5 Mistakes to Avoid When Selling a Problem House

Selling a problem house is quite a difficult task. As a seller, you must understand that your house is not worth as much as it once was. Although a little lower price may attract more buyers, going too low will clearly indicate the underlying issues. Moreover, you will have much fewer potential buyers, as barely anyone wants to purchase a house requiring extensive repairs and renovations, except for real estate investors or those who want to do the repairs themselves.

Selling a house with any problems, whether they are legal or physical, could be one of the most frustrating processes you will ever go through. However, you can learn from others’ experiences and avoid some commonly made mistakes, such as keeping the clutter, staying unwilling to negotiate, and pricing the house too high – among other things. You will find more details about these below.

Not Getting Professional Help

Although marketing and negotiating is something that every seller should be able to do, it doesn’t mean that you have to do it all by yourself. Getting professional help is a good idea, especially if you are not familiar with the issues related to selling a problem house.

A real estate agent or consultant will be able to assist you with all the problems that may come up and give you advice regarding the price, negotiation, and other aspects. They could also help you with closing costs, tax issues, and other potential obstacles. Keep in mind that their fees will come out of the sale of your house, so you will have to factor them into your plans.

On the other hand, if you want to sell quickly, there are also websites like HighestCashOffer.com whose experts specialize in buying problem houses and getting all the issues off your plate.

Pricing the House Too High

Just as with a house in good condition, the price you set will greatly affect the number of interested potential buyers. If the price is too high, it will turn a lot of people away. Consider the amount of money and effort you would have to put in to make the house look good again if you were to buy it yourself. For example, if your house needs a complete roof replacement, that would be a substantial cost varying from as little as $5,000 to over $20,000 – or as much as you are willing to spend for quality materials and solutions.

The price should be fair enough so that you can justifiably ask for it. You can always start a little higher and lower it later if there’s no interest. This is a good strategy to get potential buyers to contact you and negotiate the price, but at the same time, it may take more time than you would want to, with your problem house staying in classifieds for long months.

Keeping the Clutter

Even if you want to sell a house that needs some general renovation, it doesn’t mean that you can leave it dirty and messy. You don’t have to clean every single corner, but you should get rid of the stuff that’s too old or damaged to be used or otherwise unimportant furniture, appliances, or other household items. Not only will it make it easier for potential buyers to visualize how the house will look after the renovations, but it will also give the rooms a more spacious look.

And if the problem with your house lies in paperwork, this is even more important. In the end, a property debt does not lie in the appearance, so you should give the house the same treatment as if it was a regular one. The less clutter there is, the more likely the house will sell.

Staying Unwilling to Negotiate

As a seller, you should be willing to negotiate at any time, as long as it will benefit you. If a potential buyer offers you less than you expected the house to sell for, it doesn’t mean that you have to accept. It’s still up to you to decide whether it’s a fair deal or not. However, keep in mind that the less you are willing to negotiate, the more likely it is that your house will stay on the market for a long time.

You can also offer to cover closing costs or other incentives to buyers. It is a good way to turn an undecided buyer into a definite one and maybe even receive a higher offer than initially.

Hiding Problems

This is probably the worst mistake you can make as a seller. You should be honest with potential buyers and tell them about all the house’s problems. Not doing so could result in lawsuits, which is something nobody wants. While some minor issues may be lost in the grand scheme of things, skipping over a major problem could be a big mistake as either the potential buyer may notice it or the new owner might, after they have bought the house.

For example, some houses have a problem with mold, which may seem like it goes away if you clean the house well enough. However, sometimes you can’t get rid of mold that easily. It may come back and cause health problems, which is something a buyer would most likely not want to deal with. So, in the end, it’s better to tell them about it and let them decide whether they are willing to take the risk or not.

Final Thoughts

If you’ve decided to sell a problem house, it’s best to go through the process with an open mind. In the end, there are many things that can be improved, and a little creativity can often do the trick. But most importantly, try to avoid the mistakes listed above.

Hiding problems, pricing too high, or being unwilling to negotiate are not the best strategies if you want to sell a problematic property. But by being honest and open with potential buyers, you might just get a reasonable price for it. So, if you are planning to sell a problem house, keep these mistakes in mind and avoid them at all costs. Good luck!