Not all homes on the market are ready to move in to once the deal is signed. Property investors are always on the lookout for cheaper-than-usual property to renovate and resell. These houses are colloquially known as fixer uppers, and the name really does say it all.
Fixer uppers typically don’t fetch the prices that newly renovated homes do, for obvious reasons, but that does not mean you won’t be able to get a decent price for that property that needs a bit of work.
Don’t bargain on selling your fixer-upper for the potential value it has, it simply won’t happen. Buyers who look at buying a property that they want to renovate know the realities of renovation and repair costs, and will take this into account when they make you an offer.
The best route when establishing an asking price for your fixer-upper is to speak to your real estate agent and have them establish the potential value of your home, minus the cost of repairs that need to be done. This price will be lower than that of comparable properties in the same suburb because of the improvements that need to be done, but that doesn’t mean you have to settle for a ridiculously low amount.
Don’t think you can get away with keeping information about certain repairs from potential buyers. This isn’t just negligent, it is also irresponsible and can get you into trouble later on, should the buyers of your property decide to take legal action on account of you not disclosing all faults. A home inspection might be required before banks approve loans, and your omissions might be discovered before the sale has even gone through.
When selling property as is, you are legally required to disclose all issues associated with the property. Your real estate agent will be able to advise you on what the law considers to be issues that are non-negotiable when it comes to disclosure. The bottom line is that investors that buy fixer uppers are prepared for spending money on repairs, but all buyers have a disdain for dishonesty. Say it like it is.
Take care of the cosmetics
The tiniest bit of repair and cosmetic work can help to fetch a higher price than what you are bargaining for. Simply making sure the garden is tidy and giving the house a paint job already make a better impression on potential buyers, despite the bigger repairs that might need to be done.
Find the right real estate agent
Real estate agents that have experience of selling fixer uppers are vitally important on this journey. They will be able to ask your most pressing questions, like how long a home that needs work typically stays on the market, and how successfully that specific agent has been in fetching the asking price sellers want on these types of property. A proven track record will give you an indication of who the right agent for you is. Contact us to find one today.
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