Read this guide to discover how to sell your property fast if it’s in need of repair.
Selling a house that needs repairs can be quite tricky.
Most normal buyers would pass your home up in an average sale.
So, where does that leave you?
All is not lost. You have options!
Options for Selling a House in Need of Repair
Here are a few options available for houses in need of repair for sale in the UK. Consider all these options very carefully as you strive to get the best value out of your home sale.
Work with an Estate Agent
First, you can sell it yourself without an estate agent, putting all the power in your hands regarding the asking price and giving you the flexibility to change it if you so desire to make a sale.
The second option is to go ahead and hire an estate agent to handle the sale of your home.
They are experts, so they can give you advice on how to manage the process and inform you if little tweaks might make your house more valuable.
Even if you choose to sell the home yourself, you can consult with an experienced estate agent.
This is a good option if you can’t do all the repairs needed on the home. However, the buyer you will attract will more than likely be a property investor looking for a complete renovation or refurbishment project.
Sell at Auction
The next option you have is to sell your house at auction.
They sell all sorts of different properties at auctions; however, you will be charged fees when you use an auction house.
One great value about an auction house is that the price can never go lower than what it’s initially set to; it can only go higher!
A reserve price needs to be set ahead of the auction. This is the minimum sale price, and the auctioneer cannot go below that pre-set number.
Be realistic when setting your reserve price.
If for whatever reason, the house has deteriorated, and it’s time to let it go, places called quick sale firms might buy your home for cash. You will get it sold rather quickly.
However, make sure to read everything they give you, so you know what they’re offering.
Sell the Home Yourself
If you backpedal and decide not to use an auction or estate agent to sell your home, then you can meet potential buyers yourself.
You will need to value the home yourself, take care of the viewings, and deal with solicitors.
You also need to be sure to advertise the home sale in the appropriate places to get the most out of your listing and reach more potential buyers.
Find a Cash Buyer
If you find that you can’t afford to make major repairs on your home but still need to sell your property, then you might want to consider finding a cash buyer. All legal fees will be included in the process, and it is more of a guarantee that the property will be taken off your hands in its current condition.
An estate agent can explain the process to you if you choose to find a cash buyer, so you know what to expect. It is a relatively simple and straightforward solution for selling your property, even when it is in need of major repair.
Should I Repair My House?
If your house is worn down to the point that it is derelict and has structural damage, it can be challenging to sell, so a quick sale firm would be your best bet unless you want to finance the repairs to try to get a better sale price.
Selling a rundown house is difficult, but it can be done.
Sometimes just small improvements such as fixing broken windows, painting the walls, and giving the entire house a good, thorough cleaning can raise the value of your home if there is no significant structural damage.
However, if your house has structural damage that has been left unfixed for some time, it may cost a large amount of money to fix to get the house structurally sound.
If you decide to sell it, you have to go through the house and make a checklist of everything that’s wrong with it and then have an appraiser give you estimates of what the house is worth even with the damages.
Sometimes selling it “as is” will be your best choice.
Your home may be on the market for a long time, but it’s okay if you have time to wait it out.
You Can Get a Better Price for Your Home
If your home is in a great location, even in severe disrepair, it will go for much more than a home that is not in a prime area.
The price of a home in a popular area will always go for more, so if you subtract the cost of the repairs from the going rate in your location, you’ll come to a good idea of a base price for your home.
Then, find an estate agent to help you with the house because if you sell it by yourself, you could be missing a significant opportunity to up your price.
The location of your home will always be a factor that you need to consider before selling.
When considering a buyer, it is essential to understand that there are criteria that you should look for.
One of them is to consider how the home will be financed.
The second is to assess the reliability of the buyer.
If they don’t seem to be serious about buying the home, then I wouldn’t count on them coming through to the end.
The last consideration is the reduction in the price of the home. If they make you a counteroffer, you must decide whether it is worth it.
One of the ways you can do this is to consider how much less the offer is versus the amount of work that the home will need. If it seems pretty equal and fair, then you may want to take the offer.
If their offer is too low, then the buyer will be making out better through the sale. You want to recover some share of the home’s price, especially if the structural damage is not that bad.
Make sure that you know what the problems are in the home, discount them off the price of the sale and offer the home at a reasonable price, but don’t cheat yourself.
The home and property still have value.
You deserve the asking price if you’ve given the fair value. Perhaps you can go a little lower for a quicker sale, but that’s solely up to you. For more information call Sell With Richard today.
How to Sell an Uninhabitable Home
If your home is unsafe to the point that it is uninhabitable, then your best bet is to get a quick buy firm to purchase your home.
This way, you will recover some money without having to pay any fees, and the burden of a derelict home is off of your shoulders.
This is the best choice for handling the home in this condition because the estate agent won’t even assist with an uninhabitable home, so you’re left to sell it on your own.
Old, breaking down homes sit on the market and deteriorate further until they must be torn down.
This is why it befits you to take care of the uninhabitable home before it gets to that point.
There are even citations for derelict homes.
Don’t waste time and end up owing fines or fees to the city because your home is an eyesore.
This situation may be stressful and selling your home to a quick buy firm may be in your best interest.
You don’t want to end up stuck with fines and worries over your home if you’ve waited too long.
Look deeply at the pros and cons of what to do with your home, and then take action so you can get your plan in the works.
You don’t want to be left to the point where you have to do something immediately or put yourself into trouble.
So, get the home sold as quickly as possible and make some money!
Save Money with DIY Home Repair
If the repairs aren’t too extensive, you can consider some DIY work to save money. This includes a fresh coat of paint, new kitchen sink or counters, replacing broken cabinets or windows, and filling in holes.
However, if the work is far more extensive and you need repairs done on the plumbing, electric, or structure of the home, this is when you will need to call in the professionals.
Prioritise All Repairs
When it comes to the list of repairs needed to be done on a home before it can be sold, it is important to prioritise everything. Major work will take a long time to do which can put off the home sale.
Remember, to sell your home in need of repair in the UK, you want to make a good first impression. This means upping the curb appeal of your front garden, freshening up the paint, and making the home look loved.
If you can’t afford new carpets, try having the current carpet professionally cleaned. These are all small and relatively inexpensive repairs that can be done by the homeowner ahead of the sale of the house to get more money.
Selling the Home As Is
What if you decide you don’t want to deal with all the repairs, and you just want to sell the house as is?
Well, if you decide to go this route, then you also have to be prepared for offers that are significantly below the value of the house if you were to make those repairs.
Fixer upper homes don’t appeal to everyone.
Selling a home in disrepair means cutting down the buyer’s market you have access to.
The majority of potential home buyers are looking for turnkey options and newly refurbished homes that are far less work and aren’t as interested in fixer upper opportunities.
Have more questions about how to sell houses in need of repair in the UK? Read through our brief FAQ below for answers to some of the more commonly asked questions.
Do banks give loans for fixer upper homes?
Yes. A potential buyer can find multiple mortgage opportunities for a fixer upper home. Most of these home types are approximately 8% below the market value which means the buyer will pay less in property taxes. These taxes are calculated based on the home’s sale price.
Are the renovation costs on fixer upper homes realistic?
When you make repairs to a home before putting it up for sale, you can get a much better price for the home. So, it may be worthwhile to make the necessary repairs on the home to add value. Some garden upgrades and cosmetic improvements can make a significant difference.
Was the low offer made because the buyer would need to do structural work?
If you received a low offer on the home, then it could be because of structural work and other repairs that need to be done to improve the home’s value. After inspection, there are still some repair requests a buyer shouldn’t make.
If there are any issues with the electrical, plumbing, or heating systems, these are reasonable requests. However, small cosmetic issues, inexpensive repairs, and failed seals on windows, for example, are all examples of repair requests that should be avoided.
How long has your property been on the market?
If the home has been on the market for a long time and there have been no offers, then you may want to consider making more necessary repairs or reducing the price on the home.
Do local amenities get figured into a sale price?
As we have already mentioned, even if the home needs repair, you may still get more value out of it depending on the local amenities the area offers. Curb appeal also, of course, factors into the value of the home, as well.
Is the home within walking distance of amenities such as food and beverage establishments? Where are the closest transport links?
Are you selling a detached house? Have any modernisation projects been done to the home?
All of these can factor into the asking price of the home, even when repairs may still need to be made.