Should I Sell My House If It’s in Poor Condition?
If you are considering selling a home in poor condition, should you sell it as-is? It can depend on how expensive it is to fix the issues. A cosmetic repair may be an affordable and quick fix. It would allow you to raise the sale price of your home and sell it quicker.
However, suppose your home needs a new roof or has a leak that caused mold, visible damage, or electrical problems. In that case, the repairs may be more expensive than you can afford. This is where it can become a take it or leave it situation for potential buyers.
Factors that impact your decision to fix your home before placing it on the market
While your budget may be the primary reason you don’t make repairs, other factors can impact your decision.
- Home Inspections
The findings in a home inspection report give your buyer a powerful negotiation tool when selling on the open market. If your home is in a state of disrepair, you’ll have to negotiate a lower price or let your buyer walk.
However, if you are selling a home in poor condition and as-is, the inspection findings don’t impact the sale. So, the buyer no longer has any leverage.
- Current real estate market conditions
If it is a seller’s market you may be able to sell your house with fewer repairs. But, if it is a buyer’s market, and you don’t make repairs, you’ll have to list your home at a reduced price or expect your house to sit on the market.
- Your neighborhood competition
Evaluate how your home stacks up against the competition in your neighborhood. If there is a mix of remodeled and as-is homes, you may be able to sell your home for a reasonable price.
If a lot of homes in your neighborhood have been updated or have curb appeal, your home will sit unsold indefinitely.
- Return on investment
Paying to repair your house doesn’t make sense unless you stand to make more money than you spend. Consider the costs of repairs and then which are affordable and which will give you value for your spend.
Is my house distressed?
Before deciding to sell your home as-is, an appraisal can help you to understand whether your home is in poor condition. In Florida, a home is defined as a poor condition if it meets has the following criteria:
- Your home is uninhabitable
If your home is dangerous, unsanitary, or unhealthy to occupy, it’s marked as unlivable. Some examples of hazardous homes include frayed or damaged electrical wires, black mold, lead or asbestos, serious plumbing problems, a non-functioning HVAC, and severe foundation cracks.
- If visible repairs are required
While major repairs may not earn a poor rating from a house inspector, it can limit your appeal to buyers on the real estate market. Serious problems with wood rot, roof damage, and plumbing may label your home in poor condition which can make selling it challenging.
- If it needs an update
Older homes may be safe to live in and can appeal to certain buyers looking for homes with historical value. However, the appearance of peeling paint, outdated finishes, and overgrown landscaping may mean an offer below the home’s value.
Know your home’s value
Even homes in poor condition have value. In most cases, the location, the size of the lot, and even the house are worth more than it will cost a buyer to fix it up. Don’t let its current condition fool you into accepting less than it is worth, because once it’s back in shape, it will be worth a lot more!
Why should I sell my home as-is?
Selling a home as-is is a fast and convenient way to unload unwanted property. Many people inherit neglected homes they don’t need, have to liquidate their assets quickly to repay debts or sell their homes to avoid foreclosure or a short sale.
Selling your home on the open market currently takes on average 93 days, which may not be fast enough if you need cash quickly.
If you sell your home as-is you still have a legal obligation to answer questions truthfully concerning existing problems. Real estate agents in Florida ask sellers to complete a Seller’s Property Condition Disclosure Statement so they can represent the home more accurately.
Once on the market, your as-is home may not attract buyers, and you have to accept a lowball offer due to its condition.
Benefits of selling to a company that buys homes as-is
Unlike selling a home in poor condition on the real estate market, contacting a company that buys homes, as-is can remove the hassle of unloading a property in poor condition.
- Convenience
Selling your house to Meli, a company that buys homes as-is, means there are no repairs, cleaning, or home staging required to sell your home. Simply schedule a walk-through and the sales representative makes you an offer based on your home’s current condition. Selling a house in disrepair to Meli also eliminates negotiations over the closing costs.
- Zero Fees
There are no fees involved, no broker’s commissions, and no hidden closing fees. At Meli, we also work with you to resolve tax liens.
- Quick Turnaround
Unlike a conventional real estate transaction, the sale happens quickly. You don’t have to wait for loan approval for the buyer, and your payment won’t be sitting in escrow.
At Meli, we take care of the paperwork and buy your home with cash. We can buy your distressed home in Florida from walk-through to payment within 30 days.
Choose Meli to sell your as-is house
Meli is a popular option for buyers who want to off-load their distressed home quickly. Our company serves the Central Florida area, including Tampa, Orlando, and Melbourne.
If you need to secure a house sale fast or face foreclosure or bankruptcy, Meli is an excellent solution. Schedule your walk-through and get an offer from Meli by calling us at (407) 338-4183.
This article is meant for informational purposes only and is not intended to be construed as financial, tax, legal, real estate, insurance, or investment advice. Meli encourages you to reach out to an advisor regarding your own situation. Please consult with your advisor when making legal or financial decisions.
Image Credits
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https://pixabay.com/photos/villa-abandoned-empty-old-forget-4231464/
