualities will surely spark buyers’ interest, but that doesn't mean they won't notice some minor issues. You’d need to be honest with these concerns and include them in your listing to set realistic expectations about the house's current condition. Inform them of needed repairs early on to not walk out during closing or get you into trouble after the sale.
• Consider Adding Options
Once buyers know that they need to do some work to make the house more livable or up to their standards, they’ll surely ask for discounts to cover their future efforts. You or your agent can suggest amenable financing schemes, such as renovation loans, that can take care of the sale and fund needed home improvements.
Providing buyers with accurate information regarding your home's current condition and including terms that recognize their future upgrading efforts can give you a higher chance of selling your house as-is, without taking on costly and sometimes unimportant renovations.
Conclusion
Selling a house as-is can be challenging when you know there's some tough competition on the market. In truth, it’s possible when you know that you can rely on your house's value to make a sale. Providing accurate details on needed repairs and offering amenable financing options can also help buyers consider your fixer-upper despite its issues. Through careful consideration of timing, budget, and wording your as-is listing, you're sure to cash in on your property in no time.