You may have lived all your life in your home and are now ready to move out, inherited a house from a relative, or bought an old house with the hope that you can flip it and sell it at a better cost. Whichever the case, having an old house on your hands can quickly become a problem as you will be racking up maintenance costs if you do not let go of it. However, selling an old house can be difficult. Most buyers will ultimately criticize your house and if you are not careful, you might end up settling for less than your home is worth. In this article, we discuss how you can sell your old house for a fair price.
If you want to sell as-is, there are a few tips that could help you get a better price. You need to understand the key selling factors as these could determine the price you finally sell at. The best way you can ensure that the house fetches a good price is to ensure that there are no major structural issues that need attending. If the house is generally in good condition, you can enlist it for sale.
Know Your Buyer Pool
If you want to sell as-is, you need to know your buyer pool. Your prospective buyers will likely be real estate investors who buy, fix, and flip houses or remodel properties. These investors typically overlook listing services where there are real estate agents and other potential buyers because they usually have a goal in mind- to buy a house and make specific changes that are targeted at improving the value of the home to the maximum. Some of the common areas they overhaul include bathrooms, kitchens, and the exterior of the home.
Improve the Property
If you are selling as-is, you can find simple ways to improve the property without necessarily spending too much money. For example, you can clear any clutter and ensure you maintain the yard such that there are no weeds and overgrown bushes and thickets to improve curb appeal. These may be small improvements, but they still make a difference when selling a property as-is to a real estate investor. If you do not make minor adjustments, you are giving up a lot of equity as the buyer would spend twice as much money to make the same repairs. Avoid expensive landscaping projects that will cost you more than it will pay you for an as-is sale.
Renovation loans can be a great incentive for potential buyers to make an initial offer. The buyer then gets access to funds that are part of the total loan amount, allowing them to get financing for a higher amount than they would if they purchased the house and got a different loan for upgrades in the future.
However, you need to realize that some caveats come with the renovation loan. The potential buyer has to have a certain credit score to qualify. Different loan programs have different requirements. Furthermore, they may have to put some money down and the lender will have to approve the loan.
Emphasize the Positives of Your Property
While some aspects of older homes may make them unattractive, they still have a lot of positives. For instance, these homes are usually spacious with original crown trim, fireplaces, and high ceilings. Others have unique designs and were made with the long-term needs of the owners in mind. They often have large garages, en-suite bathrooms, big closets, and storage spaces that can all be used as negotiating points for a higher asking price.
Best of all, if your house is located in a prime location, that alone could get you a prime offer. If there are local amenities and the area is a food school district, it may be even easier to strike a deal with the buyer. Emphasize the value of the house with the current developments that could cause a renewed interest in the location of your home.
Pricing the Home
The most crucial factor that we will discuss in this blog is the price of the home as this will affect how soon you can complete your real estate transaction. If the price is too low, it may be hard to increase prices later.
On the other hand, if you price the property too high, it might stay on the market for a long time to come. In whatever you do, ensure that you get some of your money back from the transaction. It would be a good idea to look at the multiple listing service in your area to determine how much similar houses in your area may fetch. A real estate agent can help you determine the initial estimate.
Presentation of the House
After ensuring the house has no serious defects that may affect the pricing and that you have made the minor repairs that will affect pricing, you need to ensure that the house is presented properly. The National Association of Realtors estimates that up to 50% of buyers will first see your listing on their phones. While upper fixers will not necessarily see your house on their gadgets, your house still has to be properly presented. The first impression is crucial as it determines whether it will impress your potential client or not. Ensure the bathrooms are clean, clear the dishwashers and sink, and ensure the floor is spotless. It may not look like much, but these small adjustments could make a big difference when it is time to make a deal.
Selling an old house can be difficult and even risky. Therefore, you should understand how to sell such a house. Above, we have discussed some tips you can keep in mind as you start your journey toward selling. For starters, you should understand your buyer pool. Further, you should also consider improving the property with some minor repairs instead of major ones. Also, ensure that you are emphasizing the positives and that you price the property right from the start. Ensure that you present the house in the best light always by ensuring it is clean and organized when viewers visit.