If your home needs significant repairs, it can be challenging to sell. Many buyers want a house they can move straight into — besides perhaps, a lick of paint and a change of decor. If you’re not in a position to get the repairs done, or you simply don’t want to (“I want to sell my house, so why go to the expense and hassle of renovations?”), there are a few simple things you can do to make your home more attractive to prospective buyers without dropping the price.
Know Your Target Market
A fixer-upper is not everyone’s cup of tea. Unless you’re willing to substantially lower the asking price to expand the pool of potential buyers, you need to learn about the type of person who would be interested in your house as it stands and market to them.
“Flippers” seek out properties just like yours in the hope they can complete the required repairs or refurbishment and sell the house on at a tidy profit. This kind of buyer will be looking to maximise their profit, which means they may well make a very low offer. While you need to be realistic about the value of your home — after taking into consideration the work any buyer will need to finance — there’s no need to accept an unfair offer. An estate agent can advise you on the value of your home as it stands.
Buyers on a budget who are looking to upgrade or relocate to a more expensive location are another potential target for a house that needs work done. In an ideal world, they may want a “walk right in” house, but realistically they know their budget will only stretch to a rundown property they can get at a lower price — and then fix-up. This buyer is not looking to make a profit; they are looking for an affordable and fair option, which could work out well for both seller and purchaser.
In highly competitive areas, demand often outstrips supply and buyers are willing to purchase a fixer-upper, knowing it could be years before another property becomes available in their dream location. These buyers are not short of cash and they desperately want your property — jackpot!
Prioritise Repairs and Get Some Quick Wins
Your house may need a lot of work that could take months and tens of thousands of pounds to complete. However, there are probably a few “quick wins” that are worth spending a little time and money to achieve.
Anything reliant on individual taste, such as the kitchen, is probably not a sensible use of the budget. The new owners are likely to come in and start all over again anyway — especially if you sell to a “flipper” or a developer.
However, some minor repairs could make the property more attractive and help people viewing see the potential of the building. These are worth doing — for example, repainting the front door, tidying up a scruffy garden or running a carpet cleaner through the house.
Price It Right
Take the time to draw up a realistic list of essential repairs and get quotes for having the work done. Review the market by looking at the asking and sale price of local properties similar to yours. Compare the two figures and set a fair asking price. Many buyers will be put off by the amount of work that needs doing if the price is too steep.
It’s also worth considering what the property would be worth if all the renovation work were complete. If your house is in a prime location and has the potential to make future buyers a huge profit, factor this into the asking price.
An estate agent can value your home but remember they are trying to secure your business and may tell you what you want to hear rather than what is realistic.
Sell to a House Buying Service
A house buying service will buy any property, including those that need significant repairs or renovation. It is the only option that guarantees a sale and the process is quick. Once a firm offer is made and accepted by the seller, funds are released in as little as seven days.
The cash offer will be less than the market value of the property, but you’ll save yourself the time, hassle and expense of making repairs and waiting for the right buyer to come along. Added to which, there are no legal, valuation or estate agent fees to pay. Once all of these factors are taken into consideration, a cash buying service becomes an attractive offer for owners looking to sell a rundown house.
The Bottom Line
Selling a house that needs major repairs can be challenging. But there are plenty of options that will make the processes quicker and less stressful. Consider what a realistic sale price to expect is and what your priorities are. Is it all about how much money you can get? Or is it more important you sell quickly with your sanity intact?