Selling a Home That Needs Repair
Home sellers who have homes in need of serious repair can find a slow market to be their worst enemy.
When a housing market favors buyers, buyers want to truly have their pick of inventory, and get used to finding great deals on homes that are in pristine condition.
Most buyers don't want to be bothered with fixer uppers, especially when they can see many homes that are in move in condition for the same price.
What's a home seller to do when they want to sell their home but it needs repair? One solution is to turn to home investors.
there are many investors in the marketplace who are buying properties, fixing them up, and then either renting them or reselling them to the retail market.
Commonly known as flipping houses, fixing up a property for resale gained popularity during the hot market a few years ago.
It seemed like rising prices meant anyone could buy, fix and flip a home and make a killing.
Not so now that the market has turned.
Now that it's harder to sell homes, and prices have climbed for materials, the flipping craze has slowed.
Even though the amateurs may have left the market, there are still plenty of professional real estate investors still buying homes to fix and resell.
Often, these buyers can make cash offers, or close quickly, as they have ready sources of funds for this type of property investment.
They will require a big discount off the market price, of course, as buying a home in need of repair can be risky in a tough housing market.
But with the right price, these buyers can take a home that needs work off the seller's hands in a jiffy.
One of the only alternatives to investors for the seller with a problem home, is to offer incentives to potential buyers, such as seller assistance, or to do the work before putting the home on the market.
It's hard to get a bank to lend to an owner occupant if there is significant work needed on the home.
For some buyers with the right credit background, for homes in areas where prices are stable, a bank may provide a construction or rehab loan for a home that needs work.
Otherwise, a home seller trying to sell a home in need of work is going to have to talk to creative buyers, or be creative themselves.
When a housing market favors buyers, buyers want to truly have their pick of inventory, and get used to finding great deals on homes that are in pristine condition.
Most buyers don't want to be bothered with fixer uppers, especially when they can see many homes that are in move in condition for the same price.
What's a home seller to do when they want to sell their home but it needs repair? One solution is to turn to home investors.
there are many investors in the marketplace who are buying properties, fixing them up, and then either renting them or reselling them to the retail market.
Commonly known as flipping houses, fixing up a property for resale gained popularity during the hot market a few years ago.
It seemed like rising prices meant anyone could buy, fix and flip a home and make a killing.
Not so now that the market has turned.
Now that it's harder to sell homes, and prices have climbed for materials, the flipping craze has slowed.
Even though the amateurs may have left the market, there are still plenty of professional real estate investors still buying homes to fix and resell.
Often, these buyers can make cash offers, or close quickly, as they have ready sources of funds for this type of property investment.
They will require a big discount off the market price, of course, as buying a home in need of repair can be risky in a tough housing market.
But with the right price, these buyers can take a home that needs work off the seller's hands in a jiffy.
One of the only alternatives to investors for the seller with a problem home, is to offer incentives to potential buyers, such as seller assistance, or to do the work before putting the home on the market.
It's hard to get a bank to lend to an owner occupant if there is significant work needed on the home.
For some buyers with the right credit background, for homes in areas where prices are stable, a bank may provide a construction or rehab loan for a home that needs work.
Otherwise, a home seller trying to sell a home in need of work is going to have to talk to creative buyers, or be creative themselves.