It can be difficult to put your house on the market without spending a lot of money on upgrades when it needs a lot of them. It’s easy to feel like the ugly duckling on the block when it’s time to sell for one reason or another, the old house with the old floors, the terrible yard, the broken this, and the broken that. But, let’s face it, not everyone has the time or financial resources to renovate their fixer-upper. That’s why tips to sell a fixer-upper are important.

The good news is that selling a house that needs maintenance for a reasonable price isn’t impossible, and it doesn’t require extensive repairs. In fact, doing a lot of work on a property isn’t necessarily a good idea. It’s possible that you won’t need to replace the flooring or enhance the worktops and cabinets. At this stage in the market, I would advise against it. The chances are that the new buyer will come in and change it. If you put carpet in there, they’ll want hardwood.

It’s not about attempting to make a fixer-upper appear great when it comes to selling it. It’s all about selling on the positive aspects of the property, such as the floor layout and the possible dream home that lies under the defects. You’re ok as long as there are no structural or safety issues to be concerned about.

How to Sell a Fixer Upper:

Learn as much as you can about the buyers you’ll be dealing with. Who are you planning to sell your fixer-upper to? An investor? Are they a bargain hunter?
Clear up any outside debris and improve the curb appeal of your front yard.
Make a few little changes around the house (fix broken doors, caulking, etc.).
Learn about renovation financing for yourself (and potential purchasers).
Emphasize the wonderful elements that already exist in your property.
Make sure the house is priced correctly.

First, Get To Know Your Buyer Pool

Unlike buyers who just desire a turnkey house, fixer-upper purchasers prioritize potential over perfection. They’re willing to put effort into a property in order to make money, establish equity, or to have complete control over the design. We’re not going to try to deceive you into thinking that everyone enjoys a fixer-upper. They aren’t suitable for everyone. There are three categories of buyers, however, who are ready to take the risk and roll up their sleeves to update and restore their homes.

Marketing To Flippers

Home flippers and investors are the most visible. They buy houses for cheap (typically at auctions), renovate them, and then try to resell them for a profit. The best aspect is that they’ll look at your house’s issues through the lens of opportunity.

If you want to sell your house to a flipper, make sure you perform one of the following first:

Make an appointment with a real estate professional to determine the value of your home. For a more accurate price picture, an agent can conduct a comparative market analysis (CMA) of previously sold properties that are similar in size, location, and condition to yours. You’ll be able to tell if you’re being lowballed and walk away before it’s too late.
Alternatively, run your address through our Simple Sale platform, which is the country’s largest network of cash home purchasers. We’ll gather a few details about your home and reach out to potential purchasers on your behalf with Simple Sale. We’ll make you a cash offer and an estimate of what you might likely sell for on the open market so you have a good starting point.

Flippers prefer low-cost items, but it doesn’t mean you have to accept if they don’t make a fair offer. Remember that just because your house requires repairs doesn’t mean you’re in dire straits.

Deal Hunters Are Your Target

The buyer who wants to live in a certain location, neighborhood, or part of town but cannot afford the average list prices in those locations comes next. Buying a fixer-upper is their ticket into those desirable communities for them. They’re willing to put money into a property that requires work simply because of its location on a map.

While some individuals simply desire turn-key homes, the deal hunter is willing to purchase the ugly duckling for two reasons. First and foremost, they are relieved to have found something affordable in the desired location. Second, they recognize that by purchasing a fixer-upper, they will be able to make improvements over time and generate equity.

Remodelers make up your potential buyers

The third sort of homebuyer is someone who has the cash but hasn’t been able to find a property in their preferred neighborhood with the qualities they desire. It’s not because they haven’t discovered it. They’ve most likely discovered their ideal home multiple times, only to have it snatched from beneath them each time.

There is a lot of competition in desirable neighborhoods. People wait months for a house to become available in a community that sells within hours. Being able to break free from the box where everyone is waiting for a listing to appear means being able to control your own future. Buying a fixer-upper gives purchasers a blank canvas and the opportunity to design the home they’ve been looking for but can’t seem to find, or have found but keep getting outbid on. These buyers are great if you are trying to sell a fixer upper.

How To Sell A Fixer Upper

Now that you know a bit more about your prospective buyers, you can use some basic tactics to make your home more appealing to them. If you can figure out what interests them and what turns them off, you’ll be well on your way to selling your home. Begin with a few easy-to-complete projects that are also cost-effective.

1. De-clutter the yard and clean it up

It’s not about adding landscape, but about cleaning up your yard. You don’t need to spend a lot of money on landscaping; merely removing weeds, mowing the grass, and planting a few flower pots can do wonders.

2. Small changes can have a big impact

In a saturated market, you don’t have to undertake substantial modifications since you can’t afford them or don’t have the time. Smaller changes are well worth the seller’s effort and money if they are possible.

Consider this: the less you repair, the more equity you’ll likely have to give up to make the house worthwhile. Small repairs can include, but are not limited to, the following:

Landscaping
Filling in the gaps
Tubs and toilets that have been stained should be cleaned thoroughly.
Repairing shattered doors and hinges
repairing leaking pipes
Replacing worn-out caulking with new caulking

These tiny initiatives, in particular, may really raise the eye-candy factor:

Replace or clean the grout.
Cabinet knobs need be replaced (which can go for a little as a dollar per knob)
Carpet stains should be treated as soon as possible.

3. Mention Renovation Loans in Your Home’s Listing

When it comes to selling your fixer-upper, renovation loans may be one of the most effective instruments. If a buyer takes this method, the expected renovation costs are factored into the total loan amount. Rather than purchasing a fixer-upper and paying for modifications piecemeal, purchasers can apply for a larger loan and get funds in installments to pay for greater renovations. The FHA 203(k) loan and the Fannie Mae HomeStyle Renovation loan are two examples.

4. Emphasize the positive aspects of your home

When it comes to getting rid of clutter, stuffing things in closets and cupboards isn’t a good idea because storage capacity is a selling point. According to the same Vileda survey, 80% of purchasers look in these storage spaces, while the National Association of Home Builders reports that 85% of homebuyers desire enough garage storage.

They’re unlikely to be interested in the mementos you’ve amassed over the years. A moderately sized hallway closet, on the other hand? This is something they can get behind. The truth is that customers can later replace the flooring and other stylistic features. They’re more likely to take the plunge if they enjoy the floor layout and the house for what it is.

As a result, sell your home based on its best qualities. That means items like closet size, the master bedroom, a fireplace, a patio, storage, an open floor plan, fantastic vistas, a home office, large windows for natural light, and parking space should all be mentioned in your listing. Include amenities such as parks and reputable school districts in your description.

5. The Best Way to Sell a House That Needs Work is to Price it Right

Again, making a fixer-upper look great and marketing it as something it isn’t isn’t the goal when selling a fixer-upper. Don’t overprice it even after it’s been cleaned up and is ready to be listed.

Calculate the value of your home if it were remodeled with the assistance of your Realtor. Your realtor can look at comparable sales in the area to help you figure this out. Then make a list of the upgrades you’ll need and figure out how much they’ll cost to get your house to that point. What upgrades are required? Which of those are you able to do on your own? Which of the two will you hand over to the buyer? Any costs that the buyer will have to bear should be deducted from the home’s value.

So don’t write off your fixer-upper just yet. Even if it requires a little more work, your house will probably sell faster than you expect with a little TLC, some cleaning supplies, and a skilled real estate agent who will make sure buyers are aware of their alternatives.

Summary: Selling A Fixer Upper

It can be difficult to put your house on the market without spending a lot of money on upgrades when it needs a lot of them. It’s easy to feel like the ugly duckling on the block when it’s time to sell for one reason or another, the old house with the old floors, the terrible yard, the broken this and the broken that. But, let’s face it, not everyone has the time or financial resources to renovate their fixer-upper.

If you have any questions about tips for selling a fixer upper contact me today.

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