Marketing and selling a property in bad condition may seem like a tough task.
But there are strategies and options available that make much easier.
Read on to find out what they are.
Defining ‘bad condition’
What people consider ‘bad condition’ for a property is partly subjective. It can cover a wide range of issues.
And how bad they say it is might depend on who they are talking to.
Buyers may exaggerate flaws, and sellers might try and underplay them, as a negotiation tactic.
Not good condition: A Fixer upper-upper
A fixer-upper property is one that requires renovations or repairs to bring it up to a higher standard.
These houses are usually still habitable. But they won’t sell for the best possible price on the open market due to the time and money required to improve them.
A fixer-upper pr a property may be old and tired-looking but sound. This could include:
- Outdated décor
- Worn carpets
- Old appliances
- Chipped or faded paintwork
- Overgrown gardens.
Bad condition
Bad condition generally means a home with issues that can’t be fixed quickly and cheaply, for example:
- Signs of dampness and mould
- Old and draughty windows
- A damaged roof
- Electrical and gas problems
- Serious plumbing issues
- Rotten timbers
- House pests.
And much more.
Derelict condition
A derelict house is essentially uninhabitable. This is particularly common when there are problems such as:
- Serious structural issues
Condemned
When a building becomes condemned, it is ordered to be knocked down by local authorities.
Many buildings only get to this stage after serious damage (fires or flooding) or many years of neglect.
Selling properties in bad condition on the open market
Pros
The main advantage is having a larger pool of potential buyers than cash investors.
First-time buyers or bargain hunters may take on a fixer-upper project. Listing on property portals like Rightmove will maximise exposure.
Cons
Buyers often expect price reductions to cover repairs. You’ll also have to declare and explain all the faults upfront. Listing photos will make the issues clear. This may deter some buyers.
Plus, your buyer will still need to secure mortgage financing. Many banks may be reluctant to do this without a structural survey. This will reveal all flaws and lead to reduced offers.
You might also need to wait longer for a sale. Buyers will need time to investigate the extent/nature of the bad condition.
Improving a house’s condition before selling
Improving a home’s condition can be a wise investment or a waste of time.
It all depends on factors related to:
- Your time frame
- Your budget for selling your house
- Your buyer’s preferences
- The nature of the repairs in question.
Even minor cosmetic fixes can add value. And essential repairs can prevent further deterioration.
Be selective with improvements. Over-improving risks over-capitalising, i.e., spending more than you can recoup on sale. Focus on essential repairs first and avoid elaborate upgrades.
Other channels for selling homes in bad condition
Cash buyers
Cash buyers are people and companies who buy properties with their own funds.
They don’t have chains, so they don’t need mortgage approvals or valuations. This results in a much faster sale than the open market.
They are generally willing to buy properties in any condition.
Auction
Property auctions are popular places selling properties in bad condition.
Auctions are fast and have flexible terms. But again, expect lower prices. Do your homework to set realistic guide prices.
Sell to tenants
If you are a landlord, offer sitting tenants first refusal.
They’ll already know the property’s faults but may see renovation potential. Offer goodwill discounts.
DIY landlords
Market to landlords with repair skills. Admit defects while talking up potential rental yields post-refurb. You should offer incentives if you can.
Sell your property fast with We Buy Any Home
At We Buy Any Home, we are chain-free cash property buyers. We can purchase your property up front and quickly, without hassle or stress.
We can buy your property fast – faster than any other channels – in as little as just 7 days.
Fill in our enquiry form below if you want a cash offer for your house.
