Not every house that hits the market is sparkling to perfection, freshly remodeled, or brand new. According to a report from Freddie Mac, 38% of US homes were built before 1970. Therefore, if you are selling a house in poor condition, you must know some of the essential tips that can help you.
Moreover, selling a house in poor condition is a challenge that several real estate investors can face. It is because it is not easy to convince someone to buy a house with a leaky roof, dingy floor, potholed driveaway, cracked foundation, etc.
On the other hand, be aware if you are selling your house that requires some work to make it liveable and this often requires a good amount of funds, time, effort, and frustration too.
Three Different Phases Of A House In Poor Condition
It isn’t easy to sell a house as-is. Because the buyers may not like the current, poor condition of your old home, based on the condition of your house, you can categorize the house into three different types. Here are three distinct phases of a house in poor condition.
- Uninhabitable Houses.
- Visible Repair Required.
- Needs Updating.
An uninhabitable house has the poorest condition one can think of. Most uninhabitable houses have conditions such as-
- Damaged roof.
- Severe Electrical issues.
- Plumbing issues.
- Lead or asbestos.
- Black mold.
- Severe foundation issues.
- Chimney damage.
- Nonfunctioning HVAC, etc.
Visible Repair Required
A house in poor condition can be habitable, but it may require some repairs. Even in a fair condition, there may be some flaws visible, making a buyer not choose the house.
Here are some visible aspects that require immediate attention and repair before selling a house.-
- Electrical issues.
- Plumbing issues.
- Moderate roof damage.
- Significant wood rot.
- Damaged foundation.
- Outdated Kitchen.
- Bathroom Outdated.
- Malfunctioning HVAC, etc.
Poor-conditioned houses that need updating have higher chances of selling out before the other two categories. You can identify it by these below-mentioned conditions-
- Dirty Interior.
- Stained floor.
- The paint is peeling out.
- Dirty exterior, minimum wood rot.
- Backdated Bathrooms.
- Backdated kitchens.
- Outdated kitchen
Selling A House In A Poor Condition Comes With Basic Problems:
Moreover, selling a house in bad condition can often lead to problems such as:
- Delay after delay: If you selling your house in bad shape then be prepared for delay after delay. You need to wait for a longer period of time to make your task done properly. Also, the additional cost that requires lots of effort and hard work can make you frustrated.
- Realtor Reluctance: The properties which the real estate agents represent, charge a high commission from the seller. Therefore, if you are selling a house in poor condition then be ready for the agents to show some hesitancy about taking on your sale.
- Depreciated value: This is the most common problem that arises for the sellers if they are selling their house in a poor condition. Your house will end up in a weaker bargaining position if the quality of the house is low and needs some major work to make it liveable.
Some Tips If You Are Selling A House In Poor Condition:
If you are selling your house in poor condition then you must know some tips that can help you to make the most of it.
i). Be Patient:
Patience in business is very important for everyone. To sell a house in bad condition requires patience because it is very difficult to convince someone to buy a low-quality house.
It is true that real estate property buyers are many but low-quality house buyers are very limited and you need to understand this if you are doing the same.
ii). Concessions You Can Live With:
Selling a house to an investor can be different from the one who plans to live in the home, and is expected to be asked for some concessions.
The buyers can ask for some negotiation if you are selling a house in a bad condition. Therefore, you need to determine beforehand what kind of negotiation or concessions you are comfortable with.
iii). Price Smart:
This is the most important factor that you need to consider when selling your house in a poor condition i.e., pricing smartly. This gives you the correct value of your property.
On the other hand, if your house is in a good location and it doesn’t require much work then be ready to receive several offers. A good real estate agent will make your job done in the best possible way.
iv). Knock Out Easy Upgrades:
This is another vital tip that needs your attention. A fresh window screen, new landscaping, fresh coat of paint, etc., can add value to your property.
Reframe your poor condition home as much as possible and you can demand a little more from the buyer. Therefore, knocking out easy upgrades is important.
v). Highlight The Positives:
Highlighting the positives of your home is equally important when you are selling our house in a bad condition. If you are selling a house that is in a good location then it can add value to your investment.
It is obvious that everything has a good side as well as a bad side. So, highlight the positives of your home more than highlight the negative points.
The Final Thoughts
Therefore, the above-listed tips are very important if you are selling a house in poor condition. There are several investors who are willing to invest in real estate properties and this can be a great opportunity for you to sell your house to those investors with the help of the best real estate agent.