If you have ever sold your house, you understand that the process takes time, and money, and adds an element of stress to your life. Trying to sell a house in poor condition only adds to these issues. The good news is if you are trying to sell a house that’s not “turnkey” you are in good company. Almost 40% of the current houses on the market were built prior to 1970–and that means, most likely, these older houses have some problems. If this is the boat you are in, here are the best tips for selling a house in poor condition.
The Biggest Decision:
How should you list your house for sale?
You have a few options when it comes to listing your house in poor condition. Of course, if you come across a potential buyer making an offer, that could change everything. They might request or require certain repairs be completed before the purchase goes through. Still, here are the three ways to at least get that house on the market.
Repair The Big Stuff
This doesn’t mean you need to invest tens of thousands of dollars fixing every item on the list, but you will need to put some funds into targeting the few big problems that stand out. Here are the three areas to consider investing in to get the biggest bang for your repair work buck.
Plumbing – With the fear of the formation of dry rot and black mold, this is probably the most important big fix. If there are any signs of leaks, it’s best to get those repaired.
Electrical – it might be cost-effective to add updated breakers to replace your outdated screw-in fuses.
HVAC – This stands for heating, ventilation, and air conditioning. There’s no need to spend $15,000 on a new AC. Clearing out vents and ducts is cost-effective and could add performance to your air system.
Put On A Little Make-up
Cosmetic repairs could make all the difference when selling a poor-condition house. Repainting the interior, refinishing and repairing cabinet doors, and adding up to date lighting fixtures are all reasonable costs that could truly add value in the eyes of a buyer.
It Is What It Is
Selling the house as-is will be the easiest on your time and your pocketbook. Depending on the disrepair of the actual house, you might be getting all the value from the actual property location. In essence, you will be selling a real estate lot. Sometimes it’s all about the location to a buyer and they basically want a blank (in this case, dirty) canvas ready to be painted with their vision of a house. One deterrent to selling as-is will be the listing price. Again, depending on the disrepair of the house, you might be simply selling the land so this will affect the amount you can list for.
5 Important Seller Considerations
Once you’ve determined how much time and money you are willing to put into selling your house in bad condition, it’s time to focus on selling. Here are the 5 most important considerations to focus on during this time.
Set The Right Price
Be sure you and/or your realtor look at comparables in and around the neighborhood. Price too high and you might be ignored by potential buyers.
Stick With The House’s Best Attributes
They always say, “location, location, location!” is the main selling point of any property. Point out any positives, such as a great school district, close to a fun downtown area, or even a floor plan that’s open and spacious.
Be Straight-Forward With The Buyer
Don’t try to gloss over any issues the buyer points out. Own up to it and let them know these issues have been built into the discounted price.
Are You Willing To Take A Little Less?
It’s best to be flexible here when it comes to the final sales price. If you have the time to sit and wait, no worries, but if you need to sell as soon as possible, you might need to accept a lower offer.
Don’t Be Afraid of Investors
If you really need to move your property, accepting an offer from an investment company might be your golden ticket. These offers are typically all-cash with less chance of falling out. As a seller, you might be wondering “what kind of cash offer for my house will I receive from companies that buy houses for cash”. Companies that buy houses base their offer on how much the property is worth fixed up minus the repair cost minus 10% profit. For example, if your house is worth $100,000 fixed up and it needs $20,000 in repairs minus 10% profit then your cash offer would be $70,000 dollars.
Fresh Air for a House in Disrepair
As you can see, selling a house in bad shape doesn’t have to be a troublesome experience. Following these tips and using this advice will make the process move along more smoothly and give you the peace of mind that you will get top dollar when selling a house in poor condition.
