How to Sell Your Home in a Poor Condition
Learn How to Sell a House in Poor Condition
Houses go through a lot of wear and tear over the years as families enjoy life within their walls. Even houses that are well-maintained eventually reach a point where they may no longer hold their value. Figuring out what to do with a house that is past its prime helps you get the most money from a sale while still being fair to the buyer.
Identify the Severity of the Problems
The first thing to know about selling a house in poor condition is that opinions can vary among buyers about what is a problem. There may also be hidden issues that you don’t notice until you’ve moved all of the main belongings and furniture out or even issues that do not present themselves unless you look behind the walls.
For example, hidden water damage can significantly lower the value of a home. Take an honest look at the full extent of the house’s condition before you make any big decisions.
Recognize the Issue of Time
One of the biggest mistakes that some homeowners make is thinking that they can throw some elbow grease at the project to gain an edge during a home sale. While fresh carpet and paint can make the house look better, and appeal to an end buyer, they won’t fool an inspector or appraiser about issues lurking underneath the surface. A buyer is likely to ask for concessions upon receiving a bad inspection and a bank may not back a loan if the home does not appraise at or above the purchase price. What does that mean? That even months after open houses to find the perfect buyer and a month for them to qualify, they may pull out and leave you back at square one. Additionally the longer some issues go unfixed, the worse that may become. For example, with a water leak, prolonged damage may lead to additional drywall damage, black mold and even structural issues.
Check Out the Current Market
Selling a house in poor condition is easier when the market is hot. Potential buyers are more willing to overlook the need for minor repairs when houses are being snapped up fast. Keep in mind, however, that your house is competing with all of the others. If it is in severely poor condition, then you can still expect to get less money than you might prefer when other houses are move-in ready.
Weigh the Costs of Repairs Versus Total Value
Once you identify the main sources of damage, put together an estimate of how much each repair costs. Roof replacements, electrical system updates, and plumbing repairs all add up fast. Investing too much money in fixing the house up can seriously cut into any potential profits. Consider what the return on investment is for each piece of the project.
Consider Selling As-Is
As with many decisions in life, the least expensive and fastest option is usually the best. The best option when selling a house in poor condition is often a cash sale. This option involves working with a buyer that understands from the beginning that the house needs major work to get it to a livable condition. You might take a small hit on the asking price, but you’ll save money on repairs, insurance, utilities and other associated holding costs.
Are you stuck dealing with a house that is in poor condition? Time is of the essence for selling it before the damage gets worse. Give Flash Reality Solutions a call for a no-obligation quote for a cash offer. Let us help you turn a challenging situation into a money-making opportunity.