How To Sell a House That Needs Renovating

Renovating a house can be an exciting project, but when it comes to selling a house in need of renovation, it requires a more strategic approach, as it is a particular type of buyer you are trying to attract. Many buyers want a property that is ready to move into and one that is in poor condition increases concern about additional problems, including structural issues. By understanding the market, being transparent, and aligning with potential buyers’ expectations, you can successfully navigate the selling process. In this article, we delve into how to approach selling a house that may be in poor condition or even mid-renovation.

Selling a House Mid-Renovation or in poor condition

While unconventional, selling a house mid-renovation can appeal to buyers looking for a project. The key is to find and attract those buyers. Clearly outlining the renovation plans, and potential added value, and allowing for flexibility in the sales process can help to ensure a successful sale.

If the property you are looking to sell is in poor condition, honesty is key. Acknowledge its current state, but be sure to emphasise the potential for improvement. Whether you research similar properties that have been renovated and present these to potential buyers or invest in digital staging, a transparent approach can attract buyers who can see the potential opportunity.

Who Are You Trying to Attract

The first thing to do when selling a house mid-renovation is to identify your target audience. Renovation enthusiasts, developers, or first-time buyers looking for a project may be interested. Tailor your marketing strategy to attract these specific groups and think about choosing an estate agent who has experience in selling similar properties as they will know how to market your property and may already have people on their books who will be interested. 

Cost Estimates

It will help potential buyers if you offer estimates for renovation costs or work with a contractor to provide potential buyers with a clearer understanding of the investment required. This can help potential buyers make informed decisions and feel confident in their purchase, which will in turn increase the chances of a successful sale for you.

Don’t Make Renovations that Won’t Get Value Back

Although it is easy to think more renovations will result in more money, be sure to prioritise renovations that add value and avoid unnecessary improvements that won’t get you a return on investment. Focus on aspects that enhance the property’s appeal to potential buyers. For example, a new front door on a partially renovated property that needs a lot of other work may not recoup the money back.

Use an Agent with Interested Buyers

Leverage the expertise of an estate agent who may have buyers on their books specifically interested in renovation projects. A well-connected agent can expedite the selling process and target buyers who are particularly interested in a property that needs work.

Be Realistic About the Condition

Realistic expectations are crucial. The first thing you need to do is understand the true condition of the property and price it accordingly. Unrealistic pricing can deter potential buyers and prolong the selling process. It may be that you instruct a surveyor to undertake a survey of the property, so you can find out if there are any major issues with the property. This, in turn, would act as assurance for potential buyers to rule out any issues. Most buyers will carry out their own survey, so if there are any issues you know about make sure you inform potential buyers. If you have tried to cover something up, this could damage your relationship with your buyer and cause issues with the transaction later on.

Don’t Overprice the Property

Overpricing a property is a common mistake. Research the market and set a competitive price that reflects both the current condition and the potential value after renovations. Look online to see if any similar properties are on the market or that have sold, to give an idea of an accurate price. Also enlist the help of an experienced estate agent, who will be able to guide you to making an informed decision on price.

Understand the Current Market

Stay informed about the current housing market. If you speak to a local estate agent and frequently have a look on online portals to understand the demand for renovation projects in your area, it will help you to decide on the best method of sale and price your property accordingly.

Are There Any Issues that Would Prevent a Sale?

Address any potential issues that might hinder a sale. This could include legal considerations, permits, or structural concerns. Resolving these in advance will streamline the process and help you to achieve a quicker sale.

Consider Selling via Auction

Auctions can be effective for selling properties in need of renovation, particularly for unmortgageable properties. Auctions tend to attract buyers that are prepared for the property’s current condition and, even though you may not get the highest price for your property, selling via auction can mean you can achieve a quick and straightforward sale.

Selling a property in need of renovation, whether mid-renovation or needing a full programme of works, there are certain things to always keep in mind:

• Set The Right Price: A professional valuation that takes into account both the property’s current condition and its potential after renovation, to take account of the level of investment required.
• Highlight Potential: Emphasise the property’s potential and the opportunities it offers for development and improvement.
• Maximise Marketing: Professional photos and a compelling description, will help to showcase the property’s best features and create a vision for what it could become.
• Target the Right Buyers: Identify the target audience who may be interested in a renovation project. This could include DIY enthusiasts or property investors.
• Be Honest: Be transparent about the property’s current condition, including any structural issues, necessary repairs, or legal restrictions. This builds trust with potential buyers.
• Flexible Sale Terms: By offering flexible terms, such as being prepared to negotiate the sale price based on the renovation needs, can attract buyers who see the potential but need flexibility.
• Use Professionals: Partner with experienced estate agents, contractors, or architects who can provide insights into the property’s potential. Having these experts involved can reassure buyers about the scope of work and level of investment required.
• Staging: Stage the property to showcase its potential rather than its current state. Physical staging may not be appropriate, but virtual staging can inspire potential buyers and help them to visualise what the renovated spaces could look like.
• Do Local Market Research: Understand the local housing market to understand the demand for renovated properties in the area, so you can price your property accordingly.
• Legal Considerations: Be aware of any legal considerations, such as obtaining necessary permits for renovations, to ensure a smoother sales process.

By addressing these considerations when selling a property that is mid-renovation or in poor condition, you can position your property effectively in the market and attract buyers who are specifically interested in taking on a renovation project.