Look, I've seen this happen. Before you spend money on repairs, ask if they'll actually raise the selling price. Often, a deep clean or some new plants does more than those fancy countertops. I've watched sellers waste thousands on upgrades only to find buyers who planned to gut the place anyway. For a house that needs work, you market it to people who want a project. Be honest about what it is and highlight its potential. That's the move.
Buyers will overlook old carpet and peeling paint if the price is right, but they run from foundation or roof issues. I once saw a seller pour thousands into cosmetic updates while ignoring a leaky roof, and it cost them big time in negotiations. Just handle the major red flags. Price the house honestly for what it is, and you'll attract the right buyers without wasting money.
Look, when a house needs work, the first step is getting real. I check what similar places nearby sold for and then sit down with the seller. How long can they wait? What can they spend? I had a client ready to gut the kitchen, but we ran the numbers and saw a lower, as-is price brought in a pile of investor offers. Honestly, most of the time, just cleaning up and fixing the leaks gets you further than a full renovation.
After flipping hundreds of properties, I learned one thing. Don't assume big renovations bring big returns. A seller once spent thousands on a new bathroom, but buyers still negotiated the price down hard. The return wasn't there. I always ask sellers about their goals first, and usually, the best move is just cleaning and decluttering. Let the math decide on the big stuff.
Hi, When advising sellers on the highest priced options available to them, I first compare the true repair costs to the expected increase in the selling price, and then factor in the time, price of carrying costs and stress incurred. Then I ask if the reason the seller is selling is to obtain the maximum price for the property or the fastest offer. The answer to this question will usually determine the best selling strategy for the house. Most buyers will overlook worn carpets, out of date kitchens, and general cosmetic wear and tear when buying a house, but are very hesitant to buy a house that has structural damage, price of its roof, mold, problems with the foundation or anything that will jeopardize their ability to obtain financing and homeowner's insurance. In addition, I have seen many sellers put too much money into extensive remodels that did not generate a return on their investment while, on the other hand, I have also seen sellers do only the basic safety repairs, clean the property up, and do some simple things to enhance the property's curb appeal and generate better offers without having to throw too much money into it. Transparent pricing and marketing will increase the chance of finding a qualified buyer for a house that needs work and also helps create a better chance of generating competition for a house that may not be turnkey. Identifying investors, renovators and flexible buyers in need of immediate housing solutions through accurate pricing often allows a seller to create a lot of demand for the property. When sellers have inherited their homes, deferred major repairs, and need to sell quickly and with certainty, it is important to weigh the market for sale options against the investor options. Best regards, Ben Mizes CoFounder of Clever Offers URL: https://cleveroffers.com/ LinkedIn: https://www.linkedin.com/in/benmizes/
Hi. Just to be clear up front, I am not a real estate agent. My wife is. I work with agents all the time, but I sit on a different side of these deals. I own a roofing and restoration company and I also own an insurance brokerage. Because of that, I see something happen over and over when people try to sell houses that need work. Most sellers do not really know what shape their house is in when they list it. They clean it up. Maybe paint a room. Maybe change some fixtures. Then they list it. Then the buyer gets an inspection. That is usually where the problems start. The inspection comes back and suddenly there is roof damage. Or siding issues. Or gutters. Or water spots inside. Stuff nobody talked about before. Now the seller is already under contract and kind of stuck. At that point they either pay for repairs out of pocket or they file an insurance claim and pay a deductible. Either way, they lose. The buyer gets all the upside. What works way better is having someone look at the house before it ever goes on the market. Not just a normal home inspection. Someone who actually knows what storm damage looks like. Roof. Siding. Gutters. Exterior paint. Even interior water staining if it came from outside. A lot of times there is legit storm damage that just got missed. If that gets caught early, the seller can file a claim before listing. Yes they pay a deductible. But then the house gets fixed before anyone ever sees it. One deal still sticks in my head. A realtor asked me to look at a rental property because the roof looked bad. That was it. We found storm damage. Insurance paid for a new roof on the house and detached garage. New gutters. New siding. New exterior paint. The seller paid a one thousand dollar deductible. They were going to list the house at one hundred fifty five thousand. After the work, they listed it at one hundred ninety five thousand. It sold fast. That seller made almost forty thousand dollars more because they handled it before listing instead of letting a buyer find it. If that damage had been found after going under contract, the buyer would have gotten all that value. This is one of the biggest missed opportunities I see with houses that need work, especially older homes. I can provide real before and after photos from actual deals if that helps.