Household & Real Estate

How to Sell a Distressed Home

How do you sell a distressed home fast and get it off your hands quickly?

When the market is unstable, buyers are hesitant, and the house is in poor condition, selling a home can be challenging. Buyer confidence also creates strife in the market, making it difficult to predict how long it might take to sell a house.

If you have a “distressed” home on your hands, the situation can be even more complicated.

This article will give you all the tips and tricks for selling a distressed home. Read on to find out more!

Understand the Market

When selling a distressed home, know its value. You may not get the full market value for your home, but at least you are being realistic.

To sell your home quickly, you may need to lower the price. For an accurate price estimate, consult a real estate agent. You can research the price yourself and do a comparative analysis of similar properties near you.

Have a Realistic Asking Price

When pricing a home for sale, be realistic about its value; it should be based on recent sales of similarly distressed properties in the area.

Overpriced homes often stagnate on the market without serious bids, whereas reasonably priced homes sell quickly.

Do Repairs and Improvements or Sell As Is

If you make repairs and improvements, you will most likely be able to sell the house for a higher price. You will, however, have to invest more money in the home, and it will take longer to sell.

If you sell the home as is, you will likely sell it for less money but it will be a quicker sale. The decision is yours to make and will also depend on your situation. 

Prioritize Cash Buyers

If you find yourself in the position of having to sell a distressed home, the best option is usually to work with cash home buyers. These are investors who are looking to purchase homes that need repairs or are in foreclosure.

Working with a cash buyer can avoid having to make home repairs or go through the lengthy foreclosure process.

Cash buyers will usually purchase the home as-is and close on the deal quickly, which is ideal if you need to sell the property quickly.

Verify the Buyer

Demand for a pre-approval letter from the buyer’s lender. This letter will state that the buyer has been approved for a loan up to a certain amount.

Ask the buyer for a deposit. This will show that the buyer is serious about purchasing the home.

Request references from the buyer. These references could be from previous real estate transactions or from other businesses with which the buyer has worked.

Put Everything Into Writing

Put everything in writing. The contract must include any repairs needed, any existing damage, and anything else a potential buyer should know about the property in distress.

A contract helps avoid surprises and ensures that everyone is on the same page from the start.

It can also be helpful to include photos or videos of the property so buyers clearly understand what they are getting in. 

Sell Your Distressed Home

If you are planning to sell a distressed home, it is important to take the time to understand the process and the different options available. Researching and understanding your options will help you sell your home quickly and for the best price.

If you’re interested in learning about similar topics, check out the rest of our blog posts!