How to sell a fixer-upper house, fast
Real estate agents will encounter a variety of homes as their careers progress. Some may be in pristine condition whether they were built recently or hundreds of years in the past. Others might require some work – or the right type of buyer – for the deal to close.
Fixer-upper homes don’t always appeal to as broad of an audience of homebuyers as a normal house. The sale price may reflect the need for improvements by the new owner. If you’re working on behalf of sellers who want to sell a fixer-upper house quickly, keep this guidance in mind.
How do you market a fixer upper home?
Preparing a fixer-upper home for sale might involve significant cosmetic repairs, such as new coats of paint, to improve the house’s curb appeal. This strategy makes the home more presentable and means less work for the buyer after closing. While buyers still may have to address significant wear and tear and other issues, they can own a home that at least appears to be in good shape while they take on this work.
A fixer-upper may also be presented in a more as-is fashion, allowing buyers with an eye for home improvement to start creating a plan for renovations. This can discourage some buyers, especially those without much experience or interest in major updates and repairs. But it also may help tap into the subset of the market who welcome such a challenge. Even in these cases, it’s still best to clean the home and spruce it up in ways that the owner’s budget allows for.
What repairs should your clients make before selling?
One important consideration to keep in mind is not going too far with major changes in an effort to sell a fixer-upper home. Homelight, a platform that connects potential clients with real estate agents, noted that buyers looking for a fixer-upper home may want to follow their own vision.
More intensive improvements like new cabinets might not impress them – they may end up tearing those out and putting in their own. Instead, highlight the existing positives of the home and reinforce the idea that it’s a great canvas for someone who has the means to significantly change and improve the existing structure.
What’s an effective strategy for pricing a fixer-upper home?
Pricing is another crucial consideration when it comes to effectively marketing a fixer-upper. Encourage your clients to set a reasonable price that will attract buyers and highlight the financial value that comes with buying a house that needs some work. SFGate suggested setting the list price below comparable houses in the local area that don’t require much home improvement work.
Who is in the market for a fixer-upper house?
Understanding the market for fixer-upper homes can help you tailor your marketing efforts toward the most relevant prospects. Here are some of the qualities that a person or family interested in a fixer-upper house may have:
- Trying to save money and willing to put in the time and effort to improve the home in exchange.
- Looking for a less-expensive home in an area or neighborhood that is especially desirable to them.
- Interested in trying to renovate a property that they own for their personal enjoyment.
- Planning to or actively involved in repairing fixer-upper homes and renting or selling them to others.
A home might also seem perfect except for the need for repairs, checking off the boxes on a potential buyer’s wishlist related to style, size, acreage and other important factors. Appealing to the widest possible audience is important for extending the range of your marketing efforts.
How can real estate agents help their clients sell a fixer-upper home?
As a professional in the world of real estate, you have plenty of resources that can help your clients sell their fixer-upper home. Your own personal experience with similar houses can help point them toward priority areas, with a general focus on cosmetic improvements. You can also turn to colleagues, your broker and others in the field for advice about more specific issues. Your ability to look up similarly sized homes in the area as well as fixer-upper houses that are for sale or recently sold can offer vital insight about setting the list price.
Selling a fixer-upper home isn’t always easy. However, highlighting the positives and potential in a house, encouraging your clients to make some quick cosmetic fixes, doing some pricing research and understanding the types of people who buy fixer-upper homes can go a long way toward a successful sale.
Just Commission Advance is here to help real estate agents better manage their cash flow by providing advances on pending sales. With a steadier stream of income, you can commit to the full range of marketing that a fixer-upper home – or any other type – needs to turn into your next sale. Apply for your advance today.