How to Sell A Distressed Property
Selling a distressed property could be tedious and strenuous. It might even feel impossible! There are a lot of things to sort and a lot of questions to answer. You are not sure of the things to fix and the things to leave as they are. You know that distressed properties are not worth as much as habitable houses, but you don’t know how much you can sell them.
A lot of agents avoid distressed houses due to this and other issues. But you need not worry. In this article, we’ll tell you all you need to know about selling a distressed house. The tips in this article will point you through and make things much easier for you.
- Set the right price for the home: A lot of distressed home sellers make the mistake of pricing their homes too high, thus chasing potential home buyers away. You need to remember that you are selling a distressed home and not a complete home. You can look at the selling price of other properties in the area and use that to fix a good selling price for your distressed home.
- Target the right buyers: A lot of people selling distressed homes make the mistake of targeting everyone. But this is wrong. There are a very few, select group of people that will be willing to buy a distressed home. Try to find those people. Your potential buyers will likely be house flippers or investors looking to renovate some homes. Look for those people, and you will likely make a sale.
- Offer credit: If you offer buyers the right incentives, they will be more willing to make a purchase. If the new owners know that they will have credit that they can use to fix the home the way they want, they will be more willing to buy the home. The ability to choose bathroom fixtures, kitchen cabinets, living room fixtures and other things is an appealing idea for distressed home buyers.
- Don’t spend too much on repairs: A lot of distressed home sellers make the mistake of spending too much money in a bid to fix the house as much as possible. If you do this, you may incur a loss. You don’t need to repair the house like you are the one going to live there. A lot of buyers will consider the kitchen and the bathrooms first before purchasing a home. You can consider those first. Fix them with as little money as you can. You don’t need to fix everything in the kitchen and the bathrooms. Simple, inexpensive repairs could attract more buyers to your distressed home.
- Showcase the potential of the distressed home: You don’t need to let the distressed home remain looking gloomy. Buyers will be more willing to buy a distressed home if you can let them know how much better the home could be when fully repaired. You can help them picture how nice and comfortable the home could be. You can contact interior designers and other professionals to create a render of how lovely the home could be. Little touches like fresh flowers in the kitchen and living room, lawn chairs in the backyard, and simple paintings around the home could make a difference. All these might look weird in a distressed home, but they will serve to remind the buyers of what could be.
- Showcase the positives: Highlight the great features of the home to get a better price for the home. Open the windows to let buyers feel how breezy the environment is. Have someone mow the lawn or tend the trees to highlight the nice landscape. Talk about the schools, restaurants, theaters and other attractions the area has to offer.
- Get everything in writing: When selling a distressed home, ensure that all agreements are written on paper. A distressed home will require a lot of repairs. And a buyer might want to push the costs of those repairs to you after the home has been sold. Some unexpected repairs might come up that could make some buyers regretful. Avoid legal problems in the future by getting everything in writing.
- Sell the distressed home for cash: Selling a distressed home could be easier for you if you are willing to accept cash. Don’t be too rigid and go for a traditional listing alone. But be careful when dealing with cash alone. Only deal with reputable and trustworthy people. You are safer dealing with established real estate companies. They will make things easier for you all through the buying process because they are experienced in this kind of sales. Also, the sales process will be more transparent. Don’t let anyone pressurize you. Sell at a price that you are comfortable with.