Selling a Home That Needs Work
When it comes to selling a home, there are plenty of things to consider. If the home needs work, that adds another element of concern or interest to the sale. With that in mind, it's important to take a look around the home and see what kind of work it needs. A lack of updates for the last 20 years are a lot different from a leaking roof, foundation problems, and other serious problems. Selling a home that needs cosmetic work isn't the same as selling a home that needs safety work, and it's important to carefully consider which category the home falls into so the seller will know how to proceed and get the best possible deal. Here are some of the most important things to be aware of when trying to sell a home that needs work, no matter the current real estate market.
Buyers Won't Pay As Much for Homes With Serious Problems
Naturally, when a home has serious problems, buyers won't want to pay as much for it as they otherwise would. That's something well worth considering, because each and every home is going to be different. If there's a market where there are plenty of homes available, the homes that are move-in ready are going to sell faster, all other things being equal. Even the idea that it's possible to get a home for very little money isn't going to be appealing to every buyer and isn't going to be satisfactory to buyers who aren't interested in doing a lot of work on the home before they can move into it. A lot of people shy away from fixer-upper properties because there are often additional expenses that can't be budgeted for and aren't seen on a home inspection.
Sellers Must Disclose What They Know
As a seller, you need to disclose what you know about the home. It's one thing to truly not have knowledge of hidden issues, and another thing entirely to avoid telling what you are aware of. That can get sellers into legal trouble, so it's worth being very honest. Let the buyer know everything that's known about the house, so the buyer can make the right choice for their particular needs. In some cases it could be that the buyer will walk away, but the home will eventually be sold. There will be a buyer who will look at all the problems with the home, make an offer, and complete the purchase, provided the seller is realistic with the home's value and able to sell the home for the price the buyer is willing to pay. If money is owed on the home, that may be a more complicated process.
Be Sure the Price is Fair for the Market and the Area
The price asked for a home has to be fair for its condition, but it also has to be fair for the area and the market. A fixer-upper property on a small lot in the heart of Seattle, Washington, may sell for much more than the same type of property in Kansas City, Missouri. The markets and areas are completely different, and so are the home prices. Because of that, a seller can't expect to get the same kind of money for the property in one place as they will in another. That's true with markets big and small, all across the country. By carefully considering the total market and working with a good agent who knows the area and the current value of fixer-upper properties, a seller can get the most money for their home and get it sold as quickly as possible by pricing it correctly and fairly.
Sometimes It Pays to Get Things Fixed First
Selling a fixer-upper isn't always the best idea. In some cases there isn't any choice because the seller has no money to do anything to improve the property and isn't able to get a loan or other financing to make the needed or desired repairs. However, there are some cases where a seller could upgrade, improve, or repair the property and has chosen not to. With that in mind, sellers who are serious about getting a buyer for a property will want to talk to a real estate agent familiar with the market and fixer properties. That can give the seller a chance to consider the best options for moving a home in the current market, provided that seller has the funds, time, and opportunity to fix up the home before selling if they make that particular choice.