People want or need different things at different times.
Sometimes, convenience is their priority. Other times, they want a challenge.
This is clear when it comes to selling ‘fixer-upper’ houses, especially if you need to sell one fast…
What is a fixer-upper house?
A fixer-upper house is a property that requires renovations or repairs to bring it up to a higher standard.
These houses are usually still habitable but won’t sell for the best possible price on the open market due to the time and money required to improve them.
Fixer-upper house issues
It is common for buyers with little experience to underestimate the cost of repairs required to make a house liveable.
Structural and service issues may not be visible at first and can often require expensive, professional contracting work.
Standard features of a fixer-upper house include:
- Old electrical or plumbing systems
- Worn out flooring
- Broken lightbulbs
- An extremely unkempt garden
- Cracks in the paint, walls or roof
- Plug sockets that don’t work
Bad tenants might cause these issues or simply the age and lack of upkeep of a property.
Why sell a fixer-upper?
If you don’t have the money to complete repairs, your property might be in bad condition.
Or perhaps you have the money but would prefer to allocate it elsewhere – on the property you are buying, for example.
Finally, it might be a time issue. You might not have the time to repair or renovate your property.
Selling fixer-uppers quickly
In general, sellers often want to sell their houses quickly.
There are methods to make houses sell more quickly on the open market and alternative channels to the open market for selling houses faster.
But before considering these, it’s worth understanding how long it takes to sell a house in each scenario.
Some fast sale methods might be slowed down because your property is a fixer-upper.
However, if this is the case and you still need to sell urgently, there are ways to gain a sale in as little as seven days.
How much do fixer-upper houses sell for?
A house’s value decreases if it is in poor condition. This means that a fixer-upper sells for less than an equivalent property in pristine condition.
According to the online platform Yopa, an analysis of 41,951 unmodernised properties currently available in the UK indicated that the average asking price is £313,835.
This is 6.2% less expensive (£20,632) than the average price for modernised equivalents (£334,467).
And remember, 6.2% is just the average. The specific decrease a property has will depend on the precise nature of its issues.
Should I renovate a fixer-upper house before selling?
Time, money and stress are all involved with fixing up a property.
Your cash flow will need to be strong so you can afford to spend on fixes without receiving immediate payback.
You will need several independent quotations from contractors/suppliers to estimate the value any amendments will add to the property.
If the changes you need are significant and structural, you will also need to consider the cost of alternative accommodation before and after they are carried out.
You may even be able to make some of the fixes yourself at minimal cost – such as adding new paint, fixing electrical wiring (if you have the skillset) or tidying the garden.
If you have a busy schedule or cannot be on-site for all the days these fixes are being made, it might be easier to offload the property.
It is perfectly possible to sell your property fast – which we have explained how to do further below.
Advantages of selling a fixer-upper house
Avoiding stress
When you sell a fixer-upper house, you can avoid the time, stress and money involved with fixing it up.
This is especially useful if you have inherited the house unexpectedly due to the passing of a loved one.
Accessing cash quickly
By selling a fixer upper house, you can then access the money from the sale quickly, which can be used in another way.
Perhaps you want to pay off the mortgage on another house you own or fund an early retirement. You could even be able to take a holiday.
If your fixer-upper house is in reasonable condition, you can find a buyer through the ‘traditional’ method of using an estate agent.
This option may appeal to first-time buyers on a smaller budget or those looking for a long-term project. In this situation, you might be able to meet the new owners.
Disadvantages of selling a fixer-upper house
Low price
On the other hand, you will not receive a high price for your fixer-upper house, compared to an equivalent property in excellent condition.
If you can make renovations in a cost-effective way, it might be financially better for you in the long-run.
Loosing out on potential future earnings
By keeping ownership of a fixer-upper, you can also turn it into a valuable income stream if you improve it to the point where you can rent it out.
It may be challenging to sell a fixer-upper on the open market through an estate agent if banks are unwilling to give a mortgage to people buying your house.
How to sell a fixer-upper house quickly
1. Lowering the asking price
Lowering the asking price of a house can significantly speed up its sale. It makes the property more attractive to a broader range of potential buyers.
However, a fixer-upper is generally being sold at a lower-than-average price already. So, lowering the price further will increase a seller’s loss.
2. Alternative selling channels
Cash house buyers
Cash buyers undoubtedly offer the fastest way for you to sell your fixer-upper.
These organisations have all the funds needed in-house to buy your property in an extremely short timeframe.
Auction houses
It is possible to sell a property at an auction house, too.
This will likely enable you to sell the property within a month, although it will be slightly slower than a reliable cash buyer.
With an auction house, potential buyers must commission surveys to examine the property’s condition thoroughly.
Selling privately to a friend
Selling your house privately to a friend, family member, or acquaintance could be an option.
This bypasses the traditional property selling process and brings benefits such as a quicker sale, helping a friend, and more flexible terms.
However, there are potential drawbacks. You might strain your friendship if disagreements arise or lose out on potential profit beacuse the property isn’t exposed to the open market.
Either way, this approach depends on you knowing something willing to buy your property.
Sell your fixer-upper quickly with We Buy Any Home
With We Buy Any Home, you can complete the sale of your fixer-upper house fast – within 7 days.
We are chain-free cash house buyers who can purchase your property up-front and quickly, without hassle or stress.
Fill in our enquiry form below if you want a cash offer for your house.
