Selling a fixer-upper is not impossible, but buyers are going to expect it to be priced far less than comparable homes in good shape. Your strategy for selling a fixer-upper will vary depending on factors including the location, strength of the market and how much work is needed to get your home in shape.
Be Prepared - know what’s wrong with it
Many experts advise getting your own inspection before selling any home, and this is an especially good idea for a fixer-upper. That way, you avoid being surprised by problems that could sabotage a sale when the buyer gets his own home inspection. You have to disclose the faults in your fixer-upper, especially things like lead paint or plumbing problems, but at least the buyer will be confident that you’re not trying to hide problems that will be expensive to fix. I always tell my clients to be wary of the disclosure statements that disclose nothing.
Spruce it up….maybe
Before you do anything, you need to decide whether you’re selling your fixer-upper as is, or if you’re willing to do some work that will more than pay for itself on the sale. Real estate experts say even cosmetic improvements like refinished hardwood floors or fresh, neutral paint can make a big difference when selling a fixer-upper.
You can get more people to look at your house — and thus increase your chances of selling your fixer-upper — with the minor remodeling of a key area, like the kitchen, or by replacing unsightly siding. According to a 2004 survey by Remodeling magazine, you would recoup an average of 93 percent of the remodeling costs, and even more in some markets.
So, why would you invest money if you’ll only recoup 93% of it? It’s all about salability. Remember that, from the buyer’s perspective, if they buy a completely remodeled house, they can buy the whole thing with mortgaged money. However, if they have to put $50,000 into making a fixer-upper shine like a new house, that’s $50,000 out of pocket. By appealing to the masses who can’t afford to outlay rehab money, you are widening the pool of perspective buyers and will significantly increase your odds of selling.
