While sometimes it makes the most sense to repair larger issues in a house before trying to sell, there are often financial or time circumstances that make this hard or impossible for the seller. Without doing the repairs, the asking price will have to be lowered, and large-scale issues can lead to problems acquiring loans and mortgages; however, there are ways around this problem.
Selling A House That Needs Expensive Repairs
- Figure out which repairs make the most sense, both financially and practically.
- Any repair that prevents “livability” will become problematic when trying to acquire mortgages and loans, so those repairs have the highest priority. If they can’t be fixed, you may be forced to rely on cash buys only.
- Any large repair that is needed will likely have its price rounded up, so any repairs that you are capable of doing yourself will end up saving you money.
- Know how to market your product.
- While you’ll have a hard time convincing a buyer that the fact that your house needs a new septic tank is a good thing, there are certain repairable items that are more customizable, and thus more appealing to buyers. For example, repair needs in the kitchen offer the opportunity for remodeling, which allows the buyer to customize the house to their own needs.
- Offer to pay half for certain repairs.
- Depending on your situation, it might be possible to offer to pay half of certain repairs. For example, a buyer might be more likely to pay a higher rate for the house if you’re willing to contribute half toward the new roof that is needed. They get their new roof and you get out of having to oversee/pay for the entire repair.
- Take care of the exterior/ front yard.
- Even if your house has certain problems, buyers like to know that the property has been taken care of. Focus on more affordable and aesthetic repairs to the front of the property, so that the first impression can reel in the buyer.
- Pay attention to the details and cheap fixes. While this won’t negate the fact that big repairs are needed, it will prevent the buyer from feeling like the repairs just keep accumulating.
- Focus on location.
- Even if your house needs major repairs, there are other selling points to focus on in your courting. Many people are willing to invest more money in houses that offer future value, either financial or lifestyle-related. Talk up any area perks, such as good schools, low property taxes, proximity to parks, raising property value, low-crime rate, etc.
While it certainly won’t make anything easier, it is entirely possible to sell a house that needs large-scale, expensive repairs, assuming you know how to do it. Focus on these principles for selling a house that needs repairs and make sure to be aware of all of your options. No matter what you do, the price of a house that needs repairs will have to be lower than one that doesn’t; however, by following this advice, you can maintain a higher asking price.