How to Sell a House in Poor Condition

Selling a house can be difficult, no matter its condition. It’ll therefore come as no surprise that selling a house in poor condition is even more of a challenge, especially if you go it alone.  However, there are lots of ways to achieve a sale, even if your house is not in good condition. As experts in the housing industry with experience selling houses that need work, we’re here to help, and in this blog, that’s exactly what we’ll do.  Let’s jump straight in with the question on everybody’s lips. 

Is it Possible to Sell a House in Poor Condition? 

The short answer to this question is yes. Absolutely!   Just because a house is in poor condition, doesn’t mean it can’t be sold. All you need is an effective strategy and a healthy dose of expert advice.  This advice will generally come from an estate agent, who’ll make the process of selling a house in poor condition easier and quicker than doing it yourself. Why? Because reputable estate agents will have done it many times before and will know what it takes to push through a sale. 

How to Sell a House in Poor Condition 

Selling a house in poor condition will usually involve the following steps: 

1. Determine whether any priority repairs are needed  
2. Decide whether you want to make any minor fixes to the property before putting the house up for sale 
3. Choose your selling route (estate agents, going it alone, auction, quick sale company etc) 
4. Ensure that the property is marketed and advertised to the right kinds of buyers 
5. Be completely transparent about the problems with the house and disclose any necessary information 
6. Highlight the positives of the home (perhaps potential, location, neighbours, good for investors etc) 
7. Set a realistic asking price 
8. Consider offers 
9. Accept an offer 

Next, we will go into some more detail around which buyers you ought to target when selling a house which needs work.  

Who Might Buy a Property in Poor Condition? 

If you are looking to sell a property which is in poor condition, it is a good idea to gain an understanding of the types of buyers you want to attract. 

Landlords 

Landlords will buy houses that need work to renovate them and rent them out. This helps them create a regular, passive income, with the mortgage (if they have one) being paid off by the tenant. 

Homeowners on the Hunt for Bargains 

Sometimes, buyers will be looking for a family home, or one to call their own. They might have money to spare, or access to cash to fix up the property, and the end-result will be for them to live in it themselves.   The reason they’ll be looking for houses in poor condition will be to find a better deal than a home with no work required. That’s why they’re frequently referred to as bargain-hunters.  

Property Flippers 

Flippers are usually one-man bands with deep pockets. Their goal is to buy properties that need work, renovate them, and sell them on for a profit. Simple. 

Property Developers and Investors 

Property developers generally work at a larger scale than “flippers”, but they do the same thing. They buy houses, renovate them, and sell them for profit.  With flippers and investors, you’ll often be able to achieve a quick, cash sale for your property, even if it needs work. Some of them will use this as a negotiation tactic, however, hoping to drive down the cost of your property to take it off your hands, with minimum effort on your part.  Of course, in reality, their goal is to make as much money as possible, which is important to bear in mind.  

The Challenges of Selling a House That Needs Work 

There is no getting away from the fact that there are challenges when trying to sell a house in poor condition.  Firstly, traditional buyers aren’t usually keen to buy a home with structural issues, or those in need of major repairs.   They usually want something ready to live in as is, which immediately puts them off a house that needs work. This minimises your pool of potential buyers compared to selling a home in liveable condition.   Nobody wants to buy something they’ll be pouring money into for years to come, either, so, buyers will factor in additional costs on top of the purchase amount, before committing. They might therefore make lower offers than you hoped for, in order to account for future expenditure.  This can be problematic for sellers, particularly when they underestimate the amount of work required to make their property attractive to buyers. That’s why it’s important to be realistic with your asking price. 

The Importance of a Realistic Asking Price 

It is important to be realistic with your asking price if your property is in poor condition.   One of the major reasons houses in poor condition fail to sell is that the seller asks for too much money, which puts off potential buyers. They often compare their property to recently sold houses in the area but fail to understand the difference between a house that needs work and one that doesn’t.   This not only leads to unrealistic asking prices, but sometimes, sellers will also mislead buyers with information about their house, in order to make a sale.  However, there are legal ramifications if you don’t disclose certain information about a house before committing to a sale, which is why you must be honest when selling a property in need of work. This is a topic we previously explored with our article on what you legally have to disclose when selling a house in the UK. 

Time of Year is Important 

The time of year you put your house up for sale also plays a major part in your ability to sell it, with certain seasons making the process more difficult than others. Our article on the best time of year to sell a house provides useful information on this topic.  

Location Matters 

Simply put, if your property is in a desirable location, it’s more likely to sell, regardless of its condition.   Things that make a location desirable are access to high quality schools, parking, and distance to useful amenities or city/town centres. Then there are aspects like crime, safety, and noise, all of which can be pivotal when buying or selling a home. All of these and more will make your home more desirable and will help it command a higher asking price.   However, if your property isn’t in the most desirable area, there are plenty of other ways to add more value to your house.  

Should You Fix Problems to Help Sell a House in Need of Work? 

If you’re working out how to sell a house in poor condition, there are certain fixes that won’t break the bank, but might help you achieve a sale.   Things like a paint job and simple fixes to plumbing and electrical appliances can create a more positive first impression and boost your chances of selling.  Addressing any noticeable issues at the front of the house will also help and will help improve what’s known as the kerb appeal of the property. This is essentially the view of the front of the house, which is very important to homeowners and buyers. You may wish to find out more by reading our article on how to improve kerb appeal. Cleaning is another task you should complete before putting a home up for sale, as well as a house clearance to make sure it looks as respectable as possible to potential buyers. This applies to the inside and outside of the property, which means the garden(s) may need a bit of TLC to present the house in its best light.   More serious, structural fixes might also be worth considering, as long as your budget allows for them. Roof fixes, wall cracks, and damp are all reasons people will be denied a mortgage on a home, so it’s worth exploring whether you can fix these before putting your property up for sale.   It’s crucial to understand whether or not it’s worth carrying out larger scale fixes, however, as property developers and flippers may be more open-minded and flexible about buying a home that needs renovations.  Take a look at our article on what not to fix when selling a house for more information on this topic. 

Why You Should Use an Estate Agents to Sell a House in Poor Condition 

Let’s look at some of the core benefits of using an estate agent to sell a house that needs work: 

• Marketing and advertising

Estate agents have access to the major real estate portals (Rightmove, Zoopla etc) and can advertise your property on all of them. They can generally create listings on their own website, too, and this exposure of your property gives it a much higher chance of selling.  They’ll also be able to take professional photos of your house, putting it in the best light possible, as well as write bios that help make your property seem appealing. 

• Help with valuations

As we mentioned earlier, a common pitfall of selling a home that needs work yourself is getting the valuation right. Estate agents can offer objective and realistic valuations for your property, based on their knowledge and experience of the local housing market. This gives you a better chance of attracting a buyer quickly. 

• Contacts

Using their knowledge of the local area and housing market, estate agents will have access to more contacts in the region that may help you achieve a sale. This will include the likes of landlords and property developers, even flippers, who are more likely to be interested in buying your house that needs work. 

• Saving time

Selling a house can be very complex, but using an estate agent means you can leave the legwork to somebody else.   They’ll not only market your property and make sure it’s advertised to the right people, but they’ll also take care of viewings, enquiries, negotiations, and basically, all those tasks that take time, effort, and expertise. 

• Experience

Estate agents also have experience selling houses that need work, meaning they can spot and avoid any pitfalls you might not know about. From spotting potential fraudsters to repairs worth doing, and literally everything in between, estate agents know everything there is to know about selling a property that needs work.  So, if you need to know how to sell a house in poor condition, you need to ensure that you have the best brains on the job. Some people try to sell a house themselves, which is difficult at the best of times, but it’s always best to use an expert who’s seen and done it all before.  This means finding the perfect estate agent, one with a great reputation, and one that has expertise in how to sell a house poor condition.   At Chancellors, we have experience with selling homes in poor condition, and can help you achieve a sale you’ll be happy with. We have unmatched access to the housing market and can find the perfect buyer for your home, no matter its condition.   Thinking of using an estate agent to sell your home? Find out more about our selling services here.  

Should I Go Down the Auction Route? 

As opposed to finding a flipper, property developer, landlord, or cash buyer, an auction is another popular way to sell a property in poor condition. 

Benefits  

One of the key benefits of the auction route is speed. Contracts are generally exchanged on the day of sale, with buyers legally committed to complete the sale by a set date, which is usually 28 days or less.   This is compared to an average of three months on the traditional market.   You’ll also have access to a wider breadth of buyers with an auction, rather than traditional buyers. Builders, developers, landlords, and all kinds of buyers attend or view online auctions in the hope of finding a bargain, which gives you a higher chance of selling an old house that needs work.  

Drawbacks

When it comes to auctions, sales can fall through relatively easily, with buyers pulling out at short notice before contracts are exchanged.    Another disadvantage is that if you aren’t generating as much interest as you’d like at auction, you may be encouraged to lower your reserve price. While this often attracts more buyers, it can also lead to a lower house sale, which isn’t ideal and could leave you out of pocket.   There’s also no guaranteed sale when auctioning a house. And while you can re-submit your property to auction if it fails to sell, there may be additional charges for doing so.   Find out more about how to sell your property through auction.

Should I Use a Quick Sale Company? 

A final, last-resort option to sell a house in poor condition is using a company that offers “quick sales” on properties. They’ll generally be called something like “we buy any home” and will initially come across as very eager to complete a sale quickly and easily.  However, their offers will probably be very low, especially if the property needs work. They’ll also use the fact that you need a quick sale to offer a lower amount, as well as the fact that it’s in poor condition. A lot of the time, they’ll be buying for third parties, too, so you won’t actually be aware of who’s really buying your property. This can lead to complications at the point of sale.  There are also lots of scams in the form of “we buy any home” style companies, who may target you with phishing email scams, among other forms of fraud. That’s why it’s best to do your research before communicating with this kind of company, but to be honest, it’s rarely a wise move.  These kinds of companies have also been known to reduce their offer at the last minute, and according to Citizens Advice, there’s plenty of risk involved when selling a house with a quick sale company. 

Looking for an Estate Agent That Knows How to Sell Properties in Poor Condition? 

At Chancellors, we have lots of experience selling homes in need of work and can help you achieve the sale you want from your property.   With over 200 years of experience and a high level of expertise, we can help you find he perfect buyer for your home, no matter its condition.  For more information about our selling services, please get in touch with us today.