How To Sell a House That Needs Work

By Jeff Russell

Jeff Russell, CEO of Russell Realty Group (RRG), has consistently distinguished himself as a top producer and a preferred real estate consultant by his clients. Since 1999, he has proven to be one of the most successful Realtors in the industry with multi-million dollars in sales volume, top 1% in the country, and sold over 2,500 homes, including luxury, relocation, REO foreclosure, short sale, traditional residential, multi-family, investment, Short Term Rentals, new, etc.

The selling process is already difficult enough, but when you add noticeable problems with the property into the equation, it can make the home sale even more complicated. Inventory is now increasing, and buyers have more options to choose from. Your home, which needs repairs, won’t likely be their first choice, and those who are interested in purchasing may make an offer that’s less than what you wanted to sell it for.

Selling a house with major issues takes a lot of work, and there’s never enough time to do it. The longer the home stays with you, the more expensive the costs of repairs and maintenance will be. If you don’t act soon, that property could end up becoming a liability. Fortunately, there are ways to reach the closing table and make a profit. To sell a fixer-upper, here are three things you should do:

1. Get a home inspection. You know the property is in bad shape, but you’re not exactly sure to what extent. This is where a professional can help. A home inspector will locate the problems and give you a complete rundown of them. Once you’ve identified what has to be fixed, you can evaluate whether you can afford the repairs and replacements, or if you’ll just sell as-is. Also, remember that disclosing the issues of your home to would-be buyers is required by the law. You want to be as transparent as possible to avoid any legal repercussions later.

2. Consider selling to an investor or a bargain hunter. The worse the home’s condition is, the bigger the pool of investment buyers will be. Real estate investors don’t want to live in that house. They want to repair and upgrade it so they can sell it and earn a profit. Typically, they will pay with cash and will buy the home as-is. Bargain hunters, on the other hand, are in search of their dream homes. They are willing to put in the elbow grease needed to make a property livable and will overlook a few flaws, as long as they love the location.

3. Be realistic with your price. Whatever market we’re in, pricing your home correctly will always be critical. This is especially true for homes that are not in the best condition. You have to set a reasonable price, one that is based on research and makes sense for the market. The best way to do this is by working with a real estate professional. An experienced agent can use their resources and connections to ensure that you get the best possible deal for your sale.

You have many options when selling a home that needs repairs. I have worked with different banks and they send me a lot of their foreclosure properties, most of them are in different states of maintenance. What I do with my clients is to determine whether it’s best to sell it as is or to have it repaired. Either way, it’s possible to sell a home that requires work.

If you follow these tips, you will confidently get to closing. For more tips on how to successfully sell a fixer-upper, call or email me. I’m happy to be your real estate consultant!