By Blue Rybo-LoPresti
As houses age, regular maintenance and repairs are needed to keep the building in a desirable condition. However, for a variety of reasons many homeowners defer the maintenance and repairs on their homes. Some owners have financial difficulties that prevent them from making the necessary repairs, while others do not have the time to schedule and oversee the projects. In some cases, homeowners are not even aware of major issues with the property. This often becomes a problem when the owners go to sell their houses. Tulsa homes that need major repairs can be hard to sell on the open market. With all the homes available on the market that are in great condition, a home in need of serious repair will not be as attractive to potential buyers. There is a solution however to this problem without making the major repairs. Selling your house to a cash home buyer in Tulsa will get you a quick cash offer no matter the condition of your house.
Major Repairs or Quick Fixes and Upgrades
Start with a realistic assessment of your Tulsa home’s current condition. A good way to do this is by comparing your house to similar ones in your area. Consider touring other houses for sale nearby at “open house” events before selling your home. These events are open to the public and usually don’t require an appointment. Websites like Zillow and Realtor.com can help you find open houses in your local area. During your visit, take note of the homes’ condition, features, and of course, the price.
After you get a rough idea of what kind of competition you’re up against, try considering the condition of the local real estate market. Is it cold (aka “buyers market” with lots of inventory) or hot (aka “seller’s market” with low inventory)? If you are in a buyer’s market, homebuyers have many houses to choose from, which means they can afford to be a bit pickier with their purchase choice. For home sellers with a property that needs major repairs, a buyer’s market may mean more selective homebuyers. If there are many options available, many homebuyers won’t want to purchase a house that needs work, since there are so many other houses that don’t need any work.
For seller’s markets, there aren’t nearly as many homes for sale on the market, therefore homebuyers will have to compete for what is available. This usually works out better for home sellers, because the buyers might not be as fussy and might also accept the property in less than perfect condition. Assessing the local competition and current market conditions will help you determine if you will need to really invest all the money and time into major repairs, focus on some minor fixes and upgrades, or skip the repairs entirely and simply sell your home as-is to a cash buyer. Taking into account the local market, as well as the current condition of your house will help you make this decision.
What Must Be Done Prior to Selling Your House?
If you are selling a home the traditional way, oftentimes repairs must be completed. Generally speaking, these major repairs are bigger projects than simple cosmetic work. These larger-scale repairs are typically considered safety issues. These can include structural issues with the foundation or the roof of your building. More often than not, a home inspection will identify these types of major repairs and put them into a report for you to read.
Local laws often require certain issues to be disclosed to potential buyers. These may include pests issues such as rodents or insect infestations, mold, lead paint, and property drainage issues. Prior to putting your house on the market for a traditional sale, you would need to repair any damage caused by termites or mold and eliminate the cause at the source. These issues are considered “red flags” that home inspectors and occasionally appraisers will make note of when they are assessing your property.
Many traditional buyers will insist on a professional termite treatment program. Removal of these pests can become a very expensive and time-consuming process. Depending on the severity of the infestation, it could cost hundreds to thousands of dollars to remedy. Repairing structural damage can take even longer and cost even more money, as you will have to fix both the cosmetic and the structural problems that arise. Not only is mold ugly and smelly, but it can also cause serious health problems. Therefore you will want to take care of all mold-related issues before listing your house on the open market in a traditional sale. Professional mold removal can cost up to thousands of dollars, and you will need to hire a mold inspector as well.
Who Buys Houses in Need of Major Repairs?
It is often wise to spend some time learning about your potential buyer pool prior to making any decisions regarding the sale of a house that needs major repairs. What kinds of buyers look for houses that need major repairs?
In reality, the majority of buyers on the market want a “turn-key” home. This means a property that is in a general state of good repair. However, in a hot market with low inventory, some sellers may be open to purchasing a home that needs repairs. Furthermore, there are some kinds of buyers who actively seek out and prefer homes that need major repairs, a.k.a. “fixer-uppers”. These types of buyers include house flippers and real estate investors, who often seek out homes that need major repairs. They aim to purchase homes for a low price, complete the necessary repairs, and then “flip” the house and make a profit on the sale.
There is also the bargain hunter. This type of home buyer may really want to live in a specific area or in a particular type of house, but may not be able to afford the market list price for a property in good condition. This kind of buyer is looking for a good deal, and therefore more likely to buy a home that needs a lot of work if it is located in the right area or has the specific features they are seeking.
Finally, there are home buying companies such as FixedProperties who will buy your home with a quick cash offer. These companies have plenty of capital at their disposal to make you an offer and write you a check for your home. They buy homes in any and all condition, and always give you a fair market value for your property. If you are looking to sell your Tulsa home in need of major repairs fast, check out FixedProperties!