Selling A Fixer-Upper

Many first-time home buyers -- especially millennials -- are looking for move-in ready homes. However, there’s still a market for fixer-uppers. Those who want to “flip” a property, or are more budget conscious and willing to invest some sweat equity into their dream home -- are open to buying a house that needs a lot of work. For the seller, it can be a tricky prospect -- since not everyone has a vision of what could be. The buyer’s market is typically smaller -- so it will take more strategic planning to get someone to bite on your sale. Here are some ways to get started.

1. Identify your buyer pool – the target audience for selling a fixer upper is different than the audience for a ready-made home. You need to find someone who sees potential over perfection and is willing to put work into the property. These buyers will likely be flippers who will profit from the turnover -- deal hunters who will settle for anything they can afford in their desired neighborhood, or remodelers who won’t be outbid on the property and can transform it into their dream home.
2. Clean up the outer appearance – the first impression you make is at your front door. If you can start off on the right foot here, you’ll be more likely to impress the buyer once inside. Increase your curb appeal by cleaning up weeds, mowing the grass, laying gravel, and planting a few flower pots.
3. Make small renovations – although you might not be able to afford major renovations, that doesn’t mean you don’t have the ability to make small changes that can give your house a more aesthetically pleasing appearance. Tasks as small as fixing broken hinges, repairing leaky pipes, treating carpet stains, and replacing grout take only minutes and can graciously increase the “eye candy” factor. Everyone knows that clean sells so if you want to impress your buyer, do sweat the small stuff.
4. Highlight the positives – the floor plan of the house is what is likely going to make buyers take the leap of faith if overall quality isn’t pristine. To that end, market your house based on its best features. Include facts like closet size, location of the fireplace, and patio layouts to entice buyers. You can also include neighborhood perks such a proximity to public transportation or a good school district.
5. Know your price – the last thing you want to do is overprice your fixer upper, but you also don’t want to underprice and lose equity. This is where a real estate professional can help you assess the market value of your home’s positive factors, and its future potential. Strategic pricing is even more important when you factor in the costs of the work that needs to be done.
6. Bring up renovation loans – buyers who are going the fixer upper route are already calculating the total renovation costs from the minute they walk in the door. Many will choose to go the route of renovation loans to put their plans into motion. A seasoned realtor will be able to talk to prospective buyers about access to and types of funding -- a positive way to turn people on to your property.

So, if you’re looking to buy, consider the advantages of a fixer-upper. If you’re in selling mode -- put your trust in a little TLC, and some sales advice. Odds are, you’ll be able to get the house off your hands faster than you’d ever imagined.