Sometimes, you may find yourself living in a house that needs work.
And when the time comes to sell that property, you may need to act fast.
Read on to learn more about selling a house that needs work.
What counts as a house that ‘needs work’?
If your house ‘needs work,’ it usually means that most buyers won’t be able to move in and live comfortably there immediately.
Cosmetic or functional improvements could be made, such as:
- Plumbing problems
- Faulty electrics
- A hole in the roof
- Mould on the walls
- Broken doors.
These houses are sometimes described as a ‘fixer-upper’. It means the new owners must make fixes to improve its value and access the property’s full functionality.
Needs work vs derelict
It’s worth noting that a house that needs work differs from a derelict property.
The latter category means that a house is unlivable. This could be because of major issues, such as:
- Serious structural issues (missing roofs or floors, collapsing walls, etc)
- No plumbing or electricity
- A serious pest issue (rats, for example…)
These issues affect the health and safety of anyone living (or visiting!) the property.
By contrast, properties that need work are simply uncomfortable.
Can you sell a house that needs work?
Yes. You can sell a house that needs work. But it will impact the selling price that you can expect.
Some buyers actively look for fixer-upper opportunities.
To them, it’s an investment, or a chance to start fresh and put their ‘personal touch’ on the property.
These buyers can be found on the open market.
Lenders may refuse to offer a mortgage if your house is in terrible condition. So, you may need to find a cash buyer.
Even though plenty of people are willing to buy a house that needs work, the pool of buyers is smaller.
Most buyers prefer move-in-ready homes, where the only immediate task is unpacking.
So, if you want to appeal to both types of buyers, you must make strategic decisions on the extent of renovations needed.
Should I renovate a house before trying to sell it?
It depends on the circumstances, your expected price, and who you plan to sell it to.
If your house is in terrible condition, it may not be worth fixing. The time, effort and money involved could make your life difficult.
It’s often simpler to sell to a cash buyer straight away. Managing all your expenses while fixing it up can be tricky to guarantee a good ROI.
If the problems with your house are smaller, then fixing it could be worthwhile. This only applies if you’ve got the money.
For example, extending your lease or repairing a hole in the roof will almost always give you a return on investment.
You’ll just need to save up to make it happen. This can influence your schedule for selling.
Tips for selling a house that needs renovations
1. Focus on the positives
Focus on the benefits and how minor renovations can transform the space.
You and your estate agent should encourage viewers to imagine the possibilities. This involves improving your sales skills.
2. Make your house appealing
Staging makes a massive difference when you’re trying to sell your house. Depersonalise the space and declutter.
Focus on unique aspects of each room. Cut the grass and move unsightly cars out of the driveaway. Minor tweaks like this are a good idea.
3. Be transparent
You shouldn’t mislead viewers about the house. Instead, be upfront about your property’s condition.
Transparency builds trust and helps remove any doubts or questions from the buyer’s mind.
Outline the renovations needed and any ongoing or completed work.
4. Set a realistic price
It can be tricky to decide on a set price for a house that needs work. But whatever you land on, it’s crucial that you’re realistic.
Speak to your estate agent about this.
If renovations are required, your buyer won’t pay the ‘typical’ market value for a house your size.
You’ll need to consider the costs of bringing it up to scratch.
5. Market to the right audience
Identify your target audience.
If your house is a ‘fixer-upper’, it could be ideal for investors. Ask your estate agent if they’ve got contacts in the area.
How much does fixing up a house cost?
Fixing up your house costs around £50,000 from start to finish.
This may drop to £20,000 for smaller projects in a one-bedroom flat. But in a four-bedroom house, it could go as high as £100,000 in total.
You must manage your costs carefully while renovating a house. Get a precise quote of what the work will cost.
And then compare this with the value it should add to your selling price.
Consult with independent property experts and contractors to ensure these figures are rock solid.
Simple fixes to improve a property’s appearance
If you don’t want to invest in a full-scale renovation, you could still make minor tweaks to your house’s aesthetic.
This is viable if the problems aren’t too bad. Here are a few more minor improvements that could make a big difference.
Look after your garden
A nice garden can drastically improve a property’s salability.
Cutting your grass has a significant visual impact. And you can also trim the hedges and eliminate any dead plants.
These plants can be replaced with fresh ones in new pots. You could cut away weeds, too.
Clean the path and driveway
It doesn’t take long to clean your path and driveway. Remove weeds poking out.
And make sure that your viewers won’t lose their footing while walking down the path. You could sand it down if you have some extra time.
Repaint your front door
Your front door is one of the first things that house viewers see. So, you won’t be surprised to hear that it’s essential!
Make sure you look after it and keep it in excellent condition. If the old paintwork is fading, try replacing this with a new coat.
Bring in a cleaner the day before viewing
A cleaner will spruce up your home and make sure it looks excellent.
By the end of the cleaning, your house will have a fresh smell and a new sparkle.
All clutter will be cleared away and appliances and furniture will be cleaned. Viewers will instantly feel at home.
Remove anything unsightly
If your car hasn’t been cleaned for a long time, you may want to park it a few streets away.
You should also tuck away bins that have been left out, or furniture left on your driveway.
