Repairing and renovating a distressed home is a ton of work, and if you currently own a property in disrepair, you may not have time or capital to invest in full-scale renovations. Luckily, there are plenty of people who love the challenge of taking on a fixer-upper house, so if you’re looking to sell, there are a few different ways you can get the job done. Read on to learn our top tips for selling a distressed house in as-is condition.
Know What Your Property Is Worth
First and foremost, you must understand what your property is actually worth when you’re looking to sell a distressed home. Plenty of people enter the market with little to no knowledge about their property value, and unfortunately, they often end up selling their homes for less than they could have. Don’t be like those people.
How do you figure out what your distressed house is worth? Do some digging! Look at other properties on the market that are in similar condition as your home and see what they’re currently listed for. Try to find similar properties that have already sold and make note of their sale prices.
Many distressed properties don’t meet the criteria for appraisal, so you may not be able to arrive at a completely accurate figure. But doing some research on your own will at least allow you to get a ballpark idea of your property’s value.
Tend to Necessary Major Repairs
If your home is seriously distressed — it has serious mold growth or foundation, subfloor, water, or severe roof damage — consider handling major repairs if you want to list it on the open market. Although fixing major damage involves an up-front investment, you’ll likely be able to list your house at a higher asking price once the major repairs are complete.
However, if you work the numbers and find that major repairs won’t yield enough of an ROI to make them worth your while, don’t waste your time or money. It’s likely in your best interest to cut your losses and lower your price.
Make a Few Cosmetic Improvements
If your distressed house doesn’t have any major structural issues or hazards, but it’s super ugly, consider investing in cosmetic updates. Even a few minor renovations can make your unsightly property more attractive to prospective buyers and give you a better chance of closing a deal. You don’t have to invest a ton — even a few thousand dollars can go a long way — and aesthetic improvements usually pay off in the long run.
If You’re Selling on the Open Market, Disclose Everything
If you’re looking to list your house on the open market — whether you’re listing it FSBO or with a realtor — it’s incredibly important that you disclose everything that’s wrong with it. If you fail to do so, you could face a future lawsuit from your buyer if they discover something you failed to inform them about.
Your buyer also has the right to get a professional inspection, and many lenders won’t even extend financing without one. Generally, buyers have approximately seven days following the home inspection to back out of the deal. If an inspector reveals something faulty that you didn’t disclose, you can almost bet your buyer will walk away.
Sell Your House to a Cash Home Buyer
Most people shopping for homes on the open market aren’t looking for fixer-uppers. They’re looking for homes in pristine condition that are ready to move into. Moreover, most distressed homes do not qualify for financing, and the majority of traditional buyers don’t have the capital on hand to purchase a home in cash.
That’s where selling to a cash home buying company can be remarkably advantageous and convenient.
Cash-for-houses companies have the capital to purchase homes in cash, and even better, they’re willing to buy houses in any condition. Whether your home has serious structural problems or it’s ugly and outdated, a cash home buyer will make you a fair offer for it. But keep in mind that because a cash buyer will valuate your home in its current condition, the offer the buyer extends will reflect any necessary repairs they must make.
Since cash-for-houses companies handle all necessary repairs and renovations after the sale, they must consider those expenses when making offers.
Need to Sell Your Distressed Tampa House? Contact KM Home Buyers
If you need to sell a house that requires repairs or renovations, don’t hesitate to get in touch with our team at KM Home Buyers! We’re the number one cash-for-houses company serving Tampa and the surrounding areas, and we specialize in purchasing distressed homes. To get an offer or learn more about how we can help you, feel free to give us a call today at (813) 213-4884 or request an offer, and we’ll get in touch right away.