Houses represent stability, family, and a sense of comfort for most people. However, some homeowners encounter unforeseen struggles that cause their properties to become neglected and distressed. If you fall into the latter category, you might wonder how to sell a distressed house. At The Red Door Guys, we buy houses in Richmond, VA, and offer advice on distressed property sales below.
What Is a Distressed House?
First, you must determine whether your property falls under the distressed label. It encompasses one of two categories. Financially speaking, a distressed property is owned by someone who cannot meet monetary obligations like mortgage payments. Alternatively, it can also refer to a neglected or property in disrepair.
How To Sell a Distressed House: Insider Tricks
Navigating the housing market is tricky enough under normal circumstances. Selling distressed properties can make it trickier.
#1 Find the Property Value
Like a typical property sale, you need to know how much yours might be worth before putting it on the market. Numerous factors can influence your property’s worth, including:
- Market environment
- Area appeal
- Condition of the building and surrounding landscape
- Proximity to conveniences
- Size
You can consult a real estate agent or use an online calculation tool to find a ballpark estimate.
#2 Know Your Target Buyer
Understanding your target audience will help you plan your next moves. Learn what each segment of buyers looks for:
- Traditional buyers: This buyer likely wants a permanent home with little baggage, unless they specifically seek a cheaper fixer-upper.
- Flippers: Flippers will purchase properties in almost any condition. Then, they make the needed improvements and repairs to resell and turn a profit.
- Cash buyer for distressed homes: A cash buyer can be a flipper, property manager, or another type of real estate investor. They offer cash on the spot for as-is properties.
In almost all cases, utilizing a real estate investor is more streamlined with faster closings than a traditional home selling process.
#3 Prioritize and Address Repairs
Will you spruce up the place or sell as-is? You can schedule a home repair assessment to prioritize the most important needs. However, part of learning how to sell a distressed house means determining whether your investments will reap returns. Selling as-is homes limits the money you spend on repairing and beautifying the property.
#4 Assess Legal Disclosures
Whether you sell as-is or plan home improvement projects, you must list the property’s issues to ensure buyers make an informed decision. The federal government requires some level of legal disclosure throughout the country. However, your state’s laws may have varying requirements.
#5 Sell Quickly
A good rule of thumb for selling a distressed property is to close the deal as quickly as possible.
Quick house sale strategies help you avoid additional costs, like another year’s property taxes and insurance. The longer a property sits on the market, the more its worth declines.
Sell Your Distressed Property to The Red Door Guys
Now that you know how to sell a distressed house, learn how a cash buyer vs. hiring a realtor can benefit your as-is sale. Then, let The Red Door Guys take your distressed property off your hands at 804-395-7355. Learn more today.