Selling a House In Poor Condition - [ Top 5 Tip's ]
July 12, 2020
How to Sell Your Rundown Home Without Making Repairs
Sell Your Rundown Home Without Making Repairs. Many homeowners find themselves in a bind after owning their home for many years. They might underestimate maintenance costs, or see a drastic change in their income that prevents them from making repairs. Although you can go along like this for many years, if you need to sell your home this can lead to some serious challenges. How to sell my house quickly for a good price, even when homeowners with homes in good condition sell, their goal is to make their homes appeal to the average buyer.
As a result, there are very few homeowners who can put their homes on the market without doing some “staging” to make their home more presentable. However, for homes that have become rundown, the costs to make even the simplest repairs might become overwhelming. The question is, can you sell your rundown home without making repairs? The answer is yes, and no. Here’s everything you need to know about how to sell a house that needs repairs with less money invested in fixing and more money going into your bank account.
The Common Deal Breakers for Fixer-Uppers
You’ve seen the TV shows and know there are people out there looking for people wanting to sell a house as-is. The better your neighborhood, the more potential your little fixer-upper has for the buyer who can overlook imperfections. Your challenge is trying to find them. Also, there are some repairs and imperfections that will almost always turn out to be deal-breakers including:
Complete roof replacements
Windows in need of replacement
Broken water heater/furnace/AC
Signs of leaks
Mold and water damage
Outdated décor throughout the entire home
Extremely outdated kitchens and bathrooms
While you might find a buyer willing to overlook a few of these red flags such as outdated décor, the need to gut the kitchen or even replacing the roof, most buyers will run from a home with even just one of these deal breakers on the list. The bottom line is, when you have too many repairs, you’ll need to fix most of them, or you’ll never sell your home.
Why Your Home Won’t Sell
Most buyers are unwilling to take on a home in disrepair. They don’t want to deal with the hassle, and they also don’t want to invest in what might turn into a money pit. There are very few buyers who will buy a home without an inspection. Even if they do decide to do so, you have to disclose all known issues by law when you sell a house as-is.
This brings you back to square one, where your list of deal breakers outweighs the lower price a buyer might pay for your rundown home. Therefore, you’re looking at footing the bill to make repairs and replacements that will bring your home up to snuff. But is this the right thing to do?
Why Investing in Repairs is Not Always Best
In some cases investing in repairs and upgrades will work. However, the reason you’re in this position is because you haven’t had the cash to maintain your home. Investing in repairs is extremely costly and, in some cases, you might have access to equity built in your home. You can consider accessing this equity, as long as you’re not facing the following scenarios:
You need access to your home equity to pay off debt
You need a quick home sale
You have health issues and can’t stay in your home
You have used up all the equity in your home
Your available equity won’t cover the costs of your repairs
In these situations, making repairs isn’t an option. As well, you need to ensure the investments you make in repairs will provide the best possible return on investment (ROI). The 2020 cost-to-value report shows that there is a decrease in return on investment in America at just 63.7 percent. How will you know where to invest, if your home has a long list of issues?
How to Get the Best ROI
If you do have access to the equity in your home, you need to invest to get the best return on your upgrades and repairs. As mentioned, Americans are seeing less and less for the investments they make in upgrades. According to Remodeling Magazine’s report, the top five upgrades that give you the best bang for your buck are:
Manufactured Stone Veneer: Average investment $9,357, average return 95.6 percent
Garage Door Replacement: Average investment $3,695, average return 94.5%
Minor Kitchen Remodel: Average investment $23,452, average return 77.6%
Siding Replacement: Average investment between $14,359 to $17, 008 depending on the style, average return from 74.7 to 77.6 percent $17,008
Vinyl Window Replacement: Average investment $17,641, average return 72.3 percent
As you can see, you need some serious money invested, and your home might not need these types of upgrades or repairs. When looking back at our list of deal-breakers, your ROI actually drops quite a bit. For example, a new roof only averages 65.9 percent. This means you are looking at losses even if you take the time and money to make the necessary repairs.
How to Sell Without Investing in Costly Repairs
When you sell a house as-is, you avoid the stress of dealing with repairs. The buyers manage everything for you. You have one visit to provide an onsite assessment at which time you’ll receive your final offer. All related closing costs are considered, so the amount offered is the final amount transferred to your bank account. Whether you want a quick move, or require a few months to find a new home, you can negotiate with the investor to make the sale work to meet your needs.
The process couldn’t be easier. The sale is made, and you’ll find yourself in a healthier financial situation that allows you to get back on your feet. If it wasn’t as much about the cash as it is as trying to move on to the next stage of your life, you can do so quickly and stress-free.
Need to sell your rundown house fast? Repairs can add up and keep your house from getting on the market. And once it’s on the market, you can’t guarantee how fast it will close. The experts at Property Investment Group specialize in quick home sales for cash. No matter what condition your home is in, we’re here to help.
Simply visit our website to complete our form for an instant estimate, or give us a call and speak to our team. We’ll send someone out to make an assessment and provide a fair offer on the spot. Call for a free consultation today.