How to Sell a House in Poor Condition

Tips and tricks to sell your property without making renovations

If you want to sell a house in poor condition is not every seller’s first instinct, but there are some benefits to selling a house without renovating it. Depending on what you are trying to get out of selling a house, selling it without renovating, or selling it “as-is,” may be the best option for you. This article will discuss the pros and cons of selling a house in poor condition, as well as some tips and tricks for getting the most out of an as-is home sale. As always, if you want professional guidance as you navigate the process of selling your house, Everlasting Home Solutions is here to help. 

Selling a House in Poor Condition

Selling a house in poor condition is not always easy, but it can have its benefits. One of the things that can make the sale of a house in poor condition difficult is the broad range of issues that the house may have. On the one hand, a house may only have cosmetic issues, which are easily remedied and should not deter potential buyers too much. On the other hand, broad structural damage or plumbing and wiring issues may scare potential buyers away. The best thing you can do when preparing to sell a house in poor condition is to get it inspected before you put it on the market. This will allow you to know exactly what the concerns are with the condition of the house, so you can strategically plan what you are going to do going forward. 

Work with Professionals

When selling a house in poor condition, it is best to get in contact with professionals. If you have never sold a house before, let alone one in bad condition, it is important to get expert opinions and assistance so you can get the most out of the sale. Experienced professionals know what buyers are looking for, and how to make sure you get a fair return on your investment. Here at Everlasting Home Solutions, we always put our clients first. If you are looking to sell your house as-is or in poor condition, reaching out to us is a great first step. We are able to assist you with all aspects of the process, from marketing to pricing to selling. 

Get the House Inspected

Another important thing, as mentioned earlier, is getting the house inspected. This will help you understand what parts of the house are in poor condition and in need of repair. Potential buyers will want to know what they are getting into by buying the house. In Massachusetts, sellers are required by law to answer truthfully when prospective buyers ask questions about a property. This means that if a potential buyer asks, for example, if the foundation is stable, you have to tell them if it has any damage. 

Know Your Buyer-Base

What type of buyers you target is also crucial. Not all buyers are keen to purchase a house they will have to renovate extensively. However, the good news is, this is exactly what other buyers may be looking for. When selling a house in poor condition, targeting buyers looking for a house they can move into immediately is not worth your time. Instead, you should look for buyers who readily seek out homes that need some work done. House flippers typically look for these kinds of properties because they want to renovate them for resale. You can also try to market the house to people who want to renovate a house into their dream home. These types of buyers go into buying a house with the intention of renovating the house to their liking, so it may be useful to market the house as a kind of blank slate which they can alter to their liking. 

Price the House Strategically

Deciding how much you want to list a house for can be challenging. With houses in poor condition, you want to try to find a good middle ground price which still allows for a fair return on investment. Pricing a house too high will deter potential buyers, especially considering the condition of the property. Pricing a house too low may cause you to lose out on potential profit. One of the most important things to consider when pricing a house is how much repairs to the house will cost. If you are choosing to sell a damaged house as-is, buyers will factor the cost of repairs into how much they are willing to pay for the house. If the damage  is extensive, buyers will not hesitate to talk down the price. The best way to decide how to price your house is to reach out to a professional, as they know the buying and selling market better than the average person does. 

Stage the House

The easiest way to improve your chances of selling a house in bad condition is to stage the house before you show it to the buyer. Staging sounds fancy, but it is actually very simple. Staging a house means that you improve its appearance to be more attractive to the buyer. This could mean rearranging the furniture, deep cleaning the whole house, and making minor improvements, like repainting, or making the yard more presentable. You want to make a positive first impression of the house for the buyer. It can be as simple as clearing off the sidewalk and mowing the lawn. Showing a buyer a dirty or unkempt house, in addition to it being damaged, is not likely to make the house appealing. 

Know the House’s Strengths when you want to Sell a House in Poor Condition

The condition of a home is not the only factor buyers consider when choosing a house to buy. The location of the house, the surrounding neighborhood, the town culture, and the distance from the buyer’s place of work are also big factors. Things as little as what grocery stores are nearby, and how close the house is to a major city are benefits you should mention. Emphasizing the positive qualities of choosing a house to the buyer despite the house’s poor condition can be the difference between making a sale and losing a sale. 

How to Sell a House in Poor Condition Overview

1. Work with professionals: they know the best way to maximize your return on investment, and they make the process run smoothly. 
2. Get the house inspected: the first step to selling a house in poor condition is what exactly is wrong with it. 
3. Know your buyer-base: target buyers who do not mind renovating, and who actively seek houses in less than perfect condition. 
4. Price the house strategically: find a good middle-ground price to list the house at. 
5. Stage the House: perception is reality, and if the house looks good, the buyer will feel better about buying it. 
6. Know the house’s strengths: what are the redeeming qualities of the house? SIze? School district? Proximity to major cities? Cost of living in the area? Let the buyer know what the benefits are of choosing to buy your house!

Structural Damage 

Structural damage is one of the more serious issues that a house may have, especially when it must be fixed before the house is habitable. Small cosmetic issues and minor repairs are not a huge concern, and can often be fixed up rather quickly and inexpensively before a house is sold. Repairing structural damage is a different story. A house with a damaged roof, foundation, or weather damage is not as easy to repair. These issues require more time, money, and involvement from the seller to be reconciled. Renovation and repairs may raise the value of the home, but costs add up quickly. If you as a seller are not interested in undertaking the process of renovating and repairing a whole house, selling the house in poor condition may be a good option for you. 

As mentioned above, if a buyer asks about the condition of the house, you are required by law in Massachusetts to disclose any issues it has truthfully. While it may seem like a bad idea to let buyers know everything wrong with a house, it is better for everyone to be transparent. Being honest with a potential buyer establishes trust, and creates a good seller-buyer relationship. 

Pros and Cons of Selling a House in Poor Condition

Pros: 

1. Speed: Selling a house without making renovations is a quicker and simpler option than renovation before selling. 
2. Costs: Renovating a house can be expensive and risky. While it is possible to get more money after renovation, if you don’t have money to renovate to begin with, it can be financially challenging. 
3. Distance: If the house you are trying to sell is far away from where you live, it can become a burden to travel to check up on renovations. Selling without renovating is easier for those in this situation. 
4. Buyers: Some types of buyers (house flippers, avid renovators) will be attracted to the house. 

Cons: 

1. Buyers: Not all buyers are keen to buy a fixer-upper house. Be sure to market the house to the right type of buyer. 
2. Mortgage complications: if the house is in a major state of disrepair, lenders may not be willing to let it be mortgaged, deterring some potential buyers who planned on taking out loans. 
3. “Low-Ball” Offers: Buyers may try to talk the price of the house down significantly, justifying it by mentioning the damage. 

Summary

Selling a house in poor condition comes with its challenges, but also some unique upsides. It is easier, faster, and less expensive than going through the process of renovating a house, especially if you do not have the time and resources to pour into renovations. 

At the end of the day, there are pros and cons that come with everything when it comes to real estate. The best thing you can do is work with professionals, to make sure you are getting the most out of the sale of your house, especially if it is in poor condition. Experts know the housing market climate, what kind of buyers to seek out, and how to make the house as appealing as possible. Everlasting Home Solutions is here to help you sell your house, regardless of its condition, and do so in a way where you can reap as many benefits as possible.

If you’re looking for help selling your home in poor condition, contact us and we’ll help you with your options.