A house in poor condition means different things for different people. It could mean that the home needs cosmetic repairs and updates, apparent damage due to deferred maintenance, or uninhabitable. Selling a house in poor condition can be frustrating, mainly because most buyers will make low-ball offers. Downplay the negatives and accentuate the positives to maximize potential profit when selling a home in poor condition.
Inform the potential buyer of the required repairs and defects discovered by the pre-listing inspection report. Be realistic and smart about pricing and consider making minor improvements like repainting. Here are tips for selling a house in poor condition.
1. Sell the house to real estate investor as-is
Cash home buyers offer a sell-as-is option to homeowners. The real estate investor buys the house in its current condition, renovates or repairs it, and sells it at a higher price. This means you don't have to spend a penny improving the house.
How long does it take to sell a house to a cash buyer? Unlike other house selling options, selling to a real estate investor can see your home sell in just over two months. It’s an ideal option, especially if you want to sell fast or don't have the money to renovate.
2. Perform quick and easy upgrades
If your house's poor condition isn't due to water or fire damage, there are probably some on-budget upgrades you can do before listing the house for sale. To add a facelift that can potentially increase your home's asking price, consider new landscaping, a fresh coat of paint, replace outdated lighting fixtures, replace old faucets, refinish existing cabinets, and more.
3. Use the For Sale by Owner (FSBO) option
The For Sale by Owner strategy requires you to find buyers. It’s a hands-on technique that needs your complete involvement. You handle everything, including advertising, setting the asking price, hosting open houses, listing the property, negotiating, and closing. It's the best option for homeowners with house selling experience. Consider low-cost improvements before listing to boost your house's value.
4. Partner with a real estate agent
Selling a house in poor condition isn’t easy, which is why partnering with a skilled and experienced real estate agent is a good option. Since they're familiar with prices of similar poor condition houses in your locality, they can help you set realistic asking prices.
A great real estate agent can advise you on the improvements to do to make your house appealing. They can also get your home listed, exposing it to a pool of potential buyers. Thanks to their negotiating skills, they can bargain on your behalf to bring you the best deal.
5. Invest in significant upgrades and repairs
Investing in the needed repairs and upgrades can help you get the highest possible selling price. However, it’s essential to know that each upgrade or renovation comes with a different return on investment. Consider renovations like minor kitchen remodels, siding your home's exterior, and installing a wood deck.
Selling a house in poor condition can be challenging and frustrating. While you can fix the home’s condition before selling, weigh the improvement cost vs. the expected benefit ratio to ensure you'll gain from it. Use the above tips to sell a house in poor condition.