How to Sell an Old House in Poor Condition UK
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Selling a house in any condition can be difficult, but to sell house in poor condition is a whole different ball game. Fortunately, there are ways in which things can be made easier and at The Property Buying Company, we’re here to help.
Can you sell a house in poor condition?
To put it simply, yes. Whilst selling a house in poor condition may feel like an impossible task, with an effective strategy in place and the expert guidance of your estate agent, it absolutely can be done.
How to Sell a House in Poor Condition
As with any home, when selling a property that’s in poor condition, it’s important to outline an effective sales strategy to help push the sale through as quickly and efficiently as possible. We recommend following a series of simple steps in order to get the ball rolling.
Identify any priority repairs and where possible, look to have these fixed as a matter of urgency.
Assess any minor issues with the house and decide whether or not you want to fix these yourself ahead of the house going to market.
Explore the selling routes available to you - for example: putting the house to auction, going with an estate agent, with a quick sale company etc. It’s a good idea to outline the pros and cons of each option before making a decision.
Make sure that the home is marketed correctly in order to make it visible to all the right buyers. This is super important as we want the home to gain as much exposure as possible. The more people that see the home, the more likely it is to get picked up quickly.
Be entirely transparent about any issues with the home and disclose any necessary information. It can be tempting to sugar coat certain things when selling a house, but ultimately, it is your duty of care to be entirely honest about the property. Try to remember that people are more than willing to put in the work if they truly see themselves living in a property.
Be sure to highlight what’s great about the home - for example the prospect of a big, exciting project, the fact the neighbours are lovely, the wonderful location, how the home presents a prosperous investment opportunity etc.
Determine a realistic asking price and stick with that price. It is best to consult an estate agent or even a surveyor at this point, as they will be able to value your home accurately.
Consider offers that are on the table and assess the pros and cons of each of those offers. Sometimes, a prospective buyer may offer slightly less than another buyer, but they may also be in a more advantageous position - for example a cash buyer with no chain behind them.
And finally, once you have taken the time to assess each of the offers on the table, you are then in a position to accept the best offer and proceed accordingly.
Who buys homes in poor condition?
Worried about how to sell a problem house? You’ll be pleased to hear that selling a home that is in poor condition is something that in actual fact, a lot of people are keen to do. The prospect of a project and an investment opportunity is something that generates a lot of interest among certain types of buyers. If you are selling a property that’s in poor condition, it’s vital that you gain an understanding of the types of buyers that you want to attract.
Landlords
Landlords love an investment opportunity and are often on the hunt for exciting renovation projects that could earn them money. Such opportunities enable landlords to generate a regular, reliable, passive income whereby the mortgage (if they have one, that is) is being paid off by the tenant.
Homeowners looking for a bargain
In an ideal world, we could all buy our dream home at an affordable price and not have to lift a finger from the moment we walk through the front door. However, this is seldom the case, which is why many buyers are now scoping out renovation projects. Using the money they have spare, buyers will often fix up a property with the intent of living in that home once everything is done.
Buying a home that needs work is incredibly appealing as these homes have a much lesser asking price and when the buyer does eventually come to sell, it’s likely that they will have made a good chunk of money.
These buyers are often referred to as ‘bargain hunters.’
Property Flippers
More often than not, property flippers work solo and they have a considerable amount of cash to hand. Ultimately, they source properties requiring a considerable amount of work, renovate them and proceed to sell them for profit.
Property Developers & Investors
While property developers tend to work on a larger scale than flippers, essentially, they do the same thing - buy homes, renovate them and sell them on for profit.
The great thing about investors and flippers is that you’ll generally be able to achieve a speedy cash sale, irrespective of how much work the home is in need of. Investors know that their ability to move quickly places them in an advantageous position, and will often use this to their benefit. If you do sell to an investor or developer, bear in mind that they will likely try to negotiate the cost of the home. It’s then up to you to decide whether or not what they’re offering is worthwhile. If you really want the property off your hands as soon as possible, prepare yourself for the fact that you may have to sell it for less than the market value.
The difficulty of selling a property in need of work
Selling any home can be challenging - even if it’s perfect - so, it’ll likely come as no surprise that selling a property that needs work can be very tricky indeed.
While certain buyers will identify a house in poor condition as an exciting investment opportunity, traditional buyers are less excited at the prospect of taking on a house with issues. The likes of structural problems and the need for major repair work can be extremely offputting to buyers, which, unfortunately, instantly lessens your pool of prospective buyers. Minor jobs are to be expected in almost any home, but the prospect of buying a home that isnt in a livable condition isn’t always an appealing - or even viable - option.
For sellers, this issue can prove quite problematic. Often, sellers underestimate how much it will cost to fund the work needed to make a home appealing to potential buyers, making it all the more important to be realistic when it comes to your asking price.
Why it’s important to set a realistic asking price
This leads us into exactly why it’s so important to be realistic with your asking price.
In any case, a realistic asking price is important - but even more so when a home is in poor condition. One of the primary reasons why properties in poor condition linger on the market is because the seller has overpriced, instantly deterring potential buyers from expressing an interest. Sellers will often compare the property they are selling to others that have sold in the area, without taking into consideration the stark difference between a house that is ready to move into and live in, versus one that needs work.
Location location location
Location isn’t everything, but it kind of is. Ultimately, if you’re selling a house in a desirable location, the likelihood is that it will sell, even if it’s in poor condition.
More often than not, people are willing to sacrifice moving into the perfect home if they can be near to the things that attract them to an area - great schools, useful amenities etc. It is therefore possible to bump up the asking price without deterring potential buyers.
Should you take on the work yourself?
When selling a home in poor condition, sellers have two options - 1. Sell the home exactly as it is, or 2. Attempt to fix the outstanding issues before putting the property on the market.
If you’re trying to decide whether or not you should take on the work yourself, first, be realistic. Certain jobs will be pricey, with little to no way of avoiding the cost. However, the likes of front of house jobs to help improve that all important ‘kerb appeal’ are worth taking on, as are simple plumbing fixes and other minor paint jobs.
Needless to say, taking the time to give the home a really good clean is well worth your while, and if your budget allows for it, try to work out how much it would cost you to address those larger scale structural problems. You may find that you’re pleasantly surprised by the quotes you’re given, in which case the job may be worth your while. If, on the other hand, the work is extortionately expensive, you are probably best leaving it to the next homeowner.
Should I sell using a quick sale company?
At The Property Buying Company, we are proud to buy any home in any condition. Whether you are selling a house in bad condition or an older property we can help. We identify opportunities where others perhaps wouldn’t and our average selling time ranges from 2-3 weeks - great news for those hoping to achieve a quick sale! What’s great about us is that we also take care of all those extra fees - including solicitor fees - meaning there are no hidden costs or nasty shocks later on down the line.
In terms of the sale price, we average at 80% of the market value, which, when you consider the speedy turnaround and the fact there are no additional fees, is pretty great!
For more information, give us a call on 0800 024 8444 and we will be happy to advise.
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