How do you sell a house that needs extensive work? You only have two options. You can repair the property or sell it as-is. Many times, sellers spend too much money on home renovation. They spend extravagantly on repairs that will never pay off at the time of sale.
On the other hand, it is best not to sell your home as-is, if you are planning to sell the property on the retail market.
How to Sell a House that Needs Work in Easton CT?
Repair the Property
Realtors will suggest renovating your home for a higher return on investment. If you want to sell your Easton home to a conventional buyer, then it is a must to fix and repair the house. Get an estimate of the work that needs to be done. You will probably need to hire a property inspector who will evaluate the structure. You will get a complete report outlining what you must do.
When it comes to fixing the property, most homeowners do not have the motivation, time or money to handle the work. Make a price comparison. It is essential to focus on value-adding repairs and ignore renovations that go out of your budget or won’t provide a high ROI. If you invest $7,500 in your house; will you get a 100% return on investment? Will your home sell at a higher price?
The ROI must be high enough to cover 70%-80% of your investment. If you are interested in repairing the home but do not have money to cover the expenses, you can use following options:
Refinance the House
Get your renovations project approved. You can take a new loan on the house that allows changes in the building. You can use that money to fix the house. FHA provides such loans. Keep in mind, that refinancing means taking a new mortgage, and you will pay all mortgage-related costs. Expect to pay 1%-2% of loan value in closing costs.
Home Equity Loan
An equity line or a line of credit is another option. A home equity loan allows you to take a fixed, one-time loan. You will repay it later. Your lender will confirm the loan terms. Another option is the Equity Line of Credit which works just like the credit card. You can borrow money up to a specified limit. As in the case of credit card, you borrow money when you want. Similarly, the Equity Line of Credit allows you to spend money when or wherever you need it.
Be careful with such types of loans. You are putting your home at the risk. Also, discuss the loan terms with your lender to get better interest rates and to avoid balloon payments.
Sell Your House As-Is
In many situations, it is best to sell your home as-is. Depending on the condition of the house, you will most likely sell your home to a real estate investor or a redevelopment company. If your home needs minor repairs, then you should spend money and try to get your house fixed before selling. Examples of small improvements include the following:
- Replacement of leaky fixtures, broken windows, and worn out carpet
- Repairing the lights
- Fixing drywall damage
However, if your home needs extensive renovation, then you should sell your home to a real estate redevelopment firm. If your home needs a new roof or extensive kitchen/bath remodeling, then it is time to contact an investor who will buy your house as-is. Because of strict lending criteria, conventional buyers cannot purchase a home with structural issues. Lenders do not approve loan applications for a house that requires significant repairs. In that case, you should directly contact a reputable RE development company in your area.
You will get a fair cash price quote on your house, and you will decide if you would like to sell your home. Cash buyers in Easton CT can buy your home as-is for a cash price within ten days. If you want to sell a house that needs work in Easton CT; then click here:
