Most buyers are looking for a move-in ready home. They want the house painted, clean, and without the need of repairs. If your house isn’t pristine it will be difficult to sell in Baltimore. If you’re selling a house that needs repairs in Baltimore then we have a handful of ideas to give you a better chance at getting it sold.
How to Present it to a Buyer
Buyers are often reluctant to buy a house if it needs multiple repairs. Sometimes the buyers have a good reason for avoiding these repairs, but sometimes they just need to be educated on the true impact of these issues. If you’re selling a house in Baltimore that needs repairs, here are a few tips when communicating with buyers:
- Be transparent about necessary repairs and provide any estimates you’ve received from contractors. This creates trust and puts you in control of how repairs are subtracted from the market price.
- Provide a list of contractors who have worked on the house. This shows them that while the house needs work it is not is disrepair. Many of these contractors will be familiar with the property. This makes it an easier process for the buyer to make the repairs after they purchase the property.
- Discuss the importance of the repairs with the buyers. Are they important for the value of the house? Do they need to be conducted in order for the house to be livable? Buyers want to know that the house they are considering purchasing is going to be worth what they pay or more in the future. If they think the value will go down due to the repairs, they may want you to come down on the sale price. Selling a house that needs repairs means that you will likely not have negotiation leverage with buyers. This makes communication key to a successful sale.
When Buyers Won’t Buy For Market Value Due to Needed Repairs
Some buyers simply won’t purchase your property for market value if it needs repairs. Repairs can be both expensive and time-consuming for the buyer after closing on the property. To incentivize these buyers you may need to offer additional concessions. Perhaps you purchase a home warranty or pay for their closing costs. If they need to finance the property them perhaps you pay for their loan fees. As with any property, there is always a price that will get it sold. You may seriously consider discounting the property under market value to justify the the time and hassle required by the buyers to get the issues fixed.
How Habitability May Affect Your Buyer’s Financing
If you buyers are using an FHA loan then your property will have to meet the FHA’s minimum property standards. If it does not then the lender will not approve the financing and your buyers will not be able to close on the property. The minimum property standards in Baltimore include:
- Safety: Selling a house that needs repairs should not expose the future homeowners to any health or safety risks.
- Security: The property should be easily secured. This includes things like locks on exterior doors and windows.
- Soundness: Your house’s structure should not have any defects that undermines its integrity. This is critical when selling a house that needs repairs.
These broad standards are best explained through examples of violations. If any of the following requirements are not met then your buyer’s FHA financing will not be approved.
- Structural requirement: When selling a house that needs repairs the structure must still be structurally sound. It cannot pose a risk to the health and safety of the homeowners.
- Habitability: When selling a house that needs repairs it must be considered habitual for potential occupants. Things that can make a house uninhabitable in Baltimore include:
- The house must be free of any frayed or exposed wires.
- All rooms are required to have an operational heat source.
- The roof must not have leaks of any kind.
- There cannot be more than three layers of roofing.
- Peeling cannot cannot be present inside or outside the property.
- Asbestos that is damaged or deteriorating must be removed by a licensed hazardous material specialist.
- The house must have a functioning refrigerator and stove.
A Good Alternative: Find a Baltimore Real Estate Investor
The great thing about selling to a real estate investor is that they will buy houses in any condition. If you are selling a house that needs repairs in Baltimore then this means they will be able to close on the property without you needing to do any additional work. Unlike an owner occupant, they are not going to move into the house and can keep the property vacant while they make repairs. Most real estate investors in Baltimore buy houses using cash so no home inspection is needed.
Investors have the money required to finance repairs. Once they complete the repairs they will resell the house for a profit to compensate their efforts. It is important that they be able to make a profit in order to justify the costs of purchasing and renovating your home. While they are required to make a profit, this may still be your best route for selling a house that needs repairs. There are no realtor commissions and a lot of their profit comes from value-add renovations such as finishing basements or adding bedrooms. You may find that selling to an investor would make you more money than selling to an owner occupant who is pricing repairs off of big box company contractors who charge a premium for their work. Real estate investors often have their own contractor crews which save them money and ultimately yield you the top dollar.
When you are selling a house that needs repairs in Baltimore, you need a local professional who understands how to make the most of your property. They understand that every house will require some repairs and they are willing to take the risks involved with renovating your property.
Dependable Homebuyers is a reputable investment company located in Baltimore, MD who can purchase your property as-is. Selling a house that needs repairs can take a long time if you list it on the market, but Depenable Homebuyers can shorten this process significantly. They buy houses in any condition. They are always available by phone at (855) 741-4848.
Selling a House that Needs Repairs in [market city]
The end goal of selling a house that needs repairs is to get to the closing table. If you go the route of selling to a real estate investor, you will be looking at a quick and simple transaction. They are well capitalized and aren’t looking to nickle and dime you with any home inspections or appraisals. They offer a true win-win situation for everyone.