When you buy a house, you often have dreams of fixing it up and making it into your dream home. But it doesn’t always work out that way.
Sometimes, you need to sell that house and move onto another. If there are repairs to make, you can’t always get them done before selling.
If you’re trying to sell your house and don’t want to fork out for repairs, there are ways to do that. Here, we’ll be going through the steps you need to take so you can sell a house as is.
Sell a House as Is: What to Do
There are a lot of houses on the market which have their own issues. If yours needs a lot of repair work before it becomes liveable, you can still sell it.
There are three real options you have when it comes to selling your house. First is to get your house completely remodeled. This is the most expensive and time-consuming option, but it will result in a higher sale price.
Another option is to only make the most essential repairs on the house. This requires some elbow grease and out of pocket expenses, but the sale price should be a little higher.
If you’re reading this, you already know you want to sell your house as is. Before taking this step, there are a few things to bear in mind.
Selling a House That Needs Work
When you sell your house as it is, you have to first let any potential buyer know about the faults. The housing inspector will tell them anyway, so full transparency will go a long way.
The other houses nearby may have a similar market price. But if yours is in need of extensive repairs, it will be worth much less. This is important to remember, as you can’t expect your buyer to pay over the odds for a house that needs lots of work.
The buyer must have a lower price as they’ll have to make the repairs themselves. Why would they buy your house – which needs work done – when they could buy one without repairs for the same price?
Follow these five steps to speed up the selling process:
1. Know Your Buyer
The people who choose to buy a fixer-upper will be on the look for potential in the house. They’re looking to invest time and money into the house to make it look the way they want it to.
There are three kinds of buyers who go for houses which need fixing up. These are known as house flippers, deal hunters, and remodelers.
House flippers are buyers who buy a house to fix it up and make a big profit. They want to buy your house cheap so they have more to spend on fixing it up and selling it.
Deal hunters are buyers who are looking for a house in your area. Or they are looking for a house like yours with sought-after features. They’re willing to compromise for a cheaper house that needs work to get what they want.
Remodelers are buyers who purchase houses that need work so that they can turn it into their dream home. They may have found the dream location, but not the dream house. If they buy your house, it will become their passion project.
If your home is in a sought after neighborhood, this may work to your advantage. People who have waited to find a place there may take any repair issues on board. If the right deal is made, it’s a win-win situation for all parties involved.
2. Get It Cleaned Up
Even though you’re not the one doing the repair work, it doesn’t mean you shouldn’t give it a tidy. Landscaping is one of the best things you can do to make a good first impression.
Make sure to fix up the gardens to give it a delightful outer appearance. This will make a great first impression on any potential buyer. If you have an entirely concrete or dirt yard, add some gravel. It cleans the area up and makes it much more approachable and attractive.
You don’t need to hire an expensive landscaper. You only need to take care of the little things. Start by mowing the lawn, pulling the weeds and placing some plant pots; it can make a huge difference in the way the house looks.
The inside of the house is very important too. Get rid of any mess and clutter. A cluttered house shows that there aren’t good storage options, which can drive a potential buyer away.
95 percent of potential buyers will go to the windows right away to check out the views. Clean the windows and sills well to give the best impression.
Getting the house clean is a small but effective step to making it presentable.
3. Highlight the Best Features
Your house will have some amazing features, so let the buyer know about them.
Does the house have a great floor plan? Are there original fixtures? You should highlight any unique and useful features to the potential buyer.
Fireplaces, a patio, storage spaces, and amazing views are all a great selling point. They all matter to the buyer and can make the place sell a lot easier.
Showing off quality storage spaces is essential when trying to make a sale. Most potential buyers will take a detailed inspection of the storage spaces in the house. This also means keeping them clean and organized.
If a potential buyer looks at a storage space with stuff crammed into it, they won’t get a great impression.
It’s not only the stuff in the house that matters, it’s the location of the house as well. If the house is in a popular neighborhood, make sure to highlight it. Mention public transport links, reputable schools, and the distance between stores and restaurants.
People don’t only want a great house, but they want a great area to live in too.
4. Sweat the Small Stuff
Even though you’re not doing the big repair work, you can still fix up the little things. This won’t cost you too much time or money and it can make a big difference.
We aren’t talking about making any huge renovations. Cosmetic repairs are all that’s needed to make your place look better to any potential buyers.
Start by patching up any holes in the walls or ceilings. Do a deep clean of the toilets or shower/bathtubs. Any leaky pipes need to get fixed as soon as possible.
Broken doors and hinges must get fixed too. Replacing doorknobs isn’t expensive, and you don’t need to be an expert to do it.
Replace the grouting and clean the carpet. It gives the house a fresher feel and makes it more appealing.
These are small but very effective ways of improving your house. It gives the buyer less work to do and make the house look much better for the viewings.
5. The Price Is Right
You aren’t trying to dress your house up as something else. Your buyer needs to know that there’s a lot of work to do and what it entails. Because of this, you can’t overprice the property.
If you need to calculate how much the house should sell for, get your realtor to help you. Together, you can work out how much your home would be worth if you had remodeled it.
Calculate the costs of renovations needed to get the house up to scratch. Then, remove these costs from the total price to get the realistic price of the house
It will be the buyer making these renovations, not you. Take off these costs from the house to cover what the buyer will be absorbing in expenses.
Something that can help you sell is to mention renovation loans in your house listing. With this information, buyers factor in the cost of renovation along with their budget. It means that buyers can get approved for a higher loan amount for the house.
Renovation loans release money in separate batches. This aids with renovation work and means buyers don’t need to pay in a large lump sum.
Everything You Need to Know to Sell a House as Is
You don’t need to fork out thousands of dollars to sell your home if it needs repairs. You may need to take care of little repairs and cosmetic details, but they don’t cost much.
With a little bit of work, you can sell a house as is. Even though you aren’t doing the repairs yourself, it doesn’t mean potential buyers won’t do it.
Did you find this article helpful? Check out our blog for more real estate advice on selling and buying your next house!