Home value has always been a topic when selling houses. Owners try to increase their profit by adding upgrades and functions, and this usually brings a lot to your finances. And while some may do it, not everyone can upgrade their homes. Many can only leave their homes as it is during the sale.
With this dilemma comes a market for fixer-uppers or properties that require certain repairs and renovations by the buyer. Many fixer-upper owners are torn between remodeling and selling their homes in its current state.
Selling a Home in its Current Condition
Selling a house as-is would bring in a new market as well as new dilemmas since most fixer-uppers houses can’t be easily fixed in their current state. Homes like this require a lot of work on repairs such as damaged wirings, leaky faucets, and old floorboards.
Prices are generally lower for this type of house as opposed to high value, fully renovated counterparts. As a seller, expect to attract clients who might have different purposes of the property.
Knowing the Market and its Clients
Selling houses with repairs caters to specific clients. Different clients have different reasons to purchase these kinds of properties. Here are some examples:
These are the people you might want to have your eyes set. These clients usually have a strong preference for your property and the area that surrounds it, and also accepts the repair costs and renovation of your house. As the name suggests, they focus on getting your property and spend other finances on restoration and repairs.
These clients flip cheap houses, purchasing fixer-uppers at a lower price, then selling them to another buyer after raising their original price through extensive renovations and upgrades. Flippers focus on profit and treat this as a business. Set up a fair price and make sure you get the return of your investments.
Remodelers see fixer-upper houses as an opportunity to renovate and repair. Most often, these are high-class buyers adding an alternative property to their names. They don't necessarily need fixer-uppers because they want a new home. Sometimes, they seek additional features under their name.
Pricing For Fixer-Upper Homes
As stated earlier, prices are generally lower for fixer-upper homes since they require particular renovations. Your house may have a unique value for you, but posting an estimate the same as renovated homes may discourage potential clients.
Consider the features of your home and lower down your price. There is a fair market value when it comes to fixer-upper homes, and researching similar estate may give you an idea of how you should price your home.
Additionally, give yourself room for negotiations as clients tend to haggle prices. This will provide you with leverage and ensure a fair selling price agreed between you and the client.
Keeping it as is or Investing in Small Renovations
As a seller, you need to determine if the house is still livable, considering its damages. Aside from common repairs such as broken doors and busted bulbs, you might also want to check the integrity of electrical boards and possible leakages.
Spending a few hundred dollars to make small repairs and improving the overall look does attract potential buyers. Remember that fixer-upper homes should be livable the moment they are purchased.
Declare Major Flaws and Repairs
As much as possible, you want to give your buyers a good impression despite the apparent flaws of your estate. If you want to impress your clients, show honesty.
Legally speaking, you are required to disclose all information about the estate. Besides, there will be home inspections as part of the process. You might as well be honest and set the proper client expectation of what they should take care of once the home is purchased.
Most buyers are not shoppers, and they buy houses that fit their budget. As a seller, you should set proper expectations after closing the deal.
Offering a Renovation Loan
Repairs can be severe and influence the buyer's decision. Help them ease their burden by processing a renovation loan. This loan helps clients with their home renovations and increases your chance of selling the property.
Although there are approvals and prerequisites required, getting your clients a loan makes the renovations faster. Buyers can immediately move in without all the hassle renovations usually bring.
Save Time and Money while Selling Your Property
Selling a home doesn’t just revolve around earning profit. Sometimes time, money, and effort are expended to find buyers that are willing to purchase a home in its current state. Some expenses could be cheaper and stress-free, but other concerns can take a toll on you and your money.
If this got your interest, you can check out this sundae.com article – Thinking about selling your house as is? Read our ultimate guide for sellers looking to save time and money by skipping repairs and selling for cash. With just a few simple tricks, you can spend less time and money during a house sale.
This guide can make better offers and negotiations between sellers and clients. Although new sellers might avoid this kind of estate selling, as long as you are transparent and know what you are proposing, buyers will flock to you. Setting up your home for sale has never been more comfortable.
Josh founded Money Buffalo in 2015 to help people get out of debt and make smart financial decisions. He is currently a full-time personal finance writer with work featured in Forbes Advisor, Fox Business, and Credible.