Top 5 Strategies to Help Sell Your Distressed Home
Generally, a distressed property will stay on the market longer than a traditional real estate listing. Maybe you’ve spent thousands of dollars on advertising, made several price reductions, but you still can’t find a potential homebuyer. Figuring out how to sell your distressed home is tough.
Your property will become an expired listing after a certain period. This is the time when you shouldn’t give up and stay adhered to the axiom, “a stitch in time saves nine.” Devising a strategy to sell your home fast now can save you time, money, and stress later. Here are the five most viable options that can help you sell your distressed property as soon as possible.
1. Price it Right
It’s essential you determine how much your property is worth. Distressed homes usually list for lower prices than normal market rates. This doesn’t mean you need to reduce your listing price by thousands of dollars. With smart negotiation tactics, you can make enough of a profit to meet your debt balance.
The strategy is to price your home at a higher value than it’s worth. Let’s say you want to sell your distressed house for $200,000. If you list for that exact amount, the buyer will usually offer you less. Asking a higher price may swing the deal in your favor, as their offer will be closer to the amount you really want. However, this strategy may not work if you are selling in a buyer’s market; when there are more homes available to meet the demand. Conduct thorough research of distressed property prices in your neighborhood and set an appropriate price for your home.
Consider reaching out to a real estate agent if you haven’t already, or a real estate investor if you want or need to sell your home within a tight deadline. Learn more about selling with a realtor or selling to a real estate investor.
2. Make Repairs and Focus on the Best Aspects of Your Home
You might not be able to keep up with home maintenance due to your circumstances. Keep in mind that the typical buyer won’t want to buy a distressed house that requires numerous repairs. Therefore, you should put in the effort to conduct essential repairs to make your home a proper place to live. Create two lists, one comprised of the best features of your property, and one comprised of the worst features. Try to improve the worst features and draw attention to the best ones. This strategy may lead a potential buyer to pay you a higher price for your property.
A buyer will never want to pay your asking price if your property doesn’t have basic amenities. Your home should have a proper drainage system, good flooring, and good, safe electrical wiring. Try to repair all the worst features that can drastically affect your property value. If you’re unable to make repairs, take this into consideration when you decide your asking price.
3. Declutter Your Home
If your home is in extremely poor condition, repairs may take thousands of dollars. While you likely can’t invest a hefty amount in home repairs, you can try another trick to make it more appealing to buyers. Clean and declutter your home, mop, sweep, and vacuum the floor, wipe down kitchen cabinets, and improve your curb appeal. If you’re unable to do a deep-clean yourself, consider hiring a professional to do it for you.
Some homeowners forego cleaning the attic, basement, garage, and other less-frequented places. However, smart buyers will check these places. Deep clean every corner of your house to avoid turning off potential buyers. Ask any friends or family who have experience in home sales to get their advice. They can give you some insight into cleaning your home. A clean home will give potential homebuyers a better impression, even if your property lacks other basic facilities.
4. Consider a Short Sale
If you couldn’t keep up with your mortgage payments due to your tough financial situation, chances are you can’t afford to repair your property. In that case, you can submit a request to your lender to execute a short sale by accepting an amount that’s less than your mortgage balance.
Since negotiation requires skills and expertise, it’s best to hire a real estate agent for that. Discuss all the ramifications with them to make sure you clearly understand the consequences that can occur from a short sale. For instance, you may need to pay IRS taxes on a short sale.
5. Honesty is the Best Policy
When you’re selling your property, be honest with potential buyers. No matter what problems your house has, it’s crucial to disclose damage and other issues your property has. Be upfront about what is wrong.
If your area has commuting issues or sewage problems, ensure that the buyer is aware of any potential nuisances before signing the deal. When you don’t warn homebuyers about your property flaws, you could open yourself up to a lawsuit.
Do You Own a Distressed Home?
Owning a distressed home doesn’t mean it’s the end of the world. Most distressed homeowners have options. Take time to learn about your distressed housing situation, consult with a professional if you can, and if you determine that selling to an investor is the right choice, consider reaching out to Meli.
Our team is highly experienced in buying and selling homes, and we work with a partner network of attorneys, realtors, and investors to purchase your home in the shortest time possible. We’re able to buy homes in under 30 days, and can often buy in far less time as needed, depending on the situation. Give us a call at (407) 305-5008 or request an estimate on your home’s value below.
Want to learn more about selling distressed? Get our eBook, “Everything You Need to Know When Selling a Distressed or Difficult-to-Sell Home.”
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.
