Content Contributed by: Blue Rybo-LoPresti
How do I sell my old house? That’s a question we get asked a lot. There are several ways do to it, and it is important to choose the right method that fits your situation and financial goals. When it comes to selling outdated houses, often times the narrative goes as such:
Years if not decades have passed since you first moved to your original house. The house that was once perfect is getting old you are ready for a more modern and updated place. However, before making an offer on that gorgeous new house for sale, you might be worried that putting the for sale sign on your own home in declining condition won’t fetch a decent profit. You could be convinced that you need some extra cash invested to carry out renovations in order to convince any potential buyers that your dated home is worth buying.
One of the toughest decisions to make when selling an aging home is figuring out the estimated cost of renovations before putting it out on the market. Selling new or recently renovated homes is easier because you only need a bit of clever marketing and staging to lure in a most lucrative buyer. However, many of Tulsa’s quirky old houses are full of character, and there are always people who will be ready to buy old homes regardless of the condition.
If your stressed about the cost of renovations, don’t worry! You can sell your home while it’s still in poor condition and usually make a good profit.
Selling your house will likely come down to these two options: Selling to market buyers or selling to off-market investors. We will talk about the pros and cons of each option, and hopefully, help you decide which is right for you.
Selling your home to buyers means that you will probably be listing your home with a real estate agent and the potential buyers are people who intend to live in the property.
If you want to sell your old home to buyers, you should expect a hard-hitting conversation with a realtor that the house needs major work before it can be put on the market. A realtor will pick out several areas that require immediate fixing to make your home market-ready for these potential home buyers.
For example, discolored wallpaper may need replacement, the decades-old layers of paint make the house smell strange, the old sink and faucets need to be changed out, etc.
As the homeowner, you should try to look at your house from the buyer’s perspective. Think about what would need to be done to make someone imagine building a life in it.
If this task seems daunting, you can always try selling the home “as is”. Let’s take a closer look at that option.
Your old home may be in such a bad condition that you might expect to spend a small fortune to make the necessary renovations. For example, the exterior and interior walls are weak and have many holes, the wooden floors are chipped and uneven, the once white ceilings are now discolored from water and mold damage, the electrical system is faulty at best, the bathroom tub has a large crack in it, and the roof needs immediate replacement.
If this sounds anything like your home, it will be a financial uphill battle fixing this house. You could consider listing it for a price low enough that would bring in many offers even if they only came from flippers and contractors.
Selling your old, outdated house “as-is” means that what the buyer sees is what the buyer gets. The advantage is that you get to avoid spending precious time and money on these repairs. In return, you’ll have to lower your asking price.
Your real estate agent can market the property as an excellent opportunity for investors, flippers, or people looking for fixer-uppers or you can skip the commissions and sell it directly to an investor yourself. (We’ll talk more about that later.)
Even if you accept a low price, it’s still possible to make a decent profit since you will be saving a lot of your valuable time and cash by choosing this much easier process.
To fetch the highest price for a property you would likely need to renovate it to the best of your abilities. Depending on the condition of your house, this may mean either some light touch-ups or complete gut renovation. Unless you are a contractor, you will have to hire someone to oversee this process. Contractors can give estimates on cost and timeline for your project, however, it is common for costs and length of time to go over the original estimate. Oftentimes renovations take months longer and cost tens of thousands of dollars more than expected. This happens during the renovation process. You may discover problems inside your walls or under your floorboards that you were not aware of until you started ripping things out.
If you want to maximize the listing price of your home and don’t mind spending your money and time on the project, renovating before listing might be an option for you.
Real estate investors are people who buy real estate for the purpose of financial gain rather than to live in the property. There are many ways that investors can make money when buying an investment property. When it comes to old, outdated houses, the fix-and-flip method is common.
A reputable investor would give you an as-is cash offer on your aging home. This offer would take into consideration all of the associated costs that the investor will take on when renovating this project. A seasoned and experienced investor will know how to estimate these costs in order to give you a fair offer on your home. Investors such as FixedProperties are ready to give you a quick all-cash offer on your home regardless of the condition.
There are additional benefits to selling your home to an investor. No cleaning or repairs are needed to sell your home. There are no commissions or hidden fees. You won’t have to sign confusing contracts with agents or read through lengthy paperwork. The timeline for closing will be fast and efficient and can be flexible to fit your timeline. If this sounds attractive to you, selling to a real estate investor might be a good fit.