by Charles Mburugu April 22, 2020 modified for posting here
Selling a house in poor condition is a challenge that many homeowners face. It is not easy to convince someone to buy a house with a cracked foundation, potholed driveway, dingy floor or a leaky roof. Unless the house is bought by a we buy houses firm like Rapid Home Deals who specializes in buying , renovating and selling houses in the area from Gainesville to Tavares.
So, What Exactly Do We Mean, ‘Houses in Poor Condition’?
Also known as a lemon in the real estate industry lingo, a house in such bad condition that it needs work beyond paint and carpet and minor updates. Kitchens and bath updates are not considered minor updates. Kitchen and baths are as as expensive as replacing a roof or an AC unit. These houses are a good fit for we buy houses firms like Rapid Home Deals. It could fall into one of the following categories:
- Fairly good, but in need of updates – This is a house with some maintenance or repair issues, but is in generally ‘fair’ condition. Houses in this category would have an outdated kitchen, cluttered interior, stained floors, outdated bathrooms, peeling paint, weathered exterior, and outdated light fixtures. the bones of the house and foundation are in good shape. This category also includes a roof with less than five years of usable life and AC systems older than 10 years old. These conditions are a perfect fit for we buy houses firms like Rapid Home Deals.
- Visible repairs needed – Can be lived in but with more serious problems such as electrical issues, roof damage, plumbing problems, foundation issues, faulty HVAC, damaged flooring, and non-functioning faucets. While the house can be lived in, it presents challenges to anyone who would be living there and in some case may be hazardous. Even with the need for more extensive repairs these poor conditions are still a good match for we buy houses companies in Ocala and the surrounding area.
- Totally uninhabitable – Such a house has multiple issues that make it unlivable including severe roof damage, black mold, termite infestation, serious foundation problems such as sinkholes, asbestos or lead issues and severe chimney damage. In houses built before 1979 it would include the mitigation of lead paint. This category also includes major water or fire damage. Tougher still, but still a sale to a we buy houses company. Sort of like a small version of what New Orleans saw after Katrina.
How to Sell a House That Is in Poor Condition
Here are some tips for selling a house that needs repairs:
1. Sell as-is to a real estate investment firm like Rapid Home Deals
You must have seen handwritten signs on the side of the road that say ‘We’ll purchase your house for cash’ or ‘We purchase ugly homes for sale in any condition’. There are many investors in the market for a distressed property that they can buy quickly for cash. They buy the house in poor condition, renovate it and resell it after they have “added value” to the house at a higher price.
If you don’t have the get up and go, money, or time to fix up your house, you could consider selling a house as-is to a real estate investor like Rapid Home Deals. Rapid Home Deals will then take on any repairs needed. Since there is no agent involved, there are no commissions to be paid. In addition, you won’t pay any closing costs. As part of their cash offer, Rapid Home Deals will typically pay off any outstanding tax liens, house payments, and other financial obligations.
Unlike traditional real estate transactions, selling to a cash buyer is very fast. Since the investor is buying in cash, you will not have to wait for the buyer’s bank loan approval. In addition, there is no real estate agent, home inspector or appraiser involved. The investor handles all the paperwork.
Usually, Rapid Home Deals will make a cash offer within 24 hours after meeting you. If you accept it, you will receive the full payment within a few days. This payment will not have any deductions for closing costs or hidden fees.
2. Sell by yourself (FSBO)
The other way of selling a house in poor condition is to find buyers yourself. This strategy is commonly referred to as For Sale By Owner (FSBO). Unlike selling to an investor, For Sale By Owner is a hands-on approach that requires your total involvement. You will be responsible for setting the asking price, listing your property, advertising, hosting open houses, negotiating, and closing. If you have experience in selling houses, this is the perfect option for you.