If you know that your property needs a serious amount of work to make it a safe, comfortable and appealing place to live, putting it on the market can be worrying. Will anyone be interested? Will you be forced to sell for less than you can afford to accept?
There may be any number of reasons why a property falls into disrepair — a lack of budget, ill-health or perhaps you’ve inherited a house that has been standing empty for some time.
There’s a buyer for every property, whether it’s a detached dwelling, an apartment, or a couple of narrow block homes. The location or condition doesn’t matter. You just need to know how to attract them.
Think about Your Ideal Buyer
Any successful salesperson will tell you that the key to clinching the deal is to understand the target audience.
What kind of buyer is most likely to be attracted to your property?
Investors are always on the lookout for properties they can “flip” — fix up and sell on for a profit. They won’t care that there are major repairs to undertake, in fact, the more work there is to do the more value they can add to your home before selling it. This type of buyer will try to drive you down on price — the more they pay for the property the smaller their profit margin will be. Get your house valued by at least three estate agents before accepting an offer. A good agent should also be able to give you an idea of how much the property would be worth once the necessary works have been completed. This knowledge will put you in a stronger negotiating position.
Buyers on a budget who want to move to a more desirable area or upsize may be interested in a fixer-upper. The cost of buying a property that requires a lot of work is often less than buying a turnkey home that you can walk straight into, even when the renovation costs are accounted for. The appeal of your home to this type of buyer will depend on the nature and extent of the repairs required — can they complete the work themselves? Do the renovation costs make it more economical to buy your home instead of a property in perfect condition?
If the property is in a highly sought-after area where demand outstrips supply, you might be inundated with offers from eager buyers who are willing to buy a property in any condition as long as it’s in their dream location.
Tips for Selling Your House
There are several steps you can take to boost your chances of Selling a house with foundation problems to the right target buyers.
- Make Minor Improvements
Even if you lack the time, budget or motivation to carry out major renovation work, completing minor repairs and improving the presentation of your home will help buyers to see its potential.
Anything that adds kerb appeal, such as painting the front door or tidying up the garden, will help give a positive first impression. If any small DIY jobs need doing, such as mending dripping taps or broken curtain rails, these quick wins could boost your chances of selling — your buyer already has plenty of work to do, why not check a few items off the list for them?
- Be Honest
There’s no point concealing the truth or misleading a potential buyer about the amount of work that needs to be done. Major issues with the house will be obvious, and anything that is not easy to detect during a viewing will probably be picked up in the survey.
Be open and honest about any repairs and renovations that need completing. Flagging these issues will also highlight the potential for improvement and add value to the property.
- Set a Realistic Asking Price
Invite two or three estate agents to value your property. There are also plenty of free online resources to help you get a good idea of how much your home is worth. Check out how much similar properties have sold for in your local area. Get estimates for the work required and factor this in to your final asking price.
Bear in mind that buyers who are interested in a fixer-upper will probably drive a hard bargain. They’re either investors seeking to maximise their profit or buyers on a limited budget.
- Sell off-Market
Does the thought of hosting endless viewings and waiting months for the right buyer to come along fill you with dread? Do you shudder at the thought of having to haggle over the price and endure further negotiations if the survey throws up any surprises? If so, consider selling off-market to a cash buyer. A house buying company will have the funds to buy your property almost immediately, regardless of its condition. It’s the only way to get a guaranteed sale, and if you’re in a hurry, it’s the best route to a quick house sale.
- Be Prepared
Whichever selling route you choose to take, gather all the information your buyer is likely to want as soon as you decide to sell. Do you have quotes for the work required? Have you had plans drawn up? In addition to any documents relating to the renovations, all sellers need to provide certain documentation to the buyer, such as an Energy Performance Certificate (EPC) and the title deeds.
Having all this information to hand will allow you to discuss the potential of the property during viewings or when you approach a buying company.
Selling a house that needs major repair work can seem daunting, and it may require a little extra effort. However, it’s certainly not impossible. By taking a few small steps to showcase the property’s potential or considering non-traditional sales routes, you could turn your run-down house into cash in the bank in no time.