If you are a homeowner who is considering selling a house in need of repair, read on. In this article we offer a range of top tips to help you make good decisions to facilitate the sale depending on your resources.
Guide to selling a house in need of repair
Selling a house that requires repairs can be a complicated task. The are many different routes you can go to get it sold. Here are some ways you can make it a smooth and stress-free process:
Make the repairs yourself
If you have the time, money, and skills, making the repairs yourself can increase the value of your home and attract more buyers. However, this option can be time-consuming and can be costly if you’re not handy or don’t have the funds to pay for the repairs. If you do have the funds, you can consider hiring someone to do the work for you. This generally ensures the work will be done properly and in a timely manner.
-Top Tip –
You want to make sure that you hire someone who is licensed and credible to do an outstanding job.
List your house as-is
If you’re in a hurry to sell and you have a house in need of repair, without the time or money to make repairs you can list your house “as is.”
This means you won’t make any repairs before selling and will sell the house in its current condition.
While this option can be quicker, you may not get as much money for your house as you would if you had made the repairs.
You will still want to factor in any costs associated with selling with an agent.
You can expect to have to pay realtor commissions and in most cases, you will have to pay for half of the title & escrow fees (closing costs).
– Top Tip –
Make sure you crunch all the numbers so you know what you will actually walk away with in your pocket after selling a house in need or repair.
You can sell a house in need of repair to a cash buyer
Selling your house to a cash buyer can be a great option if you’re facing financial difficulties or need to sell quickly. Cash buyers are often willing to a house in need of repair, and they will often pay a fair price for the property, regardless of its condition.
Plus, cash buyers often buy properties as-is, saving homeowners the cost and hassle of making repairs or upgrades before putting their house on the market. Some cash buyers will offer creative financing options, allowing them to pay more for the house, sometimes even market value! If you need to sell your house fast and don’t want to deal the the hassle of fixing up and listing on the market, then this is likely your best option.
Cash home buyers can typically close in 30 days or less, sometimes less than 10 days. Generally they just need to see a preliminary title report from a title company showing the property is free & clear of any liens and other clouds on title. If there are liens, they can generally be taken care of in escrow and you can work out a deal with the cash buyer to even help with some of the costs.
Partner with an investor
This is another great way to sell your house if it needs repairs. This usually involves a local investor cash buyer in your area who is willing to joint venture with you on the house. They have the money and the crew to fix up your property and sell it on the market. In most cases, the seller and the investor will agree on a price for the seller.
In this scenario the investor does all the work to the house and together you sell the house on the market. After the sale is complete, the homeowner receives their agreed upon amount from the proceeds and the investor receives the rest. This is a great win-win solution for both parties. The investor doesn’t have to go get a loan and pay interest during the flip, saving them lots of money. And the homeowner gets a fully rehabbed property to sell on the market for top dollar!
If you’re looking for a flexible option, you can consider a rent-to-own option. In this scenario, a buyer agrees to rent the property for a period of time, with the option to purchase it later. This allows the buyer to move in and make the repairs over time, and it allows the seller to receive rental income while they wait for the property to be in good condition to sell.
The seller agrees on a future price to sell the property for after a specified period of time. This locks in the price for the future buyer and they become responsible for the property and any repairs or maintenance on it.
-Top Tip – for a house in need of repair
You should check in your country and region – about the liabilities for a house in need of repair. But often they will also be responsible for some or all of the property taxes, insurance, and other associated costs with owner a property. Since they plan on becoming the owner in the future, it makes sense for them to take over most of these items.
Final word on selling a house in need of repair
In summary, the steps you take will depend on a number of factors. Consider the location of your property, the state of repair of the house, and your appetite and resources to deal with preparation for sale. Selling a house in need of repair could happen quickly if you find a buyer wanting to shape and renovate the property. Follow these suggestions to ensure you make the right decision for your particular situation.
FURTHER READING ABOUT REAL ESTATE AND SELLING PROPERTY
At Housesitmatch.com we like to offer useful and practical articles on topics for our readers. In this selection we offer you a number of suitable pieces from our own blog on renovating and decorating a home.