You’re thinking about selling your home, but you’ve got a problem. Actually, you’ve got a lot of problems. The roof is leaking. There’s a mold infestation in the attic. There are places on the front porch where you dare not walk because you might fall right through. The property is a mess.
It’s one thing to sell a newer house or one that’s in pristine condition. It’s something else altogether to try to sell a house that needs work in Knoxville, Tennessee. Will anyone even want to buy it? It might feel as though you don’t have any options but you actually do. If you’re considering selling a house that needs work, here are some things you’ll want to think about in order to get the most out of the transaction.
Figure Out How Much It Would Cost to Fix
When selling a house that needs work in Knoxville, don’t just eyeball your property and make a best guess. The best thing you can do right off the bat is actually figuring out every single problem plaguing the house and how much it would cost to fix them. In a way, this will give you some peace of mind because you’ll know exactly what you’re dealing with and how to move forward. You might find that many of your issues can be sorted out with some smart purchases and weekend’s worth of elbow grease. Or you might find that these issues are well beyond your resources, which lets you know where you stand.
Have a contractor or home inspector come by and give you an assessment. Not only will they have a good idea of what the repairs will cost but they might also be able to identify issues you aren’t able to. It’s no good fixing some problems if other ones are going to remain for potential buyers to discover.
If you do decide you want to move forward with renovations in order to get the house in shape, you’ve got some options. You can put up the money yourself in the hope that you’ll be able to make it back through the sale of the home, though that’s always the big “if.” If you don’t have the money on hand, you can apply for one of a few loan options. The FHA 203(k) loan provides you with funds for pre-approved renovations, but you’ll have to weigh the pros and cons that come with it. You could also take out a home equity loan but make sure you do your research on whether or not it makes sense for you.
Consider the Curb Appeal
Let’s say you’re not able to make the necessary renovations but you still want to move forward in search of a potential sale. The first thing you need to do is consider the potential buyer’s first impression. If they’re going to drive by your house and think about taking a look, you want to make sure the first thing they see is a nice-looking property worth considering.
Start with cleaning up any debris or problem areas outside. Mow the lawn, trim the trees, and get rid of those pesky weeds. If there are bald patches, cover them up with new grass or potted plants. Fill in the dirt driveway with some gravel. A fresh coat of paint can do wonders and that goes for fences, carports, and mailboxes along with the house itself. As for the house, wash the windows, sweep the deck, and dust off anything else that buyers might come across on their way to the front door. Once they get inside you’ll have to work through all the problem areas, but without doing all the curb appeal work you probably won’t even get them that far.
Remind Buyers About Renovation Loans
Just because you can’t afford to fix the home, that doesn’t mean potential buyers aren’t interested in giving it a shot. And if they don’t have the extra money to put towards renovations, you should let them know that they might be able to get approved for higher loan amounts that give them more money to put towards renovations.
Of course, the buyer is going to have to meet some basic criteria in order to take advantage of this. Depending on the program they’ll need a certain credit score and they’ll have to be able to put more money down. They’ll also need to get any renovations approved by someone affiliated with the mortgage company and the value of the home can’t be lower than any proposed renovation costs.
All of which is to say that the buyer will have to do some legwork in order to get approved for a renovation loan, so it won’t be for everyone. Being upfront about all the potential and necessary renovations is the right thing to do and it also helps you identify the buyers who are serious about moving forward.
Sell the Home As-Is
The truth is, you might not be able to afford renovations, you might not have the time or ability to improve the property, and you might not be able to find a buyer on the open market willing to invest in the home. We haven’t even discussed the possibility that structural or foundation issues could disqualify the home from multiple mortgage problems, making it nearly impossible to find someone who can buy the home. But even if that’s the case, it doesn’t mean you’re out of options. You still have options to sell your home fast in Knoxville.
Instead of sinking more money into a home in disrepair, consider selling your home as-is to an investor like Nexus Homebuyers. Not only will they work with you to figure out a fair price on the property but they’ll take this headache off your hands so you don’t have to worry about it any longer. They’ll turn this potential money pit into cash in your hands so you can start fresh.
If you’re interested in receiving a cash offer on your home, whether it needs a lot of work or not, click here to get started.