Selling a distressed property doesn’t have to be stressful. Learn more about how to sell your distressed Hawaii house in our latest post!
You might think that selling a problem property will be difficult and time-consuming, because in many cases it certainly can be! However, with our top 10 expert tips for selling a distressed property, you will be able to sell quickly and for a fair price. Get ready to learn more about how to sell your distressed house in Hawaii!
Tip #1: Avoid Listing Fees
Selling your distressed property to a professional buyer such as Oahu Home Buyers will save you both time and money. Listing your Hawaii house with an agent can be expensive and you will have no idea when it will actually sell or for what price. By selling it directly, you can 1) choose your closing date (gain certainty), and 2) avoid commissions that can get quite expensive, especially in a high-market state like Hawaii. Note that in some cases, listing with an agent can make sense, but wouldn’t you at least like to know your options?
Tip #2: Make It Pretty
Ok, so this tip doesn’t mean go the whole nine yards in a full renovation, but if your property needs a lot of repairs then you can take some small steps that can lead to a big impact. These include tasks like mowing the yard, minor cosmetic fixes like caulking a tub, and some simple extras such as cleaning the house and shampooing any carpets. Try to help buyers see the potential of your home.
Tip #3: Disclose Everything
No matter what is wrong the house, you need to disclose it up front — on paper. You risk a lawsuit if you intentionally hide any known defects (disclaimer: not an attorney here, btw, but this generally known). Do the right thing and be upfront about both the good and the bad. Even if the bad does outweigh the good, there’s a buyer (hint: us?) for your property!
Tip #4: Find The Right Buyers
Think about who would be looking for a property that needs a lot of work. Are they regular homeowners looking for a deal or who are comfortable hiring a contractor? Or are they professional investors who specialize in homes that ‘need some love’? Decide who is likely to step up to the plate and proactively look for them. You can contact real estate investment groups or search on Google or Bing (you’ll see us there).
Tip #5: Be Patient
There isn’t as large of a market for distressed properties as there is for turnkey homes, naturally. It might take longer than you think to find that right person. If time isn’t on your side, ex. facing foreclosure, then it’s better to reach out to professional investors like Oahu Home Buyers now to get the ball rolling.
Tip #6: Be Flexible
Do you have a Plan B in case you’re not able to sell your house on your ideal terms? Maybe you can consider renting it out or getting a renovation loan or HELOC. Better yet, talk to us about a lease option. This method allows you to get income from the property (instead of paying the mortgage for a vacant house) while agreeing to sell your house down the road. For some sellers, it’s the perfect solution, i.e. if you’re relocating from Hawaii.
Tip #7: Know The Home’s Value
Many home sellers have an idea of what they want to sell the property for or think they know what the home is worth. But the reality is that most don’t understand how to calculate such values. Knowing the ‘market is hot’ or what your neighbor’s house sold for isn’t a great barometer on what you should expect for yours.
Did you factor in the repairs and/or upgrades that today’s home shoppers are seeking? If your house needs work, you need to factor that into your asking price because I can guarantee that buyers will.
Tip #8: Paperwork Done Right
If you choose to sell the house on your own, be prepared to handle the paperwork. Do you know how to work the contracts and addenda? What the different clauses are and what purpose they serve? What’s legal to request/include and what may not be? When you work with us, we handle all the paperwork along with the title and escrow company, so you will have one fewer thing to worry about.
Tip #9: Don’t Appear Desperate To Sell Your House
Be prepared for ‘lowball’ offers if your home is in disrepair or very dated. If you have the time, flexibility and capability, you can push back a bit and counter these offers for one that is more to your liking. Of course, keep in mind that the benefits of a direct “as is” sale as described above can go a long way to getting you out of a property that is causing you loads of stress. There’s a real monetary value to that, so don’t push too hard (or at all) if you’re looking for a true solution. Sometimes it’s better to see the big picture!