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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 […]
14 December 2023
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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.
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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.
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.
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.
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.
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.
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.
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.
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.
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.
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:
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.
From mortgages and insurance to viewings, offers, exchange and completion, our Buyers’ Guide will take you through everything, step by step, from start to finish.
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