Selling a Problem Home in Need of Repair
While we would all like our homes to be in perfect condition, this is often far from the truth. For most owners wishing to sell their home, it is common that a lick of paint or some low level DIY be required, but an unfortunate few may have bigger issues with their property, possibly structural, which can potentially cost the seller thousands to repairs in order to bring the property up to a saleable standard.
A common situation is for the property owner to have inherited a property, which may not be in a saleable condition.
In a buyers market such as this, there will likely be fewer prepared to take on a property in need of repair. In a sellers market, there will be more on the lookout for a bargain property, one which they can buy, makeover, and sell for a profit (known as ‘flipping’). In a buyers market, there will be less willing to take the risk of buying one of these properties and may rather buy a property in pristine condition. This leaves the owner to face the cost of repair or not sell at all.
Many professional property developers who previously would have been able to make an offer for this type of property have now left or will only buy property that is in a near perfect condition, as these are a safer investment.
The seller may choose to market their property in such a way as to appeal specifically to those buyers who are looking for a DIY project. Sellers may enjoy success with this option, but caution should be exercised and ideally advice sought from a professional.
If the home owner chooses to try repair and amend any issues, they may face a secondary problem of raising the funds necessary to complete the work. Banks may be unwilling to lend if credit history is poor. Structural issues may deteriorate if left, meaning the repair cost would increase if not attended to or a buyer not found quickly.
What’s a home seller to do when they want to sell their home but it needs repair?
One solution many sellers do not realise exist is that there are companies that specialise in buying precisely these kinds of properties. These property investors will normally offer to buy any residential property, regardless of its condition, and pay the owner a cash sum in a very short time frame, typically within a fortnight.
Naturally, the seller will be offered a price that reflects the condition of their property as the company will need bring the property up to a good enough condition so either they can sell it themselves or offer it out to rent.
The biggest advantages to the seller is knowing that a sale is guaranteed, in a very short time, and that all the usual hassle of selling a home such as legal fees are entirely taken care of by the property buyer.