Selling a property that needs work done can be a challenge. Many buyers want a home they can walk straight into. A house that requires significant repairs to make it comfortably habitable means more money, more time and more hassle. Those who might be interested in a fixer-upper are often out for a bargain and keen to drive the price down — be they developers or individuals looking to climb the property ladder.
How can your client secure a sale at a fair price? Should they spend the time and money necessary to complete the repairs before selling? Helping a customer sell their current property so they can purchase the house you built, isn’t easy, especially if their property is not in peak condition. In this guide, we’ll take a closer look at how to sell properties that need work done, including steps your customers can take to expedite the process.
Do the Research
Whether your client is working with an estate agent or going solo, they must understand the target market. A house that needs significant repairs done will attract a certain type of buyer. House repairs, advertising efforts and even property viewings must be undertaken with the right buyer in mind.
Renovation projects attract developers or “flippers”. These are buyers who plan to complete required repairs on a budget — and then sell the house for a tidy profit. While this may mean a sale, the homeowner should beware of unreasonably low offers. Buyers who are out for profit, rather than seeking their dream home, may offer well below the asking price. It’s only fair the cost of repairs is taken into consideration when setting an asking price and reviewing offers — but your client should not feel pressured into taking an unreasonable offer. They must think about the potential sale price of the property when repairs are complete as well as the cost of getting the work done when negotiating with a flipper.
Properties with renovation potential also appeal to homeowners who are looking to upgrade or those hoping to get their first step on the property ladder. This may be especially true for houses located in property hotspots. If the customer lives in an area where similar properties are rarely available or are extremely expensive, buyers on a budget may be more interested in purchasing an affordable fixer-upper they can improve over time.
Consider Undertaking Some Repairs
Even if a property requires significant renovation, there may be some smaller repairs that need minimal time, effort and expense to complete, yet these could make the home considerably more attractive to potential buyers.
If your client is struggling to sell their home, they should consider adding a lick of paint to freshen up the interior and exterior of the property. Basic redecorating can help viewers to see the potential of the completed home. If there are minor DIY tasks to complete, such as leaking taps and broken curtain rails, check them off the list. The longer the list of repairs to complete, the more intimidating the project will seem to a potential buyer. Cleaning floors and replacing carpets is also a good idea.
Some property experts recommend undertaking any major repair work required before selling. However, this would slow down the house selling and buying process significantly and could result in missed development deadlines.
Part-Exchange or Sell to a House Buying Service
If the reason for selling a property is to fund the purchase of a new-build home, part-exchange (PX) could be a viable option. By offering your client this option, you can help them to sell their home more quickly and move forward with purchasing your property.
HBB’s part-exchange service is simple to set up and will provide your client with trustworthy financing for their house transition. Once we have received your completed Offer Request Form, we’ll arrange for local estate agents near you to conduct a valuation of your customer’s property. We will send you an offer within 24-hours of the completed valuation. If the client accepts the offer, we’ll move the sale forward, allowing your client to focus on progressing with their purchase of your property.
Alternatively, consider offering the client a guaranteed purchase of their current property. This is the fastest and most straightforward route to selling any property — even one that requires extensive repairs. At HBB Solutions, we can provide a fair market value offer within 24 hours of a valuation. There’s no need to spend months waiting for the property to sell on the open market. This is a great way to help your client sell quickly and make sure you stick to property development milestones.
There is no one-size-fits-all answer on how to sell properties that need work done. But there are plenty of options for your client to choose from. Offering a variety of finance options, such as part-exchange or guaranteed sales, allows you to keep the sales process moving quickly, ensuring the client can progress with your property development project.
Take the first step towards helping your clients sell their properties by contacting our team of experts today. Make your business more profitable by accelerating your new home sales with part-exchange and guaranteed sales.