You might have heard the phrase “fixer-upper” before. You’ve also probably seen them on TV and in movies. Fixer-uppers are a staple in the real estate market. Millions of Americans buy run-down homes almost every year to renovate, but not many know how to sell one once the job has been completed.
A fixer-upper is a home that needs some work before it can be sold. To many, this may sound like the perfect opportunity to take on a project, however, there are risks involved as well as benefits. There is no way to know for sure how much time and money will be required for repairs which means you could spend more than what the property is worth in order to sell it.
Selling a fixer-upper can be challenging. There’s always that one room or feature that needs to be updated in order to sell the house, and it’s hard to find someone who wants to take on that task. Unfortunately, this means that some homes may go unsold for months or years just because the owner was unable to find someone who wanted to take on such a big project. If you’re looking to buy a fixer-upper, it’s important that your plans are realistic. You should be prepared for the time and money involved in making these repairs because they will not happen overnight or without some work on your part. This article will walk through the different types you can take to successfully sell a fixer-upper.
Prep the House
The best way to sell a fixer-upper is to make sure the house is perfect before you put it on the market. This will increase your home’s value, which in turn will give you more negotiating power and more profit. With just a few simple touches, you can significantly increase your chances of selling your house for top dollar in no time at all! Here are some simple steps to prepare for the sale of your house.
Deep Clean the Home
Deep cleaning is a meticulous, thorough cleaning of a house. It’s typically done before the sale or rental of a home to make it look its best and also to get rid of all those things you don’t want to take with you. In addition to vacuuming carpets, mopping floors, scrubbing sinks and toilets, deep cleaning includes polishing furniture, washing walls (inside and out), removing cobwebs from corners and ceilings.
The first step is to deep clean the house from top to bottom. Get rid of all your clutter, enliven colors with a fresh coat of paint and remove anything that could be considered outdated or old-fashioned. Start with the kitchen and work your way through each room until the entire home has been remodeled – inside and out.
In addition to cleaning up the interior of your house, and giving it a new look, you will need to prepare the outside as well. Trim trees, give a fresh coat of paint where needed, fix up damaged fences and make sure everything is in tip-top shape. It’s important that potential buyers get off on the right foot when they walk into this home so it can be sold easier.
The Importance of Curb Appeal
Curb appeal basically means how the outside of a property is presented to potential buyers. When they pull up and look at your home, you want them to feel like they have stepped into an inviting environment – one that suggests stability, safety, and well-being.
An updated exterior also includes items such as mulch in the flower beds and around trees, decorative window frames, new fencing or gates when necessary, and a remodeled porch if there is one on your home. It’s not unusual for real estate agents to spend time fixing up yards before showing homes off to clients so take advantage of what others are willing to do for you.
Small Repairs Need to be Done to the Home
Just like buyers, agents are also looking for homes that have not gone neglected. Even though the buyer only has a limited time to assess your home, small repairs such as:
- Repainting an area of the house
- Replacing a light bulb in the exterior lights
- Fixing a leaky faucet – especially the kitchen and bathroom ones if it’s hard to turn off automatically
The goal here is to show potential buyers that you are willing to invest money into their property so they know they don’t need to worry about doing any major fixes once you’ve sold it. Remember, all this work is done before showing your home. These small steps to improve your home’s curb appeal will definitely help set higher expectations in potential buyers and increase your chances of selling the property more quickly.
Key Selling Points for a Fixer-Upper
The idea of a fixer-upper can be appealing to some, but it’s not for everyone. Some people want their new home to feel like a blank canvas, while others are looking for an instant project they can sink their teeth into. However, with the right buyer and the right seller, it can be an attractive option to consider. This section will cover some of the key selling points for this type of home sale.
The Right Price
It is important to understand what type of home you have before deciding on its worthiness as an investment property. Is this a single-family residence? A duplex? An apartment building with multiple units? Knowing this detail will help determine what kind of return on investment (ROI) one might expect from their purchase or sale.
If you are trying to determine the right price for your fixer-upper, it is important to consider what type of home seller you are. There are quite a few factors affecting the price of real estate that can throw off your analysis when determining if your asset will be worth it for resale.
The location is one of the most important characteristics to consider when calculating the price of an asset, and this includes real estate as well. Are you interested in a property within close proximity to downtown, in a rural part of town, or something more specific like that historic neighborhood on the corner? When analyzing homes for resale value, it’s important to understand that different areas attract different people based on lifestyle and preferences. The marketability will differ based on the answers to these questions.
Major Deal-Breakers when Selling a Fixer-Upper Home
There are some major deal breakers when selling a fixer-upper; here’s how you can turn these into opportunities instead of obstacles.
1. Homes in high crime areas command a lower market value due to the amount of police presence that is needed in order for them to be desirable living environments. On top of that, most investors will avoid these homes altogether because they are harder to resell and require higher upkeep costs such as increased security systems or around-the-clock surveillance, which is another added expense less likely to be approved by an investor.
2. As you can imagine, homes with known construction issues usually do not sell above the asking price since they tend to incur additional expenses during the repair process and typically re-list at a lower sale value overall. For example, if someone purchases your fixer-upper home for $220,000 and it needs an additional $50,000 in repairs to make it habitable and potentially resellable (if that’s even possible), the final sale price is going to be a lot less than you initially paid.
3. You’ve heard of “location, location, location“, right? Well… while this phrase may fit into the real estate investing arena when referring to residential homes — especially with regards to retail properties such as corner stores, or gas stations — it really doesn’t apply here. Typically speaking, distressed properties are located in undesirable areas or middle-class neighborhoods that have been affected by recent economic turmoil, such as the poverty-stricken areas near major cities. In addition to that, most distressed properties are not being bought for income-producing purposes, but rather they’re purchased just to be fixed up and resold at a profit.
Highlighting the Right Features
It is important to highlight the right features when listing your property. It is also important to find out what type of buyer you are trying to attract. Is this a family with children or just an empty nester looking for something smaller? The list goes on and on.
If you are not already aware, the average age of new home buyers is (in most markets) in the mid-to-late thirties. What this means to you is that your typical home buyer may be more concerned about their school district than they are about their decorating options.
Here’s a tip: if you have a nice kitchen but it isn’t fully equipped or there is limited countertop space or cabinet storage space, simply include pictures of what can be done with some simple remodeling work.
Who is Most Likely to Buy Your Fixer-Upper?
According to a recent survey, the majority of home buyers are not interested in buying homes with major problems. This means that many fixer-uppers will have trouble finding a buyer and may end up sitting on the market for months. If you don’t want this to happen, looking into alternatives will be beneficial. What many people don’t realize is that there are cash buyers who will pay top dollar for homes in need of repairs.
If you’re thinking about selling your fixer-upper home, consider contacting buyers who will pay top dollar for these homes. Fixers typically sell at prices that are 60% higher than comparable non-fixer uppers, so this could be an excellent way to make some extra money off of your property while also ensuring that it goes to someone who is willing to put time and energy into making it their own space.
Summary
Most people think they have to fix up and upgrade their home before they can sell it, but most buyers don’t want that. Simple Sell Home Buyers are different from other buyers because they don’t need changes or improvements to be made before offering a cash offer. Simple Sell will buy your house “as is” with all of its flaws and issues, and close on your terms.
Simple Sell Home Buyers provides real estate solutions that include buying houses in any condition or price range, while offering homeowners attractive cash offers, with no commissions or fees. If you’re looking to sell your home for cash and want a hassle-free experience, Simple Sell Home Buyers is the company for you. Contact Simple Sell Home Buyers today if you’re interested in selling your house quickly at a competitive cash offer that’s hard to refuse.
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