Tips to sell home by Property Expert Nicholas “Nick” Statman .
Sometimes the goal when purchasing an investment property is to invest time and money fixing it up, increasing the value, and selling it for profit. Some homes need minimal repairs, while others require a complete renovation. However, if you don’t have the time, energy, or resources to make these repairs, you may be considering selling your home “As-Is.”
There are many buyers out there looking for an affordable home that needs some work, and your property might be just what they’re looking for. Here are five tips for selling a home that needs repairs
Be transparent in your listing
There’s nothing sneaky or deceiving about selling your home as-is, as long as make it clear in your marketing campaign that that is your intention. Listing your house “as is” and disclosing all repairs or renovations that may need to be done will help attract the right type of buyer. A buyer may still request an inspection of the property, but you can let them know upfront that the results of the inspection will not change your mind about selling the house exactly as it is. You could always run an inspection report yourself and then disclose the findings with the interested buyer. Being honest and transparent about the condition of the home will save time and help narrow down your pool of qualified buyers
Put your efforts into the most important issues
Some investors take the “as is” distinction very seriously and put zero effort into the upkeep or maintenance of the home for sale. Others choose to focus on only the things that are in dire need of attention and would be considered deal breakers for a buyer, such as taking care of a mold problem or addressing a cracked foundation. While these may require capital upfront, they may open your pool of buyers. These could be things that are considered safety hazards, such as a malfunctioning power panel or leaking roof.
Invest in easy, but cost-effective upgrades
On the other side, you could invest in smaller, easier upgrades that change the aesthetics of your home. This could include cosmetic fixes, upgrading the garden, or sprucing up the exterior of your home. Small touches can make a big difference with buyers. Some easy-to-do upgrades that can improve the look and feel of your home include:
- Washing the carpets
- Replacing light fixtures
- Painting an accent wall in the living area
- Updating fixtures and finishes in the kitchen
Whether you decide to only focus on the big things, only focus on the small things, or not fix anything at all, it’s imperative that your intentions and expectations are clear from the start.
Showcase The Strengths
While your property may need some work, there are probably still some features of the home that are worth highlighting. If the kitchen is outdated, but the back garden is impressive, focus on the garden. If the house is older but has a unique vintage fireplace or charming exposed brick, focus on the features of the home that make it stand out. The property may need some work, but if you can help buyers see the potential instead of the problems, they’ll be more likely to make an offer.
Price It Right
Because this property needs some work, comparing it to other properties in the area is not a realistic pricing strategy. The buyers will expect a reduction in the price to make up for the money they will have to spend on repairs and renovations. You could start by figuring out how much the property would be worth if all the repairs were complete. Next, calculate how much all of the necessary repairs will cost and decide which ones you will be responsible for and which ones you will leave up to the buyer. Any upgrades you’re not willing to do yourself should be deducted from the value of the home. Keep in mind whether you’re selling a buyers market or seller’s market, and be realistic in your offer.
A well-loved home that needs some work is not a lost cause. You can sell a home that needs repairs if you market it correctly, are transparent and honest in your description, and are upfront about how much work you are (or aren’t) willing to do to sell.