This article highlights tips for selling your House in Poor Condition within Maryland
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Selling a house in poor condition is a major challenge that many real estate investors face. It is not so easy to convince someone to buy a house with a cracked foundation, potholed driveway, dingy floor or a leaky roof.
So, what do we mean by a ‘house in poor condition’ exactly?
A house in poor condition is also known as a lemon in industrial lingo, one that needs work beyond cosmetic repairs and minor updates. It may fall into one of the categories below:
- Fairly good, but in need of updates: This is a house that has some problems with deferred repairs or general repair, but is in ‘fair’ condition in general. An outdated kitchen, cluttered interior, painted floors, obsolete bathrooms, peeling paint, weathered exterior, and obsolete light fixtures may characterize such a house.
- Visible repairs needed: Inhabitable, but with more severe issues, such as electrical problems, damage to the house, problems with plumbing, problems with the base, defective HVAC, broken flooring, and faucets that do not work.
- Totally uninhabitable:
Such a real estate property has many issues that make it uninhabitable, including severe damage to the roof, black mold, termite infestation, severe problems with the base, asbestos or lead problems and severe damage to the chimney.
Tips to Selling Your House In Poor Condition.
Wondering how best to sell that house in poor condition? We shall highlight best tips to follow to get that house sold.
1. Highlight The Positive Parts
In a way that highlights the positives and downplays the negative, a savvy realtor will help you list your house. You may want to note this prominently if you’re in an awesome location in the city center or a desirable school district. Some buyers may really want to live in those areas, but the mortgage required for the median house price in the region will not swing. Or, maybe there’s a swimming pool in your house, you’ve recently bought new appliances, or you’ve got a big master suite. These are attractive to many buyers, considering the overall condition of the house.
2. Be Honest with the details
While you want to downplay the home’s negatives, it’s not going to serve you well to absolutely cover them.
First, most buyers know that one of the most important things about purchasing a house is to have a detailed home inspection, so they’ll find it anyway.
Second, some buyers may be renovators or are looking to refurbish the house to meet the needs of their family. If customers know what they’re going to need to repair in advance, they can present a competitive bid.
3. Make some Easy Upgrades
Unless you sell a house in bad condition that has been destroyed by fire or water, there are likely to be a few fast upgrades that you can complete before selling. Some small items, such as a new coat of paint, new landscaping, fresh window screens or re-stained cabinetry, will give the home a facelift that can add thousands of dollars to the price you can ask for.
4. Be Smart with Your Pricing
Again, this is where it would benefit to have a realtor who knows the importance of homes in both your city and your community. In the amount of time you go from listing to closure, pricing correctly will make weeks or months of difference. You can receive multiple deals right off the bat if you have an inexpensive price, particularly if your home doesn’t need a lot of major work or if you’re in a great place. However, if the price is too low, you run the risk of leaving money on the table.
5. Arrive at a Concession You can Live with
When you sell a house to someone who plans to live in the home, versus an investor who can pay all the cash, at closing time, you expect to be asked for some concessions. Selling a house in poor condition in a hurry means that, after making the initial bid, buyers can try to negotiate some improvements or repairs. Or, they may wish you to pay commissions from both real estate agents. These are known as “concessions” and form part of the final phase of negotiation. To make sure you still walk away with a respectable profit, decide in advance what kind of sacrifices you can comfortably live with. You will have a more confident place to negotiate when you’ve prepared in advance.
6. Have Patience
It can take longer to sell a house in bad condition than to sell a ready-to-move home. You will have to be careful, since it may be more difficult to find the right buyer for a fixer-upper than buyers who do not want to remodel or update right before they move in.
7. Sell Your House “as is” to Real Estate Investors.
You must have seen signs saying ‘We’re going to buy your home for cash’ or ‘We’re going to buy ugly homes for sale in any condition.’ In the real estate market, there are many experienced buyers who are always searching for a distressed property that they can purchase for cash quickly. They repair the issues and resell them at a higher price after purchasing houses in bad shape.
You might consider selling a house as-is to a real estate investor if you do not have the money, time or motivation to fix up your house. Everything you need to do is offer full disclosure of any known issues. The purchaser would then take responsibility for any necessary repairs. There are no fees to be paid because there is no real estate agent involved. Moreover, no closing expenses will be borne by you. The real estate owner would usually pay off any unpaid tax liens, house payments, and other financial commitments as part of its cash bid.
Selling a house to a cash buyer is very simple, unlike traditional real estate transactions. You will not have to wait for the buyer’s loan approval because the real estate investor is buying in cash. There is, however, no real estate agent, home inspector or assessor involved. All the paperwork is done by the investor.
Usually, after meeting you, an investor can make a cash bid within 24 hours. You will obtain the full payment within a couple of days if you approve it. For closing costs or secret penalties, this payment may not include any deductions.
8. Sell Your House to Real Estate Agents
If you have no knowledge of selling a house in bad shape, it would be a good idea to consult with a real estate agent. The selling prices of similar houses in your area would be familiar to an experienced realtor. As a result, they will help you set your property a realistic asking price. You will also be told by a good agent on what changes you should make to make your home attractive. They are also going to refer you to reputable contractors with whom you can work.
A licensed real estate agent can get your property added to the MLS property listing when it comes to listing. This will provide you with exposure to a wide pool of potential buyers.
When an offer is made by a prospective buyer, the agent can negotiate on your behalf and make sure you get a fair deal.
It is, however, not straightforward to find a real estate agent to sell a house in bad condition. Until you perform the recommended repairs and renovations, most agents may fail to list it. And a real estate agent’s fee is typically around 6 percent of the selling price of your house.