Selling a Fixer-Upper: A Guide to Maximizing Your Profit Potential

Selling a Fixer-Upper & Maximizing Profit

There are many reasons sellers may be interested in selling a home that is in need of work. Whether it's something like an inherited home that you do not have time to remodel or a house that's been vacant for one reason or another, there are things you can do to get the best return on investment with the least amount of elbow grease and money upfront. It helps to get some background information to help you prioritize repairs for your fixer-upper and make sure your home sale is profitable.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

Understand Your Pool of Buyers

Often, those interested in offering you a fair price for your fixer-upper are cash investors offering a guaranteed offer. This can be ideal for sellers because they can avoid lengthy repairs and listing on the public market. Additionally, cash buyers aren't in need of financing which can greatly expedite the selling process. In some cases, cash sellers can have money in their pockets within just a couple of weeks. Even when getting a cash offer, there are still steps you can take as the seller to maximize your offer amount.

Decide What is Worth Repairing

In some cases, there are necessary repairs that could cost you more than the amount you might be able to increase your sale price. However, it's sometimes also better to skip home renovations when selling. When deciding if and how to repair your home, asses things like the state of the structure, electrical systems, plumbing systems, HVAC system, and more. Selling a home with foundation trouble, for example, can be very time and money intensive and requires a decision on the seller's part to make repairs or sell as-is. One way to help you make your choice is to consult with an experienced real estate agent who will have valuable information on how to proceed.

Prioritize Upkeep and Repair Tasks

Fixing all of the time and cash-intensive repairs necessary to make a home move-in ready may be more than you are willing to deal with when you have a fixer-upper to sell. To get the best return on both your time and your money, focus on the places that count the most before deciding on selling your home as-is.

For starters, deep cleaning can do wonders to make a house look larger and well-maintained. You can do a deep clean yourself or take advantage of cleaning companies that offer deep one-time cleanings at reasonable prices. If there is any old furniture or other stuff in the home, the attic, or the garage, remove it or look into the cost of having it hauled away. This opens up rooms and storage areas so the buyers can truly see the home's potential. Updating the paint can also bring a lot of light into the home. Paint is inexpensive, simple to take care of, and can often provide more than a 100% return on investment. Finally, look at what will increase curb appeal. Small amounts of money put into trimming trees and bushes, keeping the lawn mowed, and updating the entryway can have a huge impact.

Disclose Any Property Defects

It can be uncomfortable to disclose faults in the property with your buyers, however, knowingly failing to tell potential buyers about problems could cause legal issues down the line. This can include issues like termite damage or known sources of lead. Disclosure laws vary by state, with many states having strict rules about what must be told to potential buyers. Talk to a real estate agent about what is required in your area.

Get an Offer to Influence Your Repair Choices

Getting a guaranteed cash offer comes with no obligation to accept. If you're trying to decide how to proceed when selling your fixer-upper, a great first step is seeing what offers are readily available. You can also consult with an experienced real estate agent to help you understand the current state of the house and which repair investments are likely to get you the most bang for your buck and help you cope with home-selling stresses.

Make Smart Repairs to Increase Your Home Sale Profits

While selling a home that needs work can feel challenging, it doesn't necessarily mean a lower return on your investment. Making smart choices about repairs and updates can be a great way to make sure you're getting the most out of your home sale. It's always a good idea to consult with a real estate professional to determine which repairs will have the most impact on your home's sale price.

For informational purposes only. Always consult with a licensed real estate professional before proceeding with any real estate transaction.

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