Houses Needing Repairs

The first option is to try for a traditional open market sale. Some buyers are looking for a “fixer upper” home and are willing to roll up their sleeves and take on the repairs themselves. The only issue with attracting this crowd is that they usually have motives of their own. These buyers are typically looking for a home that needs work so that they can put their own touches on it, and with some elbow grease they want to buy for less as it may simply be all they can afford. Buyers in this market may be willing to retile the kitchen floor, repaint walls, or perhaps buy a new vanity for the bathroom. Small time stuff. However, large-scale repairs like replacing a roof, rewiring the home, or correcting a faulty foundation are often beyond the scope of what they’re willing to go through.

If you feel unsure about where your home stands in comparison to other homes on the market, a good approach is to tour open houses in your surrounding area. When you tour these houses, take note of the condition of the home, any noticeable issues, and how extensive they are. This can give you a good idea of how your home holds up to the competition in your neighborhood. The repairs in your home may not be as bad as you think. We are, after all, our own worst critics.

If you may be thinking about selling your home, it’s a good idea to tour your home with “buyer eyes” and make a comprehensive list of everything that it needs. Faucets leaking? Write it down. Paint is chipped? Write it down. Giant 4-foot hole in your ceiling? Write it down. Everything, large or small. Once you have everything listed, try to realistically estimate how expensive these repairs will be.

Is the list long and extensive? Do you catch yourself thinking “this will cost a fortune to fix”? Well – the buyers touring your home will think the same exact thing. Most buyers only have enough to cover their down payment and sometimes closing costs. Buyers don’t generally have thousands of dollars in their bank account to cover major renovations or expensive updates like the roof or furnace and AC. Buyers applying for an FHA or VA mortgage will require the house to be in move-in condition, as their lender does not allow any repairs, not even peeling paint (the most cited item by appraisers on FHA and VA mortgages). Buyers applying for a conventional mortgage will generally need 15% – 20% for down payment and another $4,000 – $5,000 for closing costs; these are hefty numbers and most will not be thrilled to find out they need to have extra cash to cover cosmetical updates or replace major mechanical systems…

Nevertheless, it may be wise to consider handling some of the more minor repairs by yourself before selling. Things like:

• Patch small cracks and holes in walls or ceilings
• Fix minor leaks in the roof or pipes
• Service and repair the HVAC system
• Fix broken appliances
• Consider freshly painting the home and removing wallpaper, if any
• Replace stiff and squeaky hinges
• Replace or repair fogged up or cracked windows
• Update light fixtures
• Ensure electrical system is up to code

These things will definitely elevate the property’s appeal to buyers. If you have minimal amounts of money to invest into the home, however, you should prioritize fixing code violations. Most buyers will want all “safety” issues fixes such as electrical code violations and/or a clear Point of Sale Inspection report if you live in a Point of Sale community.

When listing your home, you will need to prepare it for “showings”. That means a thorough deep cleaning of the whole house. The house will need to be decluttered and made available at all hours for buyers to come and see it. Unfortunately, buyers work different shifts and some 8pm showings are inevitable. Other buyers work second shift so just as common are showings scheduled for early morning. It may take months to find the right buyer and once the contract price is negotiated, the buyer will do a home inspection and the house will be subject to lenders appraisal and any required repairs cited by the bank’s appraiser. Once inspection is completed, often the buyer will request for seller to make repairs or to lower the purchase price substantially to cover any discovered issues or defects. And those ‘necessary’ repairs, if any, cited by the appraiser will need to be fixed prior to closing or the lender will not approve the buyers loan.

While selling through a real estate agent is an excellent option for some, there are some significant selling expenses associated with a conventional open market sale. When selling on an open market, in addition to basic repairs to the home (service HVAC, patch and paint, fix minor issues) there are realtor commissions, title company seller’s closing fees and if buyer requests, seller credits towards buyers closing costs. These fees can add up quickly and significantly.

The easiest and the fastest option to sell your house that needs major repairs is to sell it to us.

Don’t worry about replacing worn or stained carpeting. Leave the scuffs and scraped paint on the walls just as it is. And don’t worry about repairing that stained ceiling from a roof leak last summer. You may even leave all unwanted furniture and personal belongings in the home. Furnace broke? No Problem! The condition and the extent of necessary repairs do not matter. We will take care of everything!

Because we pay cash, we are not dependent on any lender to approve the purchase and we will not ask for any repairs. We hire a local title company to handle the closing and title transfer so you have a peace of mind. Tell us when you would like to transfer title, we can schedule the closing in as little as 7 days or much longer if you need time. Best of all, there are no fees, no realtor commissions, and no closing fees! We take care of everything! We are here to help!