How to Sell a Home with Problems
The decision to sell a home is often difficult. Sometimes, selling it becomes even more difficult when the house is a fixer-upper. However, selling a property with a few flaws isn't as hard as it might seem. You actually have a high chance of finding people willing to buy your house at a reasonable price. You just need to know what to do:
If you've inherited a house with a sibling and are wondering how to sell a home with problems, consider reaching out to a reputable real estate agency for guidance. With their help, you can navigate the process of selling an inherited property and come up with a solution that works for both you and your sibling.
Connecting with real estate investors
Real estate investors like rehabbers specialize in buying up old and possibly worn-out properties, fixing them, and selling them for a profit. They are your best bet because they'll gladly buy the problem property off your hands. Contrary to popular opinion, you're in an even better position when the market is in a downturn. These investors see a significant opportunity to flip the property for a profit.
Finding real estate investors isn't as difficult as you might think. Here are a few places where you can locate them:
Real estate investors' meetings
The most obvious place to find investors is at their meetings. Since you're not a member, you'll have to pay a small fee at the door. Try to network with the investors, and give out your business cards and flyers that contain information about the house.
The flyer should contain things like the location of the house, a picture of the property, the specific details of the property, and the asking price. If the price is enticing enough, you're going to generate a lot of interest.
Hosting an open house
The open house is an opportunity for you to show interested parties the features of the home. You can also use the open house to generate a sense of urgency among interested parties. The trick is to make sure that your guests know they aren't the only ones interested in the property. You can either invite them all to the open house or schedule one right after another.
Real estate development companies
Real estate development companies are the big players in the game. They often buy up blocks of property to remodel and either lease or sell. If you can get a real estate development company interested in your property, you've hit the gold mine. In addition to being on the lookout for opportunities, they also pay much more than individual investors. But then, the problem is always in locating them.
You can begin your search by going on social media and other online communities like Yelp. You can read up reviews and comments and identify interest persons. An open house is the best way to get them to view your property. If you're lucky and you get more than one interested party, even better. Scheduling them to arrive one after another can help you generate more interest and a sense of urgency in the parties. Not only will you be able to sell your problem property more quickly, but you'll also get a great price for it!
Having a quick sale auction
An auction sounds like something that requires significant time and financial investment. In truth, while there are expenses, they are less than you might expect them to be. You can follow the 5-day quick sale auction strategy to sell your home. Try to generate as much interest in the house as you can in five days. This includes informing interested parties and maybe printing a few flyers.
At the end of the fifth day, hold an open house. Attendees will have an opportunity to view the home. They will also see how much competition is surrounding the property. You'll find a silent auction much easier to host. Have a bid sheet in an open area containing the following fields:
- Contact information (phone number, address, email)
The five-day quick sale auction can help you unload a problem property in record time. Additionally, you'll get the highest available price, instead of settling for whatever an investor offers you.
Improving the property
This is usually the most obvious option if you want to get the most value for your money. However, because of financial constraints, this may not be your first consideration. Making the house more appealing ensures that more people will be interested in it. It can also increase the property's asking price. Improving your property doesn't have to be an expensive undertaking. You can make little improvements that add up to a big difference like the following:
Declutter the house.
Removing clutter from around the house is one of the first steps in preparing for an open house. It may be a little more difficult if you're still living in the home. The attendees need to view the house without any obstructions. Remove unnecessary items from around the passage and under the sink. Also, do some basic cleaning.
Pay attention to the curb.
The curb is one of the first things people see when they approach a house, and so, it's where you should begin. But then, be careful not to improve the property too much, so you don't scare away buyers who are looking for a bargain. Small improvements, like keeping the lawn tidy and planting beautiful flowers, can make a lot of difference.
Get rid of any offensive odors.
If you're selling a house that has mold problems, you'll need to take care of the smell. Even though prospective buyers know that the house is a fixer-upper, eliminating offensive odors still makes a difference. You can't sell it if no one can stay in the home for five minutes. The solution can be as inexpensive as lighting a few candles or hanging air fresheners, or as detailed as getting rid of the mold.
The bottom line
All the other points on this list are to improve your chances of selling the house. However, the most important factor will always be the price. Since you're selling a house with problems, you have to keep the price reasonable. Understand that people who buy problem homes are looking for a bargain. Price it too steeply, and you'll scare them off.
Connecting the real estate developers and investors can also help you sell the house quickly. An effective strategy is to generate interest and a sense of urgency. You can also hold an auction that forces people to face other interested parties and make commitments. Several people have sold homes with problems, and if you use these tips, you'll sell yours in no time.