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Selling A House in Poor Condition

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Selling a house that’s in less-than-perfect condition can be a real challenge. With a limited budget for repairs and improvements, you may feel like you can’t get a good price for your home.

But that doesn’t mean you’re stuck; it’s possible to sell your house in bad condition without going into debt or draining your savings.

In this article, we’ll cover the steps you need to take to successfully sell a house in any condition. With the right approach, you can get a fair price for your home, even if it’s in less-than-ideal shape.

We’ll also discuss the various routes you can take to make the process easier.

So, if you’re worried about how to sell a house in poor condition, read on. We’ll offer you the information and tools you need to ensure you get a fair price for your home.

Table of Contents

How to Do a Valuation for a House in Bad Condition?

When conducting a valuation for a house that is in bad condition, it is important to start by studying the prices of similar properties that have recently sold while taking any differences in the property and market conditions into consideration.

If you’re selling a two-bedroom, semi-detached house that is in bad condition and similar properties in good condition in the same area have sold for around £350,000, you should subtract the cost of work from this price to get the value. You could subtract between £50,000 and £70,000.

If you speak to an estate agent, they may advise you to set an asking price of £300,000 to receive offers in that range.

Nevertheless, if the house is in very bad condition and severely neglected, you should also take into account the limitations in financing for the buyer, in addition to the cost of repairs.

Because mortgage lenders often avoid properties that are unfit for living, you will have a more limited market of cash buyers, resulting in a decrease in demand and value.

Therefore, you must subtract another 15% from the amount of money that will cover the cost of repairs to account for this restricted market. Ultimately, the sale price will depend on the method of selling you choose.

When Can You Sell a House in Disrepair for a Good Price?

The exception to the discount when selling a house needing repairs is its location. A property situated in a desirable place is unlikely to be affected by the cost of repairs.

This presents a great opportunity for developers and investors, and even owner-occupiers may be willing to pay more for a good spot in the area. In summary, location can significantly influence the price.

selling a house in poor condition
If you decide to fix existing issues before selling, then focus your attention on the areas that can make a difference in terms of the value of the property.

Should you Fix Problems Before Selling a House in Bad Condition?

Unfortunately, it’s easy to get caught up in the pressure of attempting to fix a bad house for sale, even though it may be a pointless effort. Remember that what you perceive as perfect might not be the same for everyone.

For instance, you may think that putting in new carpets and wallpaper will make it look impeccable, but that could turn off buyers with different style preferences.

Many homeowners often spend money on property upgrades that do not bring much value to the house.

When you factor in the cost, time and effort it takes to do the repairs, it is usually better to just sell the house as is.

If you decide to fix existing issues before selling, then focus your attention on the areas that can make a difference in terms of the value of the property.

If the house is damp, poorly maintained and with an unpleasant odour, then these are the biggest turn-offs for potential buyers and thus should be addressed. If you are unsure whether to fix the property or not, then consult with your estate agent on how to make the most out of your property.

Challenges of Selling a House with Fault

Selling a house with faults can be a difficult task, even when the housing market is booming with increased demand. Here are some of the challenges that come with putting a house in poor condition up for sale:

  • Unreasonable asking price  It’s easy to compare the run-down house to other houses in the same area that have sold for a good price. However, it’s important to remember that no two houses are the same; for example, the nearby house may not have needed a new heating system, while yours does.
  • Buyers don’t want to invest in a money pit – Even if you find a potential buyer with the financial means to make upgrades and repairs, they don’t want to take on the responsibility of a house with faulty wiring, a leaky roof, or broken bathrooms.
  • Traditional buyers aren’t the primary target – This is because banks and mortgage brokers won’t take the risk of funding the purchase until the house meets certain standards.

Despite these challenges, it is still possible to sell a house in need of repair.

Who are Potential Buyers?

If you want to sell uninhabitable houses, it’s important to anticipate the types of buyers and their behaviour. This will save you time and hassle.

Potential buyers for these properties could include:

  1. Skilled DIYers on a budget. These people are looking for a bargain and are motivated by factors such as the location, nearby amenities, family members living in the area, and a park. DIYers often have the skills and time to restore a house in poor condition.
  2. House flippers. These people see a dilapidated house as a goldmine and are willing to buy it, renovate it, and then sell it for a profit.
  3. Cash buyers. These buyers have the financial means to purchase and renovate a bad house, either to rent or to resell. They see potential in a bad house in terms of renovating it for rent, or tearing it down and building something new. They may also hold it as an investment before selling it.
Ways to Sell a House in Poor Condition
Quick sale companies, also known as We Buy Any House companies, are investors who have cash available to purchase properties quickly.

Ways to Sell a House in Poor Condition

Now that you know who the potential buyers for your property in disrepair are, you need to know where to find them. If your house only needs minor repairs, you can try selling it using traditional channels.

Even then, some houses can be too damaged for anyone to want to buy them. In this section, we discuss the four options you have when selling a house in need of repairs, so you can decide which one works for you.

  • For Sale by Owner (FSBO) is a good option if you want to avoid paying estate agent fees or don’t want to involve a middleman. With this option, you have more control over who views the house and can highlight its strengths. If a family member or a neighbour is the potential buyer, you can even streamline the process. 
  • Auction is another option you can explore. It is suitable for a range of properties, from rundown to old structures. It also attracts a wide range of cash buyers, increasing your chances of selling the house quickly.
  • Listing with an estate agent is also an option. A good estate agent will leverage their experience and network of contacts to help you. They also have good judgement when it comes to all kinds of properties. 
  • Quick sale companies, also known as We Buy Any House companies, are investors who have cash available to purchase properties quickly.

Their process works by you completing a form on their website, upon which they’ll send you an offer within 24 hours. After that, surveyors will come to inspect the property and make a final offer, which may be the same as the initial one or modified to take into account any structural problems.

Wrapping Up!

No house is unsalable. Every property has worth, even in a state of disrepair. To be successful, it helps to create a well-defined plan and have realistic expectations.

If you decide to continue with the sale, then the process can take up to 10 days and you may receive an offer of up to 85% of the market value.

This means you don’t have to worry about paying for legal, surveying and other fees, and any repairs, upgrades and improvements. Contact us today!

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  • The price we’ll offer is the price that you will receive with no hidden deductions.
  • Be careful with ‘cash buyers’ who require a valuation needed for a mortgage or bridging loan.
  • These valuations or surveys result in delays and price reductions later on.
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  • No long exclusivity agreement to sign because we are the buyers.
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