10 Tips For Selling Your Distressed Property
Selling a house in poor condition doesn’t have to be stressful. You might think that selling a distressed property will be difficult and time-consuming. In some cases, it is! However, with our top 10 expert tips for selling a distressed property, you will be able to sell quickly and for a fair price, and not loose as much money as you think!
Types of Houses in Poor Condition
When it comes to selling a house in poor condition, there is a scale of severity that you must consider before making your decision. The property you are trying to sell could have water or fire damage, mold and damp, leaking pipes, an unstable roof and foundations, a variety of code violations or be completely uninhabitable.
On the other hand, a property in poor condition could simply be outdated and only require a few small repairs such as peeling paint removal, stain removal and repairing fixtures.
Any of these factors could class the home as “poor condition” and impact the choices that are available to you when it comes to selling your property. When you want to sell a house in poor condition, you might find yourself at a dead end. Do you spend your money to try and renovate the property or do you sell it and risk being low-balled? Both options will impact the length of time it takes to sell your property, and the price you will get for it.
Pros and Cons of Selling a Distressed Property
There are pros and cons to both selling a house in poor condition and renovating it before you sell. You could renovate your home and change the price slightly, however, you would have to invest a lot of money, take a lot of time and make sure you don't make the property worse than before. Not many people realize, but renovations are not always quick and simple, and there are many mistakes that could be made.
If the property you wish to sell is in extremely poor condition, then this can amount to tens of thousands of dollars and several years worth of effort. The other option is to sell your house as is. Selling a house in poor condition is possible, as long as you know how. To help you on your journey, reduce stress and walk away with a good offer, here are our top tips to navigate selling a distressed property.
How to Sell a Property in Poor Condition
Tip #1: Avoid Costly Real Estate Agents
Selling your distressed property to a professional buyer such as CT Cash Homes, will save you time and money. Listing your house in poor condition in Connecticut can be expensive, and you will have no idea when it will sell. By selling it directly, you will be able to have your closing date of your choice and avoid the expensive commissions a real estate agent will charge you.
Tip #2: Spruce It Up
If your property needs major repairs or if it is going into foreclosure, you will likely want to sell it quickly, which can be hard when selling as is. Taking some small steps to make it visually appealing will help buyers see your home in poor condition in a more positive way. Clean up as much as possible and make any cosmetic fixes you can. You are not trying to hide the fact the property is in disrepair, instead, you want to showcase the property’s potential to help people see beyond its flaws.
Tip #3: Disclose Everything
When selling a house in poor condition, honesty is key. No matter what is wrong with the property, you need to be honest about it. By not letting people know about property defects, you could be setting yourself for a lawsuit down the road. Take the ethical approach. Buyers will appreciate your frankness.
Tip #4: Locate The Correct Buyer
Think about the people who are actively looking for distressed properties. If you try to sell your home in poor condition to someone looking to move in quickly, you will only waste the time of both parties. Market to investors and other buyers whom you think would have an interest in your house. It can help to join some local real estate or investment groups in your area. Selling a house in poor condition does have its advantages. There is a market of people looking for renovation projects, as well as cash buyers ready to snap them up, if you look in the right places.
Tip #5: Be Patient
There is not as large of a market for distressed properties as there is for move in ready homes. It might take a while to find a buyer. This can be frustrating when trying to sell within a specific timeframe. If time is an issue, your best bet will likely be selling it directly to an investor like CT Cash Homes. Patience is key when it comes to selling a property in poor condition.
Tip #6: Be Flexible
It is important to have an alternative plan just in case you are not able to sell the property in poor condition. Consider renting it out if you can or applying for a loan to help you with repairs. It is important to think about the alternatives so that you don’t find yourself foreclosed on.
Tip #7: Learn The Value Of Your Home
It is important to have realistic expectations when you put a house in poor condition on the market. You might think your house is worth a certain amount, but once you factor in the necessary repairs and upgrades it requires, the actual value of your property today might be much less than you had originally thought. Be realistic about what your house is worth in the condition it is in. Do not expect to get retail prices for a house that needs repairs.
If your house has been damaged by a fire, selling it might look slightly different. There can also be a variety of hidden costs and issues that you might not be aware of, for example, if the structure and integrity of the home has been compromised.
On the other hand, your property might be worth more than you anticipate. In some cases, sellers underestimate the value of their home just because they are selling it in poor condition, and do not get a fair price for their property. It is important to find a balance when valuing your home, and being honest with the condition. Do not underestimate its potential, especially if there are a range of features and benefits that come with property.
Tip #8: Paperwork Done Right
If you choose to sell the house in poor condition on your own, you will be responsible for taking care of all the paperwork. You will need to provide disclosure documents and the purchase sale agreement. Everything must be legal and meet the State of CT Regulations to protect yourself. This is even more important when selling a home in poor condition, as you need to ensure you disclose all the issues, especially if they are code violations and safety hazards. If you choose to sell CT Cash Homes then we will handle all the paperwork, so you will have one less thing to worry about.
Tip #9: Don’t Appear Desperate To Sell
People are going to try to come at you with low-ball offers. If you can, stand firm until you are able to get a fair and realistic offer on your house. You do not have to jump at the first offer unless this is your only choice. Just because your house is in poor condition, doesn’t mean you should undervalue it. CT Cash Homes always pay fair prices for houses, distressed or not.
Tip #10: Skip All The Stress
You can easily skip all the stress of selling your house in poor condition by choosing to work with a company that buys houses for cash, like us here at CT Cash Homes. We can offer you a fair price for your home, and you won't need to go through all the time and stress fixing it up to sell.
Contact us today for more information on how we can help you sell your distressed property.