What to Know When You’re Selling a House That Needs Repairs
Selling your house is a big decision, and if it needs repairs, you must decide whether to make those fixes or sell your home as-is. It can be a dilemma for homeowners and is not a decision to take lightly.
Home repairs can be costly and take time to complete, extending your timeline for selling and cutting into your profit from the sale. If you’re not in a hurry, this may be fine. However, if you need to sell your current property to afford your new home quickly, you should determine how long you can spend making repairs.
A house that needs repairs, either major or minor, can be classified as a distressed property. The distressed property includes those houses with damage, such as from extreme weather events, and those needing repairs such as a leaky roof, plumbing issues, foundation problems, and even cracked countertops. If you’re selling a house that needs repairs, here’s what you need to know.
Confirm What Repairs or Disclosures Are Required
Before placing your as-is home on the market, you first need to get an overall assessment of its condition. A home inspection will identify what issues your house currently has and whether these are safety risks. This is important because when selling your home through traditional channels, you may need to make certain repairs to bring the house up to code.
A home inspection is crucial because it can identify any problems you must disclose to potential buyers, like a cracked foundation, faulty wiring, or termite damage.
Be sure to comply with any disclosure requirements regarding defects in the home. The potential buyer will also do their own home inspection, so it’s better to be upfront with them from the beginning.
Choose What Repairs To Make to Attract Buyers
Once you determine certain repairs are out of your budget or time range, you can help the sale by making some cosmetic changes to up your home’s curb appeal. This way, you can attract more buyers by showing them a little of the potential of what the home can be for them.
A few suggestions for projects you can take on include:
- Front and side yard landscaping
- Painting the front door and sprucing up the front entrance
- Modernizing light fixtures either indoors or outdoors, or both
- Removing old carpets and cleaning the floors beneath
- Patching holes in the walls
The landscaping alone can bring a higher return on investment, so consider putting in the work here to improve your curb appeal. Landscaping can also highlight the best features your home has already.
Negative Impacts of Selling a Home That Needs Repairs
There are negative impacts to selling a house that needs repairs. Being aware of them can help you avoid surprises and set your expectations more realistically.
A house needing repairs will be less competitive on the real estate market, especially for those looking to buy a turnkey home.
If other houses in your neighborhood go up for sale with no major defects, that can also affect the number of buyers that look your way. If quickly selling your home is a priority, traditional buyers may be harder to come by within a quick timeframe.
Perhaps most important is that a house that needs repairs will bring in a lower dollar amount when sold. Therefore, you need to price your as-is home realistically.
To help you price your as-is home accordingly, first research the market. Is it a buyer’s or seller’s market? Do you live in a highly desired neighborhood or location, possibly near good schools? Weigh all the factors in when deciding on the ideal price for your as-is home.
Keep in mind that potential buyers will also use the knowledge of needed repairs to lower the sale price. You must determine your low price threshold and if lowering it to sell quickly is a good option for you. Overall, the key is to understand and know how to sell a house that needs repairs.
Potential Buyers for a Distressed Property
As you make your decision to sell your home with its needed repairs, consider who your potential buyers are to make the process of selling distressed property easier and faster. There are two main categories of potential buyers for your as-is home, fixer-uppers and distressed home buyers.
- Fixer-Uppers
Fixer-uppers are buyers who can see the potential of a home and want to make the necessary repairs to design the home of their dreams. They often have the skills needed to make the repairs themselves and get the house in good shape. Otherwise, there are renovation loans available for situations such as this.
Some like the challenge of a new project, while other such buyers desire to live in your neighborhood, and the number of houses available is limited. Another variety of this type of buyer is the flipper. Flippers buy houses in need of repair, remodel them, repair major flaws, then turn around and sell the home for a higher price.
- Distressed Home Buyers
Similar to the flipper, distressed home buyers like Meli look for properties in disrepair or locked up in some type of financial hardship such as foreclosure, divorce, or bankruptcy. However, unlike flippers, distressed homebuyers can quickly complete the sale and pay you the total amount for your home upfront.
The process of working with distressed home buyers like Meli Homes is straightforward. You contact the buyer and explain your situation and disclose the shape of your house. The buyer then schedules a walk-through of the property with you and, if interested, usually makes an offer that day or soon after.
Working with Meli, you can expect full payment within 30 days. You won’t have to stress over numerous showings and negotiations with potential buyers. The company can also help with any issues surrounding the property, such as navigating the probate process, clearing up any tax liens, and dealing with titles.
Contact Meli Homes
If you’re ready to sell a house that needs repairs in Orlando, Tampa, Kissimmee, or areas nearby, give our office a call today at (407)338-4183, and let’s see if we can work together. Avoid all the hassles of selling to traditional buyers and speed up the process. We provide full payment within 30 days and help you get out from under your as-is house quickly.
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.
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