Selling A House That Needs Repairs
Have you ever seen the program Grand Designs? The concept is quite simple. The cameras follow someone has they embark on a project either to completely renovate a property and sell it on or to live there themselves. Rarely do the projects ever go to plan, budget or time frame.
It’s easy to see when you watch this program why selling a house that needs work might be a better option. But how do you claw back anymore you have already invested or go about selling a house in poor condition?
Here’s all about selling a house that needs work.
1. Cost It Up
First of all, you need to figure out how much you spent on the property to purchase it compared to how much money you have already spent on works. This way you can start to establish how much of a profit you can make or if you think you can make one at all.
To do this make a list of everything you have spent on the house as well as the price you spent on the house itself.
But you also need to clearly define how much extra needs to be spent on the house to make it an acceptable place to live. This will determine the asking price and the price that you could sell it for.
If maths is not your strong point then you can be sure to ask a friend to help you add everything up.
But it might be that you have not spent any money on the property at all because you have inherited it. If this is the case then be sure to get a lawyer to help you to factor in any inheritance tax you might have to pay.
2. Market It Right
Marketing the property right is vitally important. Remember that you are not marketing a property as if it a building site or a half-finished property. What you are marketing is a vision of what the property could be in the future with a little bit of work.
See if you can get some mock-up designs done for you that show potential buyers what it would look like when finished and how much this will cost.
Think about your target audience. Are you targeting first-time buyers trying to get on the property ladder? If so make the process of doing up the house look relatively straight forward? Remember those in their 20s have to work harder to get their first house so they are bound to be more picky.
If they are a couple then try to envision how it might look for them as their first home, a place that they could start a family.
In terms of marketing see if you can market the property on specific websites for people doing up houses or on Facebook pages as well as traditional estate agents.
This way you are targeting the right customers and not people looking to buy a house that is ready to move in.
Remember you could also target construction companies as well as individuals. They would have the budget and knowledge to transform the house.
3. Consider Lowing the Asking Price If No One Is Biting
This is a key issue. Knowing what the asking price should be is difficult. You can get some idea by having the house inspected by estate agents. But they can often give you different prices.
Do your research and see what other similar houses in the area have gone for and how much work they needed to bring them up to scratch.
It’s usually best to start with a relatively high asking price and to make your way down if you don’t receive any offers. If you are having lots of viewings but no one is biting be sure to ask the advice of those who didn’t go through with the sale. Ask them why they didn’t buy it.
If all of them are saying because the price was too high then consider lowing it. Have a strategy in place as to what your timetable will be in terms of lower the price and be sure to read our top tips on how to sell a house fast. If time is no issue to you then you can wait until the price is right and houses do go up in value over the years.
However, if you hang on to the house remember you still might have to pay taxes and bills. If you’re out of town for a while then you may need to pay someone to keep an eye on it or even to sleep there to ensure squatters or vandals don’t break in and the property falls into disrepair.
Selling a House That Needs Work: Do Your Research, Have a Plan and Ask For Help
When selling a house that needs work it’s important to have a vision. Ok so maybe your house isn’t worth $18.5 million like Cheryl Tieg’s. But you must have an idea of who is going to buy the house, what they could do with it and a rough budget that they might wish to spend.
This way people aren’t buying a half-finished house they are buying a vision of their future. Remember to consider lowing the asking price after a while if no one is interested but have a clear plan in place as to when you are going to do this if you need a quick sale.
Also, be clear that if you have been left a property in a will you do not have to complete this process on your own. Some agencies can help as well as family and friends to make sure you make the right decision and get a good deal.
If you are interested in reading more about our house buying service be sure to click here to get a cash offer today.