6 Best Tips for Selling a House in Bad Condition, According to Real Estate Agents
Written by
Angela Mae
Edited by
Chris Cluff
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The average home value in the United States is $348,853, a 1.2% increase over the past 12 months. That said, many properties go for a much lower price on the market. This is especially true of homes that are in poor condition or in need of extensive repairs or renovations.
If you have a house that’s in bad condition and you are trying to sell it, you could be facing a challenge. After all, many prospective buyers are looking for homes that are move-in ready or require only minimal work after purchase.
The good news is that, while it might require a little bit of work, it’s still entirely possible to sell such a home. GOBankingRates asked several real estate agents and experts how to get the best possible price for a home that isn’t in good condition. Here are their top tips.
Also see mistakes to avoid when selling your home.
Price Below Your Competitors
Sebastian Jania, the owner of Manitoba Property Buyers, said, “My advice for homeowners that are looking to sell houses in poor condition is to make sure that the pricing strategy is right when it comes to putting [them] on the market. One of the best ways is to price the property way below any other sold properties and hold offers. By doing this, the homeowner will have the most eyeballs on the property and the best chance of finding a buyer for the property.”
Keep an eye on home values in the neighborhood around the time you’re trying to sell. If possible, see what similar homes have recently sold for in the area, as this will give you a better idea of what people are willing to pay.
“Any house will sell as long as it is priced right,” said Desiree Avila, a real estate agent in Florida. “So, my first and most important tip would be [to] be realistic about the price [and] make sure the house is priced right for its condition.”
You can also get an appraisal done to get a better idea of what to price your home at. If you list your home and it’s not getting any interest, lower the price little by little until it does.
Clean Up the Property
If you want to improve your home without spending a lot of money on repairs, one of the best methods is to clean up the property. This means removing any junk from inside or outside the house. It also means doing some cleaning inside the home to make it look more presentable.
“Most agents will recommend doing the least amount of work possible to be able to sell the home,” said Brian Wittman, owner and CEO at SILT Real Estate and Investments, LLC. “That’s why cleaning and decluttering is the No. 1 thing mentioned and gives you the most bang for your dollar when doing home repairs.”
Jania corroborated this by saying, “I would recommend at the very least making sure that the property is cleaned out and any sort of junk is removed when the photos are taken and when the property is on the market.”
Photos are very important when selling a home, particularly because many prospective buyers start their house hunts online and have only images and the property description to go by. By improving the look of the place, you can increase interest in your home.
Get a Home Inspection
Regardless of the condition of your home, but especially if your home needs work, it’s wise to get a home inspection. Although buyers are usually the ones to do this, getting it done ahead of time gives you the chance to identify and address any major issues. This can boost your chances of selling your property at a good price.
“To make your home as market ready as possible, it’s best to have a home inspection done,” Wittman said. “With the seller doing it, they can address the most needed items before the [buyer] brings them up and price appropriately to make the home as attractive as possible. This gives them the opportunity to do the repairs that will give them the greatest return on their dollar.”
Depending on the inspection report, you may need to do a little extra work to make your home market ready. Focus on correcting any health and safety issues first. Then, move on to things like the HVAC, plumbing and electrical systems. These types of repairs can be pricey, but they can also pay off in the long run.
Freshen Up the Paint
From updating the paint to conducting other surface-level repairs, there are many ways to improve your home’s value and get it to sell.
“I would recommend adding a coat of paint to the property,” Jania said, “specifically a neutral white as neutral colors will sell properties the best and this will be one of the cheapest ways to spruce up the property.”
“Paint goes a long way in making things look fresher, so paint away,” Avila added. “Make sure to paint doors and baseboards [as] that goes a long way in improving the look of a space.”
Improve the Curb Appeal
A home’s curb appeal — that is, how it looks from the outside — is a big part of what makes a prospective buyer decide to check it out.
“Poor curb appeal can turn off buyers so much that they may opt not to go inside,” Avila said. “This is the first impression they get of a house, so it has to be a good one.”
Improving curb appeal can be time consuming and expensive if you’re not careful, but even small things can make a big difference.
“I would make sure that the landscaping is at least cleaned up,” Jania said. “A lot of properties [in] poor condition have a lack of [lawn] maintenance, which is a big turnoff, especially when people see the photos of the house from the outside.”
Do Minor Updates or Touch-ups to the Interior
“Ensuring the home is updated now is probably the best work you can do for the home,” Wittman said. “I wouldn’t recommend doing any major remodel or rehab, but small rehabs are money well spent.”
For example, you could replace the vanity in the bathroom with a newer one. Or you could update some old fixtures to match the latest trends. Another option is to repaint or update the kitchen or bathroom cabinetry.
“Kitchens and bathrooms are the most important space in a house, so spruce those spaces up with new accessories,” Avila said. “The same for furniture. Use fresh accessories to spruce up the space. Add a new throw blanket to a couch to give it a newer appearance.”
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