Nov 07, 2022 - 10m read
How to Sell Your Home in Poor Condition
It’s not easy to keep a home in great condition. When items break and systems need to be repaired, you may not have access to the funds you require to make repairs. Whether you have a leaky roof or a stained carpet, these issues shouldn’t automatically keep you from being able to sell your home.
Anthony Reinoehl
Co-Founder
It’s not easy to keep a home in great condition. When items break and systems need to be repaired, you may not have access to the funds you require to make repairs. Whether you have a leaky roof or a stained carpet, these issues shouldn’t automatically keep you from being able to sell your home.
The method you choose to sell a property that’s in poor condition depends on your financial situation, personal goals, and timeline. Do you want to sell quickly or would you prefer to invest some more money to earn a higher sale price? In this guide, you’ll learn how to identify what shape your home is in and if any repairs need to be made before you attempt to sell it.
What Does Poor Condition Mean?
When looking specifically at the real estate industry, poor condition is a term that’s used to describe houses and properties that are uninhabitable. If a home isn’t in great condition but is still habitable, this is referred to as a fair condition property. Fair condition homes have old fixtures and finishes as well as the potential for foundation problems.
What Are the Different Types of Poor Condition?
There are three different types of poor condition that a home can be labeled as, which include absolutely uninhabitable, major repairs needed, and in need of a major update or cleaning.
1. Absolutely Uninhabitable
Homes that are deemed to be absolutely uninhabitable are ones that have numerous issues and safety concerns. Some of the most common issues for uninhabitable homes include:
- Serious plumbing problems that extend to a malfunctioning water heater and corroded pipes
- Serious electrical problems that include frayed wiring
- Black mold
- Severe roof damage
- Asbestos or lead
- Serious foundation issues
- Serious chimney damage
- Termite infestations
- Malfunctioning HVAC unit
2. Major Repairs Needed
Even when a home is habitable, the need for major repairs may place it in this category. The more serious problems that require major repairs include:
- Certain electrical and plumbing issues
- Significant wood rot
- Considerable roof damage
- Old and failing HVAC
- Outdated and damaged kitchen
- Outdated and damaged bathroom
- Damaging flooring
- Damaged faucets or light fixtures
3. Could Use Some Updating or In Need of Significant Cleaning
Depending on the buyer, a home can still be in poor condition if some updating or cleaning is needed. The items that can place your home in the poor condition category extend to:
- Outdated kitchen or bathroom
- Dirty interiors
- Stained flooring
- Peeling paint
- Dead or overgrown landscaping
- Outdated finishes for light fixtures and faucets
- Weathered exteriors
3 Ways to Get a Fair Price When Selling a House in Poor Condition
If you believe that your home falls under one of the aforementioned categories, there are several ways you can get fair pricing when selling a home in poor condition.
1. Do Nothing and Sell It “As Is”
Your first option is to do nothing and sell your home in as-is condition, which is a low-cost method of selling your home. At CC Capital, we provide clear cash offers regardless of the condition your home is in, which gives you the opportunity to complete this transaction quickly. This option is ideal for homeowners who don’t want to invest time and money into their home before listing it on the market.
Keep in mind that any issues in your home will still need to be disclosed beforehand, which allows the buyer to know what repairs needs to be made once the transaction is finalized. Even though selling your home on the market in as-is condition is possible, it’s likely better if you sell it to a cash buyer like CC Capital. When listed on the market, you may not receive any offers. You might still want to perform some general cleaning before selling your property, which includes:
- Deep clean – $40-$65 every hour
- Pro carpet cleaning – $75-$300 every hour
- Landscaping maintenance – $25-$50
- Declutter – $250-$750 to hire a pro organizer
2. Make Low-cost, Cosmetic Fixes Only
You could also opt for making low-cost fixes that are mostly cosmetic in nature. Even if your home requires numerous major repairs, performing a few cosmetic fixes should help you make your property more appealing to prospective buyers. Some of the smaller and more affordable projects you could perform include:
- Repaint home interiors – $1-$3 for every square foot
- Replace old light fixtures – $150-$1,000 per light fixture
- Refinish cabinets – $500 on average
- Replace old faucets – $150-$350
3. Invest in Some Major Repairs or Upgrades
Your third option is to invest a considerable sum of money into a few major repairs or upgrades. If your property is in very poor condition, the issues in your home might be too substantial to ignore for potential buyers. If you don’t want to spend upwards of $20,000 or more on repairs, you could instead focus on making one or two sizable repairs to push your list price higher. Some major repairs that will add value to your home include:
- Siding replacement – 68% ROI
- Small kitchen remodel – 71% ROI
- Garage door replacement – 93% ROI
- Window replacement – 67.5% ROI
Replacing the entry door to your home costs around $2,000, which can be recouped with an ROI of 63.8% when you sell your home. The costs of materials will affect your ROI.
Is it Worth Spending Money on Repairs?
Before you schedule any repair work, you should scope out the project as well as potential costs. Focus on important repairs that are also relatively inexpensive. Are there any issues in your home that could cause a deal to fall through? If so, consider fixing one or more of these problems if the costs aren’t too high. The following details four factors you should think about when deciding what to fix in your home.
Check Current Market Conditions
You should have a firm understanding of current market conditions before settling on specific repairs. What are buyers currently buying? Answering this question gives you an opportunity to improve aspects of your home that matter the most to potential buyers.
If your home is situated in a healthy seller’s market with consistently increasing home values, you could list your home without making any repairs. In a slow market where the buyer has the advantage, you should spend some money to make repairs and improve your home.
Research Your Competition
Comparable sales in your area should be evaluated through photos or in person to determine how your home compares to the competition. If your neighborhood has a large variety of homes in different conditions and with varying amenities, selling your property shouldn’t be too challenging.
Investigate Return on Investment
Make sure that you also look into your potential return on investment. You shouldn’t spend $5,000 on repairing something that buyers don’t care about when searching for a new home. Repairs or upgrades in your kitchen are usually more valuable than repairs in your living room or den. A real estate agent can help you identify repairs around your home that are more appealing to buyers.
Pass Inspections and Negotiations
If you attempt to sell your home on the market in as-is condition, you’ll need to pass inspections and get through negotiations. As mentioned earlier, disclosure laws state that that every issue in your home should be mentioned to potential buyers. Most modern buyers request inspections that will uncover issues in your home. Depending on the findings, the buyer may have all the power during negotiations.
It’s possible to mitigate this problem by fixing some of the more substantial issues before an inspection takes place, which should make negotiations more balanced. The time it takes to make repairs can keep you in your home far longer than you anticipated, which is why you could lower your listing price instead of doing repairs.
Selling a home that’s in poor condition can be difficult if buyers have many other homes to select from. While inventory is still low throughout the majority of real estate markets, most buyers are looking to purchase homes that are at least habitable. You can avoid the hassle and frustration of waiting for your home to be sold on the market by selling your home to our cash buyers. We purchase homes in as-is condition and can do so on your timeline. Call CC Capital today to begin the process.
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