What’s the best method for selling a house that needs repairs? You have a few options and can choose based on your situation and preferences.
First, you need to decide if it’s worth doing the repairs yourself or selling the house As Is. Doing repairs yourself can be a full time job if you decide to do the labor yourself. You’ll save a lot of money on labor costs. Alternatively, you have the option of paying various contractors. This saves you mounds of time but could require thousands coming out of your pocket.
You’ll also need to decide exactly what repairs and updates to make. While some repairs might be obvious, we recommend downloading this free guide about how to sell your house. It includes an entire section about how to decide which updates are going to have the best impact on your home (example, floors vs. paint, etc).
But what if you don’t have the funds to pay for the repairs and updates yourself?
You can still sell with a Realtor As-Is. You will miss out on some profits as most agents will charge a standard 6% commission. You’ll also leave some equity on the table as any buyer that can see a home underneath the repairs and cosmetics will assume a discount on value. Nevertheless, consult with a Realtor you trust and there are ways to help the home sell for the most value without doing all the repairs. Cleaning up, taking down photos and neutralizing the house will go a long ways.
In fact, in today’s market, you may be lucky enough to find an owner occupant who is looking for a “live-in flip,” that is, a house that they can live in while they renovate. But don’t wait too long, because this golden goose of a buyer won’t be around for too much longer. As the housing market levels off, this type of buyer will have more options at better prices.
Remember, when you are selling a house that needs repairs with a realtor, there are still the standard processes and fees. There will be some up-front negotiation before the contract, where you almost never get what you were asking in the listing. A common practice that we see here in the Nashville, TN area is the buyer requesting closing costs credited to them at closing.
Your buyer will get an inspection done, and ding you with repair requests. You’ll either have to settle on a concession on price or pay a contractor to patch things up. And you can count on repairs being needed, in any house! “All houses will fail [inspection] because there’s always something that needs work in a building.” That’s how Devin Thorsby put it, a Staff Writer for U.S. News.
Another big ticket item for selling your house the traditional way will be the closing costs: title costs, attorney’s fees, and especially paying your real estate agent!
Selling A House That Needs Repairs the Easy, Stress-Free Way
What if there was an easier way? What if selling a house that needs repairs could be done with one phone call, one appointment, and one contract? In one week?
Selling to a cash buyer has obvious perks due to their flexibility by not using a bank. If you didn’t already know, the primary reason buying a house is such a long process is credit to the banks! The underwriting, appraisal, and overall endless shuffle of paperwork takes a lot of time. Cash buyers, experienced investors especially, need to only walk through the house once and a few days to do the title work, and you have a check in your hand.
This may sound like a unique option, but did you know that cash transactions hover around 23% of total home sales?
“So what exactly can a cash buyer do for me?”
Hardly any paperwork- As Is sale
- Can be a quick closing, but doesn’t have to be
- More flexible terms available (Need to stay in the house for a month after getting your big check?)
- No showings
- No commissions / fees
- And of course, no repairs!
“Where do I find a cash buyer for my Nashville, TN house?”
They are all around! From your neighbor down the street renovating a house all the way to OpenDoor, cash buyers are waiting to hear that you are selling a house that needs repairs, and they are ready to make your life easier.
But why bother finding them when you are right here next to one! Skyline Home Solutions can purchase your home quickly and easily, and on your terms! In fact, in less than 24 hours you can have our offer in hand. Just call us today at 615-455-5979 or contact us online.
