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Selling a fixer upper house can feel overwhelming, especially when you’re worried about how its condition might impact the final sale price. Many homeowners ask, “How can I sell a fixer upper and get the best price?” The good news is that you don’t always have to make costly repairs to get a good offer on your home. So, “how to get the best price without doing repairs?” Where do you find potential buyers?
In this guide, I’m going to talk about your options when selling a fixer upper, and hopefully help you simplify your house selling options. Ultimately, I want to show you how to sell your fixer upper as-is and still attract buyers willing to pay a competitive price. We’ll walk through what a fixer upper is, selling a house as-is, understanding the market, selling a home without repairs, creating a home’s curb appeal for cash buyers and real estate investors, and some common mistakes when selling fixer uppers.
Why Selling a Fixer Upper As-Is Can Be the Right Choice
What Is a Fixer Upper and Why Sell As-Is?
A fixer upper home is typically a home that needs major repairs or updates before it’s considered move-in ready. These homes are not necessarily in unlivable condition, some maybe only need a “little tlc”, although sometimes they need a complete renovation to bring back the home’s appeal.
Many homeowners choose to sell their house at a lower selling price because they can’t afford the repairs or don’t have the time to invest in renovations. They find themselves with a list necessary repairs, considering a renovation loan and the cost of the time and work just to list the home for sale. Often it’s cheaper and easier to sell with a discount rather than spending the time and money to do the repair work while still living on the property.
Too often I have been invited into a situation too late. This is usually after a homeowner started by talking to a real estate agent who told them they should not sell a home without doing significant repair work to the property.
The advice I often hear given to homeowners is that the house needs to be in better shape. They’re left with a list of repair work items so they can “sell their home for top dollar”. It’s not wrong advice, but it’s also not complete advice when selling fixer uppers. The cost of those renovations is left for them to discover on their own. When the owner starts to add up the cost of the work they find themselves overwhelmed.
Sadly, also left out of the equation is that there are some great options to simplify the process of selling a fixer upper house fast.
Selling a house that needs repairs can be an ideal solution for homeowners facing financial distress, inheriting a property, or needing to relocate quickly. The question really becomes, “what are your needs when selling your home?” I can help you sell a fixer upper. The part I don’t know yet are your needs. Let’s talk.
Who Buys Fixer Uppers and Why?
Understanding the Market for Fixer Upper Houses:
The market for homes being sold fixer upper home is strong, particularly among cash buyers and real estate investors. These prospective buyers are looking for properties they can renovate or somehow add value to. Buyers of a fixer upper home often see potential where others see problems.
These kinds of home buyers can be an appealing option since they are willing to pay a fair price for a house that has required repairs. That work may otherwise make it difficult to sell the property. As professionals with a track record of finding ways to add value, they really focus on the numbers. If they can make the numbers work, they want to buy the property. In fact, generally speaking, they would rather buy a house as-is, without any repairs done to it.
They don’t mind a complete renovation project. They focus on potential resale value and the repair work necessary. For instance, given the property’s flaws, do they have a clean canvas to work with, or is there major repair work and extensive renovations to potentially increase the value? What’s a realistic price for all of that?
These potential buyers are looking for opportunities to use their professional skillset and experience to renovate a home and add value to it. They’ll look at similar properties to build a comparative market analysis so they know what’s possible when they later consider listing the home for sale.
Something many people do not realize or think about is that it is much harder to add value to turnkey properties or a property that has some work done to it. So, depending on the goals and needs of a homeowner, if they just want to put the home up for sale, it may not be in their best interest to do any work, and especially not any extensive repairs to the property.
Buyers of fixer uppers specifically look for houses that need repairs, or upgrades. The right buyers want an opportunity to add maximum value to the home. By doing the work, homeowners can actually lessen the interest of potential buyers of a fixer upper house.
Another important point about the real estate market for fixer upper houses is where to find them. Perhaps you’ve seen property listing for a fixer upper houses with an asking price with a small discount. That sometimes works, however those houses often sit on the market listed for a long time.
The problem for those situations is that the numbers don’t make sense for professionals. So the house has to sit waiting and hoping the right buyers comes along. Unfortunately, the homeowner may have been led to believe that their only option is to list their home on the MLS open market and wait for a buyer to come along.
Listing on the MLS market can work, but it can also be stressful to the home seller if they have reason to sell their home quickly or easily. It is not the only option and can be a costly mistake.
All that time the problem really is that they’re not looking for buyers in the right place. Now, without even knowing there was another option, they are stuck in the selling process that is primarily designed for a move in ready house.
Here’s a little secret: Professional buyers of fixer upper houses and investors rarely buy houses on the MLS market using a real estate agent. They almost always buy houses “off-market”.
Whether you’re dealing with investors looking to flip the home or those wanting to turn it into a rental property, selling a property that needs work can be a great option for attracting these potential buyers. The goal is to get in front of the right prospective buyers.
If you are more comfortable talking to a real estate agent first, I highly recommend doing so. At Kitsap Home Pro we offer that service too. In fact, most people who come to us end up using us to list their home for sale with our state licensed real estate agent service. We call our service HYRES – Hybrid Real Estate Service.
Just know that there are many options and ways to sell a home. Using a real estate agent to list it publicly is only one of those options. I’d be happy to spend some time helping you think through the options you have. Reach out, let’s talk and see where things go.
Tips for Getting the Best Price for a Fixer Upper House
How to Get the Best Price for a Fixer Upper Without Doing Major Repairs:
To get the best price when selling your home, focus on marketing the home to the right audience – prospective buyers who are looking for a house with potential, not perfection. These professional home buyers like, Kitsap Home Pro, are more concerned about the potential profit of a property than they are with the current condition.
Learning to appeal to these kinds of buyers takes some effort. Most people just aren’t used to thinking that way, especially if they are overwhelmed with their current situation. For some people this can be very difficult to do. This is a classic missing the forest by focusing on the trees situation.
The goal when trying to sell ant property: Highlight features like the home’s location, lot size, and neighborhood appeal, which are often more important than cosmetic work or a fresh coat of paint. Any real professional home buyer is going to find these things out anyways, but you still want to appeal to the things that interest your potential home buyers.
Be transparent about the property’s condition. A professional home buyer will dig into the facts. That’s how they make the business work. Don’t expect them to miss things, and if you intentionally point out the major areas of concern, potential home buyers are more likely to trust and work with you. However, if as a home seller, you try to hide things, the professional home buyer could become leery and move on.
Lastly, you must set a competitive price that takes the necessary repairs into account but doesn’t undervalue the home. This part is very important in order to attract the right kind of home buyers. Like I said above, professional home buyers are going to let the numbers work for them. If the numbers make sense, they’ll make it happen, often with cash offers. If the numbers don’t make sense, they will simply walk away.
You really want to have a professional eye for what are necessary repairs and what are not. You might be surprised to find out that doing major renovations and minor repairs when trying to attract cash investors lessens the home’s appeal.
The final sales price that you agree on will take into account all these things and more. Often when you work with a professional cash buyer like Kitsap Home Pro, we’ll even pay the closing costs.
Why Cash Home Buyers Are a Great Option for Selling a Fixer Upper
Selling to Cash Home Buyers and Investors:
A professional cash home buyer or an investor can help you sell your home fast. When you sell your property to a cash home buyer they are able to help you sell your home with no repairs necessary. Professional cash home buyers are able to help you sell your home with no contingencies.
Yes, they would like to walk through the home and “inspect”. But really, they are not using that as a reason to not buy. They are using that time to build a scope of work so they can get right to work once they buy. But, in the right circumstances, a professional home buyer will buy a home without ever being on the property.
A professional cash buyer or investor is often the best option for selling a fixer upper property, especially if you want to sell quickly, without doing repairs. These buyers are familiar with purchasing homes as-is and usually offer a straightforward process.
Working with these real estate professionals allows you to sell your home as easily as possible. By selling to a cash buyer, you can often close the deal in as little as a week and avoid the cost of time, money, and stress of doing the repairs or waiting for a traditional buyer to secure financing. With these types of professional home buyers you can work with them to set the timing to exactly what you need it to be.
I recently worked with a client who knew they wanted to sell and move on to a new season of life. They called me with lots of time available and we set closing out three months. This allowed them to finish the work and other important transitions they wanted to make without worrying about how to sell a house. They already had Kitsap Home Pro, a cash buyer, locked in.
When the time was right for them, they sold their house very easily. The received a little lower price, but their property was paid off. We even paid all the closing costs, and they got exactly what we agreed on. More importantly, they got what they needed and wanted.
On the other hand, earlier this year, we were asked to buy an old house and close the sale within a week. As cash buyers we were able to buy that house exactly 7 days after we signed a contract. The point is no matter what you’re selling getting in front of the right buyers is important.
Avoid Common Mistakes – Reach Potential Buyers
Mistakes to Avoid When Selling Your Fixer Upper:
The first big mistake I see made when selling a fixer upper home is setting the asking price is too high, which can limit potential buyers. A professional house buyer does not want to play games. Often they are not interested in trying to convince you of the price the house is worth. Professional home buyers know how to do their work, but they don’t want to waste time trying to convince others.
Unfortunately, I most often see this when real estate agents convince home sellers of the strategy of trying for a high number. Sometimes that strategy works, but in my experience I have found that many real estate agents do not understand market for fixer uppers, the real costs of buying a property, and doing the rehab.
I have seen home sellers actually net less money because they were not exposed to the right potential buyers. A better idea in the beginning could have been to start at a little lower asking price, but get in front of the right market. Then, because the right cash buyers will often pay all the closing costs and fees, the home seller made more money. Selling a fixer upper house requires a solid understanding of the related costs and the potential sale price in the future.
Another big mistake is not being upfront about the home’s condition, which could lead to problems during the inspection process and cause the sale to fall through. Like I said above, professional home buyers want to do an “inspection”. This is time for them to build their scope of work and get a detailed description in place so they are prepared when the sale closes. Hiding issues only causes problems at this stage.
If you know there is a problem somewhere, be transparent about that. As a professional property buyer, Kitsap Home Pro and other cash home buyers want to help you sell your fixer upper home. But everyone needs to be forthright about what is really involved in the fixing of your fixer upper.
To avoid these pitfalls, be realistic about the home’s value, price it competitively, and work with buyers who understand the property’s condition and the real estate market and are ready to purchase your home as-is.
Concluding Thoughts – Selling a Fixer Upper House
Selling a fixer upper doesn’t mean you have to accept less than your home’s true value. The important part is understanding how price the property correctly for the market, and targeting the right buyers. You can still get a great price, even without making repairs, but you do need to be reasonable about what you are doing. If you’re ready to sell your fixer upper as-is and want to get the best price, contact us today for a fair cash offer and a fast, hassle-free closing.