How to Sell a House that Needs Work

When your house needs beyond the usual paint and carpet, it can be intimidating to put it on the market without making it look like other renovated houses on the market. But let’s face it, not everyone has the time or the money to fix up their fixer-upper.

Evaluate your options

1. You can sell the traditional route
2. You can sell to deal hunters by listing it yourself
3. You can sell to a cash buyer

1. Traditional route

First, you will have to find an agent. First thing to remember is that agents work on commission. So they get paid only when the house gets sold. Naturally, they want houses that can be sold easily.

Agents will want you to fix most if not all the issues with the house. Or they want to list it at a significantly lower price, which may be fair, but you are still having to pay them the commissions.

2. List it yourself

You will certainly save the commissions, and you can look for deal hunters that will buy the house as-is. But do you have the know-how to market this property without listing it on the MLS, and the ability to negotiate with the deal hunters?

Problems with options 1 & 2

Both the above options come with a handful of issues, if you don’t want to spent the money on repairs and commissions, or if your personal situations requires a quick sale. Here are some of them:

1. You will pay 5% – 6% in commissions. That could be anywhere from $10,000 to $20,000 depending on the value of your home.
2. It could take months to close. You property could be on the market for 2 or 3 months, and closing takes another 45 days. So you are looking at 4 to 5 months before you see the money. What if the buyer’s financing falls thru? You will have to list it again and wait again.
3. In option 1, you will have to do some repairs, if not all. That is cash out of your pocket.
4. You will have to deal with multiple showings. You will have to tidy up the house and step out each time there is a showing.

So is there a better option?

3. Sell to a Cash Buyer

Cash Buyers are seasoned real estate investors who buy houses directly from you. Here are the highlights:

1. You won’t pay realtor commissions. You can’t argue with saving $10,000 – $20,000!
2. They will make an offer on your house immediately, and can close as quickly as 10 days. Imaging walking away with a check within 2 weeks!
3. Cash Buyers are not worried about the shape of your house, they will buy it as-is, with absolutely no fixes. Because they can get it fixed faster and cheaper than a regular homeowner, so save yourself the trouble.
4. There are no showings, no clean up, no stepping out for 2 hours every day. 100% hassle free!
5. Guaranteed closing. They are cash buyers, they don’t need bank financing or approvals. You can sleep easy knowing that the closing will happen as planned, so that you can move on with your life.
6. Cash buyers will work with your personal situation like foreclosure, probate, late payments, inheritance, and tenants, which could make it difficult to sell your using traditional methods. They may also come up with creative solutions that fit your needs.