Here at the Property Sale Watchdog, we’re often asked ‘can you sell a house in poor condition?’, and the answer is yes you can. You can sell any problem property, in any condition, as long as you price it right and market it to the right people.
Most buyers prefer a home they can simply move into, without having to do any major work. However, as the plethora of DIY shows on TV demonstrates, there are also a lot of people who love a challenge, and who are on the lookout for a ‘fixer-upper’ that they can buy at a bargain price and make their own.
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The process of selling a house in poor condition
Selling a house in poor condition, including selling a house with subsidence or selling a house with a septic tank, is rather different to selling a house in good condition. You will be selling to a different market, and you will be asking a different price. However, that doesn’t mean that you can’t sell a house in poor condition, it just means you need to be realistic about it.
Be realistic about the condition
The first thing to make clear about selling a house in poor condition is that you need to be open and honest about it from the start. If you try hiding the condition of your home to fool standard buyers, they will almost always find the faults when they get a survey, and if they feel you’ve been dishonest, they may pull out of the sale altogether.
You also have a legal obligation to be honest about your property. While ‘caveat emptor’ or buyer beware applies to some extent, you also have to fill out a T6 Property Information Form, which you must complete honestly and to the best of your knowledge. If you withhold information about the condition of your home, either on your T6 or at any other time in the sale process, you could be sued under the Misrepresentation Act 1967.
Be realistic about your market
As discussed above, there are people who will buy a home in poor condition, and there are even some who actively seek out such homes. These include:
- Property flippers – some people make a hobby, or even make a living, out of buying properties in poor condition, fixing them up and selling them on for a profit.
- Property developers – property flipping can also be done on a large scale by property developers.
- Bargain hunters – more adventurous buyers may consider a property in poor condition for their own home, especially if they can get it for a bargain price and get the work done affordably over time
- DIYers and builders – buyers who have the skills and/or the contacts to get the work done themselves may consider a home in poor condition because they can fix it up for less than the going rate
- Cash homebuyers – cash homebuyers will consider any home in any condition, so if you’re selling a home in poor condition, click below to see how much a cash buyer will pay for your home for a fast, fuss-free sale:
Be realistic about the price
Naturally, selling a house in poor condition will fetch less than selling a house people can move straight into without having to do any work. You need to be realistic about this or you will sit on the market for a very long time with little or no interest.
Estate agent valuations for selling a house in poor condition are not always accurate. They often focus on what the house could be worth, rather than how much it would cost to get it to that state. It’s often better to come up with a price yourself. You can work out how buyers price a property in poor condition as follows:
- See what similar sized properties in your area sell for in good condition
- Get estimates for the work that’s required and take this off that price
- Take off an extra 10% for the inconvenience of having to arrange the work and live with tradesmen working in the property
- Make sure you detail everything in your property description, including estimates where appropriate, so buyers don’t try to negotiate you down even further.
The upgrades to consider prior to selling
Whether you have the repairs and upgrades done yourself, or you reduce your property price in line with estimates for the work, you will ultimately lose money selling a property in poor condition compared to similar, but well-maintained properties.
It’s up to you to decide whether it’s worth the time, trouble and investment required to fix up your home, or whether you should just cut your losses and sell your home as is. If you fix up your home, you may get more for it in the long run, but if you sell it as-is, you will enjoy a simpler sale much sooner and can move on with your life.
If you are determined to sell on the open market, then you should prioritise repairs in the following order:
- Essential repairs – such as leaking pipes, faulty electrics, roof issues etc. which will only deteriorate and make matters worse
- External repairs – never underestimate the power of kerb appeal. Poor condition that can be seen as buyers drive by could end their interest there and then
- Obvious cosmetic work – this can be a cheap win, inside or out, and will lower the risk of buyers being put off too easily
- Updates and renovations – outdated kitchens and bathrooms will still work, so only replace them if you have to. Most people prefer their own taste anyway, so they will probably change any work you do.
Would a cash buyer buy a property in poor condition?
As we discussed above, cash homebuyers will buy any house in any condition. Some even use this in their name such as ‘we buy any house’. They will not be put off by any work that needs doing as they’ll have a bank of tradespeople who can help them put things right.
Naturally, they will offer you less for selling a home in poor condition than they would for an immaculate home, but at least that price will be guaranteed and they won’t haggle about every fault they find like open market buyers often do. A cash home buyer with a good reputation will know exactly how to fix up a property, or know a developer that they can sell it on to for a small profit.
If your home feels unsellable as it stands, a cash buyer could be a quick and easy answer that lets you leave all those problems behind and move on. What’s more, the quick sale of a cash buyer means your home will not deteriorate any further. If you try to sell on the open market, your home could be losing value with every passing month.
However, it is important to bear in mind that any price reduction you take due to selling a house in poor condition will be in addition to the reduction you accept in exchange for a quick sale. That means you’ll get less than the industry standard of 80% of the open market value. To see what you could get selling a house that needs repairs, click the button below:
How much does poor condition affect property sale value?
How long is a piece of string? Since there’s no standard definition of ‘poor condition’ then there is no standard price reduction. The only thing you can be sure of is that selling a house in poor condition will mean selling it for less. How much less will depend on how poor the condition.
Earlier in this article, we showed you how to estimate the value when selling a house in poor condition. You also need to consider that a bad condition house for sale will attract far fewer buyers, and therefore there will be less competition to drive up the price.
If you are selling a house in poor condition to a developer or a property flipper, they will be more aware of the cost implications of problems than a normal buyer, and this can also bring down the price.
Expert Insight from Kelvin Elliott
Kelvin Elliott, founder and buying director of myhomebuyers.co.uk explains what is involved in selling a house in poor condition:
“Selling a house in poor condition on the open market can be a thankless task, as most buyers want a home they can move into straight away.
That’s where a cash home buyer can really come to the rescue by buying your home as is, fast, and for a fair price. That means you don’t have to arrange the work yourself or haggle with developers or DIYers about how much to drop the price. You get a quick and easy sale, for cash, and can walk just away from your home and its problems, even if it’s a complete money-pit.”
Can I sell my home in poor condition?
Yes, you can, but you need to accept that you will get less for it and it may take much longer to sell on the open market.
Is anyone interested in homes in poor condition?
There are lots of people looking to snap up a low priced ‘fixer-upper’, from DIY bargain hunters to professional property flippers and developers. If you’re selling a house in poor condition, you need to make sure that you target these groups.
Is it worth repairing a home in poor condition before selling it?
It depends on a number of factors, including the cost of the repairs, your current financial state and whether or not the problems will only get worse if you ignore them. You need to consider each element on its own merits.
Do cash buyers buy homes in any condition?
We-buy-any-house means just that. Cash house buyers will buy almost any property, and better still, they will buy it as-is, so you don’t need to spend time and money fixing it up ready to sell. You can simply sell a problem property and walk away, leaving all those problems behind you.
Does poor condition affect the value of a home?
Yes, of course. Selling a house in poor condition means selling it for less. How much less will depend on who you sell it to.
Do I have to disclose problems when selling a property in poor condition?
Yes, Cash house buyers will not be put off by the problems that build up in an empty home. They will even organise house clearances on your behalf to save you the hassle and heartache.
Conclusion
Being stuck with a property that’s in poor condition can feel very disheartening. Not only is it unpleasant to live in, you know it will be hard to sell on the open market.
The good news is that you can still unload your property, however bad a state it’s in, by selling to a fast home buyer for cash. Most cash buyers will buy any home, in any condition, even yours!
Just click below to see roughly what you could get for a fast sale of your problem property: