Sell a Home that Needs a Lot of Repairs

This is your best option if you have the time, skill, and resources to complete the repairs and upgrades but also have the greatest degree of risk with time delays, cost overruns, and expensive unforeseen repairs. If you took your time to evaluate the cost and time to complete the repairs thoroughly, the benefits can outweigh the risk. A renovated home typically sells faster and for more money as buyers are willing to pay a premium for a home that is in superior condition.

When completing the repairs, you will need to pay particular attention to the items that will concern a home buyer the most. These items will need to be in good repair:

HVAC system,
Foundation,
Plumbing system,
Electrical system,
Roof, and
Safety devices

It is not necessary to replace the item if it has not reached the end of its useful life and is functioning as intended, but you will need to fix anything potentially dangerous or not functioning properly.

If you have the time, ability, and financial resources, repairing the home and selling it the traditional way will usually provide you with the highest net cash and will be your best option.

Word of caution: The process of renovating your home while you are living in it is extremely stressful, and you will be exposed to many new risks that often seem out of control.

If you have a small older home in an affluent area, you can likely sell your home as-is, but for the typical homeowner, it will be very difficult if not impossible. Many real estate agents will convince you that they can sell your home as-is and will take the listing only to continually recommend price reductions when the home is not selling. That is because the vast majority of homes listed on the MLS are in good condition, so real estate agents have very little experience with the problems and complexities of selling a home that needs extensive repairs. This becomes a very frustrating experience for the seller as the weeks and months go by.

What are the problems and complexities of selling a home that needs extensive repairs?

First, a typical homebuyer is not looking to buy a home that needs a lot of work or has the financial resources for the down payment, closing cost, and completing the required repairs after closing. In fact, in 2019, NAR found that the average down payment on a house or condo was just 12 percent. If the average home buyer is only putting down 12%, they do not have the extra $20,000 to $30,000 to complete needed repairs.

Second, even if you locate a willing buyer, they may find it difficult or impossible to obtain a loan on a home that needs extensive repairs. The majority of loan programs require a home to be in a habitable condition and will require the appraiser to inspect the roof, plumbing, electrical, structural, HVAC, and appliances to certify that the systems are functioning before they will approve a loan.

Third, there are very few home buyers that have the skill and experience to supervise extensive repairs, and many won’t even consider it. Most homebuyers are working full-time and do not have the time to devote to a large renovation project. Plus, will parents want their kids to live in a home while it is being renovated?

There are always exceptions to the rule, and your home may sell as-is. If you take this path, we recommend you hope for the best but prepare for the worst.

If you want to sell your house fast that needs extensive repairs, the easiest way is to sell to home cash buyers, like OutFactors. This is especially true if you do not have the time or money to spend on fixing the property. As a home cash buyer, OutFactors make it easy for you to sell house as-is. If your home needs extensive repairs, selling to a home cash buyer like OutFactors could be your best option.

Our process is so fast and simple, and we can usually close in 10 days or less. You can get an all cash offer from OutFactors in about 2 minutes. Offers are absolutely free with no obligation or surprises and personal information is NOT required. Yes, that is correct. No email address, no telephone number – not even your name. So get a great cash offer NOW by clicking here! When you sell to OutFactors, you can even choose the closing date and move out on your schedule. With OutFactors, it is simple to sell house as-is that needs extensive repairs.

One of the biggest benefits of working with OutFactors is how simple we make it to get the cash you need when you need it. Being short on cash can put a major damper on life, but with the cash for house in hand, you have the money to start fresh.