Selling your home is never easy, but it is even more difficult when your home is somewhat defective. This could be because of:
- Being in a bad location
- In a state of disrepair
- Poor layout
- Old electrical or plumbing
Homes with these defects are going to be quite a bit more difficult to sell, even if you price it for the defects. Most homebuyers want move-in ready homes and don’t want to have to do any work. Sometimes, if the location is good and the price is right, flippers may be interested in a defective home as an investment, but that depends on what the flipping industry is like in your community.
Here are some ways you can maximize the potential of a defective home.
This is just something you really can’t change, so if the home is solid, you’ll need to capitalize on that fact. The home’s value will definitely be decreased if it is in a high-crime area or near a high-crime area. Other factors about location that affect the potential for sale include being on or near a busy road, beside rail tracks, near industrial properties, apartment buildings or utility structures or if there is government housing close by. Also being close to an airport or freeway because of noise pollution, or garbage or recycling facilities because of the smell, can be things to figure in. Lastly, nearby cemeteries can also affect if your home will sell quickly.
Because you can’t change the location, you really need to capitalize on how great the home is for the money. You’ll definitely want to price it below other homes nearby, who may have the same location, but this gives you a step up. Explain what makes the home itself worth buying in a not-as-desirable neighborhood. This could be the price, which could make or break it for a first-time homebuyer who can’t afford a home in Maui’s other communities. It could also be a solid and sound home, with updated wiring and plumbing. Target your marketing to the fact that the home itself is well worth the money you will spend on it.
Again, unless you are interested in doing extensive renovations, this may not be something you are willing to change before you sell. Walking through a home with a bad layout often will turn a buyer off and this can include narrow hallways, bedrooms on separate levels, bedrooms accessed from other rooms, bathrooms in awkward locations; all of these can lead to a feeling of choppy flow in the home. You’ll want to maximize what is great about your home (Larger yard? Close to desired school? Square footage?) in order to get the potential buyers forgetting about your poor layout. Get a stager in to the home who can make it seem like the home flows well with strategic furniture placement and accessories.
The best thing you can do if you want to sell your home for top dollar is to fix the damage that might bring your value down and keep your home on the market for longer than it should be. But, if you don’t have the budget, you could also offer to fix it, on the sale of the property. If that option also doesn’t work, you can capitalize on offering it for a low price as a fixer-upper for those who want a project. Usually, buyers want more of a “sexy” project and won’t want to fix a cracked foundation or outdated wiring, but would rather put in a whole new kitchen. If your home is in a good location, price it lower than the other surrounding homes, which makes it available to those who want to live there, but can’t afford the neighborhood.
Another option when it comes to homes that are damaged, is to advertise it “as-is” or as a tear-down (depending the extent of the damage). While you definitely won’t get the traditional buyers looking, you’ll find investors who are looking to flip the property or rebuild on the land, which could be quite valuable.