What to do with a house having foundation or structural issues and with not enough funds for repairs? Sell it then get a new and improved one. Still, this is easier said than done. Most buyers will run away screaming the moment they learn that a house they’re eyeing needs repairs that involve more than simply repainting a wall or changing the kitchen backsplash. Most – but not all.
Straightforward Ways of Selling
Yes, there are those special kinds of buyers who are willing to part with their money for a home with foundation issues. But there are certain things that have to be done before selling success can be achieved. The most straightforward approach would be to bite the bullet and absorb the finances for repairs before listing. But since lack of funds is the major issue here, the second approach can be to let the buyer know about every issue with your home then adjust the price accordingly. You may end up with lower revenues post-sale, but at least the liability of making repairs to the house is out of your hands.
Renovating and then Selling the Home
Don’t dismiss the option of making renovations to the home prior to selling just yet. Repairs may not really cost an arm and a leg after all. This is why you need the expertise of a reputable structural engineer who can assess the extent of damage and provide you with a breakdown of costs. A structural engineer’s intervention is important because, on your own, you won’t know the scale and depth of damage and repairs. Their trustworthiness also gives you an ace on your sleeve when negotiating with buyers.
The average cost of an assessment will average between $300 and $800. If your foundation requires serious repair, the costs range between $1,840 and $6,570, according to HomeAdvisor.com.
Your Home’s Potential Buyers
Selling the home “as-is” or declaring it as a fixer-upper could be options for those wanting to get a sale immediately sans any additional money outflow. Since very few lenders will be willing to offer financing for a home needing structural intervention, it isn’t very likely that you’ll be getting offers from buyers on home mortgages.
The kind of buyers you will be attracting, however, are those who are either in the business of structural repairs or who know someone who’s skilled in structural repairs. These same people can buy in cash and are usually on the lookout for homes like yours to invest in, renovate, then sell at better market value. This is what’s called “flipping” a home, in real estate terms.
“Fix and Flip” Investors
Experienced fix and flip investors can smell a viable purchase in homes like yours and note the extent of repairs needed. They’ll most likely agree to the lower price tag you place for your home then invest more in its total overhaul.
Dealing with these fix and flip investors may rid you of the headaches, time, and money involved in doing any of the repairs. But if you can engage in the flipping yourself, then there’s a better profit to be seen with the home getting priced at its true market value. It’s best to ask for expert advice in this case so you can determine the best and most income-generating action for your home.
If it’s expert advice from Minneapolis realtors that you need for this kind of set-up, then feel free to get in touch with me, Adam Fonda. I am available via direct line at 612.308.5008 or via email at firstname.lastname@example.org. Let me be your guide to your selling success.