Dilapidated Houses: How to Sell Without Making Costly Repairs
Trying to sell a home is an exhausting process. Once you find a realtor, you have to make the home show-ready. There’s also a ton of paperwork that sellers must complete.
There are many hoops sellers have to jump through. There are even more hoops for people trying to sell dilapidated houses.
Homes that need lots of work are difficult to sell. Most buyers want move-in-ready homes. Since they need work, time, and money, buyers don’t want to take on additional stress.
That doesn’t mean houses needing repairs are impossible to sell. It’s possible to sell a dilapidated home as-is. Here’s how you can do it.
Take Major Repairs, Quick Fixes, and Upgrades Into Account
The first thing you should do when looking to sell is by evaluating the state of your home. A good way to assess your home is by looking at other houses that are for sale in your area. When you tour other homes, note their condition, amenities, and the selling price.
Touring other homes will show you what the competition has to offer.
The next thing to do is check to see if it’s a buyer’s market or a seller’s market.
In a buyer’s market, people looking for homes have plenty of options. If your home needs repairs, it’ll be harder to find someone willing to take on a project.
In a seller’s market, there aren’t as many homes available for purchase. Buyers have to compete for what’s available. This scenario works out great for sellers since buyers may not be as picky.
When you take other homes for sale and the state of the market into account, it provides direction for how you should spend your time. In a buyer’s market, you may need to invest in those major repairs and upgrades. In a seller’s market, that may not be necessary, which will allow you to sell your home as-is.
Investors Love Dilapidated Houses
There are a few different types of real estate investors. Investors can be house flippers, rental landlords, and even house-buying companies.
Investors usually like to pay with cash and buy homes off-market. Almost all investors are willing to purchase a house in need of repair.
Since investors don’t plan on living in the homes they buy, it’s all about the numbers for them. If they can rehabilitate the home and sell it for a profit, they’ll see it as a good investment. In cases where investors want to rent the property, the cash flow they receive might be worth it to cover the expenses of repairs down the line.
Investors that aim to resell homes also consider other aspects. Since the point is resale, they consider how the home will appeal to future buyers.
Investors also consider how the neighborhood is trending. Neighborhoods with amenities, like popular local businesses and good schools, can increase the appeal of your home.
Selling a home off-market can be quick and easy. Once the investor inspects your home, they may be ready to buy within a few days.
Address Safety Issues
A house needing repair is one thing, but if your home has safety issues, they will need addressing. If you try to sell your home without fixing these issues, some laws require that you tell a potential buyer if there are termite problems, mold, lead paint, and property drainage issues.
Most traditional buyers will require professional treatment of termites and mold. The severity of the infestation will determine how long the process takes. For serious infestations, the cost can reach up to $1,000.
Then you’ll need to repair the damage. You may not have to worry about cosmetic damage, but you will need to address structural problems.
Mold can cause many different health problems, so it can render your home uninhabitable if you leave it. Professional mold removal can cost thousands of dollars. You’ll also need to hire a mold inspector to verify the areas in your home most likely to harbor mold.
Look for Bargain Hunters
Bargain hunters tend to be people that want to live in a particular location. In some cases, they may not be able to afford the average price of homes in your area. Another reason could be cash buyers swooping in and purchasing homes off-market.
Bargain hunters may also be first-time homebuyers without equity. They might also be okay with taking care of repairs themselves.
Bargain hunters want to find their ideal home on a budget. A dilapidated house isn’t a detractor, as long as it has good bones and is in a location they love.
A competitive market can work in your favor if you intend to sell to bargain hunters. The price of the surrounding homes can create a barrier to entry to live in the location they want. To sell to bargain hunters, communicate the potential your home has.
A real estate agent can be your best friend in these circumstances. They can tell you how to make your home show-ready for bargain hunters. They may also be able to set them up with renovation loans when they purchase your house.
Sell Us Your Home
There are many options to market dilapidated houses. Once you factor in the state of your home and your ideal market, you’ll have direction. If you need to sell a home quickly, we can assist you.
At WeBuyHouses, we make the selling process easy. You can enter your information on our site and get a quote for how much your home may sell. If you have questions, please check out our FAQ section or contact us to learn more information.
